Document:

Exhibit
10.1

February 13, 2007

Kenneth B. Gilman

257 W. 86th Street, Apt. 7A

New York, NY 10024

Dear Ken:

This letter confirms certain
agreements between you and Asbury Automotive Group, Inc. (the “Company”) in
connection with your retirement from the Company.

You and the Company
acknowledge and agree that your retirement from the Company shall be effective
immediately following the Company’s annual meeting of shareholders (the “Effective
Time”), which is scheduled to occur on May 4, 2007.  At the Effective Time, you agree that you
will cease to be a director, officer and employee of the Company and all its
subsidiaries, and you will submit any resignations reasonably required to
effect the same.

The Company acknowledges
and agrees that your retirement constitutes a termination by the Company other
than for Good Cause for purposes of the Employment Agreement between you and
the Company dated as of December 3, 2001, as amended (the “Employment Agreement”).  Consequently, the Company shall provide you
with the severance benefit set forth in Section 12 of the Employment Agreement,
which the Company has determined consists of a lump sum cash payment of (i)
$1,454,350 and (ii) an amount equal to your total annual bonus for 2006, which
is currently estimated to be approximately $1,400,000, in each case subject to
applicable tax withholdings, that shall be paid to you within 30 days of the
Effective Time; provided that, as and to the extent provided by the
Employment Agreement, no such payment will be made prior to your executing and
delivering to the Company a release of claims against the Company as discussed.

In addition, the Company
will pay to you any base salary you accrue through the Effective Time and any
bonus earned for 2006 that has not yet been paid to you (in each case, subject
to applicable tax withholdings).  You
shall also be entitled to elect to participate in the Company’s medical
insurance plan as provided in Section 6(e) of the Employment Agreement.

The Company acknowledges
that its Board of Directors has approved (i) the accelerated vesting of the
3,333 shares of unvested restricted stock of the Company you currently hold,
which acceleration shall be effective as of the Effective Time, and (ii) your authorization
to elect to exercise your option to acquire 162,177 shares of Company common
stock through a net share delivery or “cashless” exercise.

You acknowledge and agree
that, pursuant to Sections 10 and 11 of the Employment Agreement, you may not,
to the extent provided by the Employment Agreement, (i) for a period of one
year after the Effective Time, engage in certain competitive activities or make
certain solicitations of Company employees or (ii) at any time, disclose
certain confidential information of the Company.  You also agree that upon the Effective Time
you will return to the Company all documents and correspondence in your
possession relating to the business of the Company and its subsidiaries, as and
to the extent required by Section 11 of the Employment Agreement.

This letter shall be construed
and governed by the laws of the State of New York, and may not be amended or
modified without the written agreement of both you and the Company.  Without limiting any rights under the
Employment Agreement and other governing documents, this letter constitutes the
entire agreement between you and the Company with respect to the matters
addressed herein.  Any disputes between
you and the Company with respect to this letter shall be resolved in the manner
set forth in Section 17 of the Employment Agreement.

 

	
   

  	
   

  	
   

  	
   

  	
  ASBURY AUTOMOTIVE GROUP,
  INC.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Michael J.
  Durham

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: Michael J.
  Durham

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title: Non-executive
  Chairman of the

  Board of Directors

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accepted and
  agreed as of the date first above written:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Kenneth B.
  Gilman

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kenneth B.
  Gilman

  	
   

  	
   

  	
   

  	
   

  

 

 2EXHIBIT 10.1

Execution Version

 

AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT

dated as of February 13, 2007

among

TC
PIPELINES, LP

as Borrower

THE LENDERS FROM TIME TO TIME PARTY HERETO

SUNTRUST
BANK

as Administrative Agent

UBS SECURITIES LLC AND ROYAL BANK
OF CANADA

as
Co-Documentation Agents

BMO CAPITAL MARKETS FINANCING INC. AND THE ROYAL BANK OF
SCOTLAND PLC

as Co-Syndication
Agents

and

DEUTSCHE BANK AG NEW YORK BRANCH AND THE BANK OF TOKYO-MITSUBISHI UFJ,
LTD.

as Managing Agents

SUNTRUST CAPITAL MARKETS, INC.,

as Arranger and Book Manager

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS; CONSTRUCTION

  	
   

  	
  1

  
	
  Section 1.1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2.

  	
   

  	
  Classifications of Loans and Borrowings

  	
   

  	
  24

  
	
  Section 1.3.

  	
   

  	
  Accounting Terms and Determination

  	
   

  	
  24

  
	
  Section 1.4.

  	
   

  	
  Terms Generally

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMOUNT AND TERMS OF THE COMMITMENTS

  	
   

  	
  25

  
	
  Section 2.1.

  	
   

  	
  General Description of Facilities

  	
   

  	
  25

  
	
  Section 2.2.

  	
   

  	
  Revolving Loans

  	
   

  	
  25

  
	
  Section 2.3.

  	
   

  	
  Procedure for Borrowings

  	
   

  	
  25

  
	
  Section 2.4.

  	
   

  	
  Swingline Commitment

  	
   

  	
  26

  
	
  Section 2.5.

  	
   

  	
  Term Loan Commitments

  	
   

  	
  27

  
	
  Section 2.6.

  	
   

  	
  Funding of Borrowings

  	
   

  	
  28

  
	
  Section 2.7.

  	
   

  	
  Interest Elections

  	
   

  	
  28

  
	
  Section 2.8.

  	
   

  	
  Optional Reduction and Termination of Commitments

  	
   

  	
  29

  
	
  Section 2.9.

  	
   

  	
  Repayment of Loans

  	
   

  	
  30

  
	
  Section 2.10.

  	
   

  	
  Evidence of Indebtedness

  	
   

  	
  30

  
	
  Section 2.11.

  	
   

  	
  Optional Prepayments

  	
   

  	
  31

  
	
  Section 2.12.

  	
   

  	
  Mandatory Prepayments

  	
   

  	
  31

  
	
  Section 2.13.

  	
   

  	
  Interest on Loans

  	
   

  	
  32

  
	
  Section 2.14.

  	
   

  	
  Fees

  	
   

  	
  32

  
	
  Section 2.15.

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  33

  
	
  Section 2.16.

  	
   

  	
  Inability to Determine Interest Rates

  	
   

  	
  34

  
	
  Section 2.17.

  	
   

  	
  Illegality

  	
   

  	
  34

  
	
  Section 2.18.

  	
   

  	
  Increased Costs

  	
   

  	
  35

  
	
  Section 2.19.

  	
   

  	
  Funding Indemnity

  	
   

  	
  36

  
	
  Section 2.20.

  	
   

  	
  Taxes

  	
   

  	
  36

  
	
  Section 2.21.

  	
   

  	
  Payments Generally; Pro Rata Treatment; Sharing of
  Set-offs

  	
   

  	
  38

  
	
  Section 2.22.

  	
   

  	
  Letters of Credit

  	
   

  	
  40

  
	
  Section 2.23.

  	
   

  	
  Increase of Commitments; Additional Lenders

  	
   

  	
  44

  
	
  Section 2.24.

  	
   

  	
  Mitigation of Obligations

  	
   

  	
  45

  
	
  Section 2.25.

  	
   

  	
  Replacement of Lenders

  	
   

  	
  45

  
	
  Section 2.26.

  	
   

  	
  Extensions of Maturity Date or Revolving Commitment Termination
  Date

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

  	
   

  	
  47

  
	
  Section 3.1.

  	
   

  	
  Conditions To Effectiveness

  	
   

  	
  47

  

 

 

	
  Section 3.2.

  	
   

  	
  Each Credit Event

  	
   

  	
  49

  
	
  Section 3.3.

  	
   

  	
  Delivery of Documents

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  51

  
	
  Section 4.1.

  	
   

  	
  Existence; Power

  	
   

  	
  51

  
	
  Section 4.2.

  	
   

  	
  Organizational Power; Authorization

  	
   

  	
  51

  
	
  Section 4.3.

  	
   

  	
  Governmental Approvals; No Conflicts

  	
   

  	
  51

  
	
  Section 4.4.

  	
   

  	
  Financial Statements

  	
   

  	
  51

  
	
  Section 4.5.

  	
   

  	
  Litigation and Environmental Matters

  	
   

  	
  52

  
	
  Section 4.6.

  	
   

  	
  Compliance with Laws and Agreements

  	
   

  	
  52

  
	
  Section 4.7.

  	
   

  	
  Investment Company Act, Etc.

  	
   

  	
  52

  
	
  Section 4.8.

  	
   

  	
  Taxes

  	
   

  	
  52

  
	
  Section 4.9.

  	
   

  	
  Margin Regulations

  	
   

  	
  53

  
	
  Section 4.10.

  	
   

  	
  ERISA

  	
   

  	
  53

  
	
  Section 4.11.

  	
   

  	
  Ownership of Property

  	
   

  	
  53

  
	
  Section 4.12.

  	
   

  	
  Disclosure

  	
   

  	
  54

  
	
  Section 4.13.

  	
   

  	
  Labor Relations

  	
   

  	
  54

  
	
  Section 4.14.

  	
   

  	
  Subsidiaries

  	
   

  	
  54

  
	
  Section 4.15.

  	
   

  	
  Insolvency

  	
   

  	
  54

  
	
  Section 4.16.

  	
   

  	
  OFAC

  	
   

  	
  54

  
	
  Section 4.17.

  	
   

  	
  Patriot Act

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AFFIRMATIVE COVENANTS

  	
   

  	
  55

  
	
  Section 5.1.

  	
   

  	
  Financial Statements and Other Information

  	
   

  	
  55

  
	
  Section 5.2.

  	
   

  	
  Notices of Material Events

  	
   

  	
  56

  
	
  Section 5.3.

  	
   

  	
  Existence; Conduct of Business

  	
   

  	
  56

  
	
  Section 5.4.

  	
   

  	
  Compliance with Laws, Etc.

  	
   

  	
  57

  
	
  Section 5.5.

  	
   

  	
  Payment of Obligations

  	
   

  	
  57

  
	
  Section 5.6.

  	
   

  	
  Books and Records

  	
   

  	
  57

  
	
  Section 5.7.

  	
   

  	
  Visitation, Inspection, Etc.

  	
   

  	
  57

  
	
  Section 5.8.

  	
   

  	
  Maintenance of Properties; Insurance

  	
   

  	
  57

  
	
  Section 5.9.

  	
   

  	
  Use of Proceeds and Letters of Credit

  	
   

  	
  58

  
	
  Section 5.10.

  	
   

  	
  Maintenance of Tax Status

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FINANCIAL COVENANTS

  	
   

  	
  58

  
	
  Section 6.1.

  	
   

  	
  Leverage Ratio

  	
   

  	
  58

  
	
  Section 6.2.

  	
   

  	
  Interest Coverage Ratio

  	
   

  	
  59

  

 

 ii
 

 

	
  ARTICLE VII

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NEGATIVE COVENANTS

  	
   

  	
  59

  
	
  Section 7.2.

  	
   

  	
  Negative Pledge

  	
   

  	
  60

  
	
  Section 7.3.

  	
   

  	
  Fundamental Changes

  	
   

  	
  62

  
	
  Section 7.4.

  	
   

  	
  Investments, Loans, Etc.

  	
   

  	
  63

  
	
  Section 7.5.

  	
   

  	
  Restricted Payments

  	
   

  	
  64

  
	
  Section 7.6.

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  64

  
	
  Section 7.7.

  	
   

  	
  Restrictive Agreements

  	
   

  	
  64

  
	
  Section 7.8.

  	
   

  	
  Sale and Leaseback Transactions

  	
   

  	
  65

  
	
  Section 7.9.

  	
   

  	
  Hedging Transactions

  	
   

  	
  65

  
	
  Section 7.10.

  	
   

  	
  Certain Amendments to Cash Distribution Policies and
  Partnership Agreements

  	
   

  	
  65

  
	
  Section 7.11.

  	
   

  	
  Accounting Changes

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EVENTS OF DEFAULT

  	
   

  	
  66

  
	
  Section 8.1.

  	
   

  	
  Events of Default

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE ADMINISTRATIVE AGENT

  	
   

  	
  69

  
	
  Section 9.1.

  	
   

  	
  Appointment of Administrative Agent

  	
   

  	
  69

  
	
  Section 9.2.

  	
   

  	
  Nature of Duties of Administrative Agent

  	
   

  	
  69

  
	
  Section 9.3.

  	
   

  	
  Lack of Reliance on the Administrative Agent

  	
   

  	
  70

  
	
  Section 9.4.

  	
   

  	
  Certain Rights of the Administrative Agent

  	
   

  	
  70

  
	
  Section 9.5.

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  70

  
	
  Section 9.6.

  	
   

  	
  The Administrative Agent in its Individual Capacity

  	
   

  	
  71

  
	
  Section 9.7.

  	
   

  	
  Successor Administrative Agent

  	
   

  	
  71

  
	
  Section 9.8.

  	
   

  	
  Authorization to Execute other Loan Documents

  	
   

  	
  71

  
	
  Section 9.9.

  	
   

  	
  Co-Documentation Agents; Co-Syndication Agents;
  Managing Agents.

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
  72

  
	
  Section 10.1.

  	
   

  	
  Notices

  	
   

  	
  72

  
	
  Section 10.2.

  	
   

  	
  Waiver; Amendments

  	
   

  	
  74

  
	
  Section 10.3.

  	
   

  	
  Expenses; Indemnification

  	
   

  	
  75

  
	
  Section 10.4.

  	
   

  	
  Successors and Assigns

  	
   

  	
  77

  
	
  Section 10.5.

  	
   

  	
  Governing Law; Jurisdiction; Consent to Service of
  Process

  	
   

  	
  80

  
	
  Section 10.6.

  	
   

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  81

  
	
  Section 10.7.

  	
   

  	
  Right of Setoff

  	
   

  	
  81

  
	
  Section 10.8.

  	
   

  	
  Counterparts; Integration

  	
   

  	
  82

  
	
  Section 10.9.

  	
   

  	
  Survival

  	
   

  	
  82

  
	
  Section 10.10.

  	
   

  	
  Severability

  	
   

  	
  82

  
	
  Section 10.11.

  	
   

  	
  Confidentiality

  	
   

  	
  82

  
	
  Section 10.12.

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  83

  
	
  Section 10.13.

  	
   

  	
  Patriot Act

  	
   

  	
  83

  

 

 iii
 

 

	
  Section 10.14.

  	
   

  	
  Location of Closing

  	
   

  	
  84

  
	
  Section 10.15.

  	
   

  	
  Non-Recourse

  	
   

  	
  84

  

 

 iv
 

 

Schedules

	
  Schedule I

  	
   

  	
  –

  	
   

  	
  Applicable Margin and Applicable Percentage
  Revolving Loans

  
	
  Schedule II

  	
   

  	
  –

  	
   

  	
  Applicable Margin and Applicable Percentage Term Loans

  
	
  Schedule III

  	
   

  	
   

  	
   

  	
  Commitment Amounts

  
	
  Schedule 4.5

  	
   

  	
  –

  	
   

  	
  Environmental Matters

  
	
  Schedule 4.14

  	
   

  	
  –

  	
   

  	
  Subsidiaries

  
	
  Schedule 7.1

  	
   

  	
  –

  	
   

  	
  Outstanding Indebtedness

  
	
  Schedule 7.2

  	
   

  	
  –

  	
   

  	
  Existing Liens

  
	
  Schedule 7.4

  	
   

  	
  –

  	
   

  	
  Existing Investments

  
	
  Schedule 7.6

  	
   

  	
  –

  	
   

  	
  Transactions with Affiliates

  

 

Exhibits

	
  Exhibit A

  	
   

  	
  –

  	
   

  	
  Form of Revolving Credit Note

  
	
  Exhibit B

  	
   

  	
  –

  	
   

  	
  Form of Term Note

  
	
  Exhibit C

  	
   

  	
  –

  	
   

  	
  Form of Swingline Note

  
	
  Exhibit D

  	
   

  	
  –

  	
   

  	
  Form of Assignment and Acceptance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit 2.3(a)

  	
   

  	
  –

  	
   

  	
  Form of Notice of Term Loan Borrowing

  
	
  Exhibit 2.3(b)

  	
   

  	
  –

  	
   

  	
  Form of Notice of Revolving Borrowing

  
	
  Exhibit 2.4

  	
   

  	
  –

  	
   

  	
  Form of Notice of Swingline Borrowing

  
	
  Exhibit 2.7

  	
   

  	
  –

  	
   

  	
  Form of Notice of Continuation/Conversion

  
	
  Exhibit
  3.1(b)(iv)

  	
   

  	
  –

  	
   

  	
  Form of Secretary’s Certificate

  
	
  Exhibit
  3.1(b)(viii)

  	
   

  	
  –

  	
   

  	
  Form of Officer’s Certificate

  
	
  Exhibit 5.1(c)

  	
   

  	
  –

  	
   

  	
  Form of Compliance Certificate

  

 

 v

AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT

THIS AMENDED AND RESTATED
REVOLVING CREDIT AND TERM LOAN AGREEMENT (this “Agreement”)is
made and entered into as of February 13, 2007, by and among TC PIPELINES, LP, a
Delaware limited partnership (the “Borrower”), the several banks and
other financial institutions and lenders from time to time party hereto (the “Lend­ers”),
and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (the
“Administrative Agent”), as issuing bank (the “Issuing Bank”) and
as swingline lender (the “Swingline Lender”).

W I T N E S S E T H:

WHEREAS, Borrower, certain of
the lenders and SunTrust Bank as administrative agent, issuing bank and
swingline lender are parties to that certain Revolving Credit and Term Loan
Credit Agreement, dated as of December 12, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Existing Credit
Agreement”), pursuant to which the Lenders established a $30,000,000
revolving credit facility and made term loans in an aggregate principal amount
equal to $380,000,000 in favor of Borrower;

WHEREAS, the Borrower has requested that the lenders
party to the Existing Credit Agreement amend and restate the Existing Credit
Agreement in order to modify certain provisions thereof;

WHEREAS, subject to the terms and conditions of this
Agreement, the Administrative Agent, the Lenders, the Swingline Lender and the
Issuing Bank to the extent of their respective Commitments as defined herein,
are willing to amend and restate the Existing Credit Agreement and to severally
establish a $250,000,000 revolving credit facility, a letter of credit
subfacility and the swingline subfacility in favor of and to make term loans in
an aggregate principal amount up to $700,000,000 in favor of the Borrower.

NOW, THEREFORE, in consideration of the premises and the
mutual covenants herein contained, the Borrower, the Lenders, the
Administrative Agent, the Issuing Bank and the Swingline Lender agree that the
Existing Credit Agreement is hereby amended and restated as follows:

ARTICLE I

DEFINITIONS;
CONSTRUCTION

Section 1.1.               Definitions.  In
addition to the other terms defined herein, the following terms used herein
shall have the meanings herein specified (to be equally applicable to both the
singular and plural forms of the terms defined):

“Additional Commitment
Amount” shall have the meaning given to such term in Section 2.23.

“Additional Lender”
shall have the meaning given to such term in Section 2.23.

“Adjusted
Cash Flow” shall mean, with reference to any period (i) the consolidated
net income (or loss) of the Borrower and its Subsidiaries for such period
calculated on a consolidated basis in accordance with GAAP, plus (ii) to the
extent taken into account in determining such consolidated net income (or
loss), the sum of interest expense, expense for taxes paid or accrued,
depreciation, amortization and extraordinary losses incurred other than in the
ordinary course of business, minus (iii) to the extent taken into account in determining
such consolidated net income (or loss), extraordinary gains realized other than
in the ordinary course of business, minus (iv) to
the extent taken into account in determining such consolidated net income (or
loss), equity earnings of any Person in which the Borrower or any of its
Subsidiaries has an interest (which interest does not cause the net income of
such Person to be consolidated with the consolidated net income of the Borrower
and its Subsidiaries in accordance with GAAP), plus (v) the aggregate amount of
all cash dividends and other distributions of cash actually received by the
Borrower or any of its consolidated Subsidiaries during such period from any
Person in which the Borrower or any of its consolidated Subsidiaries has an
interest (which interest does not cause the Consolidated Net Income of such
other Person to be consolidated with the Consolidated Net Income of the
Borrower and its Subsidiaries in accordance with GAAP), plus (vi) any Material
Project EBITDA Adjustment; provided that for purposes of calculating
consolidated net income for any four fiscal quarter period, if at any time
during that period the Borrower or any Subsidiary shall have consummated an
acquisition, consolidated net income for such period shall be calculated after
giving pro forma effect thereto as if such acquisition had
occurred on the first day of such period.

“Adjusted LIBO Rate”
shall mean, with respect to each Interest Period for a Eurodollar Borrowing,
the rate per annum ob­tained by dividing (i) LIBOR for such Interest
Period by (ii) a percentage equal to 1.00 minus
the Eurodollar Reserve Percentage.

“Administrative Agent”
shall have the meaning assigned to such term in the opening paragraph hereof.

“Administrative
Questionnaire” shall mean, with respect to each Lender, an administrative
questionnaire in the form prepared by the Administrative Agent and submitted to
the Administrative Agent duly completed by such Lender.

“Affiliate” means, as
to any Person, any other Person that, directly or indirectly, controls, is
controlled by or is under common control with such Person or is a director or
officer of such Person.  For purposes of
this definition the term “control” (including the terms “controlling”,
“controlled by” and “under common control with”) of a Person means the
possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of
voting stock, by contract or otherwise, provided, that, for purposes of Section
7.6, each of Northern Border and Tuscarora shall be deemed to be an
Affiliate of the Borrower as long as it qualifies as a Significant Subsidiary.

“Aggregate Revolving
Commitment Amount” shall mean the aggregate principal amount of the
Aggregate Revolving Commitments from time to time.  On the Closing Date, the Aggregate Revolving
Commitment Amount is $250,000,000.

 2
 

“Aggregate Revolving
Commitments” shall mean, collectively, all Revolving Commitments of all
Lenders at any time outstanding.

“Applicable Lending Office”
shall mean, for each Lender and for each Type of Loan, the “Lending Office” of
such Lender (or an Affiliate of such Lender) designated for such Type of Loan
in the Administrative Questionnaire submitted by such Lender or such other
office of such Lender (or an Affiliate of such Lender) as such Lender may from
time to time specify to the Administrative Agent and the Borrower as the office
by which its Loans of such Type are to be made and maintained.

“Applicable Margin”
shall mean, as of any date and subject to Section 6.1(b) hereof, (a)
with respect to interest on all Revolving Loans outstanding on any date or the
letter of credit fee, as the case may be, a percentage per annum determined by
reference to the applicable Leverage Ratio in effect on such date as set forth
on Schedule I and (b) with respect to interest on all Term Loans
outstanding on any date a percentage per annum determined by reference to the
applicable Leverage Ratio in effect on such date as set forth on Schedule II;
provided, that a change in the Applicable Margin resulting from a change
in the Leverage Ratio shall be effective on the second Business Day after which
the Borrower delivers the financial statements required by Section 5.1(a)
or (b) and the Compliance Certificate required by Section 5.1(c);
provided further, that if at any time the Borrower shall have failed to
deliver such financial statements and such Compliance Certificate when so
required, the Applicable Margin shall be at Level V as set forth on Schedule
I, in the case of Revolving Loans, and Level V as set forth on Schedule
II, in the case of Term Loans, until such time as such financial statements
and Compliance Certificate are delivered, at which time the Applicable Margin
shall be determined as provided above. 
Notwithstanding the foregoing but subject to Section 6.1(b), the
Applicable Margin from the Closing Date until the financial statements and
Compliance Certificate for the Fiscal Quarter ending December 31, 2006 are
required to be delivered shall be at Level IV as set forth on Schedule I,
in the case of Revolving Loans, and at Level IV as set forth on Schedule II,
in the case of Term Loans. 
Notwithstanding anything to the contrary contained herein, at any time
that the Revolving Credit Exposure exceeds 50% of the Aggregate Revolving
Commitment Amount, then the Applicable Margin for Eurodollar Loans for all
pricing Levels listed on Schedule I shall automatically increase by the
Utilization Premium set forth on Schedule I. 
In the event that any financial statement or Compliance
Certificate delivered pursuant to Section 5.1(a), (b) or (c)
is shown to be inaccurate (so long as such inaccuracy is discovered within the
first anniversary of the Termination Date), and such inaccuracy, if corrected,
would have led to the application of a higher Applicable Margin as set forth on Schedule I, in the
case of Revolving Loans, and as set forth on Schedule II, in the case of
Term Loans, for any period rather than the Applicable Margin applied for
such period, then (i) the Borrower shall immediately deliver to the
Administrative Agent a correct Compliance Certificate for such period, (ii) the
Applicable Margin shall be determined on the basis of the corrected Compliance
Certificate and (iii) the Borrowers shall immediately pay to the Administrative
Agent, for the account of the Lenders, the accrued additional interest owing as
a result of such increased Applicable Margin for such period.  The
provisions of this definition shall not limit the rights of the Administrative
Agent and the Lenders with respect to Section 2.13(c) or Article VIII.

“Applicable Percentage”
shall mean, as of any date and subject to Section 6.1(b) hereof, with
respect to the facility fee or the commitment fee as of any date, the
percentage per

 3
 

annum determined by
reference to the applicable Leverage Ratio in effect on such date as set forth
on Schedule I, in the case of Revolving Loans, and on Schedule II,
in the case of Term Loans; provided, that a change in the Applicable
Percentage resulting from a change in the Leverage Ratio shall be effective on
the second Business Day after which the Borrower delivers the financial
statements required by Section 5.1(a) or (b) and the
Compliance Certificate required by Section 5.1(c); provided further,
that if at any time the Borrower shall have failed to deliver such financial
statements and such Compliance Certificate, the Applicable Percentage shall be
at Level V as set forth on Schedule I, in the case of Revolving Loans,
and at Level V as set forth on Schedule II, in the case of Term Loans
until such time as such financial statements and Compliance Certificate are
delivered, at which time the Applicable Percentage shall be determined as
provided above.  Notwithstanding the
foregoing but subject to Section 6.1(b), the Applicable Percentage for
the facility fee or the commitment fee from the Closing Date until the
financial statements and Compliance Certificate for the Fiscal Quarter ending
December 31, 2006 are required to be delivered shall be at Level IV as set
forth on Schedule I, in the case of Revolving Loans, and at Level IV as
set forth on Schedule II, in the case of Term Loans.  In the event that any financial
statement or Compliance Certificate delivered pursuant to Section 5.1(a),
(b) or (c) is shown to be inaccurate (so long as such inaccuracy
is discovered within the first anniversary of the Termination Date), and such
inaccuracy, if corrected, would have led to the application of a higher Applicable Percentage as set forth on Schedule
I, in the case of Revolving Loans, and as set forth on Schedule II,
in the case of Term Loans, for any period rather than the Applicable Percentage applied for such
period, then (i) the Borrower shall immediately deliver to the Administrative
Agent a correct Compliance Certificate for such period, (ii) the Applicable Percentage shall be
determined based upon the corrected Compliance Certificate and (iii) the
Borrowers shall immediately pay to the Administrative Agent, for the account of
the Lenders, the accrued additional interest owing as a result of such
increased Applicable Percentage for
such period.  The provisions of this definition shall not limit the rights
of the Administrative Agent and the Lenders with respect to Section 2.13(c)
or Article VIII.

 “Approved Fund” shall mean any Person
(other than a natural Person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business and that is
administered or managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii)
an entity or an Affiliate of an entity that administers or manages a Lender.

“Assignment and
Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any party whose consent is required
by Section 10.4(b)) and accepted by the Administrative Agent, in the
form of Exhibit D attached hereto or any other form approved by the
Administrative Agent.

“Availability Period” shall mean the period from the Closing Date to but
excluding the Revolving Commitment Termination Date.

“Base Rate” shall
mean the higher of (i) the per annum rate which the Administrative Agent
publicly announces from time to time to be its prime lending rate, as in effect
from time to time, and (ii) the Federal Funds Rate, as in effect from time
to time, plus one-half of one percent
(0.50%).  The Administrative Agent’s
prime lending rate is a reference rate and does not necessarily represent the
lowest or best rate charged to customers. 
The

 4
 

Administrative Agent may
make commercial loans or other loans at rates of inter­est at, above or below
the Administrative Agent’s prime lend­ing rate. 
Each change in the Administrative Agent’s prime lending rate shall be
effective from and including the date such change is publicly announced as
being effective.

“Borrower” shall have
the meaning in the introductory paragraph hereof.

“Borrower Partnership
Agreement” shall mean that certain Amended and Restated Agreement of
Limited Partnership of TC PipeLines, LP dated May 28, 1999, as amended.

“Borrowing”shall mean a borrowing consisting of (i) Loans of the same
Class and Type, made, converted or continued on the same date and in the case
of Eurodollar Loans, as to which a single Interest Period is in effect, or (ii)
a Swingline Loan.

“Business Day” shall
mean (i) any day other than a Saturday, Sunday or other day on which commercial
banks in Atlanta, Georgia, Calgary, Canada and New York, New York are
authorized or required by law to close and (ii) if such day relates to a
Borrowing of, a payment or prepayment of principal or interest on, a conversion
of or into, or an Interest Period for, a Eurodollar Loan or a notice with
respect to any of the foregoing, any day on which banks are not open for dealings
in dollar deposits are carried on in the London interbank market.

