Document:

exhibit10_1.htm

    

      
        
           

        

        
           

          
            

          

        

        
           

          
            Exhibit
10.1                                                                                                                                                          Execution
Version

          

        

      

      
        	
                 

              

      

      UNIT
PURCHASE AGREEMENT

       

      

       

      by
and between

       

      

       

      BOARDWALK
PIPELINE PARTNERS, LP

       

      and

       

      BOARDWALK
PIPELINES HOLDING CORP.

       

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE
OF CONTENTS

       

       

      ARTICLE
I

       

       

      

       

       

      DEFINITIONS

       

      
        	
                 
      

              	
                Section
      1.1Definitions.............................................................................................................................................................................................................................1

              

      

       

      ARTICLE
II

       

       

      

       

       

      AGREEMENT
TO SELL AND PURCHASE

       

      
        	
                 
      

              	
                Section
      2.1Sale and
      Purchase...............................................................................................................................................................................................................4

              

      

      
        	
                 
      

              	
                Section
      2.2Closing..................................................................................................................................................................................................................................4

              

      

      
        	
                 
      

              	
                Section
      2.3Mutual
      Conditions..............................................................................................................................................................................................................4

              

      

      
        	
                 
      

              	
                Section
      2.4The Purchaser’s
      Conditions..............................................................................................................................................................................................4

              

      

      
        	
                 
      

              	
                Section
      2.5Boardwalk’s
      Conditions.....................................................................................................................................................................................................5

              

      

      
        	
                 
      

              	
                Section
      2.6Boardwalk
      Deliveries..........................................................................................................................................................................................................5

              

      

      
        	
                 
      

              	
                Section
      2.7Purchaser
      Deliveries...........................................................................................................................................................................................................6

              

      

       

      ARTICLE
III

       

       

      

       

       

      REPRESENTATIONS
AND WARRANTIES OF BOARDWALK

       

      
        	
                 
      

              	
                Section
      3.1Existence...............................................................................................................................................................................................................................7

              

      

      
        	
                 
      

              	
                Section
      3.2No
      Conflict...........................................................................................................................................................................................................................7

              

      

      
        	
                 
      

              	
                Section
      3.3No
      Default............................................................................................................................................................................................................................8

              

      

      
        	
                 
      

              	
                Section
      3.4Authority..............................................................................................................................................................................................................................8

              

      

      
        	
                 
      

              	
                Section
      3.5Due
      Authorization...............................................................................................................................................................................................................8

              

      

      
        	
                 
      

              	
                Section
      3.6Valid
      Issuance......................................................................................................................................................................................................................8

              

      

      
        	
                 
      

              	
                Section
      3.7No Preemptive or Registration
      Rights..............................................................................................................................................................................8

              

      

      
        	
                 
      

              	
                Section
      3.8Periodic
      Reports...................................................................................................................................................................................................................9

              

      

      
        	
                 
      

              	
                Section
      3.9Litigation...............................................................................................................................................................................................................................9

              

      

      
        	
                 
      

              	
                Section
      3.10Certain
      Fees........................................................................................................................................................................................................................9

              

      

      
        	
                 
      

              	
                Section
      3.11No Side
      Agreements.........................................................................................................................................................................................................9

              

      

      
        	
                 
      

              	
                Section
      3.12No
      Registration..................................................................................................................................................................................................................9

              

      

      
        	
                 
      

              	
                Section
      3.13No
      Integration...................................................................................................................................................................................................................10

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
IV

       

       

       

       

      REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

       

      
        	
                 
      

              	
                Section
      4.1Existence...........................................................................................................................................................................................................................10

              

      

      
        	
                 
      

              	
                Section
      4.2Authorization,
      Enforceability........................................................................................................................................................................................10

              

      

      
        	
                 
      

              	
                Section
      4.3No
      Breach.........................................................................................................................................................................................................................10

              

      

      
        	
                 
      

              	
                Section
      4.4Certain
      Fees......................................................................................................................................................................................................................10

              

      

      
        	
                 
      

              	
                Section
      4.5No Side
      Agreements.......................................................................................................................................................................................................
      11

              

      

      
        	
                 
      

              	
                Section
      4.6Investment.........................................................................................................................................................................................................................11

              

      

      
        	
                 
      

              	
                Section
      4.7Nature of
      Purchaser.........................................................................................................................................................................................................11

              

      

      
        	
                 
      

              	
                Section
      4.8Restricted
      Securities........................................................................................................................................................................................................11