“Capital Lease
Obligations” of any Person shall mean all obligations of such Person to pay
rent or other amounts under any lease (or other arrangement conveying the right
to use) of real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases
on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

“Capital Stock” shall
mean any non-redeemable capital stock (or in the case of a partnership or
limited liability company, the partners’ or members’ equivalent equity
interest) of the Borrower or any of its Subsidiaries (to the extent issued to a
Person other than the Borrower), whether common or preferred.

“Change in Control”
shall mean the occurrence of one or more of the following events: (i)
any Person or two or more Persons acting in concert (other than TransCanada
Corporation or any of its Subsidiaries) shall have acquired beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or indirectly,
of voting stock of the General Partner (or other securities convertible into
such voting stock ) (A) representing 50% or more of the combined voting power
of all voting stock of the General Partner or (B) representing the combined
voting power of all voting stock of the General Partner more than that owned,
directly or indirectly, by TransCanada Corporation; or (ii) any Person or two
or more Persons acting in concert (other than TransCanada Corporation or any of
its Subsidiaries or any other Person reasonably acceptable to the Required
Lenders) shall have acquired by contract or otherwise, or shall have entered
into a contract or arrangement that, upon consummation, will result in its or
their acquisition of the power to exercise, directly or indirectly, a
controlling influence over the management or policies

 5
 

of the General Partner; (iii) the General Partner
shall for any reason cease to be the managing general partner of the Borrower,
(iv) the failure of the Borrower to own, directly or indirectly, free and
clear of all Liens, at least 50% of the partnership interests in Northern
Border, (v) the failure of the Borrower to own, directly or indirectly, free
and clear of all Liens, at least 98% of the partnership interests in Tuscarora
or (vi) after the consummation of the GLGT Acquisition, the failure of the
Borrower to own, directly or indirectly, free and clear of all Liens, at least
46.45% of the partnership interests in GLGT.

“Change in Law” shall
mean (i) the adoption of any applicable law, rule or regulation after the date
of this Agreement, (ii) any change in any applicable law, rule or regulation,
or any change in the interpretation or application thereof, by any Governmental
Authority after the date of this Agreement, or (iii) compliance by any Lender
(or its Applicable Lending Office) or the Issuing Bank (or for purposes of Section
2.18(b), by such Lender’s or the Issuing Bank’s parent corporation, if
applicable) with any request, guideline or directive (whether or not having the
force of law) of any Governmental Authority made or issued after the date of
this Agreement.

“Class”,when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans,
Swingline Loans or Term Loans and when used in reference to any Commitment,
refers to whether such Commitment is a Revolving Commitment, a Swingline
Commitment or a Term Loan Commitment.

“Closing Date” shall
mean the date on which the conditions precedent set forth in Section 3.1
and Section 3.2 have been satisfied or waived in accordance with Section
10.2.

“Code” shall mean the
Internal Revenue Code of 1986, as amended and in effect from time to time.

“Commercial Operation
Date” means the date on which a Material Project is substantially complete
and commercially operable.

“Commitment” shall
mean a Revolving Commitment, a Swingline Commitment or a Term Loan Commitment
or any combination thereof (as the context shall permit or require).

“Compliance Certificate”
shall mean a certificate executed by the principal executive officer, the
principal financial officer or the controller of the Borrower in the form of,
and containing the certifications set forth in, the certificate attached hereto
as Exhibit 5.1(c).

“Consolidated Interest
Expense” shall mean, for the Borrower and its Subsidiaries for any period
determined on a consolidated basis in accordance with GAAP, without
duplication, the sum of (i) total interest expense, including without
limitation the interest component of any payments in respect of Capital Lease
Obligations capitalized or expensed during such period (whether or not actually
paid during such period) plus (ii) the
net amount payable (or minus the net
amount receivable) with respect to Hedging Transactions during such period
(whether or not actually paid or received during such period).

“Consolidated Net Worth” shall mean, for the Borrower and its
Subsidiaries for any period, the aggregate amount of Capital Stock,
minority interests, and other equity accounts

 6
 

(including, without limitation, retained earnings,
paid in capital and accumulated other comprehensive income or loss (but without
giving effect to any non-cash pension and other post-retirement benefits
liability adjustments recorded in accordance with GAAP)) of Borrower and its
Subsidiaries at such date determined on a consolidated basis in accordance with
GAAP.

“Consolidated Total
Funded Debt” shall mean, as of any date, all Indebtedness of the Borrower
and its Subsidiaries measured on a consolidated basis as of such date, but
excluding Indebtedness of the type described in subsection (xi) of the
definition thereto.

“Contractual Obligation”
of any Person shall mean any provision of any security issued by such Person or
of any agreement, instrument or undertaking under which such Person is
obligated or by which it or any of the property in which it has an interest is
bound.

“Default” shall mean
any condition or event that, with the giving of notice or the lapse of time or
both, would constitute an Event of De­fault.

“Defaulting Lender”
shall mean a Lender that (a) has failed to fund its portion of any Borrowing or
any participations in Letters of Credit or Swingline Loans that it is required
to fund under this Agreement and has continued in such failure for three (3)
Business Days after written notice from the Administrative Agent, (b) has
otherwise failed to pay over to the Administrative Agent or any other Lender
any other amount required to be paid by it hereunder within three (3) Business
Days of the date when due, unless the subject of a good faith dispute, or (c)
has been deemed insolvent or become the subject of a bankruptcy or insolvency
proceeding.

“Default Interest”
shall have the meaning set forth in Section 2.13(c).

“Dollar(s)” and the
sign “$” shall mean lawful money of the United States of America.

“Environmental Laws”
shall mean all laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by or with any Governmental Authority, relating in any way to the
environment, preservation or reclamation of natural resources, the management,
Release or threatened Release of any Hazardous Material or to health and safety
matters.

“Environmental Liability”
shall mean any liability, contingent or otherwise (including any liability for
damages, costs of environmental investigation and remediation, costs of
administrative oversight, fines, natural resource damages, penalties or
indemnities), of the Borrower or any Subsidiary directly or indirectly
resulting from or based upon (i) any actual or alleged violation of any
Environmental Law, (ii) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (iii) any actual or alleged
exposure to any Hazardous Materials, (iv) the Release or threatened Release of
any Hazardous Materials or (v) any contract, agreement or other consensual
arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

“ERISA” shall mean
the Employee Retirement Income Secu­rity Act of 1974, as amended from time to
time, and any successor statute.

 7
 

“ERISA Affiliate”
shall mean any trade or business (whether or not incorporated), which, together
with the Borrower, is treated as a single employer under Section 414(b) or (c)
of the Code or, solely for the purposes of Section 302 of ERISA and Section 412
of the Code, is treated as a single employer under Section 414 of the Code.

“ERISA Event”shall mean (i) any “reportable event”, as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (ii)
the existence with respect to any Plan of an “accumulated funding deficiency”
(as defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (iii) the filing pursuant to Section 412(d) of the Code or Section
303(d) of ERISA of an application for a waiver of the minimum funding standard
with respect to any Plan; (iv) the incurrence by the Borrower or any of its
ERISA Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (v) the receipt by the Borrower or any ERISA Affiliate
from the PBGC or a plan administrator appointed by the PBGC of any notice
relating to an intention to terminate any Plan or Plans or to appoint a trustee
to administer any Plan; (vi) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (vii) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

“Eurodollar” when
used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, bears interest at a rate determined by
reference to the Adjusted LIBO Rate.

“Eurodollar Reserve
Percentage” shall mean the aggregate of the maximum reserve percentages
(including, without limitation, any emergency, supplemental, special or other
marginal reserves) expressed as a decimal (rounded upwards to the next 1/100th of 1%) in effect on any day to
which the Administrative Agent is subject with respect to the Adjusted LIBO
Rate pursuant to regulations issued by the Board of Governors of the Federal
Reserve System (or any Governmental Authority succeeding to any of its
principal functions) with respect to eurocurrency funding (currently referred
to as “eurocurrency liabilities” under Regulation D).  Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under Regulation D.  The Eurodollar Reserve Percentage shall be
adjusted automatically on and as of the effective date of any change in any
reserve percentage.

“Event of Default”
shall have the meaning provided in Article VIII.

“Existing Credit
Agreement” shall have the meaning set forth in the recitals hereto.

“Existing Lenders”
shall mean each of the lenders party to the Existing Credit Agreement.

 8
 

“Excluded Taxes” shall mean with respect to the
Administrative Agent, any Lender, the Issuing Bank or any other recipient of
any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes in each case imposed on (or measured
by) its net income by the United States of America, any state or local taxing
authority in the United States of America or by the jurisdiction under the laws
of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its Applicable Lending Office
is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which any
Lender is located, (c) in the case of a Foreign Lender, any withholding tax
that (i) is imposed on amounts payable to such Foreign Lender under the law
applicable at the time such Foreign Lender becomes a party to this Agreement,
(ii) is imposed on amounts payable to such Foreign Lender under the law
applicable at any time that such Foreign Lender designates a new lending
office, other than taxes that have accrued prior to the designation of such
lending office that are otherwise not Excluded Taxes, or (iii) is attributable
to such Foreign Lender’s failure to
comply with Section 2.20(e), and (d) any backup withholding tax imposed
under Section 3406 of the Code.

“Federal Funds Rate”
shall mean, for any day, the rate per annum (rounded upwards, if necessary, to
the next 1/100th of 1%)
equal to the weighted average of the rates on overnight Federal funds
transactions with member banks of the Federal Reserve System arranged by
Federal funds brokers, as published by the Federal Reserve Bank of New York on
the next succeeding Business Day or if such rate is not so published for any
Business Day, the Federal Funds Rate for such day shall be the average rounded
upwards, if necessary, to the next 1/100th of 1% of the quotations for such day
on such transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by the Administrative Agent.

“Fee Letter” shall
mean that certain fee letter, dated as of January 18, 2007, executed by
SunTrust Capital Markets, Inc. and SunTrust Bank and accepted by Borrower.

“Fiscal Quarter”
shall mean any fiscal quarter of the Borrower.

“Fiscal Year” shall
mean any fiscal year of the Borrower.

“Foreign Lender”shall mean any Lender that is not a
United States person under Section 7701(a)(30) of the Code.

“General Partner”
shall mean TC PipeLines GP, Inc. a Delaware corporation.

“GAAP” shall mean
generally accepted accounting prin­ciples in the United States applied on a
consistent basis and subject to the terms of Section 1.3.

“GLGT” shall mean
Great Lakes Gas Transmission Limited Partnership, a Delaware limited
partnership.

“GLGT Acquisition”
means that acquisition described in detail in the GLGT Purchase and Sale
Agreement.

 9
 

“GLGT Partnership
Agreement” shall mean that certain Amended and Restated Agreement of
Limited Partnership of Great Lakes Gas Transmission Limited Partnership to be
dated as of the closing date of the GLGT Acquisition, 2007, as amended and
restated from time to time.

 “GLGT Purchase and Sale Agreement”
means that certain Purchase and Sale Agreement, dated as of December 22, 2006,
among El Paso Great Lakes Company, L.L.C., as seller, and TC GL ILP and
TransCanada PipeLine USA Ltd., as buyers.

 “Governmental Authority” shall mean the
government of the United States of America, any other nation or any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative
powers or functions of or pertaining to government.

“Guarantee” of or by
any Person (the “guarantor”) shall mean any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly and including any
obligation, direct or indirect, of the guarantor (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation or to purchase (or to advance or supply funds for the purchase
of) any security for the payment thereof, (ii) to purchase or lease property,
securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (iii) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay
such Indebtedness or other obligation or (iv) as an account party in respect of
any letter of credit or letter of guaranty issued in support of such
Indebtedness or obligation; provided, that the term “Guarantee” shall
not include endorsements for collection or deposit in the ordinary course of
business.  The amount of any Guarantee
shall be deemed to be an amount equal to the stated or determinable amount of
the primary obligation in respect of which Guarantee is made or, if not so
stated or determinable, the maximum reasonably anticipated liability in respect
thereof (assuming such Person is required to perform thereunder) as determined
by such Person in good faith.  The term
“Guarantee” used as a verb has a corresponding meaning.

“Hazardous Materials”
shall mean all explosive or radioactive substances or wastes and all hazardous
or toxic substances, wastes or other pollutants, including petroleum or
petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law.

“Hedging Obligations”
of any Person shall mean any and all obligations of such Person, whether
absolute or contingent and howsoever and whensoever created, arising, evidenced
or acquired under (i) any and all Hedging Transactions, (ii) any and all
cancellations, buy backs, reversals, terminations or assignments of any Hedging
Transactions and (iii) any and all renewals, extensions and modifications of
any Hedging Transactions and any and all substitutions for any Hedging
Transactions.

 10
 

“Hedging Transaction”
of any Person shall mean any transaction (including an agreement with respect
thereto) now existing or hereafter entered into by such Person that is a rate
swap, basis swap, forward rate transaction, commodity swap, interest rate
option, foreign exchange transaction, cap transaction, floor transaction,
collateral transaction, forward transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar
transaction (including any option with respect to any of these transactions) or
any combination thereof, whether linked to one or more interest rates, foreign
currencies, commodity prices, equity prices or other financial measures.

“Hybrid Securities”
shall mean any trust preferred securities, or deferrable interest subordinated
debt with a maturity of at least 20 years, which provides for the optional or
mandatory deferral of interest or distributions, issued by the Borrower, or any
business trusts, limited liability companies, limited partnerships or similar
entities (i) substantially all of the common equity, general partner or similar
interests of which are owned (either directly or indirectly through one or more
wholly owned Subsidiaries) at all times by the Borrower or any Subsidiaries,
(ii) that have been formed for the purpose of issuing such securities or
deferrable interest subordinated debt, and (iii) substantially all the assets
of which consist of (A) subordinated debt of the Borrower or any Subsidiary,
and (B) payments made from time to time on the subordinated debt.

“Indebtedness” of any
Person shall mean, without duplication, (i) all obligations of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments, (iii) all obligations of such
Person in respect of the deferred purchase price of property or services (other
than trade payables incurred in the ordinary course of business), (iv) all
obligations of such Person under any conditional sale or other title retention
agreement(s) relating to property acquired by such Person, (v) all Capital
Lease Obligations of such Person, (vi) all obligations, contingent or
otherwise, of such Person in respect of letters of credit, acceptances or
similar extensions of credit, (vii) all Guarantees of such Person of the type
of Indebtedness described in clauses (i) through (vi) above, (viii) all
Indebtedness of a third party secured by any Lien on property owned by such
Person, whether or not such Indebtedness has been assumed by such Person, (ix)
all obligations of such Person to purchase, redeem, retire or otherwise acquire
for value any common stock of such Person, (x) Off-Balance Sheet Liabilities
and (xi) all Hedging Obligations.  The
Indebtedness of any Person shall include the Indebtedness of any partnership or
joint venture in which such Person is a general partner or a joint venturer,
except to the extent that the terms of such Indebtedness provide that such
Person is not liable therefor.

“Indemnified Taxes”
shall mean Taxes other than Excluded Taxes.

“Information Memorandum”
shall mean the Confidential Information Memorandum dated January 2007 (as
amended) relating to the Borrower and the transactions contemplated by this
Agreement and the other Loan Documents.

“Interest Coverage Ratio”
shall mean, as of any date, the ratio of (i) Adjusted Cash Flow for the four
consecutive Fiscal Quarters ending on or immediately prior to such date to (ii)
Consolidated Interest Expense for the four consecutive Fiscal Quarters ending
on or immediately prior to such date.

 11
 

“Interest Period”
shall mean with respect to (i) any Swingline Borrowing, such period as the
Swingline Lender and the Borrower shall mutually agree and (ii) any Eurodollar
Borrowing, a period of one, two, three, six and, subject to clause (iii) of
this definition, nine or twelve months; provided, that:

(i)              the initial Interest
Period for such Borrowing shall commence on the date of such Borrowing (including
the date of any conversion from a Borrowing of another Type), and each Interest
Period occurring thereafter in respect of such Borrowing shall commence on the
day on which the next preceding Interest Period expires;

(ii)            if any Interest Period would otherwise end on
a day other than a Business Day, such Interest Pe­riod shall be extended to the
next succeeding Business Day, unless such Business Day falls in another
calendar month, in which case such Interest Period would end on the next
preceding Business Day;

(iii)           the Borrower shall not
be entitled to select an Interest Period having duration of nine or twelve
months unless, by 2:00 P.M. (New York City time) on the third Business Day
prior to the first day of such Interest Period, each Lender notifies the
Administrative Agent that such Lender will be providing funding for such
Borrowing with such Interest Period (the failure of any Lender to so respond by
such time being deemed for all purposes of this Agreement as an objection by
such Lender to the requested duration of such Interest Period); provided that,
if any or all of the Lenders object to the requested duration of such Interest
Period, the duration of the Interest Period for such Borrowing shall be one,
two, three or six months, as specified by the Borrower requesting such
Borrowing in the applicable Notice of Borrowing as the desired alternative to
an Interest Period of nine or twelve months;

(iv)           any Interest Period which begins on the last Business Day of a calendar
month or on a day for which there is no nu­merically corresponding day in the
calendar month at the end of such Interest Period shall end on the last
Business Day of such calendar month;

(v)            no Interest Period may extend beyond the
Revolving Commitment Termination Date, unless on the Revolving Commitment
Termination Date the aggregate outstanding principal amount of Term Loans is
equal to or greater than the aggregate principal amount of Eurodollar Loans
with Interest Periods expiring after such date, and no Interest Period may extend
beyond the Maturity Date.

“Issuing Bank” shall
mean SunTrust Bank or any other Lender, each in its capacity as an issuer of
Letters of Credit pursuant to Section 2.22.

“LC Commitment” shall
mean that portion of the Aggregate Revolving Commitment Amount that may be used
by the Borrower for the issuance of Letters of Credit in an aggregate face
amount not to exceed $30,000,000.

“LC Disbursement”
shall mean a payment made by the Issuing Bank pursuant to a Letter of Credit.

 12
 

“LC Documents” shall
mean the Letters of Credit and all applications, agreements and instruments
relating to the Letters of Credit.

“LC Exposure” shall
mean, at any time, the sum of (i) the aggregate undrawn amount of all
outstanding Letters of Credit at such time, plus
(ii) the aggregate amount of all LC Disbursements that have not been
reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender shall be its
Pro Rata Share of the total LC Exposure at such time.

“Lenders” shall have
the meaning assigned to such term in the opening paragraph of this Agreement
and shall include, where appropriate, the Swingline Lender and each Additional
Lender that joins this Agreement pursuant to Section 2.23.

“Letter of Credit”
shall mean any stand-by letter of credit issued pursuant to Section 2.22
by the Issuing Bank for the account of the Borrower pursuant to the LC
Commitment.

“Leverage Ratio”
shall mean, as of any date, the ratio of (i) Consolidated Total Funded Debt as
of such date to (ii) Adjusted Cash Flow for the four consecutive Fiscal
Quarters ending on or immediately prior to such date.

“LIBOR” shall mean,
for any applicable Interest Period with respect to any Eurodollar Loan, the
British Bankers’ Association Interest Settlement Rate per annum for deposits in
Dollars for a period equal to such Interest Period appearing on the display
designated as Page 3750 on the Dow Jones Markets Service (or such other page on
that service or such other service designated by the British Bankers’
Association for the display of such Association’s Interest Settlement Rates for
Dollar deposits) as of 11:00 a.m. (London, England time) on the day that
is two Business Days prior to the first day of the Interest Period or if such
Page 3750 is un­available for any reason at such time, the rate which appears
on the Reuters Screen ISDA Page as of such date and such time; provided,
that if the Administrative Agent determines that the relevant foregoing sources
are unavailable for the relevant Interest Period, LIBOR shall mean the rate of
interest determined by the Administrative Agent to be the average (rounded
upward, if necessary, to the nearest 1/100th of 1%) of the rates per annum at which
deposits in Dollars are offered to the Administrative Agent two (2) Business
Days preceding the first day of such Interest Period by leading banks in the
London interbank market as of 10:00 a.m. (New Yorktime) for delivery on the first day of such
Interest Period, for the number of days comprised therein and in an amount
comparable to the amount of the Eurodollar Loan of the Administrative Agent.

“Lien” shall mean any
mortgage, pledge, security inter­est, lien (statutory or otherwise), charge,
encumbrance, hypothecation, assignment, deposit arrangement, or other
arrangement having the practical effect of the foregoing or any preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement and any capital lease having the same economic effect as any of the
foregoing).

 13
 

“Loan Documents”
shall mean, collectively, this Agree­ment, the Notes (if any), the LC
Documents, the Fee Letter, the Subordination Agreement, all Notices of
Borrowing, all Notices of Conversion/Continuation, and all Compliance
Certificates.

 “Loans” shall mean all Revolving Loans,
Swingline Loans and Term Loans in the aggregate or any of them, as the context
shall require.

“Material Adverse Effect”
shall mean, with respect to any event, act, condition or occurrence of whatever
nature (including any adverse determination in any litigation, arbitration, or
governmental investigation or proceeding), whether singularly or in conjunction
with any other event or events, act or acts, condition or conditions,
occurrence or occurrences whether or not related, a material adverse change in,
or a material adverse effect on, (i) the business, results of operations,
financial condition, assets, or liabilities of the Borrower, its Subsidiaries,
Northern Border and Tuscarora, taken as a whole, (ii) the ability of the
Borrower  to perform any of its
obligations under the Loan Documents, (iii) the rights and remedies of the
Administrative Agent, the Issuing Bank, Swingline Lender, and the Lenders under
any of the Loan Documents or (iv) the legality, validity or enforceability of
any of the Loan Documents.

“Material Indebtedness”
shall mean Indebtedness (other than the Loans and Letters of Credit) of the
Borrower or any of its Subsidiaries, individually or in an aggregate principal
amount exceeding $15,000,000.

“Material Project”
means the construction or expansion of any capital project of the Borrower or
any of its Subsidiaries, the aggregate capital cost of which exceeds
$25,000,000.

“Material Project EBITDA
Adjustment” means, with respect to each Material Project:

(A)          prior to the Commercial Operation Date of a Material Project (but
including the fiscal quarter in which such Commercial Operation Date occurs), a
percentage (based on the then-current completion percentage of such Material
Project) of an amount to be approved by the Administrative Agent as the
projected EBITDA of Borrower and its Subsidiaries attributable to such Material
Project for the first 12-month period following the scheduled Commercial
Operation Date of such Material Project (such amount to be determined based on
customer contracts or tariff-based customers relating to such Material Project,
the creditworthiness of the other parties to such contracts or such
tariff-based customers, and projected revenues from such contracts, tariffs,
capital costs and expenses, scheduled Commercial Operation Date, oil and gas
reserve and production estimates, commodity price assumptions and other factors
deemed appropriate by Administrative Agent), which may, at the Borrower’s
option, be added to actual EBITDA for the Borrower and its Subsidiaries for the
fiscal quarter in which construction of such Material Project commences and for
each fiscal quarter thereafter until the Commercial Operation Date of such
Material Project (including the fiscal quarter in which such Commercial
Operation Date occurs, but net of any actual EBITDA of the Borrower and its
Subsidiaries attributable to such Material Project following such Commercial
Operation Date); provided that if the actual Commercial Operation Date
does not occur by the scheduled Commercial Operation Date, then the foregoing
amount shall be reduced, for quarters ending after the scheduled Commercial
Operation Date to (but excluding) the first

 14
 

full quarter after its
Commercial Operation Date, by the following percentage amounts depending on the
period of delay (based on the period of actual delay or then-estimated delay,
whichever is longer):  (i) 90 days or
less, 0%, (ii) longer than 90 days, but not more than 180 days, 25%, (iii)
longer than 180 days but not more than 270 days, 50%, and (iv) longer than 270
days, 100%; and

(B)           beginning with the first full fiscal quarter following the Commercial
Operation Date of a Material Project and for the three immediately succeeding
fiscal quarters, an amount to be approved by the Administrative Agent as the
projected EBITDA of Borrower and its Subsidiaries attributable to such Material
Project (determined in the same manner as set forth in clause (A) above) for
the balance of the four full fiscal quarter period following such Commercial
Operation Date, which may, at the Borrower’s option, be added to actual EBITDA
for the Borrower and its Subsidiaries for such fiscal quarters.

Notwithstanding the
foregoing:

(i)            no such additions shall be allowed with
respect to any Material Project unless:

(a)           not later than 30 days prior to the delivery of any certificate
required by the Reporting Requirements to the extent Material Project EBITDA
Adjustments will be made to EBITDA in determining compliance with the Leverage
Ratio, the Borrower shall have delivered to the Administrative Agent written
pro forma projections of EBITDA of the Borrower and its Subsidiaries
attributable to such Material Project, and

(b)           prior to the date such certificate is required to be delivered, the
Administrative Agent shall have approved (such approval not to be unreasonably
withheld) such projections and shall have received such other information and
documentation as the Administrative Agent may reasonably request, all in form
and substance satisfactory to the Administrative Agent, and

(ii)           the aggregate amount of all Material Project EBITDA Adjustments during
any period shall be limited to 20% of the total actual EBITDA of the Borrower
and its Subsidiaries for such period (which total actual EBITDA shall be determined
without including any Material Project EBITDA Adjustments).

“Maturity Date” shall
mean, with respect to the Term Loans, the earlier of (i) December 12, 2011 or
such later date approved by the Required Lenders in accordance with Section
2.26 or (ii) the date on which the principal amount of all outstanding Term
Loans have been declared or automatically have become due and payable (whether
by acceleration or otherwise).

“Moody’s” shall mean
Moody’s Investors Service, Inc.

“Moody’s Equity Credit” shall mean the
percentage of equity credit ascribed to a Hybrid Security by Moody’s as
demonstrated by the Borrower to the reasonable satisfaction of the
Administrative Agent.

 15
 

“Multiemployer Plan”
shall have the meaning set forth in Section 4001(a)(3) of ERISA.

“Northern Border”
shall mean Northern Border Pipeline Company, a Texas general partnership.

“Northern Border Partnership Agreement” means that certain
First Amended and Restated General Partnership Agreement relating to the
formation of Northern Border effective as of August 6, 2006, as amended,
supplemented, restated or otherwise modified from time to time.

“Notes” shall mean,
collectively, the Revolving Credit Notes, the Swingline Note and the Term
Notes.

“Notices of Borrowing”
shall mean, collectively, the Notices of Revolving Borrowing and the Notices of
Swingline Borrowing.

“Notice of
Conversion/Continuation”shall mean the
notice given by the Borrower to the Administrative Agent in respect of the
conversion or continuation of an outstanding Borrowing as provided in Section
2.7(b).

“Notice of Revolving
Borrowing” shall have the meaning as set forth in Section 2.3.

“Notice of Swingline
Borrowing”shall have the meaning as
set forth in Section 2.4.

“Notice of Term Loan
Borrowing” shall have the meaning as set forth in Section 2.3.

“Obligations” shall
mean all amounts owing by the Borrower to the Administrative Agent, the Issuing
Bank or any Lender (including the Swingline Lender) pursuant to or in
connection with this Agreement or any other Loan Document, including without
limitation, all principal, interest (including any interest accruing after the
filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Borrower, whether or not a claim
for post-filing or post-petition interest is allowed in such proceeding), all
reimbursement obligations, fees, expenses, indemnification and reimbursement
payments, costs and expenses (including all reasonable fees and expenses of
counsel to the Administrative Agent, the Issuing Bank and any Lender (including
the Swingline Lender) incurred pursuant to this Agreement or any other Loan
Document), whether direct or indirect, absolute or contingent, liquidated or
unliquidated, now existing or hereafter arising hereunder or thereunder, and
all obligations and liabilities incurred in connection with collecting and
enforcing the foregoing, together with all renew­als, extensions, modifications
or refinancings thereof.

“Off-Balance Sheet
Liabilities” of any Person shall mean (i) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by
such

 16
 

Person, (ii) any liability
of such Person under any sale and leaseback transactions that do not create a
liability on the balance sheet of such Person, (iii) any Synthetic Lease
Obligation or (iv) any obligation arising with respect to any other transaction
which is the functional equivalent of or takes the place of borrowing but which
does not constitute a liability on the balance sheet of such Person.

“OSHA” shall mean the
Occupational Safety and Health Act of 1970, as amended from time to time, and
any successor statute.

“Other Taxes” shall
mean any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or from the execution, delivery or enforcement of, or otherwise
with respect to, this Agreement or any other Loan Document.

“Participant” shall
have the meaning set forth in Section 10.4(d).

“Payment Office”
shall mean the office of the Administrative Agent located at 303 Peachtree
Street, N.E., Atlanta, Georgia 30308, or such other location as to which the
Administrative Agent shall have given written notice to the Borrower and the
other Lenders.

“PBGC”shall mean the Pension Benefit Guaranty Corporation
referred to and defined in ERISA, and any successor entity performing similar
functions.