              

      

      
        	
                 
      

              	
                Section
      4.9Legend...............................................................................................................................................................................................................................11

              

      

       

      ARTICLE
V

       

       

      

       

       

      COVENANTS

       

      
        	
                 
      

              	
                Section
      5.1Taking of Necessary
      Action...........................................................................................................................................................................................12

              

      

      
        	
                 
      

              	
                Section
      5.2Payment of
      Expenses.......................................................................................................................................................................................................12

              

      

       

      ARTICLE
VI

       

       

      

       

       

      MISCELLANEOUS

       

      
        	
                 
      

              	
                Section
      6.1Interpretation and Survival of
      Provisions....................................................................................................................................................................12

              

      

      
        	
                 
      

              	
                Section
      6.2Survival of
      Provisions.....................................................................................................................................................................................................12

              

      

      
        	
                 
      

              	
                Section
      6.3No Waiver; Modifications in
      Writing...........................................................................................................................................................................13

              

      

      
        	
                 
      

              	
                Section
      6.4Binding Effect;
      Assignment...........................................................................................................................................................................................13

              

      

      
        	
                 
      

              	
                Section
      6.5Communications...............................................................................................................................................................................................................13

              

      

      
        	
                 
      

              	
                Section
      6.6Removal of
      Legend..........................................................................................................................................................................................................14

              

      

      
        	
                 
      

              	
                Section
      6.7Entire
      Agreement..............................................................................................................................................................................................................14

              

      

      
        	
                 
      

              	
                Section
      6.8Governing
      Law..................................................................................................................................................................................................................15

              

      

      
        	
                 
      

              	
                Section
      6.9Execution in
      Counterparts...............................................................................................................................................................................................15

              

      

      
        	
                 
      

              	
                Section
      6.10Termination......................................................................................................................................................................................................................15

              

      

      
        	
                 
      

              	
                Section
      6.11Recapitalization, Exchanges, Etc. Affecting the
      Units..............................................................................................................................................15

              

      

      

      
        	
                Exhibit
      A —

              	
                Form
      of Amended and Restated Registration Rights
  Agreement

              

      

      
        	
                Exhibit
      B —

              	
                Form
      of Opinion of Vinson & Elkins
L.L.P.

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      UNIT
PURCHASE AGREEMENT

       

      This UNIT
PURCHASE AGREEMENT, dated as of October 30, 2008 (this “Agreement”), is by
and between BOARDWALK PIPELINE PARTNERS, LP, a Delaware limited partnership
(“Boardwalk”),
and BOARDWALK PIPELINES HOLDING CORP., a Delaware corporation (the “Purchaser”).

       

      WHEREAS,
subject to the terms and conditions set forth herein, Boardwalk desires to sell
and Purchaser desires to purchase 21,184,609 Common Units (the “Units”) from
Boardwalk in accordance with the provisions of this Agreement;

       

      WHEREAS,
Boardwalk has agreed to provide the Purchaser with certain registration rights
with respect to the Units acquired pursuant hereto; and

       

      WHEREAS,
the General Partner (as hereinafter defined) has indicated it intends to
exercise its right to make additional capital contributions pursuant to Section
5.2(b) of the Partnership Agreement (such contribution, the “GP 2% Contribution”)
in connection with the issuance of the Units contemplated hereby;

       

      NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein and for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereby agree as follows:

       

      ARTICLE
I                                

       

      

       

      DEFINITIONS

       

      Section
1.1 Definitions

       

      .  Capitalized
terms used but not defined herein have the meanings assigned to such terms in
the  Partnership Agreement (as hereinafter defined).  As
used in this Agreement, and unless the context requires a different meaning, the
following terms have the meanings indicated:

       

      “Affiliate” means,
with respect to any Person, any other Person that directly or indirectly through
one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the
possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting
securities, by contract or otherwise.

       

      “Agreement” has the
meaning set forth in the introductory paragraph.

       

      “BGL” means Boardwalk
GP, LLC, a Delaware limited liability company.

       

      “Boardwalk” has the
meaning set forth in the introductory paragraph.

       

      “Boardwalk Entity”
means Boardwalk and its Subsidiaries.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      “Business Day” means
Monday through Friday of each week, except that a legal holiday recognized as
such by the government of the United States of America or the State of Kentucky
shall not be regarded as a Business Day.

       

      “Closing” has the
meaning specified in Section
2.2.

       

      “Closing Date” has the
meaning specified in Section
2.2.