“Permitted Encumbrances”
shall mean:

(i)             Liens imposed by law for taxes, assessments
or governmental charges not yet due or which are being contested in good faith
by appropriate proceedings diligently conducted and with respect to which
adequate reserves are being maintained in accordance with GAAP;

(ii)            statutory Liens of landlords, carriers,
warehousemen, mechanics, materialmen and similar Liens arising by operation of
law in the ordinary course of business for amounts overdue for a period of more
than 30 days or which are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves are being maintained in
accordance with GAAP;

(iii)           pledges and deposits made in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations;

(iv)           deposits to secure the performance of bids, trade contracts, leases,
statutory obligations, surety and appeal bonds, performance bonds and other
obli­gations of a like nature, in each case in the ordinary course of business;

(v)            judgment and attachment liens not giving rise
to an Event of Default or Liens created by or existing from any litigation or
legal proceeding that are currently being contested in good faith by
appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with GAAP;

 17
 

(vi)           customary rights of
set-off, revocation, refund or chargeback under deposit agreements or under the
Uniform Commercial Code or common law of banks or other financial institutions
where Borrower or any of its Subsidiaries maintains deposits (other than
deposits intended as cash collateral) in the ordinary course of business; and

(vii)          easements, zoning restrictions, rights-of-way and similar encumbrances
on real property imposed by law or arising in the ordinary course of business
that do not secure any monetary obligations and do not materially detract from
the value of the affected property or materially interfere with the ordinary
conduct of business of the Borrower and its Subsidiaries taken as a whole;

provided, that the term “Permitted Encumbrances”
shall not include any Lien securing Indebtedness.

“Permitted Investments”
shall mean:

(i)            direct obligations of,
or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States or Canada (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United
States or Canada), in each case maturing within one year from the date of
acquisition thereof;

(ii)           commercial paper rated at least A-1 (or its equivalent) by S&P or
P-1 (or its equivalent) by Moody’s at the time of acquisition thereof, and in
either case maturing within 360 daysfrom
the date of acquisition thereof;

(iii)          certificates of deposit, bankers’ acceptances
and time deposits maturing within 180 days of the date of acquisition thereof issued or guaranteed
by or placed with, and money market deposit accounts issued or offered by, any
domestic office of any commercial bank organized under the laws of the United
States or any state thereof which has (a) a combined capital and surplus and
undivided profits of not less than $500,000,000 or (b) has certificates of
deposit or other debt obligations rated at least A-1 (or its equivalent) by
S&P or P-1 (or its equivalent) by Moody’s;

(iv)          fully collateralized repurchase agreements with a term of not more than
30 days for securities described in clause (i) above and entered into with a
financial institution satisfying the criteria described in clause (iii) above;

(v)           mutual funds or similar funds that have at least 95% of their assets
invested in any one or more of the Permitted Investments described in clauses
(i) through (iv) above;

(vi)          demand deposit accounts maintained in the
ordinary course of business at a bank or trust company satisfying the
requirements specified in (a) or (b) of clause (iii) above;

(vii)         any other securities issued or directly and
fully guaranteed or insured by the United States government or any agency or
instrumentality thereof, in each case, maturing within one year from the date
of acquisition thereof;

 18
 

(viii)        investments in any fund that invests
exclusively in investments of the type described in clauses (vii) which fund
may also hold immaterial amounts of cash pending investment and/or
distribution; and

(ix)           other cash equivalents and securities
reasonably acceptable to the Administrative Agent.

“Permitted Subordinated
Debt” shall mean any Indebtedness of the Borrower or any Subsidiary (i)
that is expressly subordinated to the Obligations and any Hedging Obligations
entered into with the Administrative Agent or any Lender on terms satisfactory
to the Administrative Agent and the Required Lenders in their sole discretion,
(ii) that matures by its terms no earlier than six months after the later of
the Revolving Commitment Termination Date or the Maturity Date then in effect
with no scheduled principal payments permitted prior to such maturity and (iii)
that is evidenced by an indenture or other similar agreement that is in a form
satisfactory to the Administrative Agent and the Required Lenders.

“Permitted Tax
Distributions” shall mean cash dividends or distributions to the partners
of the Borrower with respect to each taxable year during which the Borrower is
a partnership in an amount not to exceed the aggregate of the maximum federal
and state income tax liability of the partners of the Borrower (assuming that
all of such partners are taxed at the maximum permissible federal and state
rates of such partners or members) attributable to the taxable income of the
Borrower for such taxable year, computed in accordance with the Code.

“Person” shall mean
any individual, partnership, firm, corporation, association, joint venture,
limited liability company, trust or other entity, or any Governmental
Authority.

“Plan” shall mean any employee pension benefit
plan (other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of
which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA

“Pro Rata Share”
shall mean (i) with respect to any Commitment of any Lender at any time, a
percentage, the numerator of which shall be such Lender’s Commitment (or if
such Commitments have been terminated or expired or the Loans have been
declared to be due and payable, such Lender’s Revolving Credit Exposure or Term
Loan, as applicable), and the denominator of which shall be the sum of such Commitments
of all Lenders (or if such Commitments have been terminated or expired or the
Loans have been declared to be due and payable, all Revolving Credit Exposure
or Term Loans, as applicable, of all Lenders) and (ii) with respect to all
Commitments of any Lender at any time, the numerator of which shall be the sum
of such Lender’s Revolving Commitment (or if such Revolving Commitments have
been terminated or expired or the Loans have been declared to be due and
payable, such Lender’s Revolving Credit Exposure) and Term Loan and the
denominator of which shall be the sum of all Lenders’ Revolving Commitments (or
if such Revolving Commitments have been terminated or expired or the Loans have
been declared to be due and payable, all Revolving Credit Exposure of all
Lenders funded under such Commitments) and Term Loans.

 19
 

“Regulation D”
shall mean Regulation D of the Board of Governors of the Federal Reserve
System, as the same may be in effect from time to time, and any successor
regulations.

“Related Parties” shall
mean, with respect to any specified Person, such Person’s Affiliates and the
respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

“Release” shall mean
any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration into the environment
(including ambient air, surface water, groundwater, land surface or subsurface
strata) or within any building, structure, facility or fixture.

“Required Lenders”
shall mean, at any time, Lenders holding more than 50% of the aggregate
outstanding Revolving Commitments and Term Loans at such time or if the Lenders
have no Commitments outstanding, then Lenders holding more than 50% of the
Revolving Credit Exposure and Term Loans. 
In each case, at any time any Lender is a Defaulting Lender, all
Defaulting Lenders shall be excluded in determining “Required Lenders” and
“Required Lenders” shall mean non-Defaulting Lenders otherwise meeting the
criteria set forth in this definition.

“Requirement of Law”
for any Person shall mean the articles or certificate of incorporation, bylaws,
partnership certificate and agreement, or limited liability company certificate
of organization and agreement, as the case may be, and other organizational and
governing documents of such Person, and any law, treaty, rule or regulation, or
determination of a Governmental Authority, in each case applicable to or
binding upon such Person or any of its property or to which such Person or any
of its property is subject.

“Responsible Officer”
shall mean any of the president, the chief executive officer, the chief
operating officer, the chief financial officer, the treasurer or a vice
president of the Borrower or such other representative of the Borrower as may
be designated in writing by any one of the foregoing with the consent of the
Administrative Agent; and, with respect to the financial covenants only, the
chief financial officer, treasurer, vice president of finance or controller of the
Borrower.

“Restricted Payment”
shall have the meaning set forth in Section 7.5.

“Revolving Commitment”
shall mean, with respect to each Lender, the commitment of such Lender to make
Revolving Loans to the Borrower and to acquire participations in Letters of
Credit and Swingline Loans in an aggregate principal amount not exceeding the
amount set forth with respect to such Lender on Schedule III, as such
schedule may be amended pursuant to Section 2.23, or in the case of a
Person becoming a Lender after the Closing Date, the amount of the assigned
“Revolving Commitment” as provided in the Assignment and Acceptance executed by
such Person as an assignee,  or the
joinder executed by such Person, in each case as such commitment may
subsequently be increased or deceased pursuant to terms hereof.

 20

“Revolving Commitment
Termination Date” shall mean the earliest of (i) December 12, 2011 or such
later date approved by the Required Lenders in accordance with Section 2.26,
(ii) the date on which the Revolving Commitments are terminated pursuant to Section
2.8 and (iii) the date on which all amounts outstanding under this
Agreement have been declared or have automatically become due and payable
(whether by acceleration or otherwise).

“Revolving Credit
Exposure” shall mean, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Revolving Loans, LC Exposure
and Swingline Exposure.

“Revolving Credit Note”
shall mean a promissory note of the Borrower payable to the order of a
requesting Lender in the principal amount of such Lender’s Revolving
Commitment, in substantially the form of Exhibit A.

“Revolving Loan”
shall mean a loan made by a Lender (other than the Swingline Lender) to the
Borrower under its Revolving Commitment, which may either be a Base Rate Loan
or a Eurodollar Loan.

“S&P” shall mean
Standard & Poor’s, a Division of the McGraw-Hill Companies.

“Significant Subsidiary”
has the meaning specified in Article 1, Rule 1-02(w) of Regulation S-X of the
Securities Exchange Act of 1934 as of the Effective Date, provided,
that, even if Northern Border and GLGT would not otherwise constitute a
Subsidiary of the Borrower, each of Northern Border and GLGT shall be deemed to
be a Significant Subsidiary of the Borrower if it would otherwise qualify as a
Significant Subsidiary under Article 1, Rule 1-02(w) of Regulation S-X as of
the Closing Date.

“Subsidiary” shall
mean, with respect to any Person (the “parent”), any corporation,
partnership, joint venture, limited liability company, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent’s consolidated financial statements if such financial statements
were prepared in accordance with GAAP as of such date, as well as any other
corporation, partnership, joint venture, limited liability company, association
or other entity (i) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary
voting power, or in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned, controlled or held, or (ii)
that is, as of such date, otherwise controlled, by the parent or one or more
subsidiaries of the parent or by the parent and one or more subsidiaries of the
parent.  Unless otherwise indicated, all
references to “Subsidiary” hereunder shall mean a Subsidiary of the
Borrower.  For the avoidance of doubt,
Northern Border is not a Subsidiary of the Borrower as of the Closing Date and
GLGT will not be a Subsidiary of the Borrower as of the closing of the GLGT
Acquisition.

“Subordination Agreement”
shall mean that certain Subordination and Intercreditor Agreement dated as of
the date hereof among TransCanada PipeLines Limited, the Borrower and the
Administrative Agent.

 21
 

“Swingline Commitment”
shall mean the commitment of the Swingline Lender to make Swingline Loans in an
aggregate principal amount at any time outstanding not to exceed$5,000,000.

“Swingline Exposure”
shall mean, with respect to each Lender, the principal amount of the Swingline
Loans in which such Lender is legally obligated either to make a Base Rate Loan
or to purchase a participation in accordance with Section 2.4, which
shall equal such Lender’s Pro Rata Share of all outstanding Swingline Loans.

“Swingline Lender”
shall mean SunTrust Bank, or any other Lender that may agree to make Swingline
Loans hereunder.

“Swingline Loan”
shall mean a loan made to the Borrower by the Swingline Lender under the
Swingline Commitment.

“Swingline Note”
shall mean the promissory note of the Borrower payable to the order of the
Swingline Lender in the principal amount of the Swingline Commitment,
substantially the form of Exhibit C.

“Swingline Rate”
shall mean the Base Rate, or such other interest rate (and with respect
to a Swingline Loan that is a Eurodollar Loan, for any Interest Period) as may
be mutually agreed between the Swingline Lender and the Borrower.

“Synthetic Lease”
shall mean a lease transaction under which the parties intend that (i) the
lease will be treated as an “operating lease” by the lessee pursuant to
Statement of Financial Accounting Standards No. 13, as amended and (ii) the
lessee will be entitled to various tax and other benefits ordinarily available
to owners (as opposed to lessees) of like property.

“Synthetic Lease
Obligations” shall mean, with respect to any Person, the sum of (i) all
remaining rental obligations of such Person as lessee under Synthetic Leases
which are attributable to principal and, without duplication, (ii) all rental
and purchase price payment obligations of such Person under such Synthetic
Leases assuming such Person exercises the option to purchase the lease property
at the end of the lease term.

“Taxes” shall mean
any and all present or future taxes, levies, imposts, duties, deductions, charges
or withholdings imposed by any Governmental Authority.

“TC GL ILP” means TC
GL Intermediate Limited Partnership, a Delaware limited partnership.

 “TC PipeLines ILP” means TC PipeLines
Intermediate Limited Partnership, a Delaware limited partnership.

“TC PipeLines ILP
Agreement” means that certain Amended and Restated Agreement of Limited
Partnership relating to the formation of TC PipeLines ILP effective as of May
28, 1999, as amended, supplemented, restated or otherwise modified from time to
time.

 22
 

“Termination Date”
the date that no Loan, Note or LC Exposure remains outstanding and unpaid, no
amount remains available to be drawn under any Letter of Credit (unless such
Letter of Credit is cash collateralized or supported by a letter of credit on
terms and in amount acceptable to the Administrative Agent), no other amount is
owing to any Lender or the Administrative Agent hereunder or under any of the
other Loan Documents and the Revolving Commitments and Term Loan Commitments
have been terminated.

 “Term Loan” shall have the meaning set
forth in Section 2.5.

“Term Loan Commitment”shall mean, with respect to each Lender, the obligation of
such Lender to make a Term Loan hereunder in a principal amount not exceeding
the amount set forth with respect to such Lender on Schedule III.  The aggregate principal amount of all Lenders’
Term Loan Commitments is $700,000,000.

“Term Loan Commitment Availability Period” shall mean the period from the Closing
Date through the sixth month anniversary of the Closing Date.

“Term Note” shall
mean a promissory note of the Borrower payable to the order of a requesting
Lender in the principal amount of such Lender’s Term Loan Commitment, in
substantially the form of Exhibit B.

“Total Capitalization” shall mean at any date, the
sum of Consolidated Net Worth and Consolidated Total Funded Debt of the
Borrower and its Subsidiaries at such date, determined on a consolidated basis
in accordance with GAAP.

“TransCanada Subordinated
Debt” shall mean all Indebtedness arising under the TransCanada Credit
Agreement and the other TransCanada Subordinated Debt Documents.

“TransCanada Credit
Agreement” shall mean that certain Subordinated Loan Agreement dated as of
February 13, 2007 between the Borrower and TransCanada Pipelines Limited.

“TransCanada Subordinated
Debt Documents” shall mean the TransCanada Credit Agreement and all other
Subordinated Loan Documents (as defined in the TransCanada Credit Agreement).

“Tuscarora” shall
mean Tuscarora Gas Transmission Company, a Nevada general partnership.

“Tuscarora Acquisition”
means that acquisition described in detail in the General Partnership Interest
Purchase Agreement dated as of November 1, 2006 by and between Tuscarora and
Tuscarora ILP.

 “Tuscarora ILP” shall mean TC Tuscarora
Intermediate Limited Partnership, a Delaware limited partnership.

 23
 

“Tuscarora ILP
Partnership Agreement” means that certain Agreement of Limited Partnership
relating to the formation of Tuscarora Intermediate Partnership effective as of
July 19, 2000, as amended supplemented, restated or otherwise modified from
time to time.

“Tuscarora Partnership
Agreement” means that certain General Partnership Agreement relating to the
formation of Tuscarora effective as of June 11, 1993, as amended, supplemented,
restated or otherwise modified from time to time.

“Type”, when used in
reference to a Loan or Borrowing, refers to whether the rate of interest on
such Loan, or on the Loans comprising such Borrowing, is determined by
reference to the Adjusted LIBO Rate or the Base Rate.

“Withdrawal Liability”
shall mean liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in
Part I of Subtitle E of Title IV of ERISA.

Section 1.2.                   Classifications of Loans and
Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g. a “Revolving Loan” or “Term Loan”) or
by Type (e.g. a “Eurodollar Loan” or “Base Rate Loan”) or by Class and Type
(e.g. “Revolving Eurodollar Loan”).  Borrowings
also may be classified and referred to by Class (e.g. “Revolving Borrowing”) or
by Type (e.g. “Eurodollar Borrowing”) or by Class and Type (e.g. “Revolving
Eurodollar Borrowing”).

Section 1.3.                   Accounting Terms and
Determination.  Unless otherwise defined or specified herein,
all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required
to be delivered hereunder shall be prepared, in accordance with GAAP as in effect
from time to time, applied on a basis consistent with the most recent audited
consolidated financial statement of the Borrower delivered pursuant to Section
5.1(a); provided, that if the Borrower notifies the Administrative
Agent that the Borrower wishes to amend any covenant in Article VI to
eliminate the effect of any change in GAAP on the operation of such covenant
(or if the Administrative Agent notifies the Borrower that the Required Lenders
wish to amend Article VI for such purpose), then the Borrower’s
compliance with such covenant shall be determined on the basis of GAAP in
effect immediately before the relevant change in GAAP became effective, until
either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Lenders.

Section 1.4.                   Terms Generally.  The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and
including” and the word “to” means “to but excluding”.  Unless the context requires otherwise (i) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as it was originally executed or as it may from time to time be
amended, restated, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications

 24
 

set
forth herein), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and permitted assigns, (iii) the words “hereof”,
“herein” and “hereunder” and words of similar import shall be construed to
refer to this Agreement as a whole and not to any particular provision hereof,
(iv) all references to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles, Sections, Exhibits and Schedules to this
Agreement and (v) all references to a specific time shall be construed to refer
to the time in the city and state of the Administrative Agent’s principal
office, unless otherwise indicated.  All
actions required to be undertaken by the Borrower under the Loan Documents
shall be undertaken by the Borrower through the General Partner.

ARTICLE
II

AMOUNT
AND TERMS OF THE COMMITMENTS

Section 2.1.                   General Description of
Facilities.  Subject to and upon the terms and conditions
herein set forth, (i) the Lenders hereby establish in favor of the
Borrower a revolving credit facility pursuant to which each Lender severally
agrees (to the extent of such Lender’s Revolving Commitment) to make Revolving
Loans to the Borrower in accordance with Section 2.2, (ii) the Issuing
Bank agrees to issue Letters of Credit in accordance with Section2.22, (iii) the Swingline Lender
agrees to make Swingline Loans in accordance with Section 2.4, (iv) each
Lender agrees to purchase a participation interest in the Letters of Credit and
the Swingline Loans pursuant to the terms and conditions hereof; provided,
that in no event shall the aggregate principal amount of all outstanding
Revolving Loans, Swingline Loans and outstanding LC Exposure exceed at any time
the Aggregate Revolving Commitment Amount from time to time in effect; and (v)
each Lender severally agrees to make a Term Loan to the Borrower in a principal
amount not exceeding such Lender’s Term Loan Commitment on the Closing Date.

Section 2.2.                   Revolving Loans. 
Subject to the terms and conditions set forth herein, each Lender
severally agrees to make Revolving Loans, ratably in proportion to its Pro Rata
Share, to the Borrower, from time to time during theAvailability Period, in an aggregate principal amount
outstanding at any time that will not result in (a) such Lender’s Revolving
Credit Exposure exceeding such Lender’s Revolving Commitment or (b) the
aggregate Revolving Credit Exposures of all Lenders exceeding the Aggregate
Revolving Commitment Amount.  During the
Availability Period, the Borrower shall be entitled to borrow, prepay and
reborrow Revolving Loans in accordance with the terms and conditions of this
Agreement; provided, that the Borrower may not borrow or reborrow should
there exist a Default or Event of Default or any of the other conditions in Section
3.2 shall not have been satisfied.

Section 2.3.                   Procedure for Borrowings.

The Borrower shall
give the Administrative Agent written notice (or telephonic notice promptly
confirmed in writing) of each Term Loan Borrowing substantially in the form of Exhibit
2.3(a) (a “Notice of Term Loan Borrowing”) and each Revolving
Borrowing substantially in the form of Exhibit 2.3(b) (a “Notice of
Revolving Borrowing”, and with the Notice of Term Loan Borrowing, each a “Notice
of Borrowing”), each such Notice of Borrowing to be delivered (x) prior to 11:00 a.m. (New York
time) on the requested date of each
Base Rate

 25
 

Borrowing
and (y) prior to 11:00 a.m. (New York time) three (3) Business Days prior to the
requested date of each Eurodollar Borrowing. 
Each Notice of Borrowing shall be irrevocable and shall specify: (i) the
aggregate principal amount of such Borrowing, (ii) the date of such Borrowing
(which shall be a Business Day), (iii) the Type of such Revolving Loan
comprising such Borrowing and (iv) in the case of a Eurodollar Borrowing, the
duration of the initial Interest Period applicable thereto (subject to the
provisions of the definition of Interest Period).  Each Revolving Borrowing shall consist
entirely of Base Rate Loans or Eurodollar Loans, as the Borrower may
request.  The aggregate principal amount
of each Eurodollar Borrowing shall be not less than $5,000,000 or a larger
multiple of $1,000,000, and the aggregate principal amount of each Base Rate
Borrowing shall not be less than $1,000,000 or a larger multiple of $100,000; provided,
that Base Rate Loans made pursuant to Section 2.4 or Section 2.22(d)
may be made in lesser amounts as provided therein.  At no time shall the total number of
Eurodollar Borrowings outstanding at any time exceed six.  Promptly following the receipt of a Notice of
Borrowing in accordance herewith, the Administrative Agent shall advise each
Lender of the details thereof and the amount of such Lender’s Revolving Loan to
be made as part of the requested Revolving Borrowing.

Section 2.4.                   Swingline Commitment.

(a)           Subject to the terms
and conditions set forth herein, the Swingline Lender agrees to make Swingline
Loans to the Borrower, from time to time during the Availability Period, in an
aggregate principal amount outstanding at any time not to exceed the lesser of
(i) the Swingline Commitment then in effect and (ii) the difference between the
Aggregate Revolving Commitment Amount and the aggregate Revolving Credit
Exposures of all Lenders; provided, that the Swingline Lender shall not
be required to make a Swingline Loan to refinance an outstanding Swingline
Loan.  The Borrower shall be entitled to
borrow, repay and reborrow Swingline Loans in accordance with the terms and
conditions of this Agreement.

(b)           The Borrower shall give the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) of each Swingline Borrowing
substantially in the form of Exhibit 2.4 attached hereto (“Notice of
Swingline Borrowing”) prior to 12:00 p.m. (New Yorktime) on the
requested date of each Swingline Borrowing. 
Each Notice of Swingline Borrowing shall be irrevocable and shall
specify: (i) the principal amount of such Swingline Loan, (ii) the date of such
Swingline Loan (which shall be a Business Day) and (iii) the account of the
Borrower to which the proceeds of such Swingline Loan should be credited.  The Administrative Agent will promptly advise
the Swingline Lender of each Notice of Swingline Borrowing.  Each Swingline Loan shall accrue interest at
the Swingline Rate and shall have an Interest Period (subject to the definition thereof) as agreed between the
Borrower and the Swingline Lender.  The
aggregate principal amount of each Swingline Loan shall be not less than$100,000 or a larger multiple of $50,000, or such other
minimum amounts agreed to by the Swingline Lender and the Borrower.  The Swingline Lender will make the proceeds
of each Swingline Loan available to the Borrower in Dollars in immediately
available funds at the account specified by the Borrower in the applicable
Notice of Swingline Borrowing not later than 1:00 p.m. (New Yorktime) on the
requested date of such Swingline Loan.

(c)           The Swingline Lender, at any time and from
time to time in its sole discretion, may, on behalf of the Borrower (which hereby irrevocably authorizes and directs the

 26
 

Swingline
Lender to act on its behalf), give a Notice of Revolving Borrowing to the
Administrative Agent requesting the Lenders (including the Swingline Lender) to
make Base Rate Loans in an amount equal to the unpaid principal amount of any
Swingline Loan.  Each Lender will make
the proceeds of its Base Rate Loan included in such Borrowing available to the
Administrative Agent for the account of the Swingline Lender in accordance with
Section 2.6, which will be used solely for the repayment of such
Swingline Loan.

(d)           If for any reason a Base Rate Borrowing may
not be (as determined in the sole discretion of the Administrative Agent), or
is not, made in accordance with the foregoing provisions, then each Lender
(other than the Swingline Lender) shall purchase an undivided participating
interest in such Swingline Loan in an amount equal to its Pro Rata Share thereof on the date that such Base Rate Borrowing
should have occurred.  On the date of
such required purchase, each Lender shall promptly transfer, in immediately
available funds, the amount of its participating interest to the Administrative
Agent for the account of the Swingline Lender. 
If such Swingline Loan bears interest at a rate other than the Base
Rate, such Swingline Loan shall automatically become a Base Rate Loan on the
effective date of any such participation and interest shall become payable on
demand.

(e)           Each Lender’s obligation to make a Base Rate
Loan pursuant to Section 2.4(c) or to purchase the
participating interests pursuant to Section 2.4(d) shall be
absolute and unconditional and shall not be affected by any circumstance,
including without limitation (i) any setoff, counterclaim, recoupment, defense
or other right that such Lender or any other Person may have or claim against
the Swingline Lender, the Borrower or any other Person for any reason
whatsoever, (ii) the existence
of a Default or an Event of Default or the termination of any Lender’s
Revolving Commitment, (iii) the existence (or alleged existence) of any event
or condition which has had or could reasonably be expected to have a Material
Adverse Effect, (iv) any breach of this Agreement or any other Loan Document by
the Borrower, the Administrative Agent or any Lender or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.  If such amount is not in
fact made available to the Swingline Lender by any Lender, the Swingline Lender
shall be entitled to recover such amount on demand from such Lender, together
with accrued interest thereon for each day from the date of demand thereof (i)
at the Federal Funds Rate until the second Business Day after such demand and
(ii) at the Base Rate at all times thereafter. 
Until such time as such Lender makes its required payment, the Swingline
Lender shall be deemed to continue to have outstanding Swingline Loans in the
amount of the unpaid participation for all purposes of the Loan Documents.  In addition, such Lender shall be deemed to
have assigned any and all payments made of principal and interest on its Loans
and any other amounts due to it hereunder, to the Swingline Lender to fund the
amount of such Lender’s participation interest in such Swingline Loans that such
Lender failed to fund pursuant to this Section 2.4, until such amount
has been purchased in full.

Section 2.5.                   Term Loan Commitments.  As
of the date hereof, Term Loans in the aggregate principal amount of
$380,000,000 are outstanding under this Agreement.  Subject to the terms and conditions set forth
herein, each Lender having a Term Loan Commitment severally agrees to
make additional Term Loans, ratably in proportion to its Pro Rata Share, to the
Borrower, on one date during theTerm Loan
CommitmentAvailability Period, in an aggregate
principal amount outstanding at any time that will not result in (a) such
Lender’s aggregate Term Loans

 27
 

exceeding such Lender’s Term Loan Commitment or (b) the aggregate Term
Loans of all Lenders exceeding the aggregate Term Loan Commitment Amount.  During the Term Loan Commitment Availability
Period, the Borrower shall be entitled to borrow and prepay Term Loans in
accordance with the provisions hereof, but once repaid or prepaid, Term Loans
may not be reborrowed.  The Term Loans may be, from
time to time, Base Rate Loans or Eurodollar Loans or a combination thereof.

Section 2.6.                   Funding of Borrowings.

(a)           Each Lender will make available each Loan to
be made by it hereunder on the proposed date thereof by wire transfer in
immediately available funds by 11:00 a.m. (New Yorktime)
to the Administrative Agent at the
Payment Office; provided, that the Swingline Loans will be made as set
forth in Section 2.4.  The
Administrative Agent will make such Loans available to the Borrower by promptly
crediting the amounts that it receives, in like funds by 1:00 pm (New York
time) on such proposed date, to an account maintained by the Borrower with the
Administrative Agent or at the Borrower’s option, by effecting a wire transfer
of such amounts to an account designated by the Borrower to the Administrative
Agent.

(b)           Unless the Administrative Agent shall have
been notified by any Lender prior to 5:00 p.m. (New Yorktime) one (1)
Business Day prior to the date of a Borrowing in which such Lender is to
participate that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing,
the Administrative Agent may assume that such Lender has made such amount
available to the Administrative Agent on such date, and the Administrative
Agent, in reliance on such assumption, may make available to the Borrower on
such date a corresponding amount.  If
such corresponding amount is not in fact made available to the Administrative
Agent by such Lender on the date of such Borrowing, the Administrative Agent
shall be entitled to recover such corresponding amount on demand from such
Lender together with interest at the Federal Funds Rate until the second
Business Day after such demand and thereafter at the Base Rate.  If such Lender does not pay such
corresponding amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent shall promptly notify the Borrower, and the Borrower
shall immediately pay such corresponding amount to the Administrative Agent
together with interest at the rate specified for such Borrowing.  Nothing in this subsection shall be deemed to
relieve any Lender from its obligation to fund its Pro Rata Share of any
Borrowing hereunder or to prejudice any rights which the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

(c)           All Revolving Borrowings shall be made by the
Lenders on the basis of their respective Pro Rata Shares.  No Lender shall be responsible for any
default by any other Lender in its obligations hereunder, and each Lender shall
be obligated to make its Loans provided to be made by it hereunder, regardless
of the failure of any other Lender to make its Loans hereunder.

Section 2.7.                   Interest Elections.