       

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

       

      “Common Units” means
the common units representing limited partner interests in
Boardwalk.

       

      “Delaware LP Act” has
the meaning specified in Section
3.1.

       

      “Delaware LLC Act” has
the meaning specified in Section
3.1.

       

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

       

      “General Partner”
means Boardwalk GP, LP, a Delaware limited partnership.

       

      “Governmental
Authority” means, with respect to a particular Person, any country,
state, county, city and political subdivision in which such Person or such
Person’s Property is located or that exercises valid jurisdiction over any such
Person or such Person’s Property, and any court, agency, department, commission,
board, bureau or instrumentality of any of them and any monetary authority that
exercises valid jurisdiction over any such Person or such Person’s
Property.  Unless otherwise specified, all references to Governmental
Authority herein with respect to Boardwalk means a Governmental Authority having
jurisdiction over Boardwalk, its Subsidiaries or any of their respective
Properties.

       

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

       

      “Lien” means any
interest in Property securing an obligation owed to, or a claim by, a Person
other than the owner of the Property, whether such interest is based on the
common law, statute or contract, and whether such obligation or claim is fixed
or contingent, and including but not limited to the lien or security interest
arising from a mortgage, encumbrance, pledge, security agreement, conditional
sale or trust receipt or a lease, consignment or bailment for security
purposes.  For the purpose of this Agreement, a Person shall be deemed
to be the owner of any Property that it has acquired or holds subject to a
conditional sale agreement, or leases under a financing lease or other
arrangement pursuant to which title to the Property has been retained by or
vested in some other Person in a transaction intended to create a
financing.

       

      “Material Adverse
Effect” has the meaning specified in Section
3.1.

       

      “NYSE” means The New
York Stock Exchange, Inc.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Operative Documents”
means, collectively, this Agreement, the Registration Rights Agreement and any
other agreements or instruments executed and delivered by the Parties on even
date herewith or at the Closing relating to the issuance and sale of the Units,
or any amendments, supplements, continuations or modifications
thereto.

       

      “Partnership
Agreement” means the Third Amended and Restated Agreement of Limited
Partnership of Boardwalk dated June 17, 2008, as amended from time to
time.

       

      “Partnership
Securities” means any class or series of equity interest in Boardwalk
(but excluding any options, rights, warrants and appreciation rights relating to
an equity interest in Boardwalk), including without limitation any Common Units,
Class B Units, Subordinated Units and Incentive Distribution Rights (as defined
in the Partnership Agreement).

       

      “Person” means an
individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, government agency or
political subdivision thereof or other entity.

       

      “Property” means any
interest in any kind of property or asset, whether real, personal or mixed, or
tangible or intangible.

       

      “Purchase Price” means
an amount equal to the product of the number of Units multiplied by the Unit
Price.

       

      “Purchaser” has the
meaning set forth in the introductory paragraph.

       

      “Registration Rights
Agreement” means the Amended and Restated Registration Rights Agreement,
to be entered into at the Closing, between Boardwalk and the Purchaser in the
form attached hereto as Exhibit A.

       

      “Representatives” of
any Person means the officers, directors, managers, employees, agents, counsel,
accountants, investment bankers and other representatives of such
Person.

       

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

       

      “Subsidiary” means,
with respect to any Person, (a) a corporation of which more than 50% of the
voting power of shares entitled (without regard to the occurrence of any
contingency) to vote in the election of directors or other governing body of
such corporation is owned, directly or indirectly, at the date of determination,
by such Person, by one or more Subsidiaries of such Person or a combination
thereof, (b) a partnership (whether general or limited) in which such Person or
a Subsidiary of such Person is, at the date of determination, a general or
limited partner of such partnership, but only if more than 50% of the
partnership interests of such partnership (considering all of the partnership
interests of the partnership as a single class) is owned, directly or
indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person
(other than a corporation or a partnership) in which such Person, one or more
Subsidiaries of such Person, or a combination thereof, directly or indirectly,
at the date of determination, has (i) at least a majority ownership interest or
(ii) the power to elect or direct the election of a majority of the directors or
other governing body of such Person.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      “Unitholders” means
the unitholders of Boardwalk.

       

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

       

      “Units” has the
meaning set forth in the recitals to this Agreement.

       

      ARTICLE
II                                

       

      

       

      AGREEMENT
TO SELL AND PURCHASE

       

      Section
2.1 Sale and
Purchase

       

      .

       

      (a) Subject
to the terms and conditions hereof, Boardwalk hereby agrees to issue and sell to
the Purchaser and the Purchaser hereby agrees to purchase from Boardwalk,
21,184,609 Common Units, and the Purchaser agrees to pay Boardwalk the Unit
Price for each Purchased Unit as set forth in paragraph (b) below.

       

      (b) The
amount per Unit the Purchaser will pay to Boardwalk to purchase the Units (the
“Unit Price”)
hereunder shall be $23.13.

       

      Section
2.2 Closing

       

      .  Subject
to the terms and conditions hereof, the consummation of the purchase and sale of
the Units hereunder (the “Closing”) shall take
place at the offices of Vinson & Elkins L.L.P., 666 Fifth Avenue, 26th
Floor, New York, New York on November 4, 2008 or such other date mutually agreed
by the parties (the date of such closing, the “Closing
Date”).

       

      Section
2.3 Mutual
Conditions

       

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

       

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

       

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

       

      Section
2.4 The Purchaser’s
Conditions

       

      .  The
obligation of the Purchaser to consummate the purchase of the Units shall be
subject to the satisfaction on or prior to the Closing Date of each of the
following conditions (any or all of which may be waived by the Purchaser in
writing, in whole or in part, to the extent permitted by applicable
Law):

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

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

       

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

       

      (c) The NYSE
shall have authorized, upon official notice of issuance, the listing of the
Units.

       

      (d) No notice
of delisting from the NYSE shall have been received by Boardwalk with respect to
the Common Units; and

       

      (e) Boardwalk
shall have delivered, or caused to be delivered, to the Purchaser at the
Closing, Boardwalk’s closing deliveries described in Section
2.6.

       

      Section
2.5 Boardwalk’s
Conditions

       

      .  The
obligation of Boardwalk to consummate the sale of the Units to the Purchaser
shall be subject to the satisfaction on or prior to the Closing Date of each of
the following conditions with respect to the Purchaser (any or all of which may
be waived by Boardwalk in writing, in whole or in part, to the extent permitted
by applicable Law):

       

      (a) the
representations and warranties of the Purchaser contained in this Agreement that
are qualified by materiality shall be true and correct when made and as of the
Closing Date and all other representations and warranties of the Purchaser shall
be true and correct in all material respects as of the Closing Date (except that
representations of the Purchaser made as of a specific date shall be required to
be true and correct as of such date only);

       

      (b) the
Purchaser shall have delivered, or caused to be delivered, to Boardwalk at the
Closing the Purchaser’s closing deliveries described in Section
2.7; and

       

      (c) Boardwalk
and the General Partner shall have received an opinion from Vinson & Elkins
L.L.P., legal counsel to Boardwalk, dated as of the Closing, in the form and
substance of paragraphs (i) – (v) contained on Exhibit B hereto.

       

      Section
2.6 Boardwalk
Deliveries

       

      .  At
the Closing, subject to the terms and conditions hereof, Boardwalk will deliver,
or cause to be delivered, to the Purchaser:

       

      (a) A
certificate or certificates representing the Units (bearing the legend set forth
in Section
4.9) and meeting the requirements of the Partnership Agreement, free
and clear of any Liens, other than transfer restrictions under the Partnership
Agreement and applicable federal and state securities laws;

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (b) A
certificate of the Secretary of State of the State of Delaware, dated a recent
date, to the effect that Boardwalk is in good standing;

       

      (c) A
cross-receipt executed by Boardwalk and delivered to the Purchaser certifying
that it has received the Purchase Price from the Purchaser as of the Closing
Date;

       

      (d) An
opinion addressed to the Purchaser from Vinson & Elkins L.L.P., legal
counsel to Boardwalk, dated as of the Closing, in the form and substance
attached hereto as Exhibit B;

       

      (e) The
Registration Rights Agreement in substantially the form attached hereto as Exhibit A, which
shall have been duly executed by Boardwalk;

       

      (f) A
certificate, dated the Closing Date and signed by the Chief Executive Officer
and the Chief Financial Officer of BGL, in their capacities as such, stating
that:

       

      (i) Boardwalk
has performed and complied with the covenants and agreements contained in this
Agreement that are required to be performed and complied with by Boardwalk on or
prior to the Closing Date; and

       

      (ii) The
representations and warranties of Boardwalk contained in this Agreement that are
qualified by materiality or Material Adverse Effect are true and correct as of
the Closing Date and all other representations and warranties of Boardwalk are
true and correct in all material respects as of the Closing Date (except that
representations made as of a specific date shall be required to be true and
correct as of such date only); and

       

      (g) A
certificate of the Secretary or Assistant Secretary of BGL, on behalf of
Boardwalk, certifying as to (1) the Partnership Agreement, as amended, (2) board
resolutions authorizing the execution and delivery of the Operative Documents
and the consummation of the transactions contemplated thereby, including the
issuance of the Units and (3) its incumbent officers authorized to execute the
Operative Documents, setting forth the name and title and bearing the signatures
of such officers.