(a)           Each Borrowing initially shall be of the Type
specified in the applicable Notice of Borrowing, and in the case of a
Eurodollar Borrowing, shall have an initial Interest Period as specified in
such Notice of Borrowing.  Thereafter,
the Borrower may elect to
convert

 28
 

such
Borrowing into a different Type or to continue such Borrowing, and in the case
of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided
in this Section 2.8.  The Borrower
may elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding Loans comprising such Borrowing, and the Loans comprising each
such portion shall be considered a separate Borrowing.  This Section shall NOT apply to Swingline
Borrowings, which may not be converted or continued.

(b)           To make an election pursuant to this Section
2.7, the Borrower shall give the Administrative Agent prior written notice
(or telephonic notice promptly confirmed in writing) of each Borrowing
substantially in the form of Exhibit 2.7 attached hereto (a “Notice
of Conversion/Continuation”) that is to be converted or continued, as the
case may be, (x) prior to 10:00 a.m. (New Yorktime)
on the requested date of a conversion
into a Base Rate Borrowing and (y) prior to 11:00 a.m. (New Yorktime) three (3)
Business Days prior to a continuation of or conversion into a Eurodollar
Borrowing.  Each such Notice of
Conversion/Continuation shall be irrevocable and shall specify (i) the
Borrowing to which such Notice of Continuation/Conversion applies and if
different options are being elected with respect to different portions thereof,
the portions thereof that are to
be allocated to each resulting Borrowing (in which case the information to be
specified pursuant to clauses (iii) and (iv) shall be specified for each
resulting Borrowing); (ii) the effective date of the election made pursuant to
such Notice of Continuation/Conversion, which shall be a Business Day, (iii)
whether the resulting Borrowing is to be a Base Rate Borrowing or a Eurodollar
Borrowing; and (iv) if the resulting Borrowing is to be a Eurodollar Borrowing,
the Interest Period applicable thereto after giving effect to such election,
which shall be a period contemplated by the definition of “Interest Period”.  If any such Notice of Continuation/Conversion
requests a Eurodollar Borrowing but does not specify an Interest Period, the
Borrower shall be deemed to have selected an Interest Period of one month.  The principal amount of any resulting
Borrowing shall satisfy the minimum borrowing amount for Eurodollar Borrowings
and Base Rate Borrowings set forth in Section 2.3.

(c)           If, on the expiration of any Interest Period
in respect of any Eurodollar Borrowing, the Borrower shall have failed to
deliver a Notice of Conversion/ Continuation, then, unless such Borrowing is
repaid as provided herein, the Borrower shall be deemed to have elected to
convert such Borrowing to a Base Rate Borrowing.  No Borrowing may be converted into, or
continued as, a Eurodollar Borrowing if a Default or an Event of Default
exists, unless the Administrative Agent and each of the Lenders shall have otherwise consented in
writing.   No conversion of any
Eurodollar Loans shall be permitted except on the last day of the Interest
Period in respect thereof.

(d)           Upon receipt of any Notice of
Conversion/Continuation, the Administrative Agent shall promptly notify each
Lender of the details thereof and of such Lender’s portion of each resulting
Borrowing.

Section 2.8.                   Optional Reduction and
Termination of Commitments.

(a)           Unless previously terminated, all Revolving
Commitments, Swingline Commitments and LC Commitments shall terminate on the Revolving Commitment Termination
Date.  The Term Loan Commitments (i)
previously terminated with respect to $380,000,000 of

 29
 

the
Term Loan Commitments upon the making of the Term Loans pursuant to Section
2.5 in such amount on December 19, 2006 and (ii) shall terminate on the
sixth month anniversary of the Closing Date, with respect to $320,000,000of the Term Loan Commitments.

(b)           Upon at least three (3) Business Days’ prior
written notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent (which notice shall be irrevocable), the Borrower may
reduce the Aggregate Revolving Commitments or the Term Loan Commitments in part or terminate the Aggregate
Revolving Commitments or the Term Loan Commitments in whole; provided,
that (i) any partial reduction shall apply to reduce proportionately and
permanently the Revolving Commitment or the Term Loan Commitment of each
Lender, (ii) any partial reduction pursuant to this Section 2.8 shall be
in an amount of at least $5,000,000 and any larger multiple of $1,000,000, and
(iii) no such reduction shall be permitted which would reduce the Aggregate
Revolving Commitment Amount or the Term Loan Commitment to an amount less than
the outstanding Revolving Credit Exposures or the Term Loans of all
Lenders.  Any such reduction in the
Aggregate Revolving Commitment Amount below the sum of the principal amount of
the Swingline Commitment and the LC Commitment shall result in a proportionate
reduction (rounded to the next lowest integral multiple of $100,000) in the
Swingline Commitment and the LC Commitment.

Section 2.9.                   Repayment of Loans.

(a)           The outstanding principal amount of all
Revolving Loans shall be due and payable (together with accrued and unpaid
interest thereon) on the
Revolving Commitment Termination Date.

(b)           The principal amount of each Swingline Borrowing
shall be due and payable (together with accrued and unpaid interest thereon) on
the earlier of (i) the last day of the Interest Period applicable to such
Borrowing and (ii) the Revolving Commitment Termination Date.

(c)           The outstanding balance
of all Term Loans shall be due and payable (together with accrued and unpaid
interest thereon) on the Maturity Date.

Section 2.10.                Evidence of Indebtedness. 
(a)  Each Lender shall maintain in
accordance with its usual practice appropriate records evidencing the
Indebtedness of the Borrower to such Lender resulting from each Loan made by
such Lender from time to time, including the amounts of principal and interest
payable thereon and paid to such Lender from time to time under this
Agreement.  The Administrative Agent
shall maintainappropriate recordsin which shall be recorded (i) the
Revolving Commitment and Term Loan Commitment of each Lender, (ii) the amount
of each Loan made hereunder by each Lender, the Class and Type thereof and the
Interest Period applicable thereto, (iii) the date of each continuation thereof
pursuant to Section 2.7, (iv) the date of each conversion of all or a
portion thereof to another Type pursuant to Section 2.7, (v) the date
and amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder in respect of such Loans and
(vi) both the date and amount of any sum received by the Administrative Agent
hereunder from the Borrower in respect of the Loans and each Lender’s Pro Rata
Share thereof.  The entries made in such
records shall be prima facie

 30
 

evidence
of the existence and amounts of the obligations of the Borrower therein
recorded; provided, that the failure or delay of any Lender or the
Administrative Agent in maintaining or making entries into any such record or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans (both principal and unpaid accrued interest) of such Lender
in accordance with the terms of this Agreement.

(b)           At the request of any Lender (including the
Swingline Lender) at any time, the Borrower agrees that it will execute and deliver to such Lender a Revolving
Credit Note  and/or a Term Loan Note and,
in the case of the Swingline Lender only, a Swingline Note, payable to the
order of such Lender.

Section
2.11.        Optional
Prepayments.  The Borrower shall
have the right at any time and from time to time to prepay any Borrowing, in
whole or in part, without premium or penalty, by giving irrevocable written
notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent no later than (i) in the case of prepayment of any
Eurodollar Borrowing, 11:00 a.m. (New York time)  not less than three (3) Business Days prior
to any such prepayment, (ii) in the case of any prepayment of any Base Rate
Borrowing, not less than one Business Day prior to the date of such prepayment,
and (iii) in the case of Swingline Borrowings, prior to 11:00 a.m. (New Yorktime) on the date of such prepayment.  Each such notice shall be irrevocable and shall
specify the proposed date of such prepayment and the principal amount of each
Borrowing or portion thereof to be prepaid. 
Upon receipt of any such notice, the Administrative Agent shall promptly
notify each affected Lender of the contents thereof and of such Lender’s Pro
Rata Share of any such prepayment.  If
such notice is given, the aggregate amount specified in such notice shall be
due and payable on the date designated in such notice, together with accrued
interest to such date on the amount so prepaid in accordance with Section
2.13(d); provided, that if a Eurodollar Borrowing is prepaid on a
date other than the last day of an Interest Period applicable thereto, the
Borrower shall also pay all amounts required pursuant to Section 2.19.  Each partial prepayment of any Loan (other
than a Swingline Loan) shall be in an amount that would be permitted in the
case of an advance of a Revolving Borrowing of the same Type pursuant to Section
2.2 or in the case of a Swingline Loan pursuant to Section 2.4.  Each prepayment of a Borrowing shall be
applied ratably to the Loans comprising such Borrowing, and in the case of a
prepayment of a Term Loan Borrowing, to principal installments in inverse order
of maturity.

Section
2.12.        Mandatory
Prepayments.  If at any time the
Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving
Commitment Amount, as reduced pursuant to Section 2.8 or otherwise, the
Borrower shall immediately repay Swingline Loans and Revolving Loans in an
amount equal to such excess, together with all accrued and unpaid interest on
such excess amount and any amounts due under Section 2.19.  Each prepayment shall be applied first to the
Swingline Loans to the full extent thereof, second to the Base Rate Loans to
the full extent thereof, and finally to Eurodollar Loans to the full extent
thereof.  If after giving effect to
prepayment of all Swingline Loans and Revolving Loans, the Revolving Credit
Exposure of all Lenders exceeds the Aggregate Revolving Commitment Amount, the
Borrower shall deposit in an account with the Administrative Agent, in the name
of the Administrative Agent and for the benefit of the Issuing Bank and the
Lenders, an amount in cash equal to such excess plus any accrued and unpaid
fees thereon to be held as collateral for the LC Exposure.  Such account shall be administered in
accordance with Section 2.22(g) hereof.

 31
 

Section
2.13         Interest on Loans.

(a)           The
Borrower shall pay interest on each Base Rate Loan at the Base Rate in effect
from time to time and on each Eurodollar Loan at the Adjusted LIBO Rate for the
applicable Interest Period in effect for such Loan, plus,
in each case, the Applicable Margin in effect from time to time.

(b)           The
Borrower shall pay interest on each Swingline Loan at the Swingline Rate in effect
from time to time.

(c)           While
an Event of Default exists or after acceleration, at the option of the Required
Lenders, the Borrower shall pay interest (“Default Interest”) with
respect to all Eurodollar Loans at the rate otherwise applicable for the then-current
Interest Period plus an additional 2% per annum
until the last day of such Interest Period, and thereafter, and with respect to
all Base Rate Loans and all other Obligations hereunder (other than Loans), at
the rate in effect for Base Rate Loans, plus an
additional 2% per annum.

(d)           Interest
on the principal amount of all Loans shall accrue from and including the date
such Loans are made to but excluding the date of any repayment thereof.  Interest on all outstanding Base Rate Loans
shall be payable quarterly in arrears on the last day of each March, June,
September and December and on the Revolving Commitment Termination Date or the
Maturity Date, as the case may be. 
Interest on all outstanding Eurodollar Loans shall be payable on the
last day of each Interest Period applicable thereto, and, in the case of any
Eurodollar Loans having an Interest Period in excess of three months or 90
days, respectively, on each day which occurs every three months or 90 days, as
the case may be, after the initial date of such Interest Period, and on the
Revolving Commitment Termination Date or the Maturity Date, as the case may
be.  Interest on each Swingline Loan (other
than a Swingline Loan that is a Base Rate Loan which shall be payable as set
forth above) shall be payable on the
maturity date of such Loan, which shall be the last day of the Interest Period
applicable thereto, and on the Revolving Commitment Termination Date.  Interest on any Loan which is converted into
a Loan of another Type or which is repaid or prepaid shall be payable on the
date of such conversion or on the date of any such repayment or prepayment (on
the amount repaid or prepaid) thereof. 
All Default Interest shall be payable on demand.

(e)           The
Administrative Agent shall determine each interest rate applicable to the Loans
hereunder and shall promptly notify the Borrower and the Lenders of such rate
in writing (or by telephone, promptly confirmed in writing).  Any such determination shall be conclusive
and binding for all purposes, absent manifest error.

Section 2.14.        Fees.

(a)           The
Borrower shall pay to the Administrative Agent for its own account fees in the
amounts and at the times previously agreed upon in writing by the Borrower and
the Administrative Agent.

(b)           The
Borrower agrees to pay to the Administrative Agent for the account of each
Lender a facility fee, which shall accrue at the Applicable Percentage per
annum (determined daily in accordance with Schedule I) on the daily
amount of the Revolving

 32
 

Commitment (whether used or unused) of such Lender during the
Availability Period; provided, that if such Lender continues to have any
Revolving Credit Exposure after the Revolving Commitment Termination Date, then
the facility fee shall continue to accrue on the daily amount of such Revolving
Credit Exposure from and after the Revolving Commitment Termination Date to the
date that all of such Lender’s Revolving Credit Exposure has been paid in full.

(c)           The
Borrower agrees to pay to the Administrative Agent for the account of each
Lender a commitment fee, which shall accrue at the Applicable Percentage per
annum (determined daily in accordance with Schedule I) on the daily
amount of the unused Term Loan Commitment of such Lender during the Term
Loan Commitment Availability Period.

(d)           The Borrower agrees to pay (i) quarterly in arrears to the
Administrative Agent, for the account of each Lender, a letter of credit fee
with respect to its participation in each Letter of Credit, which shall accrue
at a rate per annum equal to the Applicable Margin for Eurodollar Loans then in
effect on the average daily amount of such Lender’s LC Exposure attributable to
such Letter of Credit during the period from and including the date of issuance
of such Letter of Credit to but excluding the date on which such Letter of
Credit expires or is drawn in full (including without limitation any LC
Exposure that remains outstanding after the Revolving Commitment Termination
Date) and (ii) to the Issuing Bank for its own account a fronting fee, which
shall accrue at the rate of 0.125% per annum on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the Availability Period (or until the date that such
Letter of Credit is irrevocably cancelled, whichever is later), as well as the
Issuing Bank’s standard fees with respect to issuance, amendment, renewal or
extension of any Letter of Credit or processing of drawings thereunder.  Notwithstanding the foregoing, if the
Required Lenders elect to increase the interest rate on the Loans to the
Default Interest pursuant to Section 2.13(c), the rate per annum used to
calculate the letter of credit fee pursuant to clause (i) above shall
automatically be increased by an additional 2% per annum.

(e)           The
Borrower shall pay to the Administrative Agent, for the ratable benefit of each
Lender, the upfront fee previously agreed upon by the Borrower and the
Administrative Agent, which shall be due and payable on the Closing Date.

(f)            Accrued
fees under paragraphs (b), (c) and above shall be payable quarterly in arrears
on the last day of each March, June, September and December, commencing on
March 31, 2007 and on the Revolving Commitment Termination Date (and if later,
the date the Loans and LC Exposure shall be repaid in their entirety); provided
further, that any such fees accruing after the Revolving Commitment
Termination Date shall be payable on demand.

Section
2.15.        Computation of Interest and
Fees.

All computations of interest
based on the Base Rate shall be made by the Administrative Agent on the basis
of a year of 365 days, as the case may be, and all computations of interest
based on LIBOR or the Federal Funds Rate and of fees hereunder shall be made on
the basis of a year of 360 days for the actual number of days (including
the first day but excluding the last day) occurring in the period for which
such interest or fees are payable (to the extent computed on the basis of days
elapsed).  Each determination by the
Administrative

 33
 

Agent of an interest amount
or fee hereunder shall be made in good faith and, except for manifest error,
shall be final, conclusive and binding for all purposes.

Section
2.16.        Inability to Determine
Interest Rates.  If prior to the commencement of any Interest
Period for any Eurodollar Borrowing,

(i)             the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant interbank
market, adequate means do not exist for ascertaining LIBOR for such Interest
Period, or

(ii)            the Administrative Agent shall have received
notice from the Required Lenders that the Adjusted LIBO Rate does not
adequately and fairly reflect the cost to such Lenders (or Lender, as the case
may be) of making, funding or maintaining their (or its, as the case may
be)  Eurodollar Loans for such Interest
Period,

the Administrative Agent
shall give written notice (or telephonic notice, promptly confirmed in writing)
to the Borrower and to the Lenders as soon as practicable thereafter.  Until the Administrative Agent shall notify
the Borrower and the Lenders that the circumstances giving rise to such notice
no longer exist, (i) the obligations of the Lenders to make Eurodollar Revolving
Loans or to continue or convert outstanding Loans as or into Eurodollar Loans
shall be suspended and (ii) all such affected Loans shall be converted into
Base Rate Loans on the last day of the then current Interest Period applicable
thereto unless the Borrower prepays such Loans in accordance with this
Agreement.  Unless the Borrower notifies
the Administrative Agent at least one Business Day before the date of any
Eurodollar Revolving Borrowing for which a Notice of Revolving Borrowing has
previously been given that it elects not to borrow on such date, then such
Revolving Borrowing shall be made as a Base Rate Borrowing.

Section
2.17.        Illegality.  If, after the date of this Agreement, any Change in Law shall make it
unlawful or impossible for any Lender to make, maintain or fund any Eurodollar
Loan and such Lender shall so promptly notify the Administrative Agent, the
Administrative Agent shall promptly give notice thereof to the Borrower and the
other Lenders, whereupon until such Lender notifies the Administrative Agent
and the Borrower that the circumstances giving rise to such suspension no
longer exist, the obligation of such Lender to make Eurodollar Revolving Loans,
or to continue or convert outstanding Loans as or into Eurodollar Loans, shall
be suspended.  In the case of the making
of a Eurodollar Revolving Borrowing, such Lender’s Revolving Loan shall be made
as a Base Rate Loan as part of the same Revolving Borrowing for the same
Interest Period and if the affected Eurodollar Loan is then outstanding, such
Loan shall be converted to a Base Rate Loan either (i) on the last day of the
then current Interest Period applicable to such Eurodollar Loan if such Lender
may lawfully continue to maintain such Loan to such date or (ii) immediately if
such Lender shall determine that it may not lawfully continue to maintain such
Eurodollar Loan to such date. 
Notwithstanding the foregoing, the affected Lender shall, prior to
giving such notice to the Administrative Agent, designate a different
Applicable Lending Office if such designation would avoid the need for giving
such notice and if such designation would not otherwise be disadvantageous to
such Lender in the good faith exercise of its discretion.

 34
 

Section
2.18.        Increased Costs.

(a)           If
any Change in Law shall:

(i)             impose, modify or deem applicable any
reserve, special deposit or similar requirement that is not otherwise included
in the determination of the Adjusted LIBO Rate hereunder against assets of,
deposits with or for the account of, or credit extended by, any Lender (except
any such reserve requirement reflected in the Adjusted LIBO Rate) or the
Issuing Bank; or

(ii)            impose on any Lender or on the Issuing Bank
or the eurodollar interbank market any other condition affecting this Agreement
or any Eurodollar Loans made by such Lender or any Letter of Credit or any
participation therein;

and the result of either of the foregoing is to
increase the cost to such Lender of making, converting into, continuing or
maintaining a Eurodollar Loan or to increase the cost to such Lender or the
Issuing Bank of participating in or issuing any Letter of Credit or to reduce
the amount received or receivable by such Lender or the Issuing Bank hereunder
(whether of principal, interest or any other amount), then the Borrower shall
promptly pay, upon written notice from and demand by such Lender on the
Borrower (with a copy of such notice and demand to the Administrative Agent),
to the Administrative Agent for the account of such Lender, within five
Business Days after the date of such notice and demand, additional amount or
amounts sufficient to compensate such Lender or the Issuing Bank, as the case
may be, for such additional costs incurred or reduction suffered; provided,
that amounts paid under this Section 2.18(a) shall be without
duplication of amounts paid under Section 2.20 and shall not include
Excluded Taxes.

(b)           If
any Lender or the Issuing Bank shall have determined that on or after the date
of this Agreement any Change in Law regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or the Issuing
Bank’s capital (or on the capital of such Lender’s or the Issuing Bank’s parent
corporation) as a consequence of its obligations hereunder or under or in
respect of any Letter of Credit to a level below that which such Lender or the
Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation could
have achieved but for such Change in Law (taking into consideration such Lender’s
or the Issuing Bank’s policies or the policies of such Lender’s or the Issuing
Bank’s parent corporation with respect to capital adequacy) then, from time to
time, within five (5) Business Days after receipt by the Borrower of written
demand by such Lender (with a copy thereof to the Administrative Agent), the
Borrower shall pay to such Lender such additional amounts as will compensate
such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent
corporation for any such reduction suffered.

(c)           A
certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or such Lender’s or the
Issuing Bank’s parent corporation, as the case may be, specified in paragraph
(a) or (b) of this Section 2.18 shall be delivered to the Borrower (with
a copy to the Administrative Agent) and shall be conclusive, absent manifest
error.  The Borrower shall pay any such
Lender or the Issuing Bank, as the case may be, such amount or amounts within
10 days after receipt thereof.

 35
 

(d)           Except
as provided in Section 2.18(e), failure or delay on the part of any Lender or
the Issuing Bank to demand compensation pursuant to this Section 2.18
shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to
demand such compensation;

(e)           Notwithstanding anything to the contrary in
this Section 2.18, the Borrower shall not be required to compensate a Lender or
the Issuing Bank pursuant to this Section 2.18 for any amounts incurred prior
to the date that such Lender or the Issuing Bank notifies the Borrower of such
Lender’s or the Issuing Bank’s intention to claim compensation therefor;
provided that, if the circumstances giving rise to such claim have a
retroactive effect, then such six-month period shall be extended to include the
period of such retroactive effect.

Section
2.19.        Funding Indemnity.  In
the event of (a) the payment of any principal of a Eurodollar Loan other than
on the last day of the Interest Period applicable thereto (including as a
result of an Event of Default), (b) the conversion or continuation of a
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto, or (c) the failure by the Borrower to borrow, prepay, convert or
continue any Eurodollar Loan on the date specified in any applicable notice
(regardless of whether such notice is withdrawn or revoked), then, in any such
event, the Borrower shall compensate each Lender, within five (5) Business Days
after written demand from such Lender, for any loss, cost or expense
attributable to such event.  In the case
of a Eurodollar Loan, such loss, cost or expense shall be deemed to include an
amount determined by such Lender to be the excess, if any, of (A) the amount of
interest that would have accrued on the principal amount of such Eurodollar
Loan if such event had not occurred at the Adjusted LIBO Rate applicable to
such Eurodollar Loan for the period from the date of such event to the last day
of the then current Interest Period therefor (or in the case of a failure to
borrow, convert or continue, for the period that would have been the Interest
Period for such Eurodollar Loan) over (B) the amount of interest that would
accrue on the principal amount of such Eurodollar Loan for the same period if
the Adjusted LIBO Rate were set on the date such Eurodollar Loan was prepaid or
converted or the date on which the Borrower failed to borrow, convert or
continue such Eurodollar Loan.  A
certificate as to any additional amount payable under this Section 2.19
submitted to the Borrower by any Lender (with a copy to the Administrative
Agent) shall be conclusive, absent manifest error.

Section
2.20.        Taxes.

(a)           Any
and all payments by or on account of any obligation of the Borrower hereunder
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided, that if the Borrower shall be required to
deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.20) the Administrative Agent, any Lender or the Issuing
Bank (as the case may be) shall receive an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall make
such deductions and (iii) the Borrower shall pay the full amount deducted to
the relevant Governmental Authority in accordance with applicable law.

(b)           In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

 36
 

(c)           The
Borrower shall indemnify the Administrative Agent, each Lender and the Issuing
Bank, within five (5) Business Days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent,
such Lender or the Issuing Bank, as the case may be, on or with respect to any
payment by or on account of any obligation of the Borrower hereunder (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section 2.20) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender or the Issuing Bank,
or by the Administrative Agent on its own behalf or on behalf of a Lender or
the Issuing Bank, shall be conclusive absent manifest error.

(d)           As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

(e)           Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the Code or any treaty to which the United States is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a
reduced rate.  Without limiting the generality
of the foregoing, each Foreign Lender agrees that it will deliver to the
Administrative Agent and the Borrower (or in the case of a Participant, to the
Lender from which the related participation shall have been purchased), as
appropriate, two (2) duly completed copies of (i) Internal Revenue Service Form
W-8 ECI, or any successor form thereto, certifying that the payments received
from the Borrower hereunder are effectively connected with such Foreign Lender’s
conduct of a trade or business in the United States; or (ii) Internal Revenue
Service Form W-8 BEN, or any successor form thereto, certifying that such
Foreign Lender is entitled to benefits under an income tax treaty to which the
United States is a party which reduces the rate of withholding tax on payments
of interest; or (iii) Internal Revenue Service Form W-8 BEN, or any successor
form prescribed by the Internal Revenue Service, together with a certificate
(A) establishing that the payment to the Foreign Lender qualifies as “portfolio
interest” exempt from U.S. withholding tax under Code section 871(h) or 881(c),
and (B) stating that (1) the Foreign Lender is not a bank for purposes of Code
section 881(c)(3)(A), or the obligation of the Borrower hereunder is
not, with respect to such Foreign Lender, a loan agreement entered into in the
ordinary course of its trade or business, within the meaning of that section;
(2) the Foreign Lender is not a 10% shareholder of the Borrower within the
meaning of Code section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign Lender
is not a controlled foreign corporation that is related to the Borrower within
the meaning of Code section 881(c)(3)(C); or (iv) such other Internal Revenue
Service forms as may be applicable to the Foreign Lender, including Forms W-8
IMY or W-8 EXP.  Each such Foreign Lender
shall deliver to the Borrower and the Administrative Agent such forms on or
before the date that it becomes a party to this Agreement (or in the case of a
Participant, on or before the date such Participant purchases the related
participation).  In addition, each such
Foreign Lender shall deliver such

 37
 

forms
promptly upon the obsolescence or invalidity of any form previously delivered
by such Foreign Lender.  Each such
Foreign Lender shall promptly notify the Borrower and the Administrative Agent
at any time that it determines that it is no longer in a position to provide
any previously delivered certificate to the Borrower (or any other form of
certification adopted by the Internal Revenue Service for such purpose).

(f)            For any period with respect to which a
Foreign Lender has failed to provide the Borrower with the appropriate form,
certificate or other document described in Section 2.20(e) (other than
if such failure is due to a Change in Law, occurring subsequent to the date on
which a form, certificate or other document originally was required to be
provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Foreign Lender shall not be entitled
to the additional payment or indemnification under Section 2.20(a) or (c) with
respect to Taxes imposed by the United States by reason of such failure;
provided, however, that should a Lender become subject to Taxes because of its
failure to deliver a form, certificate or other document required hereunder, the
Borrower shall take such steps as the Foreign Lender shall reasonably request
to assist the Foreign Lender to recover such Taxes.

(g)           If the Administrative Agent or any Lender
determines, in its sole discretion, that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect
to which the Borrower has paid amounts
pursuant to this Section 2.20, it shall pay over such refund to the
Borrower (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 2.20 with respect to
the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other
than any interest paid by the relevant governmental authority with respect to
such refund); provided, that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay the amount paid over to
the Borrower (plus any penalties, interest or other charges imposed by the
relevant governmental authority) to the Administrative Agent or such Lender in
the event the Administrative Agent or such Lender is required to repay such
refund to such governmental authority. 
This paragraph shall not be construed to require the Administrative
Agent or any Lender to make available its tax returns (or any other information
relating to its taxes which it deems confidential) to the Borrower or any other
Person.

Section
2.21.        Payments Generally; Pro Rata
Treatment; Sharing of Set-offs.

(a)           The
Borrower shall make each payment required to be made by it hereunder (whether
of principal, interest, fees or reimbursement of LC Disbursements, or of
amounts payable under Sections 2.18, 2.19 or 2.20, or
otherwise) prior to 12:00 noon (New Yorktime) on the date
when due, in immediately available funds, free and clear of any defenses,
rights of set-off, counterclaim, or withholding or deduction of taxes.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon.  All such payments
shall be made to the Administrative Agent at the Payment Office, except
payments to be made directly to the Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.18,
2.19 and 2.20 and 10.3 shall be made directly to the
Persons entitled thereto.  The
Administrative Agent shall distribute any such

 38
 

payments
received by it for the account of any other Person to the appropriate recipient
promptly following receipt thereof.  If
any payment hereunder shall be due on a day that is not a Business Day, the
date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be made
payable for the period of such extension. 
All payments hereunder shall be made in Dollars.

(b)           If
at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.

(c)           If
any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Loans or participations in LC Disbursements or Swingline Loans that would
result in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and participations in LC Disbursements and
Swingline Loans and accrued interest thereon than the proportion received by
any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Loans and
participations in LC Disbursements and Swingline Loans of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and participations in LC
Disbursements and Swingline Loans; provided, that (i) if any such
participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements or Swingline Loans to any assignee or participant, other
than to the Borrower or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). 
The Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

(d)           Unless
the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Administrative Agent for the
account of the Lenders or the Issuing Bank hereunder that the Borrower will not
make such payment, the Administrative Agent may assume that the Borrower has
made such payment on such date in accordance herewith and may, in reliance upon
such assumption, distribute to the Lenders or the Issuing Bank, as the case may
be, the amount or amounts due.  In such
event, if the Borrower has not in fact made such payment, then each of the
Lenders or the Issuing Bank, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand

 39
 

the
amount so distributed to such Lender or Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of
the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

(e)           If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.4(c) and (d), 2.6(a), 2.21(d), 2.22(d)
or (e) or 10.3(d), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender
to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

Section
2.22.        Letters of Credit.

(a)           During
the Availability Period, the Issuing Bank, in reliance upon the agreements of
the other Lenders pursuant to Section 2.22(d), agrees to issue, at the
request of the Borrower, Letters of Credit for the account of the Borrower on
the terms and conditions hereinafter set forth; provided, that (i) each
Letter of Credit shall expire on the earlier of (A) the date one year after the
date of issuance of such Letter of Credit (or in the case of any renewal or
extension thereof, one year after such renewal or extension) and (B) the date
that is five (5) Business Days prior to the Revolving Commitment Termination
Date; (ii) each Letter of Credit shall be in a stated amount of at least
$100,000; and (iii) the Borrower may not request any Letter of Credit, if,
after giving effect to such issuance (A) the aggregate LC Exposure would exceed
the LC Commitment or (B) the aggregate Revolving Credit Exposure of all Lenders
would exceed the Aggregate Revolving Commitment Amount.  Each
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the Issuing Bank without recourse a participation in each
Letter of Credit equal to such Lender’s Pro Rata Share of the aggregate amount
available to be drawn under such Letter of Credit on the date of issuance with
respect to all other Letters of Credit. 
Each issuance of a Letter of Credit shall be deemed to utilize the
Revolving Commitment of each Lender by an amount equal to the amount of such
participation.

(b)           To request the issuance of a Letter of
Credit (or any amendment, renewal or extension of an outstanding Letter of
Credit), the Borrower shall give the Issuing Bank and the Administrative Agent
irrevocable written notice at least three (3) Business Days prior to the
requested date of such issuance specifying the date (which shall be a Business
Day) such Letter of Credit is to be issued (or amended, extended or renewed, as
the case may be), the expiration date of such Letter of Credit, the amount of
such Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit.  In addition to the
satisfaction of the conditions in Article III, the issuance of such
Letter of Credit (or any amendment which increases the amount of such Letter of
Credit) will be subject to the further conditions that such Letter of Credit
shall be in such form and contain such terms as the Issuing Bank shall approve
and that the Borrower shall have executed and delivered any additional
applications, agreements and instruments relating to such Letter of Credit as
the Issuing Bank shall reasonably require; provided, that in the event
of any conflict between such applications, agreements or instruments and this
Agreement, the terms of this Agreement shall control.

 40

(c)           At least two Business Days prior to the issuance of any Letter of
Credit, the Issuing Bank will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received such notice
and if not, the Issuing Bank will provide the Administrative Agent with a copy
thereof.  Unless the Issuing Bank has
received notice from the Administrative Agent on or before the Business Day
immediately preceding the date the Issuing Bank is to issue the requested
Letter of Credit (1) directing the Issuing Bank not to issue the Letter of
Credit because such issuance is not then permitted hereunder because of the
limitations set forth in Section 2.22(a) or that one or more conditions
specified in Article III are not then satisfied, then, subject to the
terms and conditions hereof, the Issuing Bank shall, on the requested date,
issue such Letter of Credit in accordance with the Issuing Bank’s usual and
customary business practices.

(d)           The Issuing Bank shall examine all documents purporting to represent a
demand for payment under a Letter of Credit promptly following its receipt
thereof.  The Issuing Bank shall notify
the Borrower and the Administrative Agent of such demand for payment and
whether the Issuing Bank has made or will make a LC Disbursement thereunder; provided,
that any failure to give or delay in giving such notice shall not relieve the
Borrower of its obligation to reimburse the Issuing Bank and the Lenders with
respect to such LC Disbursement.  The
Borrower shall be irrevocably and unconditionally obligated to reimburse the
Issuing Bank for any LC Disbursements paid by the Issuing Bank in respect of
such drawing, without presentment, demand or other formalities of any
kind.  Unless the Borrower shall have
notified the Issuing Bank and the Administrative Agent prior to 11:00 a.m.
(New Yorktime) on the Business Day immediately prior to the
date on which such drawing is honored that the Borrower intends to reimburse
the Issuing Bank for the amount of such drawing in funds other than from the
proceeds of Revolving Loans, the Borrower shall be deemed to have timely given
a Notice of Revolving Borrowing to the Administrative Agent requesting the
Lenders to make a Base Rate Borrowingon
the date on which such drawing is honored in an exact amount due to the Issuing
Bank; provided, that for purposes solely of such Borrowing, the
conditions precedent set forth in Section 3.2 hereof shall not be
applicable.  The Administrative Agent
shall notify the Lenders of such Borrowing in accordance with Section 2.3,
and each Lender shall make the proceeds of its Base Rate Loan included in such
Borrowing available to the Administrative Agent for the account of the Issuing
Bank in accordance with Section 2.6. 
The proceeds of such Borrowing shall be applied directly by the
Administrative Agent to reimburse the Issuing Bank for such LC Disbursement.

(e)           If for any reason a Base Rate Borrowing may not be (as determined in
the sole discretion of the Administrative Agent), or is not, made in accordance
with the foregoing provisions, then each Lender (other than the Issuing Bank)
shall be obligated to fund the participation that such Lender purchased
pursuant to subsection (a) in an amount equal to its Pro Rata Shareof such LC Disbursement on and as of the date
which such Base Rate Borrowing should have occurred.  Each Lender’s
obligation to fund its participation shall be absolute and unconditional and
shall not be affected by any circumstance, including without limitation (i) any
setoff, counterclaim, recoupment, defense or other right that such Lender or
any other Person may have against the Issuing Bank or any other Person for any
reason whatsoever, (ii) the existence of a Default or an Event of Default or
the termination of the Aggregate Revolving Commitments, (iii) any adverse
change in the condition (financial or otherwise) of the Borrower or any of its
Subsidiaries, (iv) any breach of this Agreement by the Borrower or any other

 41
 

Lender,
(v) any amendment, renewal or extension of any Letter of Credit or (vi) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.  On the date that
such participation is required to be funded, each Lender shall promptly
transfer, in immediately available funds, the amount of its participation to
the Administrative Agent for the account of the Issuing Bank.  Whenever, at any time after the Issuing Bank
has received from any such Lender the funds for its participation in a LC
Disbursement, the Issuing Bank (or the Administrative Agent on its behalf)
receives any payment on account thereof, the Administrative Agent or the
Issuing Bank, as the case may be, will distribute to such Lender its Pro Rata
Share of such payment; provided, that if such payment is required to be
returned for any reason to the Borrower or to a trustee, receiver, liquidator,
custodian or similar official in any bankruptcy proceeding, such Lender will
return to the Administrative Agent or the Issuing Bank any portion thereof
previously distributed by the Administrative Agent or the Issuing Bank to it.

(f)            To the extent that any Lender shall fail to
pay any amount required to be paid pursuant to paragraphs (d) or (e) of this
Section on the due date therefor, such Lender shall pay interest to the Issuing
Bank (through the Administrative Agent) on such amount from such due date to
the date such payment is made at a rate per annum equal to the Federal Funds
Rate; provided, that if such Lender shall fail to make such payment to
the Issuing Bank within three (3) Business Days of such due date, then,
retroactively to the due date, such Lender shall be obligated to pay interest
on such amount at the rate set forth in Section 2.13(d).

(g)           If any Event of Default shall occur and be continuing, on the Business
Day that the Borrower receives notice from the Administrative Agent or the
Required Lenders demanding the deposit of cash collateral pursuant to this
paragraph, the Borrower shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the
Issuing Bank and the Lenders, an amount in cash equal to the LC Exposure as of
such date plus any accrued and unpaid fees thereon; provided, that the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
notice of any kind, upon the occurrence of any Event of Default with respect to
the Borrower described in clause (g) or (h) of Section 8.1.  Such deposit shall be held by the Administrative
Agent as collateral for the payment and performance of the obligations of the
Borrower under this Agreement.  The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account.  Borrower agrees to execute any documents
and/or certificates to effectuate the intent of this paragraph.  Other than any interest earned on the
investment of such deposits, which investments shall be made at the option and
sole discretion of the Administrative Agent and at the Borrower’s risk and
expense, such deposits shall not bear interest. 
Interest and profits, if any, on such investments shall accumulate in
such account.  Moneys in such account
shall be applied by the Administrative Agent to reimburse the Issuing Bank for
LC Disbursements for which it had not been reimbursed and to the extent so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated, with the consent of the Required Lenders, be applied to
satisfy other obligations of the Borrower under this Agreement and the other
Loan Documents.  If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not so applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.

 42
 

(h)           Promptly following the end of each calendar quarter, the Issuing Bank
shall deliver (through the Administrative Agent) to each Lender and the
Borrower a report describing the aggregate Letters of Credit outstanding at the
end of such Fiscal Quarter.  Upon the
request of any Lender from time to time, the Issuing Bank shall deliver to such
Lender any other information reasonably requested by such Lender with respect
to each Letter of Credit then outstanding.

(i)            The Borrower’s obligation to reimburse LC
Disbursements hereunder shall be absolute, unconditional and irrevocable and
shall be performed strictly in accordance with the terms of this Agreement
under all circumstances whatsoever and irrespective of any of the following
circumstances:

(i)             Any lack of validity or enforceability of any
Letter of Credit or this Agreement;

(ii)            The existence of any claim, set-off, defense
or other right which the Borrower or any Subsidiary or Affiliate of the
Borrower may have at any time against a beneficiary or any transferee of any
Letter of Credit (or any Persons or entities for whom any such beneficiary or
transferee may be acting), any Lender (including the Issuing Bank) or any other
Person, whether in connection with this Agreement or the Letter of Credit or
any document related hereto or thereto or any unrelated transaction;

(iii)           Any draft or other document presented under a Letter of Credit proving
to be forged, fraudulent or invalid in any respect or any statement therein
being untrue or inaccurate in any respect;

(iv)           Payment by the Issuing Bank under a Letter of Credit against
presentation of a draft or other document to the Issuing Bank that does not
comply with the terms of such Letter of Credit;

(v)            Any other event or circumstance whatsoever,
whether or not similar to any of the foregoing, that might, but for the
provisions of this Section 2.22, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder; or

(vi)           The existence of a Default or an Event of Default.

Neither the Administrative
Agent, the Issuing Bank, the Lenders nor any Related Party of any of the
foregoing shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to above), or any error, omission, interruption, loss or
delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms or
any consequence arising from causes beyond the control of the Issuing Bank; provided,
that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any actual direct damages (as
opposed to special, indirect (including claims for lost profits or other
consequential damages), or punitive damages, claims in respect of which are
hereby waived by the Borrower to

 43
 

the extent permitted by
applicable law) suffered by the Borrower that are caused by the Issuing Bank’s
failure to exercise due care when determining whether drafts or other documents
presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree, that in
the absence of gross negligence or willful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised due care in each such
determination.  In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented that appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such documents
if such documents are not in strict compliance with the terms of such Letter of
Credit.

(j)            Unless otherwise expressly agreed by the
Issuing Bank and the Borrower when a Letter of Credit is issued and subject to
applicable laws, performance under Letters of Credit by the Issuing Bank, its
correspondents, and the beneficiaries thereof will be governed by (i) either
(x) the rules of the “International Standby Practices 1998” (ISP98) (or such
later revision as may be published by the Institute of International Banking
Law & Practice on any date any Letter of Credit may be issued) or (y) the
rules of the “Uniform Customs and Practices for Documentary Credits” (1993
Revision), International Chamber of Commerce Publication No. 500 (or such later
revision as may be published by the International Chamber of Commerce on any
date any Letter of Credit may be issued) and (ii) to the extent not
inconsistent therewith, the governing law of this Agreement set forth in Section
10.5.

Section
2.23.        Increase of Commitments;
Additional Lenders.

(a)           So long as no Event of Default has occurred and is continuing, from
time to time after the Closing Date, Borrower may, upon at least 30 days’
written notice to the Administrative Agent (who shall promptly provide a copy
of such notice to each Lender),  propose
to increase the Commitments by an additional $100,000,000 (the amount of any
such increase, the “Additional Commitment Amount”).  Each Lender shall have the right for a period
of 15 days following receipt of such notice, to elect by written notice to the
Borrower and the Administrative Agent to increase its Commitment by a principal
amount equal to its Pro Rata Share of the Additional Commitment Amount.  No Lender (or any successor thereto) shall
have any obligation to increase its Commitment or its other obligations under
this Agreement and the other Loan Documents, and any decision by a Lender to
increase its Commitment shall be made in its sole discretion independently from
any other Lender.

(b)           If any Lender shall not elect to increase its Commitment pursuant to
subsection (a) of this Section 2.23, the Borrower may designate another
bank or other financial institution (which may be, but need not be, one or more
of the existing Lenders) which at the time agrees to, in the case of any such
Person that is an existing Lender, increase its Revolving Commitment and in the
case of any other such Person (an “Additional Lender”), become a party
to this Agreement; provided, however, that any new bank or
financial institution must be acceptable to the Administrative Agent, which
acceptance will not be unreasonably withheld or delayed.  The sum of the increases in the Commitments
of the existing Lenders pursuant to this

 44
 

subsection
(b) plus the Commitments of the Additional Lenders shall not in the aggregate
exceed the unsubscribed amount of the Additional Commitment Amount.

(c)           An increase in the aggregate amount of the Commitments pursuant to this
Section 2.23 shall become effective upon the receipt by the
Administrative Agent of an supplement or joinder in form and substance
satisfactory to the Administrative Agent executed by the Borrower, by each
Additional Lender and by each other Lender whose Revolving Commitment is to be
increased, setting forth the new Commitments of such Lenders and setting forth
the agreement of each Additional Lender to become a party to this Agreement and
to be bound by all the terms and provisions hereof, together with Notes
evidencing such increase in the Commitments, and such evidence of appropriate
corporate authorization on the part of the Borrower with respect to the
increase in the Commitments and such opinions of counsel for the Borrower with
respect to the increase in the Commitments as the Administrative Agent may
reasonably request.

(d)           Upon the acceptance of any such supplement or joinder by the
Administrative Agent, the Commitments shall automatically be increased by the
amount of the Commitments added through such supplement or joinder and Schedule
III shall automatically be deemed amended to reflect the Commitments of all
Lenders after giving effect to the addition of such Commitments.

(e)           Upon any increase in the aggregate amount of the Commitments pursuant
to this Section 2.23 that is not pro rata among all Lenders, (x) within
five Business Days, in the case of any Base Rate Loans then outstanding, and at
the end of the then current Interest Period with respect thereto, in the case
of any Eurodollar Loans then outstanding, the Borrower shall prepay such Loans
in their entirety and, to the extent the Borrower elects to do so and subject
to the conditions specified in Article III, the Borrower shall reborrow
Loans from the Lenders in proportion to their respective Commitments after
giving effect to such increase, until such time as all outstanding Loans are
held by the Lenders in proportion to their respective Commitments after giving
effect to such increase and (y) effective upon such increase, the amount of the
participations held by each Lender in each Letter of Credit then outstanding
shall be adjusted automatically such that, after giving effect to such
adjustments, the Lenders shall hold participations in each such Letter of
Credit in proportion to their respective Commitments.

Section
2.24.                Mitigation of Obligations.  If any Lender requests compensation under Section 2.18, or if
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section
2.20, then such Lender shall use reasonable efforts to designate a different
lending office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the sole judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable under Section 2.18
or Section 2.20, as the case may be, in the future and (ii) would not
subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender.  The
Borrower hereby agrees to pay all costs and expenses incurred by any Lender in
connection with such designation or assignment.

Section
2.25.                Replacement of Lenders.  If
any Lender requests compensation under Section 2.18, or if the Borrower
is required to pay any additional amount to any Lender or any

 45
 

Governmental Authority of the account of any Lender pursuant to Section
2.20, or if any Lender defaults in its obligation to fund Loans hereunder,
then the Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
set forth in Section 10.4(b) all its interests, rights and obligations
under this Agreement to an assignee that shall assume such obligations (which
assignee may be another Lender); provided, that (i) the Borrower shall
have received the prior written consent of the Administrative Agent with
respect to the proposed assignee, which consent shall not be unreasonably withheld,
(ii) such Lender shall have received payment of an amount equal to the
outstanding principal amount of all Loans and participations in Letters of
Credit owed to it, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (in the case of such outstanding
principal and accrued interest) and from the Borrower (in the case of all other
amounts) and (iii) in the case of a claim for compensation under Section
2.18 or payments required to be made pursuant to Section 2.20,
such assignment will result in a reduction in such compensation or
payments.  A Lender shall not be required
to make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

Section
2.26.        Extensions
of Maturity Date or Revolving Commitment Termination Date.

After the first
anniversary of the Closing Date and at least 45 days prior to the scheduled
Maturity Date and Revolving Commitment Termination Date then in effect, the
Borrower may (but in no event more than once per year or twice during the term
of this Agreement), by written notice to the Administrative Agent, request that
the scheduled Maturity Date and Revolving Commitment Termination Date then in
effect be extended for a twelve-month period, effective as of a date selected
by the Borrower (the “Extension Effective Date”); the Extension
Effective Date shall be at least 45 days, but not more than 60 days, after the
date such extension request is received by the Administrative Agent (the “Extension
Request Date”).  Upon receipt of the
extension request, the Administrative Agent shall promptly notify each Lender
thereof, and approval by the Required Lenders shall be necessary for the
extension to become effective.  If a
Lender agrees, in its individual and sole discretion, to so extend its
Revolving Credit Commitment or Maturity Date, as applicable, (an “Extending Lender”), it shall deliver to the
Administrative Agent a written notice of its agreement to do so no later than
15 days after the Extension Request Date (or such later date to which the
Borrower and the Administrative Agent shall agree), and the Administrative
Agent shall promptly thereafter notify the Borrower of such Extending Lender’s
agreement to extend its Revolving Credit Commitment or Maturity Date, as
applicable, (and such agreement shall be irrevocable until the Extension
Effective Date).  The Revolving Credit
Commitment or Term Loan Commitment of any Lender that fails to accept or
respond to the Borrower’s request for extension of the Maturity Date and
Revolving Commitment Termination Date (a “Declining
Lender”) shall be terminated on the Maturity
Date and Revolving Commitment Termination Date then in effect for such Lender
(without regard to any extension by other Lenders) and on such Maturity Date
and Revolving Commitment Termination Date the Borrower shall pay in full the
unpaid principal amount of all Loans owing to such Declining Lender, together
with all accrued and unpaid interest thereon and all fees accrued and unpaid
under this Agreement to the date of such payment of principal and all other
amounts due to such Declining Lender under this Agreement.  The Administrative Agent shall promptly
notify each Extending Lender of the aggregate Commitments of the Declining
Lenders.

 46
 

Each Extending Lender may
offer to increase its respective Commitment by an amount not to exceed the
aggregate amount of the Declining Lenders’ Commitments, and such Extending
Lender shall deliver to the Administrative Agent a notice of its offer to so
increase its Commitment no later than 30 days after the Extension Request Date
(or such later date to which the Borrower and the Administrative Agent shall agree),
and such offer shall be irrevocable until the Extension Effective Date.  To the extent the aggregate amount of
additional Commitments that the Extending Lenders offer pursuant to the
preceding sentence exceeds the aggregate amount of the Declining Lenders’
Commitments, such additional Commitments shall be reduced on a pro rata
basis.  To the extent the aggregate
amount of Commitments that the Extending Lenders have so offered to extend is
less than the aggregate amount of Commitments that the Borrower has so
requested to be extended, the Borrower shall have the right but not the
obligation to require any Declining Lender to (and any such Declining Lender
shall) assign in full its rights and obligations under this Agreement to one or
more banks or other
financial institutions (which may be, but need not be, one or more of the
Extending Lenders) which at the time agree to, in the case of any such Person
that is an Extending Lender, increase its Commitment and in the case of any
other such Person (a “New Lender”) become a party to this Agreement; provided
that (i) such assignment is otherwise in compliance with Section 10.04,
(ii) such Declining Lender receives payment in full of the unpaid principal
amount of all Loans owing to such Declining Lender, together with all accrued
and unpaid interest thereon and all fees accrued and unpaid under this
Agreement to the date of such payment of principal and all other amounts due to
such Declining Lender under this Agreement and (iii) any such assignment shall
be effective on the date on or before such Extension Effective Date as may be
specified by the Borrower and agreed to by the respective New Lenders and
Extending Lenders, as the case may be, and the Administrative Agent.  If, but only if, Extending Lenders and New
Lenders, as the case may be, have agreed to provide Commitments in an aggregate
amount greater than 50% of the aggregate amount of the Commitments outstanding
immediately prior to such Extension Effective Date and the conditions precedent
in Section 3.2 are met, the Termination Date in effect with respect to
such Extending Lenders and New Lenders shall be extended by twelve months.

ARTICLE
III

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF
CREDIT

Section
3.1.              Conditions To Effectiveness. The obligations of the Lenders (including
the Swingline Lender) to make Loans and the obligation of the Issuing Bank to
issue any Letter of Credit hereunder shall not become effective until the date
on which each of the following conditions is satisfied (or waived in accordance
with Section 10.2).

(a)           The Administrative Agent shall have received all fees and other amounts
due and payable on or prior to the Closing Date, including upfront fees for the
Lenders and reimbursement or payment of all out-of-pocket expenses (including
reasonable fees, charges and disbursements of counsel to the Administrative
Agent) required to be reimbursed or paid by the Borrower hereunder, under any
other Loan Document and under any agreement with the Administrative Agent or
SunTrust Capital Markets, Inc., as Arranger.

 47
 

(b)           The Administrative Agent (or its counsel) shall have received the
following:

(i)            a counterpart of this Agreement and each
other Loan Document (other than the Notes) signed by or on behalf of each party
hereto or written evidence satisfactory to the Administrative Agent (which may
include telecopy transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement;

(ii)           duly executed Revolving
Credit and Term Notes payable to such Lender and the Swingline Note payable to
the Swingline Lender, in each case, only if requested by such Lender at least
one (1) Business Day prior to the
Closing Date;

(iii)          delivery of updated lien searches in form and substance reasonably
satisfactory to the Administrative Agent;

(iv)          a certificate of the Secretary or Assistant Secretary of the General
Partner in the form of Exhibit 3.1(b)(iv), attaching and certifying
copies of its bylaws and of the resolutions of its board of directors, the
partnership agreement, or comparable organizational documents and
authorizations of the Borrower, authorizing the execution, delivery and
performance of the Loan Documents to which the Borrower is a party, and
attaching true and correct copies of the TC PipeLines ILP Agreement, the
Tuscarora ILP Partnership Agreement, the Northern Border Partnership Agreement;

(v)           certified copies of the articles or certificate of incorporation,
certificate of organization or limited partnership, or other registered
organizational documents of the Borrower and its General Partner, together with
certificates of good standing or existence, as may be available from the
Secretary of State of the jurisdiction of organization of the Borrower and its
General Partner, and each other jurisdiction where the Borrower is required to
be qualified to do business as a foreign corporation;

(vi)          a certificate dated as of the Closing Date and signed by a responsible
officer, certifying the name, title and true signature of each officer of the
General Partner executing the Loan Documents on behalf of the Borrower to which
the Borrower is a party;

(vii)         a favorable written opinion of Orrick, Herrington & Sutcliffe LLP,
counsel to the Loan Parties, addressed to the Administrative Agent and each of
the Lenders, and covering such matters relating to the Loan Parties, the Loan
Documents and the transactions contemplated therein as the Administrative Agent
or the Required Lenders shall reasonably request;

(viii)        a certificate in the form of Exhibit 3.1(b)(viii), dated the
Closing Date and signed by a Responsible Officer, certifying that (x) no
Default or Event of Default exists, (y) all representations and warranties of
the Borrower set forth in the Loan Documents are true and correct and (z) since
the date of the financial statements of the Borrower described in Section
4.4, there shall have been no change which has had or could reasonably be
expected to have a Material Adverse Effect;

 48
 

(ix)           [RESERVED];

(x)            copies of the audited financial statements of
GLGT for its fiscal years ended 2004 and 2005 and the internally prepared
quarterly financial statements of GLGT for its fiscal quarter ended on
September 30, 2006 as well as a projected consolidated balance sheet of the
Borrower and its Subsidiaries as of the Closing Date after giving effect to the
GLGT Acquisition; and

(xi)           a certificate dated as of the Closing Date and signed by a responsible
officer, attaching true and correct copies of all consents, approvals,
authorizations, registrations and filings and orders required or advisable to
be made or obtained under any Requirement of Law, or by any Contractual
Obligation of the Borrower, in connection with the execution, delivery,
performance, validity and enforceability of the Loan Documents or any of the
transactions contemplated thereby, and such consents, approvals,
authorizations, registrations, filings and orders shall be in full force and
effect and all applicable waiting periods shall have expired, and no
investigation or inquiry by any governmental authority regarding the
Commitments or any transaction being financed with the proceeds thereof shall
be ongoing.

Section
3.2.                   Each Credit Event.  The obligation of each Lender
to make a Loan and of the Issuing Bank to issue, amend, renew or extend any
Letter of Credit is subject to the satisfaction of the following conditions:

(a)           at
the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default or Event of Default shall exist;

(b)           at
the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, all representations and warranties of the Borrower set forth in the
Loan Documents (other than the representation and warranty set forth in Section
4.4(b)) shall be true and correct in all material respects on and as of the
date of such Borrowing or the date of issuance, amendment, extension or renewal
of such Letter of Credit, in each case before and after giving effect thereto;

(c)           the
Borrower shall have delivered the required Notice of Borrowing; and

(d)           with
respect to any Term Loan Borrowing made after the Closing Date, the proceeds of
such Borrowing shall be used solely to finance the GLGT Acquisition.

Each Loan and each issuance,
amendment, extension or renewal of any Letter of Credit shall be deemed to
constitute a representation and warranty by the Borrower on the date thereof as
to the matters specified in paragraphs (a), (b) and (c) of this Section 3.2.

Section
3.3.                   Delivery of Documents.  All
of the Loan Documents, certificates, legal opinions and other documents and
papers referred to in this Article III, unless otherwise specified,
shall be delivered to the Administrative Agent for the account of each of the
Lenders and, except for the Notes, in sufficient counterparts or copies for
each of the Lenders and shall be in form and substance reasonably satisfactory
in all respects to the Administrative Agent.

 49
 

Section
3.4.                   Effect
of Amendment and Restatement. 
Upon this Agreement becoming effective pursuant to Section 3.1, from and
after the Closing Date:  all terms and
conditions of the Existing Credit Agreement and any other “Loan Document” as defined therein, as
amended and restated by this Agreement and the other Loan Documents being
executed and delivered on the Closing Date, shall be and remain in full force
and effect, as so amended and restated, and shall constitute the legal, valid,
binding and enforceable obligations of the parties thereto to Lenders and
Administrative Agent.  Without limiting
the generality of the foregoing:

(a)           the terms and conditions of the Existing
Credit Agreement shall be amended and restated as set forth herein and, as so
amended and restated, shall be amended and restated in their entirety, but
shall be amended and restated only with respect to the rights, duties and
obligations among Borrower, Lenders and Administrative Agent accruing from and
after the Closing Date;

(b)           this Agreement shall not in any way release
or impair the rights, duties or Obligations created pursuant to the Existing
Credit Agreement or any other Loan Document or affect the relative priorities
thereof, in each case to the extent in force and effect thereunder as of the Closing
Date, except as modified hereby or by documents, instruments and agreements
executed and delivered in connection herewith, and all of such rights, duties
and Obligations are assumed, ratified and affirmed by the Borrower;

(c)           all indemnification obligations of the
Borrower under the Existing Credit Agreement and any other Loan Documents shall
survive the execution and delivery of this Agreement and shall continue in full
force and effect for the benefit of Lenders, Administrative Agent, and any other
Person indemnified under the Existing Credit Agreement or any other Loan
Document at any time prior to the Closing Date;

(d)           the Obligations incurred under the Existing
Credit Agreement shall, to the extent outstanding on the Closing Date, continue
outstanding under this Agreement and shall not be deemed to be paid, released,
discharged, extinguished or otherwise satisfied by the execution of this
Agreement, and this Agreement shall not constitute a refinancing, substitution
or novation of such Obligations or any of the other rights, duties and
obligations of the parties hereunder;

(e)           the execution, delivery and effectiveness of
this Agreement shall not operate as a waiver of any right, power or remedy of
Lenders or Administrative Agent under the Existing Credit Agreement, nor
constitute a waiver of any covenant, agreement or obligation under the Existing
Credit Agreement, except to the extent that any such covenant, agreement or
obligation is no longer set forth herein or is modified hereby; and

(f)            any and all references in the Loan Documents
to the Existing Credit Agreement shall, without further action of the parties,
be deemed a reference to the Existing Credit Agreement, as amended and restated
by this Agreement, and as this Agreement shall be further amended or amended
and restated from time to time hereafter.

 50
 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

The Borrower represents and
warrants to the Administrative Agent and each Lender as follows:

Section
4.1.   Existence; Power.  The
Borrower and each of its Subsidiaries (i) is duly organized, validly existing
and in good standing as a corporation, partnership or limited liability company
under the laws of the jurisdiction of its organization, (ii) has all requisite
power and authority to carry on its business as now conducted, and
(iii) is duly qualified to do business, and is in good standing, in each
jurisdiction where such qualification is required, except where a failure to be
so qualified could not reasonably be expected to result in a Material Adverse
Effect.