       

      Section
2.7 Purchaser
Deliveries

       

      .  At
the Closing, subject to the terms and conditions hereof, the Purchaser will
deliver, or cause to be delivered, to Boardwalk:

       

      (a) Payment
to Boardwalk of the Purchase Price by wire transfer of immediately available
funds to an account designated by Boardwalk in writing at least two Business
Days prior to the Closing Date;

       

      (b) The
Registration Rights Agreement in substantially the form attached hereto as Exhibit A, which
shall have been duly executed by the Purchaser;

       

      (c) A
cross-receipt executed by the Purchaser and delivered to Boardwalk certifying
that it has received the Units as of the Closing Date;

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (d) Such
documents and instruments that may be required by the General Partner pursuant
to Section 10.4 of the Partnership Agreement (including a properly completed
Taxation Certification), which shall have been duly executed by the Purchaser;
and

       

      (e) A
certificate from the Purchaser, dated the Closing Date and signed by an
appropriate officer of the Purchaser, in his or her capacity as such, stating
that:

       

      (i) The
Purchaser has performed and complied with the covenants and agreements contained
in this Agreement that are required to be performed and complied with by it on
or prior to the Closing Date; and

       

      (ii) The
representations and warranties of the Purchaser contained in this Agreement that
are qualified by materiality are true and correct as of the Closing Date and all
other representations and warranties of the Purchaser are true and correct in
all material respects as of the Closing Date (except that representations made
as of a specific date shall be required to be true and correct as of such date
only).

       

      ARTICLE
III                                

       

      

       

      REPRESENTATIONS
AND WARRANTIES OF BOARDWALK

       

      Boardwalk
represents and warrants to the Purchaser as follows:

       

      Section
3.1 Existence

       

      .  Each
of the General Partner, BGL and the Boardwalk Entities has been duly formed and
is validly existing and in good standing as a limited partnership under the
Delaware Revised Uniform Limited Partnership Act (the “Delaware LP Act”) or
a limited liability company under the Delaware Limited Liability Company Act
(the “Delaware LLC
Act”), as applicable, has the full partnership or limited liability
company power and authority necessary to own or hold its properties and assets
and to conduct the businesses in which it is engaged, and is duly registered or
qualified to do business and in good standing as a foreign limited partnership
or limited liability company in each jurisdiction in which its ownership or
lease of property or the conduct of its business requires such qualification,
except where the failure to so register or qualify could not reasonably be
expected to (i) have a material adverse effect on the condition (financial
or other), results of operations, securityholders’ equity, properties or
business of the Boardwalk Entities taken as a whole (a “Material Adverse
Effect”) or (ii) subject the limited partners of Boardwalk to any
material liability or disability.

       

      Section
3.2 No
Conflict

       

      .  None
of the offering, issuance and sale by Boardwalk of the Units and the application
of the proceeds therefrom, the execution, delivery and performance of the
Operative Documents by Boardwalk, or the consummation of the transactions
contemplated hereby or thereby (i) conflicts or will conflict with, or
constitutes or will constitute a violation of, the certificate or agreement of
limited partnership, certificate of formation, limited liability company
agreement or other organizational documents of the Boardwalk Entities,
(ii) conflicts or will conflict with, or constitutes or will constitute a
breach or violation of or a default under (or an event that, with notice or
lapse of time or both, would constitute such a breach or violation of or default
under), any indenture, mortgage, deed of trust, loan agreement, lease or other
agreement or instrument to which any of the Boardwalk Entities is a party, by
which any of them is bound or to which any of their respective properties or
assets is subject, (iii) violates or will violate any statute, law,
ordinance, regulation, order, judgment, decree or injunction of any court or
governmental agency or body to which any of the Boardwalk Entities or any of
their respective properties or assets may be subject or (iv) will result in
the creation or imposition of any Lien upon any property or assets of any
Boardwalk Entity which conflicts, breaches, violations, defaults or Liens, in
the case of clauses (ii), (iii) or (iv), would, individually or in the
aggregate, have a Material Adverse Effect.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      Section
3.3 No
Default