Section
4.2.   Organizational Power;
Authorization.  The execution, delivery and performance by
the Borrower of the Loan Documents to which it is a party are within the
Borrower’s organizational powers and have been duly authorized by all necessary
organizational, and if required, general partner action. This Agreement has
been duly executed and delivered by the Borrower, andconstitutes, and each other Loan Document to which the
Borrower is a party, when executed and delivered by the Borrower, will
constitute, valid and binding obligations of the Borrower, enforceable against
it in accordance with their respective terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws
affecting the enforcement of creditors’ rights generally and by general
principles of equity.

Section
4.3.   Governmental Approvals; No
Conflicts.  The execution, delivery and performance by
the Borrower of this Agreement, and of the other Loan Documents to which it is
a party (a) do not require any consent or approval of, registration or filing
with, or any action by, any Governmental Authority, except those as have been
obtained or made and are in full force and effect, (b) will not violate any
Requirements of Law applicable to the Borrower or any of its Subsidiaries or
any judgment, order or ruling of any Governmental Authority, (c) will not
violate or result in a default under any indenture, material agreement or other
material instrument binding on the Borrower or any of its Subsidiaries or any
of its assets or give rise to a right thereunder to require any payment to be
made by the Borrower or any of its Subsidiaries and (d) will not result in the
creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries,
except Liens (if any) created under the Loan Documents.

Section
4.4.   Financial Statements.

(a)           The Borrower has
furnished to each Lender (i) the audited consolidated balance sheet of the
Borrower and its Subsidiaries as of December 31, 2005 and the related
consolidated statements of income, partners’ equity and cash flows for the
Fiscal Year then ended audited by KPMG LLP and (ii) the unaudited
consolidated balance sheet of the Borrower and its Subsidiaries as of September
30, 2006, and the related unaudited consolidated statements of income and cash
flows for the Fiscal Quarter and year-to-date period then ending, certified by
a Responsible Officer.  Such financial
statements fairly present the consolidated financial condition of the Borrower and
its Subsidiaries as of such dates and the consolidated results of operations
for such periods in conformity with GAAP consistently applied, subject to year
end

 51
 

audit adjustments and the
absence of footnotes in the case of the statements referred to in clause (ii).

(b)           Since
December 31, 2005, there have been no changes with respect to the Borrower, its
Subsidiaries, Northern Border and Tuscarora which have had or could reasonably
be expected to have, singly or in the aggregate, a Material Adverse Effect.

Section
4.5.                   Litigation and Environmental
Matters.

(a)           No litigation, investigation or proceeding of or before any arbitrators
or Governmental Authorities is pending against or, to the knowledge of the
Borrower, threatened against the Borrower or any of its Subsidiaries (i) as to
which there is a reasonable likelihood of an adverse determination that could
reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect or (ii) which in any manner draws into question the
validity or enforceability of this Agreement or any other Loan Document.

(b)           Except for the matters set forth on Schedule 4.5 and except as
could not reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect, neither the Borrower nor any of its
Subsidiaries (i) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under
any Environmental Law, (ii) has become subject to any Environmental Liability,
(iii) has received notice of any claim with respect to any Environmental
Liability or (iv) knows of any basis for any Environmental Liability.

Section
4.6.                   Compliance with Laws and
Agreements.  The Borrower and each Subsidiary is in
compliance with (a) all Requirements of Law and all judgments, decrees and
orders of any Governmental Authority and (b) all indentures, agreements or
other instruments binding upon it or its properties, except where
non-compliance, either singly or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

Section
4.7.                   Investment Company Act, Etc. 
Neither the Borrower nor any of its Subsidiaries is (a) an “investment
company” or is “controlled” by an “investment company”, as such terms are
defined in, or subject to regulation under, the Investment Company Act of 1940,
as amended, or (b) otherwise subject to any other regulatory scheme limiting
its ability to incur debt or requiring any approval or consent from or
registration or filing with, any Governmental Authority in connection
therewith, except those as have been obtained or made and are in full force and
effect.

Section
4.8.                   Taxes.  The
Borrower and its Subsidiaries and each other Person for whose taxes the
Borrower or any Subsidiary is liable have timely filed or caused to be filed
all Federal income tax returns and all other material tax returns that are
required to be filed by them, and have paid all taxes shown to be due and
payable on such returns or on any assessments made against it or its property
and all other taxes, fees or other charges imposed on it or any of its property
by any Governmental Authority, except where the same are currently being
contested in good faith by appropriate proceedings and for which the Borrower or
such Subsidiary, as the case may be, has set aside on its books adequate
reserves in accordance with GAAP.  The
charges, accruals and reserves on the books of the Borrower and its
Subsidiaries in respect of such taxes are adequate, and no tax liabilities that
could be materially in excess of the amount so provided are anticipated.

 52
 

Section
4.9.                   Margin Regulations.  None
of the proceeds of any of the Loans or Letters of Credit will be used, directly
or indirectly, for “purchasing” or “carrying” any “margin stock” with the
respective meanings of each of such terms under Regulation U of the Board of
Governors of the Federal Reserve System as now and from time to time hereafter
in effect or for any purpose that violates the provisions of the Regulation U.  Neither the Borrower nor its Subsidiaries is
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying “margin stock.”

Section
4.10.                ERISA.  No
ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse
Effect.  With respect to the Plans, (a)
the present value of all accumulated benefit obligations under each Plan (based
on the assumptions used for purposes of Statement of Financial Standards No.
87) did not, as of the date of the most recent financial statements reflecting
such amounts, exceed the fair market value of the assets of such Plan, and (b)
the present value of all accumulated benefit obligations of all underfunded
Plans (based on the assumptions used for purposes of Statement of Financial
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed the fair market value of the assets
of all such underfunded Plans, where the liability, if any, in (a) or (b) above
could reasonably be expected to result in a Material Adverse Effect.

Section
4.11.                Ownership of Property. 
Except as could not reasonably be expected to result in a Material
Adverse Effect:

(a)           Each of the Borrower and its Subsidiaries has good title to, or valid
leasehold interests in, all of its real and personal property material to the
operation of its business, including all such properties reflected in the most
recent audited consolidated balance sheet of the Borrower referred to in Section
4.4 or purported to have been acquired by the Borrower or any Subsidiary
after said date (except as sold or otherwise disposed of in the ordinary course
of business), in each case free and clear of Liens prohibited by this
Agreement.  All leases that individually
or in the aggregate are material to the business or operations of the Borrower
and its Subsidiaries are valid and subsisting and are in full force.

(b)           Except as could not reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect, each of the Borrower and its
Subsidiaries owns, or is licensed, or otherwise has the right, to use, all
patents, trademarks, service marks, trade names, copyrights and other
intellectual property material to its business, and the use thereof by the
Borrower and its Subsidiaries does not infringe in any material respect on the
rights of any other Person.

(c)           The properties of the Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies, in such amounts with such
deductibles and covering such risks of loss or damage of the kinds customarily
carried by companies in the same or similar businesses operating in the same or
similar locations, which may include self-insurance, if determined by the
Borrower to be reasonably prudent and consistent with business practices as in
effect on the date hereof.

 53
 

Section
4.12.                Disclosure.  The
Borrower has disclosed to the Lenders all agreements, instruments, and
corporate or other restrictions to which the Borrower or any of its
Subsidiaries is subject, and all other matters known to any of them, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  Neither the
Information Memorandum nor any of the reports (including without limitation all
reports that the Borrower is required to file with the Securities and Exchange
Commission), financial statements, certificates or other information furnished
by or on behalf of the Borrower to the Administrative Agent or any Lender in
connection with the negotiation or syndication of this Agreement or any other
Loan Document or delivered hereunder or thereunder (as modified or supplemented
by any other information so furnished) contains any material misstatement of
fact or omits to state any material fact necessary to make the statements
therein, taken as a whole, in light of the circumstances under which they were
made, not materially misleading;

Section
4.13.                Labor Relations. 
There are no strikes, lockouts or other material labor disputes or
grievances against the Borrower or any of its Subsidiaries, or, to the Borrower’s
knowledge, threatened against or affecting the Borrower or any of its
Subsidiaries, and no significant unfair labor practice, charges or grievances
are pending against the Borrower or any of its Subsidiaries, or to the Borrower’s
knowledge, threatened against any of them before any Governmental Authority.
All payments due from the Borrower or any of its Subsidiaries pursuant to the
provisions of any collective bargaining agreement have been paid or accrued as
a liability on the books of the Borrower or any such Subsidiary, except where
the failure to do so could not reasonably be expected to have a Material
Adverse Effect.

Section
4.14.                Subsidiaries.  Schedule
4.14 sets forth the name of, the ownership interest of the Borrower in, the
jurisdiction of incorporation or organization of, and the type of, each
Subsidiary, in each case as of the Closing Date.

Section
4.15.                Insolvency. 
After giving effect to the execution and delivery of the Loan Documents,
the making of the Loans under this Agreement, neither the Borrower nor its
Subsidiaries will be “insolvent,” within the meaning of such term as defined in
§ 101 of Title 11 of the United States Code, as amended from time to time, or
be unable to pay its debts generally as such debts become due, or have an
unreasonably small capital to engage in any business or transaction, whether
current or contemplated.

Section
4.16.                OFAC.  The Borrower (i) is not a person whose
property or interest in property is blocked or subject to blocking pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) does not knowingly engage
in any dealings or transactions prohibited by Section 2 of such executive
order, or is not otherwise knowingly associated with any such person in any
manner violative of Section 2, or (iii) is not a person on the list of
Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s
Office of Foreign Assets Control regulation or executive order.

Section
4.17.                Patriot
Act.  The Borrower is in
compliance, in all material respects, with (i) the Trading with the Enemy
Act, as amended, and each of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)

 54
 

and any other enabling legislation or
executive order relating thereto, and (ii) the Uniting And Strengthening America
By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism
(USA Patriot Act of 2001).  No part of
the proceeds of the Loans will be used, directly or indirectly, for any
payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended.

ARTICLE V

AFFIRMATIVE COVENANTS

Until the Termination Date,
the Borrower covenants and agrees that:

Section
5.1.                   Financial Statements and
Other Information.  The Borrower will deliver to the
Administrative Agent and each Lender:

(a)           as soon as available and in any event within 105 days after the end of
each Fiscal Year of Borrower, a copy of the annual audited financial statements
for such Fiscal Year for the Borrower and its Subsidiaries, containing a
consolidated balance sheet of the Borrower and its Subsidiaries as of the end
of such Fiscal Year and the related consolidated statements of income, partners’
equity and cash flows (together with all footnotes thereto) of the Borrower and
its Subsidiaries for such Fiscal Year, setting forth in each case in
comparative form the figures for the previous Fiscal Year, all in reasonable
detail and reported on by KPMG LLP or other independent public accountants of
nationally recognized standing (without a “going concern” or like qualification,
exception or explanation and without any qualification or exception as to scope
of such audit) to the effect that such financial statements present fairly in
all material respects the financial condition and the results of operations of
the Borrower and its Subsidiaries for such Fiscal Year on a consolidated basis
in accordance with GAAP and that the examination by such accountants in
connection with such consolidated financial statements has been made in
accordance with generally accepted auditing standards;

(b)           as soon as available
and in any event within 45 days after the end of each of the first three Fiscal
Quarters of any Fiscal Year of the Borrower, an unaudited consolidated balance
sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Quarter
and the related unaudited consolidated and consolidating statements of income
and cash flows of the Borrower and its Subsidiaries for such Fiscal Quarter and
the then elapsed portion of such Fiscal Year, setting forth in each case in
comparative form the figures for the corresponding quarter and the
corresponding portion of Borrower’s previous Fiscal Year;

(c)           concurrently with the delivery of the financial statements referred to
in clauses (a) and (b) above, a Compliance Certificate; and

(d)   promptly following any request therefor, such other information
regarding the results of operations, business affairs and financial condition
of the Borrower or any Subsidiary as the Administrative Agent or any Lender may
reasonably request; and

 55
 

(e)           simultaneously with the GLGT Acquisition, a certified copy of the GLGT
Partnership Agreement.

So
long as the Borrower is required to file periodic reports under Section 13(a)
or Section 15(d) of the Securities Exchange Act of 1934, as amended, the
Borrower’s obligation to deliver the financial statements referred to in
clauses (a) and (b) shall be deemed satisfied upon the filing of such financial
statements in the EDGAR system and the giving by the Borrower of notice to the
Lenders and the Administrative Agent as to the public availability of such
financial statements from such source.

Section
5.2.              Notices of Material Events.  The
Borrower will furnish to the Administrative Agent and each Lender prompt
written notice of the following:

(a)           the occurrence of any Default or Event of Default;

(b)           the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against the Borrower or any
Subsidiary which could reasonably be expected to result in a Material Adverse
Effect;

(c)           the occurrence of any event or any other development by which the
Borrower or any of its Subsidiaries (i) fails to comply with any Environmental
Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) becomes subject to any Environmental
Liability, (iii) receives notice of any claim with respect to any Environmental
Liability, or (iv) becomes aware of any basis for any Environmental Liability
and in each of the preceding clauses, which individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect;

(d)           the occurrence of any ERISA Event that alone, or together with any
other ERISA Events that have occurred, since the Closing Date, could reasonably
be expected to result in liability of the Borrower and its Subsidiaries in an
aggregate amount exceeding $15,000,000; and

(e)           the occurrence of any default or event of default, or the receipt by
Borrower or any of its Subsidiaries of any written notice of an alleged default
or event of default, in respect of any Material Indebtedness of the Borrower or
any of its Subsidiaries.

Each notice delivered under
this Section 5.2 shall be accompanied by a written statement of a
Responsible Officer setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect
thereto.

Section
5.3.                   Existence; Conduct of
Business.  The Borrower will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve, renew
and maintain in full force and effect its (a) legal existence; provided,
that nothing in this Section 5.3(a) shall prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 7.3
and (b) its respective rights, licenses, permits, privileges, franchises,
patents, copyrights, trademarks and trade names except for any failure to
preserve, renew or maintain any such right, license, permit, privilege,
franchise, patent, copyright, trademark or trade name as could not reasonably
be expected to result in a Material Adverse Effect.

 56
 

Section
5.4.                   Compliance with Laws, Etc. The Borrower will, and will cause each of
its Subsidiaries to, comply with all laws, rules, regulations and requirements
of any Governmental Authority applicable to its business and properties,
including without limitation, all Environmental Laws, ERISA and OSHA, except
where the failure to do so, either individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

Section
5.5.                   Payment of Obligations.  The
Borrower will, and will cause each of its Subsidiaries to, pay and discharge at
or before maturity, all of its obligations and liabilities (including without
limitation all taxes, assessments and other governmental charges, levies and
all other claims that could result in a statutory Lien) before the same shall
become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings and the
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP or (b) the failure to make any such
payment could not reasonably be expected to result in a Material Adverse
Effect.

Section
5.6.                   Books and Records. The Borrower will, and will cause each of
its Subsidiaries to, keep properbooks
of record and account in which full, true and correct entries shall be made of
all dealings and transactions in relation to its business and activities to the
extent necessary to prepare the consolidated financial statements of Borrower
in conformity with GAAP.

Section
5.7.                   Visitation, Inspection, Etc.  The
Borrower will, and will cause each of its Subsidiaries to, permit at any
reasonable time and from time to time and upon reasonable notice, the
Administrative Agent or any of its agents or representatives, to (i) permit the
Administrative Agent or any representatives thereof to examine and make copies
of and abstracts from the records and books of account of, and visit the
properties of, the Borrower and any of its Subsidiaries, and to discuss the
affairs, finances and accounts of the Borrower and any of its Subsidiaries with
any of their officers or directors and (ii) use commercially reasonable efforts
to provide for the Administrative Agent or any representatives thereof (in the
presence of representatives of the Borrower) to meet with the independent
certified public accountants; provided,
however, if an Event of Default has occurred and is continuing,
no prior notice  of such visit or
inspection shall be required of the Borrower and its Subsidiaries; provided,
that any such visits or inspections shall be subject to such conditions as the
Borrower and each of its Subsidiaries shall deem necessary based on reasonable
considerations of safety and security; and provided, further,
that neither the Borrower nor any Subsidiary shall be required to disclose to
the Administrative Agent or any representatives thereof any information which
is subject to the attorney-client privilege or attorney work-product privilege
properly asserted by the applicable Person to prevent the loss of such
privilege in connection with such information or which is prevented from
disclosure pursuant to a confidentiality agreement with third parties.

Section
5.8.                   Maintenance of Properties;Insurance.  The
Borrower will, and will cause each of its Subsidiaries to, (a) keep and
maintain all property material to the conduct of its business in good working
order and condition, ordinary wear and tear excepted, except as could not
reasonably be expected to have a Material Adverse Effect, and (b) maintain with
financially sound and reputable insurance companies, insurance with respect to
its properties and business, and the properties and business of its
Subsidiaries, against loss or damage of the kinds customarily insured against
by companies in the same or similar businesses operating in the same or similar
locations,

 57
 

which may include self-insurance, if determined by the Borrower to be
reasonably prudent and consistent with business practices as in effect on the
date hereof.

Section
5.9.                   Use of Proceeds and Letters
of Credit.  The Borrower will use the proceeds of all
Loans to finance working capital needsand
for investments permitted hereby,including
the GLGT Acquisition, and for other general corporate purposes of the Borrower
and its Subsidiaries.  No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any
purpose that would violate any rule or regulation of the Board of Governors of
the Federal Reserve System, including Regulations T, U or X.  All Letters of Credit will be used for
general corporate purposes.

Section
5.10.                Maintenance of Tax Status.  The Borrower
shall take all action necessary to prevent the Borrower from being, and will
take no action which would have the effect of causing the Borrower to be,
treated as an association taxable as a corporation or otherwise to be taxed as
an entity for federal income tax purposes.

ARTICLE
VI

FINANCIAL COVENANTS

Until the Termination Date,
the Borrower covenants and agrees that:

Section
6.1.                           Leverage Ratio.  (a)
The Borrower and its Subsidiaries will maintain on a consolidated basis as of
the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending
December 31, 2006, a Leverage Ratio of not greater than 4.75:1.00 (the “Required
Threshold”), provided, however, that if the Borrower
consummates one or more acquisitions permitted under this Agreement in which
the aggregate purchase price of all such acquisitions is $25,000,000 or more,
then the Required Threshold shall be increased to 5.50 to 1.00 for the first
three fiscal reporting periods during any 12-month period immediately following
the consummation of such acquisitions; provided, however that in
determining compliance with the Leverage Ratio, TransCanada Subordinated Debt
in an amount not to exceed $300,000,000 shall not be included in such
calculation.  The Borrower’s compliance
with this requirement shall be calculated on a rolling four quarter basis,
measured on the last day of each fiscal quarter.  For purposes of the foregoing, to the
extent Consolidated Total Funded Debt includes outstanding amounts under Hybrid
Securities, then a portion of the amount of such Hybrid Securities not to exceed
a total of 15% of Total Capitalization may be excluded from Consolidated Total
Funded Debt (the “Excluded Hybrid Securities”).

(b) Notwithstanding the forgoing, the Borrower may elect, after
giving effect to the GLGT Acquisition, to increase the Required Threshold to
6.00 to 1.00 through the Fiscal Quarter ending September 30, 2007 (and the
Borrower shall be deemed to have made such an election at the time the
aggregate principal amount of the Loans outstanding exceeds $880,000,000; 
provided that such increase in the principal amount of the
Loans outstanding is a result of the proceeds of such Loans being used to
consummate the GLGT Acquisition).  If the Borrower makes such an election
to increase the Required Threshold (i) the Applicable Margin for Revolving
Eurodollar Loans shall be 0.95% per annum and the Applicable Margin for
Revolving Base Rate Loans shall be 0.50% per

 58
 

annum, (ii)
the Applicable Percentage for the Facility Fee for Revolving Loans shall
be 0.20% per annum, (iii) the Utilization Premium shall be 0.10% per
annum, (iv) the Applicable Margin for Term Loan Eurodollar Loans
shall be 1.25% per annum and the Applicable Margin for Term
Loan Base Rate Loans shall be 0.50% per annum, and (v) the
Applicable Percentage for the Commitment Fee for Term Loans shall be 0.20% per
annum, until such time as the Leverage Ratio of the Borrower and its
Subsidiaries is 5.50:1.00. Solely for the purposes of determining the Leverage
Ratio pursuant to the immediately preceding sentence, Adjusted Cash Flow shall
be deemed to be $174,000,000 until the delivery of the first Compliance
Certificate following the closing of the GLGT Acquisition (the “First
Compliance Certificate”); provided that in the event that the First Compliance
Certificate reflects a Leverage Ratio in excess of 5.50:1.00, the Borrower
shall immediately pay to the Administrative Agent for the account of the
Lenders the accrued additional interest that would have been owed during the
prior period as if the Borrower had never achieved a Leverage Ratio equal to or
less than 5.50:1.00.  Notwithstanding the
foregoing, if the Borrower makes the election to increase the Required
Threshold as provided for above, the Borrower and its Subsidiaries will be
required to maintain, on a consolidated basis as of the end of each Fiscal
Quarter, commencing with the Fiscal Quarter ending December 31, 2007, a
Leverage Ratio of not greater than 4.75:1.00, subject to allowances for
temporary increases in the Required Threshold to 5.50:1.00 as provided in Section
6.1(a) above.

Section
6.2.           Interest Coverage Ratio.  The Borrower and its Subsidiaries will
maintain on a consolidated basis as of the end of each Fiscal Quarter,
commencing with the Fiscal Quarter ending December 31, 2006, an Interest
Coverage Ratio of not less than 3.00:1.00. 
For the purposes of the foregoing, to the extent
Consolidated Interest Expense includes interest expense under Excluded Hybrid
Securities, then an amount equal to such interest expense multiplied by the
Moody’s Equity Credit  shall be excluded
from Consolidated Interest Expense. In determining compliance with the Interest Coverage Ratio, interest
expense with respect to TransCanada Subordinated Debt shall not be included in
such calculation.

ARTICLE
VII

NEGATIVE COVENANTS

Until the Termination Date,
the Borrower covenants and agrees that:

Section
7.1.           The Borrower will not permit any of its
Subsidiaries to create, incur, assume or suffer to exist any Indebtedness,
except (“Permitted Indebtedness”):

(a)           Indebtedness of the Subsidiaries of the
Borrower listed in Schedule 7.1(a) and existing on the date of this Agreement
and extensions, renewals, refinancings and replacements thereof; provided that
(A) the principal amount of any such refinancing does not exceed the principal
amount of the Indebtedness being refinanced plus the amount of fees, expenses,
premiums and accrued interest paid in connection with such refinancing and (B)
the final maturity of such refinancing debt is not shorter than the maturity of
the Indebtedness being replaced;

(b)           endorsements of checks or drafts in the
ordinary course of business;

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(c)           Indebtedness of the
Subsidiaries of the Borrower resulting from loans made by the Borrower to a
Subsidiary or loans made by a Subsidiary to another Subsidiary;

(d)           other Indebtedness of the Subsidiaries of
the Borrower (excluding Indebtedness otherwise permitted in this Section 7.1)
which does not exceed $35,000,000 outstanding at any time in the aggregate;

(e)           Permitted Subordinated
Debt;

(f)            Guarantees of the
Subsidiaries of the Borrower in respect of Permitted Indebtedness of other
Subsidiaries of the Borrower or Guarantees of the Subsidiaries of the Borrower
in respect of Indebtedness of the Borrower permitted by this Agreement;

(g)           Indebtedness of any
Person which becomes a Subsidiary of the Borrower after the Closing Date and
extensions, renewals, refinancings and replacements thereof; provided
that (A) the principal amount of any such refinancing does not exceed the
principal amount of the Indebtedness being refinanced plus the amount of
reasonable fees, expenses, premiums and accrued interest paid in connection
with such refinancing and (B) the final maturity of such refinancing debt is
not shorter than the maturity of the Indebtedness being replaced; provided
further, that (1) such Indebtedness exists at the time such Person
becomes a Subsidiary and is not created or incurred in contemplation of or in
connection with such Person becoming a Subsidiary and (2) no Default or Event
of Default exists at the time such Person becomes a Subsidiary and immediately
after such Person becomes a Subsidiary.

provided, however, no
Indebtedness otherwise permitted under this Section 7.1 shall be
permitted if, after giving effect to the incurrence thereof, any Default or
Event of Default shall have occurred and be continuing.

Borrower will not, and will
not permit any Subsidiary to, issue any preferred shares or other preferred
partnership, limited liability company or other equity interests that (i)
mature or are mandatorily redeemable pursuant to a sinking fund obligation or
otherwise, (ii) are or may become redeemable or repurchaseable by Borrower or
such Subsidiary at the option of any holders thereof, in whole or in part or
(iii) are convertible or exchangeable at the option of any holders thereof for
Indebtedness not permitted by this Agreement, on or prior to, in the case of
clause (i), (ii) or (iii), the first anniversary of the Revolving Commitment
Termination Date.

Section
7.2.           Negative Pledge.  The
Borrower will not, and will not permit any of its Subsidiaries to, create,
incur, assume or suffer to exist any Lien on any of its assets or property now
owned or hereafter acquired, except:

(a)           Permitted
Encumbrances;

(b)           any
Liens on any property or asset of the Borrower or any Subsidiary existing on
the Closing Date set forth on Schedule 7.2; provided, that such
Lien shall not apply to any other property or asset of the Borrower or any
Subsidiary;

(c)           purchase
money Liens upon or in any fixed or capital assets to secure the purchase price
or the cost of construction or improvement of such fixed or capital assets or
to

 60
 

secure Indebtedness incurred solely for the purpose of financing the
acquisition, construction or improvement of such fixed or capital assets
(including Liens securingany
Capital Lease Obligations); provided, that (i) such Lien secures
Indebtedness permitted by this Agreement, (ii) such Lien attaches to such asset
concurrently or within 90 days after the acquisition, improvement or completion
of the construction thereof; (iii) such Lien does not extend to any other
asset; and (iv) the Indebtedness secured thereby does not exceed the original
cost of acquiring, constructing or improving such fixed or capital assets;

(d)           any
Lien (i) existing on any asset of any Person at the time such Person becomes a
Subsidiary of the Borrower, (ii) existing on any asset of any Person at the
time such Person is merged with or into the Borrower or any Subsidiary of the
Borrower or (iii) existing on any asset prior to the acquisition thereof by the
Borrower or any Subsidiary of the Borrower; provided, that any such Lien
was not created in the contemplation of any of the foregoing and any such Lien
secures only those obligations which it secures on the date that such Person
becomes a Subsidiary or the date of such merger or the date of such
acquisition;

(e)           extensions, renewals, or replacements of any
Lien referred to in paragraphs (a) through (f) of this Section 7.2; provided,
that the principal amount of the Indebtedness secured thereby is not increased
and that any such extension, renewal or replacement is limited to the assets
originally encumbered thereby;

(f)            any right which any
municipal or governmental body or agency may have by virtue of any franchise,
license, contract or status to purchase or designate a purchaser of, or order
the sale of, any property of the Borrower or any Subsidiary upon payment of
reasonable compensation therefor or to terminate any franchise, license or
other rights or to regulate the property and business of the Borrower or any
Subsidiary;

(g)           Liens on cash and cash
equivalents granted pursuant to master netting agreements entered into in the
ordinary course of business in connection with Hedging Transactions; provided
that (i) the transactions secured by such Liens are governed by standard
International Swaps and Derivatives Association, Inc. (“ISDA”) documentation,
and (ii) such Hedging Transactions consist of derivative transactions
contemplated to be settled in cash and not by physical delivery and are
designed to minimize the risk of fluctuations in oil and gas prices, interest
rates or foreign currency rates with respect to the Borrower’s and its
Subsidiaries’ operations in the ordinary course of its business;

(h)           Liens pursuant to
master netting agreements entered into in the ordinary course of business in
connection with Hedging Transactions, in each case pursuant to which the
Borrower or any Subsidiary of the Borrower, as a party to such master netting
agreement and as pledgor, pledges or otherwise transfers to the other party to
such master netting agreement, as pledgee, in order to secure the Borrower’s or
such Subsidiary’s obligations under such master netting agreement, a Lien upon
and/or right of set off against, all right, title, and interest of the pledgor
in any obligations of the pledgee owed to the pledgor, together with all
accounts and general intangibles and payment intangibles in respect of such
obligations and all dividends, interest, and other proceeds from time to time
received, receivable, or otherwise distributed in respect of, or in exchange
for, any or all of the foregoing;

 61

(i)                                     Liens securing
Indebtedness permitted under Section 7.1(g); and

(j)                                     After consummation
of the Tuscarora Acquisition, Liens not otherwise permitted by this Section
7.2 if at the time of, and after giving effect to, the creation or
assumption of any such Lien, the aggregate of all obligations of the Borrower
and its Subsidiaries secured by any Liens not otherwise permitted hereby does
not exceed five percent (5%) of the sum of (i) the consolidated owners’ equity,
determined in accordance with GAAP, of the Borrower and its Subsidiaries, and
(ii) Consolidated Total Funded Debt.

Section 7.3.                                Fundamental Changes.

(a)                                  The Borrower will not, and will not permit
any Subsidiary to, merge into or consolidate into any other Person, or permit
any other Person to merge into or consolidate with it, or sell, lease, transfer
or otherwise dispose of (in a single transaction or a series of transactions)
all of its assets (in each case, whether now owned or hereafter acquired) or
all or substantially all of the Capital Stock of its Subsidiaries(in each case, whether now owned or
hereafter acquired)or liquidate
or dissolve; provided, that if at
the time thereof and immediately after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing, then (i) the Borrower
or any Subsidiary may merge with a Person if the Borrower (or such Subsidiary
if the Borrower is not a party to such merger) is the surviving Person, (ii)
any Subsidiary may merge into another Subsidiary; (iii) any Subsidiary may sell,
transfer, lease or otherwise dispose of all or substantially all of its assets
to the Borrower or to another Subsidiary, and (iv) any Subsidiary may sell,
lease, transfer or otherwise dispose of (in a single transaction or a series of
transactions) all of its assets (in each case, whether now owned or hereafter
acquired) or all or substantially all of the stock of or other equity interest
or may liquidate or dissolve if no Default or Event of Default has occurred and
is continuing or would result therefrom, and the Borrower determines in good
faith that such sale, lease, transfer, disposition, liquidation or dissolution
is in the best interests of the Borrower and is not materially disadvantageous
to the Lenders; provided, however,
that in no event shall any such merger, consolidation, sale, transfer, lease or
other disposition whether or not otherwise permitted by this Section 7.3
have the effect of releasing the Borrower from any of its obligations and
liabilities under this Agreement or the other Loan Documents.

(b)                                 So long as Northern
Border is a Significant Subsidiary of the Borrower, the Borrower shall not
provide its consent to, or vote to, permit Northern Border to lease, sell or
otherwise dispose of its assets to any other Person except: (i) sales of
inventory, investments, and other assets in the ordinary course of business,
(ii) leases, sales or other dispositions of its assets that, together with
all other assets of Northern Border previously leased, sold or disposed of
(other than disposed of pursuant to this Section 7.3(b)) during the
twelve-month period ending with the month in which any such lease, sale or
other disposition occurs, do not constitute a substantial portion of the assets
of Northern Border, (iii) sales of assets which are concurrently leased
back, (iv) dispositions of assets which are obsolete or no longer used or
useful in the business of Northern Border, and (v) as permitted pursuant to the
Northern Border Partnership Agreement as in effect on the Closing Date.

(c)                                  So long as GLGT is a
Significant Subsidiary of the Borrower, the Borrower shall not provide its
consent to, or vote to, permit GLGT to lease, sell or otherwise

 62
 

dispose of its assets to any other Person except: (i) sales of
inventory, investments, and other assets in the ordinary course of business,
(ii) leases, sales or other dispositions of its assets that, together with
all other assets of GLGT previously leased, sold or disposed of (other than
disposed of pursuant to this Section 7.3(b)) during the
twelve-month period ending with the month in which any such lease, sale or
other disposition occurs, do not constitute a substantial portion of the assets
of GLGT, (iii) sales of assets which are concurrently leased back,
(iv) dispositions of assets which are obsolete or no longer used or useful
in the business of GLGT, and (v) as permitted pursuant to the GLGT Partnership
Agreement as in effect on the Closing Date.

(d)                                 The Borrower shall not
engage in any business activity except (i) the direct or indirect ownership of
a limited partner interest in TC
PipeLines ILP, TC GL ILP and Tuscarora ILP, (ii) the ownership or
operation of energy infrastructure assets and/or (iii) such activities as may
be incidental or related thereto. 
Neither TC PipeLines ILP, TC GL
ILP nor Tuscarora ILP shall, and the Borrower shall not permit any of
its Subsidiaries to, engage, directly or indirectly, in any business activity
not related to the ownership or operation of energy infrastructure assets.

Section 7.4.                                Investments, Loans, Etc.  The
Borrower will not, and will not permit any of its Subsidiaries to, purchase,
hold or acquire (including pursuant to any merger with any Person that was not
a wholly-owned Subsidiary prior to such merger), any common stock, evidence of
indebtedness or other securities (including any option, warrant, or other right
to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person (all of the foregoing
being collectively called “Investments”), or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any
other Person that constitute a business unit, or create or form any Subsidiary,
except:

(a)                                  Investments (other than Permitted
Investments) existing on the date hereof and set forth on Schedule 7.4
(including Investments in Subsidiaries);

(b)                                 Permitted Investments;

(c)                                  Guarantees constituting Indebtedness
permitted by Section 7.1;

(d)                                 Loans or advances to employees, officers or
directors of the Borrower or any Subsidiary in the ordinary course of business
for travel, relocation and related expenses; provided, however, that the aggregate amount of all such
loans and advances does not exceed $1,000,000 at any time;

(e)                                  Accounts receivable
or other indebtedness and extensions of trade credit which arose in the
ordinary course of such Person’s business;

(f)                                    Prepaid expenses of
such Person incurred and prepaid in the ordinary course of business;

(g)                                 Endorsements of
instruments for deposit or collection in the ordinary course of business;

 63
 

 

(h)                                 Hedging Transactions permitted by Section
7.9;

(i)                                     Investments
permitted by Section 7.3(d);
and

(j)                                     Investments made
as part of the GLGT Acquisition.

Section 7.5.                                Restricted
Payments.  The Borrowerwill not,and will not permit its Subsidiaries to,declare or make, or agree to pay or make, directly or
indirectly, any dividend on any class of its Capital Stock, or make any payment
on account of, or set apart assets for a sinking or other analogous fund for,
the purchase, redemption, retirement, defeasance or other acquisition of, any
shares of Capital Stock or Indebtedness subordinated to the Obligations of the
Borrower or any Guarantee thereof or any options, warrants, or other rights to
purchase such Capital Stock or such Indebtedness, whether now or hereafter
outstanding (each, a “Restricted Payment”), except for (i) dividends
payable by Subsidiaries of the Borrower solely in shares of any class of its
Capital Stock, (ii) Restricted Payments made by any Subsidiary to the
Borrower or to another Subsidiary, on at least a pro rata basis with any other
holders of its Capital Stock if such Subsidiary is not wholly owned by the
Borrower and other wholly owned Subsidiaries, (iii) so long as no Event of
Default has occurred and is continuing, distributions on the Limited
Partnership Units and General Partners’ interests in accordance with the
Borrower Partnership Agreement, (iv)
Permitted Tax Distributions, (v) payments made with respect to the TransCanada
Subordinated Debt to the extent allowed under the Subordination Agreement and
(vi) payments made with respect to Permitted Subordinated Debt to the extent
allowed by the terms of the agreements entered into connection therewith, which
agreements shall have been approved by the Administrative Agent and the
Required Lenders.

Section 7.6.                                Transactions with Affiliates. 
Except as set forth in Schedule 7.6, the Borrower will not, and
will not permit any of its Subsidiaries to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property
or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) at prices and on terms and conditions not less favorable
to the Borrower or such Subsidiary than could be obtained on an arm’s-length
basis from unrelated third parties, (b) any Restricted Payment permitted by Section 7.5
and (c) any Investment permitted by Section 7.4.

Section 7.7.                                Restrictive Agreements.  The
Borrower will not, and will not permit any Subsidiary to, directly or
indirectly, enter into, incur or permit to exist any agreement that prohibits,
restricts or imposes any condition upon (a) the ability of the Borrower or any
Subsidiary to create, incur or permit any Lien upon any of its assets or
properties, whether now owned or hereafter acquired, to secure any obligations
owing under the Loan Documents, except by indentures or other agreements
governing Indebtedness of the Borrower requiring that such Indebtedness be
secured by an equal and ratable Lien with any Lien that may be granted to
secure any obligations owing under the Loan Documents, or (b) the ability of
any Subsidiary to pay dividends or other distributions with respect to its
Capital Stock, to make or repay loans or advances to the Borrower or any other
Subsidiary, to Guarantee Indebtedness of the Borrower or any other Subsidiary
or to transfer any of its property or assets to the Borrower or any Subsidiary
of the Borrower; provided, that the foregoing shall not apply to (i)
restrictions or conditions imposed by law or by this Agreement or any
other Loan Document or any loan or credit agreement governing Indebtedness
permitted by this Agreement, (ii) customary restrictions and

 64
 

conditions
contained in agreements relating to the sale of a Subsidiary pending such sale,
provided such restrictions and conditions apply only to the Subsidiary that is
sold and such sale is permitted hereunder, (iii) customary provisions in leases
restricting the assignment thereof, (iv) any such covenant contained in
a Contractual Obligation granting or relating to a particular Lien permitted by
this Agreement which affects only the property that is the subject of such
Lien, (v) restrictions which are
not more restrictive than those contained in this Agreement and are contained
in any documents governing any Indebtedness incurred after the Closing Date and
permitted in accordance with the provisions of this Agreement, (vi) in the case
of any joint venture, customary restrictions in such person’s organizational or
governing documents or pursuant to any joint venture agreement or stockholders
agreement or (vii) any agreement in effect at the time a Person first became a
Subsidiary, so long as such agreement was not entered into solely in
contemplation of such Person becoming a Subsidiary and such agreement only
applies to Subsidiaries of such Person.

Section 7.8.        Sale and Leaseback
Transactions.  The Borrower will not, and will not permit
any of the Subsidiaries to, enter into any arrangement, directly or indirectly,
whereby it shall sell or transfer any property, real or personal, used or
useful in its business, whether now owned or hereinafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or
transferred.

Section 7.9.                                Hedging Transactions.  The
Borrower will not, and will not permit any of the Subsidiaries to, enter into
any Hedging Transaction, other than Hedging Transactions entered into in the
ordinary course of business to hedge or mitigate risks to which the Borrower or
any Subsidiary is exposed in the conduct of its business or the management of
its liabilities.  Solely for the
avoidance of doubt, the Borrower acknowledges that a Hedging Transaction
entered into for speculative purposes or of a speculative nature (which shall
be deemed to include any Hedging Transaction under which the Borrower or any of
the Subsidiaries is or may become obliged to make any payment (i) in connection
with the purchase by any third party of any common stock or any Indebtedness or
(ii) as a result of changes in the market value of any common stock or any
Indebtedness but shall be deemed to exclude any Hedging Transaction in which
the Borrower hedges the issuance price of its Limited Partnership Units in
connection with an anticipated offering of additional Limited Partnership
Units) is not a Hedging Transaction entered into in the ordinary course of
business to hedge or mitigate risks.

Section 7.10.                         Certain Amendments to Cash Distribution Policies
and Partnership Agreements.   The Borrower agrees that it shall not
consent to, vote in favor of or permit any amendment of (a) the cash
distribution policies of the Borrower, TC
PipeLines ILP, TC GL ILP, Tuscarora ILP, Northern Border, GLGT (after
closing of the GLGT Acquisition) or Tuscarora in any manner which would
materially adversely affect the rights and remedies of Lenders under and in
connection with this Agreement, the Notes or any other Loan Document; or
(b) the Borrower Partnership Agreement, the TC PipeLines ILP Limited Partnership Agreement, the Tuscarora
ILP Partnership Agreement, the Northern Border Partnership Agreement, the TC GL
Partnership Agreement, the GLGT Partnership Agreement (after closing of the
GLGT Acquisition)  or the Tuscarora
Partnership Agreement in any manner which would (i) have a material
adverse effect on the rights and remedies of Lenders under and in connection
with this Agreement, the Notes or any other Loan Document; or (ii) result
in a Material Adverse Effect.

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Section 7.11.                                                 Accounting Changes.  The
Borrower will not, and will not permit any of its Subsidiaries to, make any
significant change in accounting treatment or reporting practices, except as
required by GAAP, or change the fiscal year of the Borrower or of any of its
Subsidiaries, except to change the fiscal year of a Subsidiary to conform its
fiscal year to that of the Borrower.

ARTICLE
VIII

EVENTS OF
DEFAULT

Section 8.1.        Events of Default.  If
any of the following events (each an “Event of Default”) shall occur:

(a)                                  the Borrower shall fail to pay any principal
of any Loan or of any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment or otherwise; or

(b)                                 the Borrower shall fail to pay any interest
on any Loan or any fee or any other amount (other than an amount payable under
clause (a) of this Section 8.1) payable under this Agreement or any
other Loan Document, when and as the same shall become due and payable, and
such failure shall continue unremedied for a period of five (5) Business Days;
or

(c)                                  any representation or warranty made or deemed
made by or on behalf of the Borrower in or in connection with this Agreement or
any other Loan Document and any amendments or modifications hereof shall prove
to be incorrectin any material
respectwhen made or deemed made
or submitted; or

(d)                                 the Borrower shall fail to observe or perform
any covenant or agreement contained in Sections 5.1, 5.2, or
5.3(a) or Articles VI or VII; or

(e)                                  the Borrower shall fail to observe or perform
any covenant or agreement contained in this Agreement (other than those
referred to in clauses (a), (b) and (d) above) or any other Loan Document, and
such failure shall remain unremedied for 30 days after the earlier of
(i) any Responsible Officer of the Borrower becomes aware of such failure,
or (ii) written notice thereof shall have been given to the Borrower by the
Administrative Agent or any Lender; or

(f)                                    the Borrower or any of its Significant
Subsidiaries (whether as primary obligor or as guarantor or other surety) shall
fail to pay any principal of, or premium or interest on, (i) any Material
Indebtedness that is outstanding, when and as the same shall become due and
payable (whether at scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the applicable
grace period, if any, specified in the agreement or instrument evidencing or
governing such Indebtedness, provided that the foregoing shall not apply to any
failure to pay any principal of, or premium or interest on the TransCanada
Subordinated Debt because such payment is prohibited by the terms of the
Subordination Agreement; or any other event shall occur or condition shall
exist under any agreement or instrument relating to such Indebtedness and shall
continue after the applicable grace period, if any, specified in such agreement
or instrument, if the effect of such event or

 66
 

condition
is to accelerate, or permit the acceleration of, the maturity of such
Indebtedness; (ii) any such Indebtedness shall be declared to be due and
payable, or required to be prepaid or redeemed (other than by a regularly
scheduled required prepayment or redemption), purchased or defeased, or any
offer to prepay, redeem, purchase or defease such Indebtedness shall be
required to be made, in each case prior to the stated maturity thereof; or
(iii) (A) there occurs under any Hedging Transaction an Early Termination Date
(as defined in such Hedging Transaction) resulting from an event of default
under such Hedging Transaction as to which the Borrower or any of its
Significant Subsidiaries is the Defaulting Party (as defined in such Hedging
Transaction) and the value owed by the Borrower or any of its  Significant Subsidiaries as a result thereof
is greater than (individually or collectively) $15,000,000 and such amount is
not paid when due under such Hedging Transaction, or (B) there occurs under any
Hedging Transaction an Early Termination Date (as defined in such Hedging
Transaction) resulting from any Termination Event (as so defined) under such
Hedging Transaction as to which the Borrower or any of its Significant
Subsidiaries is an Affected Party (as defined in such Hedging Transaction) and
the value owed by the Borrower or any of its 
Significant Subsidiaries as a result thereof is greater than
(individually or collectively) $15,000,000 and such amount is not paid when due
under such Hedging Transaction; or

(g)                                 the General Partner, the Borrower or any of
its Significant Subsidiaries shall (i) commence a voluntary case or other
proceeding or file any petition seeking liquidation, reorganization or other relief
under any federal, state or foreign bankruptcy, insolvency or other similar law
now or hereafter in effect or seeking the appointment of a custodian, trustee,
receiver, liquidator or other similar official of them or any substantial part
of their property, (ii) consent to the institution of, or fail to contest in a
timely and appropriate manner, any proceeding or petition described in clause
(h) of this Section 8.1, (iii) apply for or consent to the appointment
of a custodian, trustee, receiver, liquidator or other similar official for the
General Partner, the Borrower or any of its Significant Subsidiaries or for a
substantial part of their assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors, or (vi) take any partnership
action for the purpose of effecting any of the foregoing; or

(h)                                 an involuntary proceeding shall be commenced
or an involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of the General Partner, the Borrower
or any of its Significant Subsidiaries or their debts, or any substantial part
of their assets, under any federal, state or foreign bankruptcy, insolvency or
other similar law now or hereafter in effect or (ii) the appointment of a
custodian, trustee, receiver, liquidator or other similar official for the
General Partner, the Borrower or any of its Significant Subsidiaries or for a
substantial part of their assets, and in any such case, such proceeding or
petition shall remain undismissed for a period of 60 days or an order or decree
approving or ordering any of the foregoing shall be entered; or

(i)                                     the General Partner, the Borrower or any of
its Significant Subsidiaries shall admit in writing its inability to pay, or
shall fail to pay, its debts as they become due; or

(j)                                     an ERISA Event shall have occurred that, in
the opinion of the Required Lenders, when taken together with other ERISA
Events that have occurred, could reasonably be

 67
 

expected
to result in liability to the Borrower or any of its Significant Subsidiaries
in an aggregate amount exceeding $15,000,000; or

(k)                                  anyjudgment
or order for the payment of money in excess of $15,000,000 in the aggregate
shall be rendered against the Borrower or any of its Significant Subsidiaries,
and either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be a period of
30 consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect;
provided, however, that any such judgment or order shall not be an Event of
Default under this Section 8.1(k) if and for so long as (i) the amount of such
judgment or order is covered (subject to customary deductibles) by a valid and
binding policy of insurance between the defendant and the insurer covering
payment thereof and (ii) such insurer, which shall be rated at least “A-” by
A.M. Best Company, has been notified of, and has not denied coverage of, the
amount of such judgment or order; or

(l)                                     anynon-monetaryjudgment or order shall be rendered
against the Borrower or any of its Significant Subsidiaries that could
reasonably be expected to have a Material Adverse Effect, and there shall be a
period of 30 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; or

(m)                               a Change in Control shall occur or exist; or

(n)                                 any
lender holding the TransCanada Subordinated Debt fails to comply with the terms
of the Subordination Agreement, or if the Subordination Agreement becomes null
and void or unenforceable against any lender holding the TransCanada
Subordinated Debt, or any such lender
asserts in writing that the Subordination Agreement is void or unenforceable
against such lender

then, and in every
such event (other than an event with respect to the General Partner, the
Borrower or any of its Significant Subsidiaries described in clause (g) or (h)
of this Section 8.1) and at any time thereafter during the continuance
of such event, the Administrative Agent may, and upon the written request of
the Required Lenders shall, by notice to the Borrower, take any or all of the
following actions, at the same or different times: (i) terminate the
Commitments, whereupon the Commitment of each Lender shall terminate
immediately, (ii) declare the principal of and any accrued interest on the
Loans, and all other Obligations owing hereunder, to be, whereupon the same
shall become, due and payable immediately, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower,
(iii) exercise all remedies contained in any other Loan Document, and (iv)
exercise any other remedies available at law or in equity; and that, if an
Event of Default specified in either clause (g) or (h) shall occur, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon, and all fees, and all
other Obligations shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

 68
 

ARTICLE
IX

THE ADMINISTRATIVE
AGENT

Section 9.1.        Appointment of
Administrative Agent.

(a)                                  Each Lender irrevocably appoints SunTrust
Bank as the Administrative Agent and authorizes it to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
under this Agreement and the other Loan Documents, together with all such
actions and powers that are reasonably incidental thereto.  The Administrative Agent may perform any of
its duties hereunder or under the other Loan Documents by or through any one or
more sub-agents or attorneys-in-fact appointed by the Administrative
Agent.  The Administrative Agent and any
such sub-agent or attorney-in-fact may perform any and all of its duties and
exercise its rights and powers through their respective Related Parties.  The exculpatory provisions set forth in this
Article shall apply to any such sub-agent or attorney-in-fact and the Related
Parties of the Administrative Agent, any such sub-agent and any such attorney-in-fact
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

(b)                                 The Issuing Bank shall act on behalf of the
Lenders with respect to any Letters of Credit issued by it and the documents
associated therewith until such time and except for so long as the
Administrative Agent may agree at the request of the Required Lenders to act
for the Issuing Bank with respect thereto; provided, that the Issuing Bank
shall have all the benefits and immunities (i) provided to the Administrative
Agent in this Article with respect to any acts taken or omissions suffered by
the Issuing Bank in connection with Letters of Credit issued by it or proposed
to be issued by it and the application and agreements for letters of credit
pertaining to the Letters of Credit as fully as if the term “Administrative
Agent” as used in this Article included the Issuing Bank with respect to such
acts or omissions and (ii) as additionally provided in this Agreement with
respect to the Issuing Bank.

Section 9.2.        Nature of Duties of
Administrative Agent.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth in this Agreement and
the other Loan Documents.  Without limiting
the generality of the foregoing, (a) the Administrative Agent shall not be
subject to any fiduciary or other implied duties, regardless of whether a
Default or an Event of Default has occurred and is continuing, (b) the
Administrative Agent shall not have any duty to take any discretionary action
or exercise any discretionary powers, except those discretionary rights and
powers expressly contemplated by the Loan Documents that the Administrative
Agent is required to exercise in writing by the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 10.2), and (c) except as expressly
set forth in the Loan Documents, the Administrative Agent shall not have any
duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the Administrative Agent or any of its
Affiliates in any capacity.  The
Administrative Agent shall not be liable for any action taken or not taken by
it, its sub-agents or attorneys-in-fact with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 10.2)
or in the absence of its own gross negligence or willful

 69
 

misconduct.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any sub-agents or
attorneys-in-fact selected by it with reasonable care.  The Administrative Agent shall not be deemed
to have knowledge of any Default or Event of Default unless and until written
notice thereof (which notice shall include an express reference to such event
being a “Default” or “Event of Default” hereunder) is given to the
Administrative Agent by the Borrower or any Lender, and the Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection
with any Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or
therewith, (iii) the performance or observance of any of the covenants,
agreements, or other terms and conditions set forth in any Loan Document, (iv)
the validity, enforceability, effectiveness or genuineness of any Loan Document
or any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article III or elsewhere in any Loan Document, other
than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.  The Administrative
Agent may consult with legal counsel (including counsel for the Borrower)
concerning all matters pertaining to such duties.

Section 9.3.        Lack of Reliance on the
Administrative Agent.  Each of the Lenders, the Swingline Lender and
the Issuing Bank acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each of the Lenders, the Swingline Lender and the Issuing Bank also
acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it has
deemed appropriate, continue to make its own decisions in taking or not taking
of any action under or based on this Agreement, any related agreement or any
document furnished hereunder or thereunder.

Section 9.4.        Certain Rights of the
Administrative Agent.  If the Administrative Agent shall request
instructions from the Required Lenders with respect to any action or actions
(including the failure to act) in connection with this Agreement, the
Administrative Agent shall be entitled to refrain from such act or taking such
act, unless and until it shall have received instructions from such Lenders;
and the Administrative Agent shall not incur liability to any Person by reason
of so refraining.  Without limiting the
foregoing, no Lender shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent acting or
refraining from acting hereunder in accordance with the instructions of the
Required Lenders where required by the terms of this Agreement.

Section 9.5.        Reliance by Administrative
Agent.  The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice,
request, certificate, consent, statement, instrument, document or other writing
(including any electronic message, posting or other distribution) believed by it to be genuine and to have
been signed, sent or made by the proper Person. 
The Administrative Agent may also rely upon any statement made to it
orally or by telephone and believed by it to be made by the proper Person and
shall not incur any liability for relying thereon.  The Administrative Agent may consult with
legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or not taken by it in accordance with the advice of such counsel,
accountants or experts.

 70
 

Section 9.6.        The Administrative Agent in
its Individual Capacity.  The bank serving as the Administrative Agent
shall have the same rights and powers under this Agreement and any other Loan
Document in its capacity as a Lender as any other Lender and may exercise or
refrain from exercising the same as though it were not the Administrative
Agent; and the terms “Lenders”, “Required Lenders”, “holders of Notes”, or any
similar terms shall, unless the context clearly otherwise indicates, include
the Administrative Agent in its individual capacity.  The bank acting as the Administrative Agent
and its Affiliates may accept deposits from, lend money to, and generally
engage in any kind of business with the Borrower or any Subsidiary or Affiliate
of the Borrower as if it were not the Administrative Agent hereunder.

Section 9.7.        Successor Administrative
Agent.

(a)          The Administrative Agent may resign at any time by giving notice
thereof to the Lenders and the Borrower. 
Upon any such resignation, the Required Lenders shall have the right to
appoint a successor Administrative Agent, subject to the approval by the
Borrower provided that no Default or Event of Default shall exist at such
time.  If no successor Administrative
Agent shall have been so appointed, and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of
resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Bank, appoint a successor Administrative Agent, which
shall be a commercial bank organized under the laws of the United States of
America or any state thereof or a bank which maintains an office in the United
States, having a combined capital and surplus of at least $500,000,000.

(b)         Upon the acceptance of its appointment as the Administrative Agent
hereunder by a successor, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement and
the other Loan Documents.  If within 45
days after written notice is given of the retiring Administrative Agent’s
resignation under this Section 9.7 no successor Administrative Agent
shall have been appointed and shall have accepted such appointment, then on
such 45th day
(i) the retiring Administrative Agent’s resignation shall become effective,
(ii) the retiring Administrative Agent shall thereupon be discharged from its
duties and obligations under the Loan Documents and (iii) the Required Lenders
shall thereafter perform all duties of the retiring Administrative Agent under
the Loan Documents until such time as the Required Lenders appoint a successor
Administrative Agent as provided above. 
After any retiring Administrative Agent’s resignation hereunder, the
provisions of this Article shall continue in effect for the benefit of such
retiring Administrative Agent and its representatives and agents in respect of
any actions taken or not taken by any of them while it was serving as the
Administrative Agent.

Section 9.8.        Authorization to Execute
other Loan Documents.  Each Lender hereby authorizes the
Administrative Agent to execute on behalf of all Lenders all Loan Documents
other than this Agreement.

Section 9.9.        Co-Documentation
Agents; Co-Syndication Agents; Managing Agents.  Each Lender hereby designates UBS Securities
LLC and Royal Bank of Canada as Co-Documentation Agents and agrees that the
Co-Documentation Agents shall have no duties or

 71
 

obligations under any Loan Documents to any Lender or the
Borrower.  Each Lender hereby designates BMO Capital Markets Financing Inc. and
The Royal Bank of Scotland plc as Co-Syndication Agents and agrees that the
Co-Syndication Agents shall have no duties or obligations under any Loan
Documents to any Lender or the Borrower. 
Each Lender hereby designates Deutsche
Bank AG New York Branch and The
Bank of Tokyo-Mitsubishi UFJ, Ltd. as Managing Agents and agrees that
the Managing Agents shall have no duties or obligations under any Loan
Documents to any Lender or the Borrower.

ARTICLE X

MISCELLANEOUS

Section 10.1.                                                 Notices.

(a)                                  Written Notices.

(i)                                        Except
in the case of notices and other communications expressly permitted to be given
by telephone, all notices and other communications to any party herein to be
effective shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopy, as
follows:

	
  

  	
  To the Borrower:

  	
  TC PipeLines, LP

  
	
   

  	
   

  	
  c/o TC PipeLines
  GP

  
	
   

  	
   

  	
  450-1 Street SW

  
	
   

  	
   

  	
  Calgary, AB
  T2P5H1

  
	
   

  	
   

  	
  Attention:
  Corporate Secretary

  
	
   

  	
   

  	
  Telecopy Number:
  403.920.2467

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  TC PipeLines, LP

  
	
   

  	
   

  	
  c/o TC PipeLines
  GP

  
	
   

  	
   

  	
  450-1 Street SW

  
	
   

  	
   

  	
  Calgary, AB
  T2P5H1

  
	
   

  	
   

  	
  Attention: Vice
  President and Treasurer

  
	
   

  	
   

  	
  Telecopy Number:
  403.920.2358

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  To the
  Administrative Agent

  	
   

  
	
   

  	
  or Swingline
  Lender:

  	
  SunTrust Bank

  
	
   

  	
   

  	
  303 Peachtree
  Street, N. E.

  
	
   

  	
   

  	
  Atlanta, Georgia
  30308

  
	
   

  	
   

  	
  Attention: Joe
  McCreery

  
	
   

  	
   

  	
  Telecopy Number:

  

 

 72
 

 

	
  

  	
  With a copy to:

  	
  SunTrust Bank

  
	
   

  	
   

  	
  Agency Services

  
	
   

  	
   

  	
  303 Peachtree Street, N. E./ 25th Floor

  
	
   

  	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
   

  	
  Attention: Ms. Dorris Folsom

  
	
   

  	
   

  	
  Telecopy Number: (404) 658-4906

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  King & Spalding LLP

  
	
   

  	
   

  	
  1180 Peachtree Street, N.W.

  
	
   

  	
   

  	
  Atlanta, Georgia 30309

  
	
   

  	
   

  	
  Attention: W. Todd Holleman

  
	
   

  	
   

  	
  Telecopy Number: (404) 572-5100

  
	
   

  	
   

  	
   

  
	
   

  	
  To the Issuing Bank:

  	
  SunTrust Bank

  
	
   

  	
   

  	
  25 Park Place, N. E./Mail Code 3706

  
	
   

  	
   

  	
  Atlanta, Georgia 30303

  
	
   

  	
   

  	
  Attention: John Conley

  
	
   

  	
   

  	
  Telecopy Number: (404) 588-8129

  
	
   

  	
   

  	
   

  
	
   

  	
  To the Swingline Lender:

  	
  SunTrust Bank

  
	
   

  	
   

  	
  Agency Services

  
	
   

  	
   

  	
  303 Peachtree Street, N.E./25th Floor

  
	
   

  	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
   

  	
  Attention: Ms. Dorris Folsom

  
	
   

  	
   

  	
  Telecopy Number: (404) 658-4906

  
	
   

  	
   

  	
   

  
	
   

  	
  To any other Lender:

  	
  the address set forth in the Administrative

  Questionnaire or the Assignment and Acceptance

  Agreement executed by such Lender

  

 

Any party hereto may change its address or telecopy number for notices
and other communications hereunder by notice to the other parties hereto.  All such notices and other communications
shall, when transmitted by overnight delivery, or faxed, be effective when
delivered for overnight (next-day) delivery, or transmitted in legible form by
facsimile machine, respectively, or if mailed, upon the third Business Day
after the date deposited into the mail or if delivered, upon delivery;
provided, that any Notices of Borrowing, any Notices of
Conversion/Continuation, and any notices provided under Section 5.2 or 5.3
delivered to the Administrative Agent, the Issuing Bank or the Swingline Lender
shall not be effective until actually received by such Person at its address
specified in this Section 10.1.