       

      .  None
of the Boardwalk Entities (i) is in violation of its certificate or
agreement of limited partnership, certificate of formation or limited liability
company agreement, or other organizational documents, (ii) is in breach of
or default under any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument
to which it is a party, by which it is bound or to which any of its properties
or assets is subject (and no event has occurred that, with notice or lapse of
time or both, would constitute such a breach or default), (iii) is in
violation of any statute, law, ordinance, rule, regulation, order, judgment,
decree or injunction of any court or governmental agency or body to which it or
its property or assets may be subject or (iv) has failed to obtain any
license, permit, certificate, franchise or other governmental authorization or
permit necessary to the ownership of its property or to the conduct of its
business, except, in the case of clauses (ii) or (iv), as could not reasonably
be expected to have a Material Adverse Effect.

       

      Section
3.4 Authority

       

      .  On
the Closing Date, Boardwalk will have all requisite power and authority to
issue, sell and deliver the Units, in accordance with and upon the terms and
conditions set forth in this Agreement and the Partnership
Agreement.  On the Closing Date, all corporate, partnership or limited
liability company action, as the case may be, required to be taken by the
General Partner, BGL and Boardwalk for the authorization, issuance, sale and
delivery of the Units, the execution and delivery of the Operative Documents and
the consummation of the transactions contemplated hereby and thereby shall have
been validly taken.

       

      Section
3.5 Due
Authorization

       

      .  Each
of the Operative Documents has been duly and validly authorized and has been or,
with respect to the Operative Documents to be delivered at the Closing Date,
will be, validly executed and delivered by Boardwalk and constitutes, or will
constitute, the legal, valid and binding obligations of Boardwalk, enforceable
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, fraudulent transfer and similar laws affecting
creditors’ rights generally or by general principles of equity, including
principles of commercial reasonableness, fair dealing and good
faith.

       

      Section
3.6 Valid
Issuance

       

      .  The
Units to be issued and sold by Boardwalk to the Purchaser hereunder have been
duly authorized in accordance with the Partnership Agreement and, when issued
and delivered against payment therefor pursuant to this Agreement, will be
validly issued in accordance with the Partnership Agreement, fully paid (to the
extent required under the Partnership Agreement) and non-assessable (except as
such nonassessability may be affected by matters described in Sections
17-303, 17-607 and 17-804 of the Delaware LP Act).  

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      Section
3.7 No Preemptive or
Registration Rights

       

      .  Except
as set forth in the Partnership Agreement, there are no preemptive rights or
other rights to subscribe for or to purchase, nor any restriction upon the
voting or transfer of, any capital stock or partnership or membership interests
of any of the Boardwalk Entities, in each case pursuant to any other agreement
or instrument to which any of such entities is a party or by which any one of
them may be bound.  Except as contemplated by this Agreement and the
Registration Rights Agreement or provided for in the Partnership Agreement, (i)
neither the execution of this Agreement, nor the issuance of the Units as
contemplated by this Agreement gives rise to any rights for or relating to the
registration of any Partnership Securities, and (ii) there are no contracts,
agreements or understandings between any Boardwalk Entity and any person
granting such person the right to require Boardwalk to file a registration
statement under the Securities Act with respect to any securities of Boardwalk
owned or to be owned by such person, or to require Boardwalk to include such
securities in any securities registered or to be registered pursuant to any
registration statement filed by or required to be filed by Boardwalk under the
Securities Act.

       

      Section
3.8 Periodic
Reports

       

      .  Boardwalk
has filed all forms, reports, schedules and statements required to be filed by
it under the Exchange Act subsequent to December 31, 2007 and when they were
filed with the Commission, each such form, report, schedule and statement
conformed in all material respects to the requirements of the Exchange Act and
did not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading.

       

      Section
3.9 Litigation

       

      .  Except
as described in Boardwalk’s Annual Report on Form 10-K for the year ended
December 31, 2007, there are no legal or governmental proceedings pending to
which any Boardwalk Entity is a party or to which any property or asset of any
Boardwalk Entity is subject that could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect or a material
adverse effect on the performance of this Agreement or the consummation of the
transactions contemplated hereby, and to the knowledge of Boardwalk, no such
proceedings are threatened by Governmental Authorities or others.