(ii)                                     Any
agreement of the Administrative Agent and the Lenders herein to receive certain
notices by telephone or facsimile is solely for the convenience and at the
request of the Borrower.  The
Administrative Agent and the Lenders shall be entitled to

 73
 

rely on the
authority of any Person believed by it to be a Person authorized by the
Borrower to give such notice and the Administrative Agent and Lenders shall not
have any liability to the Borrower or other Person on account of any action
taken or not taken by the Administrative Agent or the Lenders in reliance upon
such telephonic or facsimile notice.  The
obligation of the Borrower to repay the Loans and all other Obligations
hereunder shall not be affected in any way or to any extent by any failure of
the Administrative Agent and the Lenders to receive written confirmation of any
telephonic or facsimile notice or the receipt by the Administrative Agent and
the Lenders of a confirmation which is at variance with the terms understood by
the Administrative Agent and the Lenders to be contained in any such telephonic
or facsimile notice.

(b)                                 Electronic
Communications.

(i)                                        Notices
and other communications to the Lenders and the Issuing Bank hereunder may be
delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by
Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender or the Issuing Bank pursuant to Article 2 unless
such Lender, the Issuing Bank, as applicable, and Administrative Agent have
agreed to receive notices under such Section by electronic communication and
have agreed to the procedures governing such communications. Administrative
Agent or Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

(ii)                                     Unless
Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of
an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement); provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

Section 10.2.                                                 Waiver; Amendments.

(a)                                  No
failure or delay by the Administrative Agent, the Issuing Bank or any Lender in
exercising any right or power hereunder or any other Loan Document, and no
course of dealing between the Borrower and the Administrative Agent or any Lender, shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power or any
abandonment or discontinuance of steps to enforce such right or power, preclude
any other or further exercise thereof or the exercise of any other right or
power hereunder or thereunder.  The
rights and remedies of the Administrative Agent, the Issuing Bank and the
Lenders hereunder

 74
 

and under the other Loan Documents are cumulative and are not exclusive
of any rights or remedies provided by law. 
No waiver of any provision of this Agreement or any other Loan Document
or consent to any departure by the Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section
10.2, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given.  Without limiting the generality of the
foregoing, the making of a Loan or the issuance of a Letter of Credit shall not
be construed as a waiver of any Default or Event of Default, regardless of
whether the Administrative Agent, any Lender or the Issuing Bank may have had
notice or knowledge of such Default or Event of Default at the time.

(b)                                 No
amendment or waiver of any provision of this Agreement or the other Loan
Documents, nor consent to any departure by the Borrower therefrom, shall in any
event be effective unless the same shall be in writing and signed by the
Borrower and the Required Lenders or the Borrower and the Administrative Agent
with the consent of the Required Lenders and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, that no amendment or waiver shall: (i) increase
the Commitment of any Lender without the written consent of such Lender,
(ii) reduce the principal amount of any Loan or LC Disbursement or reduce
the rate of interest thereon, or reduce any fees payable hereunder, without the
written consent of each Lender affected thereby, (iii) postpone the date fixed
for any payment of any principal of, or interest on, any Loan or LC
Disbursement or interest thereon or any fees hereunder or reduce the amount of,
waive or excuse any such payment, or postpone the scheduled date for the
termination or reduction of any Commitment, without the written consent of each
Lender affected thereby, (iv) change Section 2.21(b) or (c) in a
manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, or (v) change any of the provisions
of this Section 10.2 or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders which are
required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the consent of each
Lender; provided further, that no such agreement shall amend, modify or
otherwise affect the rights, duties or obligations of the Administrative Agent,
the Swingline Lender or the Issuing Bank without the prior written consent of
such Person.  Notwithstanding anything
contained herein to the contrary, this Agreement may be amended and restated
without the consent of any Lender (but with the consent of the Borrower and the
Administrative Agent) if, upon giving effect to such amendment and restatement,
such Lender shall no longer be a party to this Agreement (as so amended and
restated), the Commitments of such Lender shall have terminated (but such
Lender shall continue to be entitled to the benefits of Sections 2.18, 2.19,
2.20 and 10.3), such Lender shall have no other commitment or
other obligation hereunder and shall have been paid in full all principal,
interest and other amounts owing to it or accrued for its account under this
Agreement.

Section 10.3.                                                 Expenses; Indemnification.

(a)                                  The
Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the
Administrative Agent and its Affiliates, including
the reasonable fees, charges and disbursements of counsel for the
Administrative Agent and its Affiliates, in connection with the syndication of
the credit facilities provided for herein, the preparation and administration
of the Loan Documents and any amendments, modifications or waivers thereof
(whether or not the

 75
 

transactions contemplated in this Agreement or any other Loan Document
shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by
the Issuing Bank in connection with the issuance, amendment, renewal or
extension of any Letter of Credit or any demand for payment thereunder and
(iii) all out-of-pocket costs and expenses (including, without limitation, but
limited to the reasonable fees, charges and disbursements of one outside
counsel for the Administrative Agent, the Issuing Bank and the Lenders)
incurred by the Administrative Agent, the Issuing Bank or any Lender in
connection with the enforcement or protection of its rights in connection with
this Agreement, including its rights under this Section 10.3, or in
connection with the Loans made or any Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

(b)                                 The
Borrower shall indemnify the Administrative Agent (and any sub-agent thereof),
each Lender and the Issuing Bank, and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold
harmless each Indemnitee from all fees and time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by the Borrower arising
out of, in connection with, or as a result of (i) the execution or delivery of
this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the
transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit
or the use or proposed use of the proceeds therefrom (including any refusal by
the Issuing Bank to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with
the terms of such Letter of Credit), (iii) any actual or alleged presence or
Release of Hazardous Materials on or from any property owned or operated by the
Borrower or any of its Subsidiaries, or any Environmental Liability related in
any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by the Borrower, and regardless of whether any
Indemnitee is a party thereto, provided that such indemnity shall not,
as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee or (y)
result from a claim brought by the Borrower against an Indemnitee for breach in
bad faith of such Indemnitee’s obligations hereunder or under any other Loan
Document, if the Borrower has obtained a final judgment in its favor on such
claim as determined by a court of competent jurisdiction.

(c)                                  The Borrower shall pay, and hold the
Administrative Agent and each of the Lenders harmless from and against, any and
all present and future stamp, documentary, and other similar taxes with respect
to this Agreement and any other Loan Documents, any collateral described
therein, or any payments due thereunder, and save the Administrative Agent and
each Lender harmless from and against any and all liabilities with respect to
or resulting from any delay or omission to pay such taxes.

 76
 

(d)                                 To the extent that the Borrower fails to pay
any amount required to be paid to the Administrative Agent, the Issuing Bank or
the Swingline Lender under clauses (a), (b) or (c) hereof, each Lender
severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s Pro Rata Share (determined
as of the time that the unreimbursed expense or indemnity payment is sought) of
such unpaid amount; provided, that the unreimbursed expense or
indemnified payment, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent, the
Issuing Bank or the Swingline Lender in its capacity as such.

(e)                                  To the extent permitted by applicable law,
the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to actual or direct damages) arising out of, in
connection with or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the transactions contemplated therein, any Loan
or any Letter of Credit or the use of proceeds thereof.

(f)                                    All amounts due under this Section 10.3
shall be payable promptly after written demand therefor.

Section 10.4.                                                 Successors and Assigns.

(a)                                  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender, and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an assignee
in accordance with the provisions of paragraph (b) of this Section, (ii) by way
of participation in accordance with the provisions of paragraph (d) of this
Section or (iii) by way of pledge or assignment of a security interest subject
to the restrictions of paragraph (f) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in paragraph (d) of this Section and, to the extent
expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

(b)                                 Any
Lender may at any time assign to one or more assignees all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it); provided that any
such assignment shall be subject to the following conditions:

(i)  Minimum Amounts.

(A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the
case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and

 77
 

(B) in any case not described in paragraph (b)(i)(A) of this Section,
the aggregate amount of the Commitment (which for this purpose includes Loans
and Revolving Credit Exposure outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the
Loans and Revolving Credit Exposure of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent or, if “Trade
Date” is specified in the Assignment and Acceptance, as of the Trade Date)
shall not be less than $1,000,000, unless each of the Administrative Agent and,
so long as no Event of Default has occurred and is continuing, the Borrower
otherwise consents (each such consent not to be unreasonably withheld or
delayed).

(ii)  Proportionate Amounts.  Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans, Revolving Credit
Exposure or the Commitment assigned.

(iii)  Required Consents.  No consent shall be required for any
assignment except to the extent required by paragraph (b)(i)(B) of this Section
and, in addition:

(A) the consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (x) an Event of Defaulthas occurred and is continuing at the time of such
assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or
an Approved Fund;

(B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments to a Person
that is not a Lender with a Commitment; and

(C) the consent of the Issuing Bank (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under one
or more Letters of Credit (whether or not then outstanding), and the consent of
the Swingline Lender (such consent not to be unreasonably withheld or delayed)
shall be required for any assignment in respect of the Revolving Credit
Commitments.

(iv)  Assignment and
Acceptance.  The parties to each
assignment shall deliver to the Administrative Agent (A) a duly executed
Assignment and Acceptance, (B) a processing and recordation fee of $3,500, (C) an Administrative Questionnaire unless the assignee is
already a Lender and (D) the documents required under Section 2.20 if
such assignee is a Foreign Lender.

(v)  No Assignment to Borrower.  No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 78
 

(vi)  No Assignment to Natural
Persons.  No such assignment shall be
made to a natural person.

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to paragraph (c) of this
Section 10.4, from and after the effective date specified in each
Assignment and Acceptance, the assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto) but shall continue to be entitled to
the benefits of Sections 2.18, 2.19, 2.20 and 10.3
with respect to facts and circumstances occurring prior to the effective date
of such assignment.  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this paragraph shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (d) of this Section 10.4.

(c)                                  The
Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Atlanta, Georgia a copy of
each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amount of the Loans and Revolving Credit Exposure owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”).  Information
contained in the Register with respect to any Lender shall be available for
inspection by such Lender at any reasonable time and from time to time upon
reasonable prior notice; information contained in the Register shall also be
available for inspection by the Borrower at any reasonable time and from time
to time upon reasonable prior notice.  In
establishing and maintaining the Register, Administrative Agent shall serve as
Company’s agent solely for tax purposes and solely with respect to the actions
described in this Section, and the Borrower hereby agrees that, to the
extent SunTrust Bank serves in such capacity, SunTrust Bank and its officers,
directors, employees, agents, sub-agents and affiliates shall constitute “Indemnitees.”

(d)                                 Any
Lender may at any time, without the consent of, or notice to, the Borrower, the
Administrative Agent, the Swingline Lender or the Issuing Bank sell
participations to any Person (other than a natural person, the Borrower or any
of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in
all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing
to it); provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent, the Lenders, Issuing
Bank and Swingline Lender shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement.

(e)                                  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the

 79
 

consent of the Participant, agree to any amendment, modification or
waiver with respect to the following to the extent affecting such
Participant:  (i) increase the Commitment
of any Lender without the written consent of such Lender, (ii) reduce the
principal amount of any Loan or LC Disbursement or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of
each Lender affected thereby, (iii) postpone the date fixed for any payment of
any principal of, or interest on, any Loan or LC Disbursement or interest
thereon or any fees hereunder or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date for the termination or reduction of any
Commitment, without the written consent of each Lender affected thereby, (iv)
change Section 2.21(b) or (c) in a manner that would alter the
pro rata sharing of payments required thereby, without the written consent of
each Lender, (v) change any of the provisions of this Section 10.4 or
the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders which are required to waive, amend or
modify any rights hereunder or make any determination or grant any consent
hereunder, without the consent of each Lender; or (vi) release all or
substantially all collateral (if any) securing any of the Obligations.  Subject to paragraph (e) of this Section
10.4, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.18, 2.19, and 2.20 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section 10.4.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.7
as though it were a Lender, provided such Participant agrees to be subject to Section
2.21 as though it were a Lender.

(f)                                    A
Participant shall not be entitled to receive any greater payment under Section
2.18 and Section 2.20 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant, after disclosure of
such greater payment, is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.20unless the Borrower is notified of the participation sold
to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 2.20(e) as though it were a Lender.

(g)                                 Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

Section 10.5.                                                 Governing Law; Jurisdiction;
Consent to Service of Process.

(a)                                  This Agreement and the other Loan Documents
shall be construed in accordance with and be governed by the law (without
giving effect to the conflict of law principles thereof except for Sections
5-1401 and 5-1402 of the New York General Obligations Law) of the State of New
York.

(b)                                 The Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive
jurisdiction of the United States District Court of the Southern District of New York, and of  the Supreme Court of the State of New York
sitting in New York county and any appellate court from any thereof, in any
action or proceeding arising out of or

 80
 

relating
to this Agreement or any other Loan Document or the transactions contemplated
hereby or thereby, or for recognition or enforcement of any judgment, and each
of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in such New York state court or, to the extent permitted by applicable law,
such Federal court.  Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. 
Nothing in this Agreement or any other Loan Document shall affect any
right that the Administrative Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or
any other Loan Document against the Borrower or its properties in the courts of
any jurisdiction.

(c)                                  The Borrower irrevocably and unconditionally
waives any objection which it may now or hereafter have to the laying of
venue of any such suit, action or proceeding described in paragraph (b) of this
Section 10.5 and brought in any court referred to in paragraph (b) of this
Section 10.5.  Each of the parties
hereto irrevocably waives, to the fullest extent permitted by applicable law,
the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

(d)                                 Each party to this Agreement irrevocably
consents to the service of process in the manner provided for notices in Section
10.1.  Nothing in this Agreement or
in any other Loan Document will affect the right of any party hereto to serve
process in any other manner permitted by law.

Section 10.6.                                                 WAIVER OF JURY TRIAL.  EACH
PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY).  EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

Section 10.7.                                                 Right of Setoff.  In
addition to any rights now or hereafter granted under applicable law and not by
way of limitation of any such rights, each Lender and the Issuing Bank shall
have the right, at any time or from time to time upon the occurrence and during
the continuance of an Event of Default, without prior notice to the Borrower,
any such notice being expressly waived by the Borrower to the extent permitted
by applicable law, to set off and apply against all deposits (general or
special, time or demand, provisional or final) of the Borrower at any time held
or other obligations at any time owing by such Lender or any of its Affiliates
and the Issuing Bank to or for the credit or the account of the Borrower
against any and all Obligations held by such Lender or the

 81
 

Issuing
Bank, as the case may be, irrespective of whether such Lender or the Issuing
Bank shall have made demand hereunder and although such Obligations may be
unmatured.  Each Lender and the Issuing
Bank agree promptly to notify the Administrative Agent and the Borrower after
any such set-off and any application made by such Lender and the Issuing Bank,
as the case may be; provided, that the failure to give such notice shall
not affect the validity of such set-off and application.  Each Lender and the Issuing Bank
agrees to apply all amounts collected from any such set-off to the Obligations
before applying such amounts to any other Indebtedness or other obligations
owed by the Borrower and any of its Subsidiaries to such Lender or Issuing
Bank.

Section 10.8.                                                 Counterparts; Integration.  This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.  This Agreement, the Fee
Letter, the other Loan Documents, and any separate letter agreement(s) relating
to any fees payable to the Administrative Agent constitute the entire agreement
among the parties hereto and thereto regarding the subject matters hereof and
thereof and supersede all prior agreements and understandings, oral or written,
regarding such subject matters.

Section 10.9.                                                 Survival.  All
covenants, agreements, representations and warranties made by the Borrower
herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of
this Agreement and the making of any Loans and issuance of any Letters of
Credit, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Administrative Agent, the Issuing Bank or
any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated.  The provisions of Sections 2.18, 2.19,
2.20, and 10.3 and Article IX shall survive and remain in
full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof provided that the provisions of Sections
2.18, 2.19, and 2.20 shall only survive and remain in full
force and effect until the first anniversary of the Termination Date.  All representations and warranties made herein,
in the certificates, reports, notices, and other documents delivered pursuant
to this Agreement shall survive the execution and delivery of this Agreement
and the other Loan Documents, and the making of the Loans and the issuance of
the Letters of Credit.

Section 10.10.                                          Severability.  Any
provision of this Agreement or any other Loan Document held to be illegal,
invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction,
be ineffective to the extent of such illegality, invalidity or unenforceability
without affecting the legality, validity or enforceability of the remaining
provisions hereof or thereof; and the illegality, invalidity or
unenforceability of a particular provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

Section 10.11.                                          Confidentiality.  Each
of the Administrative Agent, the Issuing Bank and each Lender agrees to take
normal and reasonable precautions to maintain the confidentiality of any confidential
information provided to it by the Borrower or any Subsidiary, except that such
information may be disclosed (i) to any Related Party of the Administrative
Agent,

 82
 

the
Issuing Bank or any such Lender, including without limitation accountants,
legal counsel and other advisors with a reasonable need for such information
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such information and instructed to keep
such information confidential on substantially the same terms as provided
herein), (ii) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (iii) to the extent requested by any
regulatory agency or authority or self-regulatory body having or claiming
authority to regulate or oversee any aspect of the Administrative Agent’s or
any Lender’s business or businesses, (iv) to the extent that such information
becomes publicly available other than as a result of a breach of this Section
10.11, or which becomes available to the Administrative Agent, the Issuing
Bank, any Lender or any Related Party of any of the foregoing on a
non-confidential basis from a source other than the Borrower, (v) in connection
with the exercise of any remedy hereunder or any suit, action or proceeding
relating to this Agreement or the enforcement of rights hereunder, and (ix)
subject to provisions substantially similar to this Section 10.11, to
any actual or prospective assignee or Participant, or (vi) with the consent of
the Borrower.  Any Person required to
maintain the confidentiality of any information as provided for in this Section
10.11 shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such information as such Person would accord its own
confidential information; provided that, in the case of clauses (ii) or (iii),
with the exception of disclosure to bank regulatory authorities, the
Administrative Agent, the Issuing Bank and each Lender agree, to the extent
practicable and legally permissible, to give the Borrower prompt prior notice
so that it may seek a protective order or other appropriate remedy.

Section 10.12.                                          Interest Rate Limitation. 
Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan, together with all fees, charges and other
amounts which may be treated as interest on such Loan under applicable law
(collectively, the “Charges”), shall exceed the maximum lawful rate of
interest (the “Maximum Rate”) which may be contracted for, charged,
taken, received or reserved by a Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section 10.12 shall be cumulated and the interest
and Charges payable to such Lender in respect of other Loans or periods shall
be increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Rate to the date of
repayment (to the extent permitted by applicable law), shall have been received
by such Lender.

Section 10.13.                                          Patriot
Act.   The Administrative Agent
and each Lender to whom the Patriot Act applies hereby notifies the Loan
Parties that pursuant to the requirements of the USA PATRIOT Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is
required to obtain, verify and record information that identifies the Borrower,
which information includes the name and address of the Borrower and other
information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the Patriot Act.  The Borrower shall, and shall cause each of
its Subsidiaries to, provide to the extent commercially reasonable, such
information and take such other actions as are reasonably requested by the
Administrative Agent or any Lender in order to assist the Administrative Agent
and the Lenders in maintaining compliance with the Patriot Act.

 83
 

Section 10.14.                                          Location
of Closing.  Each Lender
acknowledges and agrees that it has delivered, with the intent to be bound, its
executed counterparts of this Agreement to Agent, c/o King & Spalding LLP,
1185 Avenue of the Americas, New York, New York 
10036.  Borrower acknowledges and
agrees that it has delivered, with the intent to be bound, its executed
counterparts of this Agreement and each other Loan Document, together with all
other documents, instruments, opinions, certificates and other items required
under Section 3.1, to Administrative Agent, c/o King & Spalding LLP,
1185 Avenue of the Americas, New York, New York 
10036.  All parties agree that
closing of the transactions contemplated by this Credit Agreement has occurred
in New York.

Section 10.15.                                          Non-Recourse
to the General Partner and Associated Persons.  The Administrative Agent, the Issuing Bank
and each Lender agrees on behalf of itself and its successors, assigns and
legal representatives, that neither the General Partner nor any Person which is
a partner, shareholder, member, owner, officer, director, supervisor, trustee
or other principal (collectively, “Associated Persons”) of the Borrower, the
General Partner, or any of their respective successors or assigns, shall have
any personal liability for the payment or performance of any of the Borrower’s
obligations hereunder or under any of the Notes and no monetary or other
judgment shall be sought or enforced against the General Partner or any of such
Associated Persons or any of their respective successors or assigns.  Notwithstanding the foregoing, neither the
Administrative Agent, the Issuing Bank nor any Lender shall be deemed barred by
this Section 10.15 from asserting any claim against any Person based upon an
allegation of fraud or misrepresentation.

(remainder of page left intentionally blank)

 84

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed under seal in the case of
the Borrower by their respective authorized officers as of the day and year
first above written.

	
  

  	
  TC PIPELINES, LP

  	
   

  
	
   

  	
  By:  TC
  PipeLines GP, Inc., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/

  	
  Mark A. P. Zimmerman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark A. P. Zimmerman

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/

  	
  Donald J. DeGrandis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Donald J. DeGrandis

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  	
   

  

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
CREDIT AND TERM LOAN AGREEMENT]

 

	
  

  	
  SUNTRUST BANK

  	
   

  
	
   

  	
  as Administrative Agent, as Issuing Bank, as

  Swingline Lender and as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
     /s/

  	
  Peter Panos

  
	
   

  	
   

  	
  Name:

  	
  Peter Panos

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
CREDIT AND TERM LOAN AGREEMENT]

 

	
  

  	
  BMO CAPITAL MARKETS FINANCING

  INC., as Co-Syndication Agent and as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Kristina
  Burden

  
	
   

  	
  Name:

  	
  Kristina Burden

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
						

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
CREDIT AND TERM LOAN AGREEMENT]

 

	
  

  	
  THE ROYAL BANK OF SCOTLAND PLC, as

  Co-Syndication Agent and as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Matthew J. Main

  	
   

  
	
   

  	
  Name:

  	
  Matthew J. Main

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  
						

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
CREDIT AND TERM LOAN AGREEMENT]

 

	
  

  	
  UBS SECURITIES LLC, as
  Co-Documentation Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Richard L. Tavrow

  	
   

  
	
   

  	
  Name:

  	
  Richard L. Tavrow

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
  Banking Products

  	
   

  
	
   

  	
   

  	
  Services, US

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Irja R. Otsa

  	
   

  
	
   

  	
  Name:

  	
  Irja R. Otsa

  	
   

  
	
   

  	
  Title:

  	
  Associate Director

  	
   

  
	
   

  	
   

  	
  Banking Products

  	
   

  
	
   

  	
   

  	
  Services, US

  	
   

  
						

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
CREDIT AND TERM LOAN AGREEMENT]

 

	
  

  	
  UBS LOAN FINANCE LLC, as
  a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Richard L. Tavrow

  	
   

  
	
   

  	
  Name:

  	
  Richard L. Tavrow

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
  Banking Products

  	
   

  
	
   

  	
   

  	
  Services, US

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Irja R. Otsa

  	
   

  
	
   

  	
  Name:

  	
  Irja R. Otsa

  	
   

  
	
   

  	
  Title:

  	
  Associate Director

  	
   

  
	
   

  	
   

  	
  Banking Products

  	
   

  
	
   

  	
   

  	
  Services, US

  	
   

  
						

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
CREDIT AND TERM LOAN AGREEMENT]

 

	
  

  	
  ROYAL BANK OF CANADA, as
  Co-

  Documentation Agent and as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Suzanne Kaicher

  	
   

  
	
   

  	
  Name:

  	
  Suzanne Kaicher

  	
   

  
	
   

  	
  Title:

  	
  Attorney-in-Fact

  	
   

  

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
CREDIT AND TERM LOAN AGREEMENT]

 

	
  

  	
  DEUTSCHE BANK
  SECURITIES, INC., as

  Managing Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Ming K. Chu

  	
   

  
	
   

  	
  Name:

  	
  Ming K. Chu

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Rainer Meier

  	
   

  
	
   

  	
  Name:

  	
  Rainer Meier

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG NEW
  YORK

  BRANCH, as a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Ming K. Chu

  	
   

  
	
   

  	
  Name:

  	
  Ming K. Chu

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Rainer Meier

  	
   

  
	
   

  	
  Name:

  	
  Rainer Meier

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

[SIGNATURE
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  THE BANK OF
  TOKYO-MITSUBISHI UFJ,

  LTD., as Managing Agent and as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Kelton Glasscock

  	
   

  
	
   

  	
  Name:

  	
  Kelton Glasscock

  	
   

  
	
   

  	
  Title:

  	
  Vice President &
  Manager

  	
   

  

 

 

[SIGNATURE
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  CITICORP NORTH AMERICA,
  INC., as a

  Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  David B. Lawrence, III

  	
   

  
	
   

  	
  Name:

  	
  David B. Lawrence, III

  	
   

  
	
   

  	
  Title:

  	
  Attorney-In-Fact

  	
   

  

 

 

[SIGNATURE
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  MIZUHO CORPORATE BANK,
  LTD., as a

  Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Leon Mo

  	
   

  
	
   

  	
  Name:

  	
  Leon Mo

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  

 

 

[SIGNATURE
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  BNP PARIBAS, as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Larry Robinson

  	
   

  
	
   

  	
  Name:

  	
  Larry Robinson

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Greg Smothers

  	
   

  
	
   

  	
  Name:

  	
  Greg Smothers

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
						

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

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  WELLS FARGO BANK N.A.,
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Sushim Shah

  	
   

  
	
   

  	
  Name:

  	
  Sushim Shah

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  

 

 

[SIGNATURE
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REVOLVING
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  BANK HAPOALIM B.M., as a
  Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Marc Bosc

  	
   

  
	
   

  	
  Name:

  	
  Marc Bosc

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  

 

 

	
  

  	
  By

  	
   

  	
  /s/  Lenroy Hackett

  	
   

  
	
   

  	
  Name:

  	
  Lenroy Hackett

  	
   

  
	
   

  	
  Title:

  	
  First Vice President

  	
   

  

 

 

[SIGNATURE
PAGE TO THE AMENDED AND RESTATED

REVOLVING
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  BANK OF COMMUNICATIONS CO., LTD.,

  NEW YORK BRANCH, as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Shelley He

  	
   

  
	
   

  	
  Name:

  	
  Shelley He

  	
   

  
	
   

  	
  Title:

  	
  Deputy General Manager

  	
   

  

 

 

[SIGNATURE
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  EXPORT DEVELOPMENT CANADA, as a

  Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Mark
  Doyle

  	
   

  
	
   

  	
  Name:

  	
  Mark Doyle

  	
   

  
	
   

  	
  Title:

  	
  Financing Manager

  Extractive Industries & Resources

  	
   

  

 

 

	
  

  	
  By

  	
   

  	
  /s/  Francois Morel

  	
   

  
	
   

  	
  Name:

  	
  Francois Morel

  	
   

  
	
   

  	
  Title:

  	
  Senior Financing Manager

  Extractive Industries & Resources

  	
   

  

 

 

[SIGNATURE
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  HSBC BANK USA NATIONAL

  ASSOCIATION,
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Mark J.
  Calvert

  	
   

  
	
   

  	
  Name:

  	
  Mark J. Calvert

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signature ID
  #15049

  	
   

  

 

 

[SIGNATURE
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  JPMORGAN CHASE BANK, NA, as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  Tara
  Narasiman

  	
   

  
	
   

  	
  Name:

  	
  Tara
  Narasiman

  	
   

  
	
   

  	
  Title:

  	
  Associate

  	
   

  

 

 

[SIGNATURE
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  THE BANK OF NOVA SCOTIA, as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/  William
  E. Zarrett

  	
   

  
	
   

  	
  Name:

  	
  William E. Zarrett

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  

 

 

[SIGNATURE
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REVOLVING
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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"}]]