       

      Section
3.10 Certain
Fees

       

      .  No
fees or commissions are or will be payable by Boardwalk to brokers, finders, or
investment bankers with respect to the sale of any of the Units or the
consummation of the transaction contemplated by this
Agreement.  Boardwalk agrees that it will indemnify and hold harmless
the Purchaser from and against any and all claims, demands, or liabilities for
broker’s, finder’s, placement, or other similar fees or commissions incurred by
Boardwalk or alleged to have been incurred by Boardwalk in connection with the
sale of the Units or the consummation of the transactions contemplated by this
Agreement.

       

      Section
3.11 No Side
Agreements

       

      .  There
are no agreements by, among or between Boardwalk or any of its Affiliates, on
the one hand, and the Purchaser or any of its Affiliates, on the other hand,
with respect to the transactions contemplated hereby other than the Operative
Documents nor promises or inducements for future transactions between or among
any of such parties.

       

      Section
3.12 No
Registration

       

      .  Assuming
the accuracy of the representations and warranties of the Purchaser contained in
Section
4.6 and
Section
4.7, the issuance and sale of the Units pursuant to this Agreement is
exempt from registration requirements of the Securities Act of 1933, as
amended.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      Section
3.13 No
Integration

       

      .  Neither
Boardwalk nor any of its Subsidiaries have, directly or indirectly through any
agent, sold, offered for sale, solicited offers to buy or otherwise negotiated
in respect of, any “security” (as defined in the Securities Act of 1933, as
amended) that is or will be integrated with the sale of the Units in a manner
that would require registration under the Securities Act of 1933, as
amended.

       

      ARTICLE
IV                                

       

      

       

      REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

       

      The
Purchaser hereby represents and warrants to Boardwalk that:

       

      Section
4.1 Existence

       

      .  The
Purchaser is duly organized and validly existing and in good standing as a
corporation under the laws of the State of Delaware, with all corporate power
and authority to own properties and to conduct its business as currently
conducted.

       

      Section
4.2 Authorization,
Enforceability

       

      .  The
Purchaser has all necessary corporate power and authority to execute, deliver
and perform its obligations under this Agreement and the Registration Rights
Agreement and to consummate the transactions contemplated thereby, and the
execution, delivery and performance by the Purchaser of this Agreement and the
Registration Rights Agreement has been duly authorized by all necessary action
on the part of the Purchaser; and this Agreement and the Registration Rights
Agreement constitute the legal, valid and binding obligations of the Purchaser,
enforceable in accordance with their terms, except as such enforceability may be
limited by bankruptcy, insolvency, fraudulent transfer and similar laws
affecting creditors’ rights generally or by general principles of equity,
including principles of commercial reasonableness, fair dealing and good
faith.

       

      Section
4.3 No
Breach

       

      .  The
execution, delivery and performance of this Agreement and the Registration
Rights Agreement by the Purchaser and the consummation by the Purchaser of the
transactions contemplated hereby and thereby will not (a) conflict with or
result in a breach or violation of any of the terms or provisions of, or
constitute a default under, any material agreement to which the Purchaser is a
party or by which the Purchaser is bound or to which any of the property or
assets of the Purchaser is subject, (b) conflict with or result in any
violation of the provisions of the organizational documents of the Purchaser, or
(c) violate any statute, order, rule or regulation of any court or governmental
agency or body having jurisdiction over the Purchaser or the property or assets
of the Purchaser, except in the cases of clauses (a) and (c), for such
conflicts, breaches, violations or defaults as would not prevent the
consummation of the transactions contemplated by this Agreement and the
Registration Rights Agreement.

       

      Section
4.4 Certain
Fees

       

      .  No
fees or commissions are or will be payable by the Purchaser to brokers, finders,
or investment bankers with respect to the purchase of any of the Units or the
consummation of the transaction contemplated by this Agreement.  The
Purchaser agrees that it will indemnify and hold harmless Boardwalk from and
against any and all claims, demands, or liabilities for broker’s, finder’s,
placement, or other similar fees or commissions incurred by the Purchaser or
alleged to have been incurred by the Purchaser in connection with the purchase
of the Units or the consummation of the transactions contemplated by this
Agreement.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      Section
4.5 No Side
Agreements

       

      .  There
are no other agreements by, among or between the Purchaser and any of its
Affiliates, on the one hand, and Boardwalk or any of its Affiliates, on the
other hand, with respect to the transactions contemplated hereby other than the
Operative Documents nor promises or inducements for future transactions between
or among any of such parties.

       

      Section
4.6 Investment

       

      .  The
Units are being acquired for the Purchaser’s own account and with no intention
of distributing the Units or any part thereof, and the Purchaser has no present
intention of selling or granting any participation in or otherwise distributing
the same in any transaction in violation of the securities laws of the United
States or any state, without prejudice, however, to the Purchaser’s right at all
times to sell or otherwise dispose of all or any part of the Units under a
registration statement under the Securities Act and applicable state securities
laws or under an exemption from such registration available thereunder
(including, without limitation, if available, Rule 144 promulgated
thereunder).  If the Purchaser should in the future decide to dispose
of any of the Units, the Purchaser understands and agrees (a) that it may
do so only in compliance with the Securities Act and applicable state securities
law, as then in effect, which may include a sale contemplated by any
registration statement pursuant to which such securities are being offered, and
(b) that stop-transfer instructions to that effect will be in effect with
respect to such securities.

       

      Section
4.7 Nature of
Purchaser

       

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

       

      Section
4.8 Restricted
Securities

       

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

       

      Section
4.9 Legend

       

      .  It
is understood that the certificates evidencing the Units will bear the legend
required by the Partnership Agreement as well as the following
legend:  “These securities have not been registered under the
Securities Act of 1933, as amended.  They may not be sold or offered
for sale in the absence of a registration statement in effect with respect to
the securities under such Act or an opinion of counsel satisfactory to the
Company that such registration is not required or unless sold pursuant to
Rule 144 of such Act.  These securities may be pledged in
connection with a bona fide margin account or other loan secured by such
securities.”

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      ARTICLE
V                                

       

      

       

      COVENANTS

       

      Section
5.1 Taking of Necessary
Action

       

      .  Each
of the Parties hereto shall use its commercially reasonable efforts promptly to
take or cause to be taken all action and promptly to do or cause to be done all
things necessary, proper or advisable under applicable Law and regulations to
consummate and make effective the transactions contemplated by this
Agreement.  Such actions may include, but shall not be limited to,
promptly executing and delivering any further agreements, documents and
instruments, and taking or forbearing to take any such further action as the
other party may reasonably request in order to more effectively carry out the
provisions of the Agreement.

       

      Section
5.2 Payment of
Expenses

       

      .  Boardwalk
hereby agrees to reimburse the Purchaser, upon demand, for its reasonable
out-of-pocket expenses incurred in connection with (i) the preparation of the
Operative Documents , (ii) the issue, sale and delivery of the Units and (iii)
any listing of the Units on any securities exchange or qualification of the
Units for quotation on the NYSE.

       

      ARTICLE
VI                                

       

      

       

      MISCELLANEOUS

       

      Section
6.1 Interpretation and Survival
of Provisions

       

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

       

      Section
6.2 Survival of
Provisions

       

      .  The
representations and warranties set forth in Sections 3.1, 3.4, 3.6, 3.7, 3.10, 3.11, 3.12, 4.4, 4.5, 4.7, 4.8 and
4.9
hereunder shall survive the execution and delivery of this Agreement
indefinitely, and the other representations and warranties set forth herein
shall survive for a period of twelve (12) months following the Closing Date
regardless of any investigation made by or on behalf of Boardwalk or the
Purchaser.  The covenants made in this Agreement or any other
Operative Document shall survive the Closing of the transactions described
herein and remain operative and in full force and effect regardless of
acceptance of any of the Units and payment therefor and repayment, conversion,
exercise or repurchase thereof.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      Section
6.3 No Waiver; Modifications in
Writing

       

      .

       

      (a) Delay.  No
failure or delay on the part of any party in exercising any right, power, or
remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power, or remedy preclude any other or
further exercise thereof or the exercise of any other right, power, or remedy.
The remedies provided for herein are cumulative and are not exclusive of any
remedies that may be available to a party at law or in equity or
otherwise.

       

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

       

      Section
6.4 Binding Effect;
Assignment

       

      .

       

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

       

      (b) Assignment of
Rights.  All or any portion of the rights and obligations of
the Purchaser under this Agreement may be transferred by the Purchaser to any
Affiliate of the Purchaser without the consent of Boardwalk.  No
portion of the rights and obligations of the Purchaser under this Agreement may
be transferred by the Purchaser to a non-Affiliate without the written consent
of Boardwalk (which consent shall not be unreasonably withheld by
Boardwalk).

       

      Section
6.5 Communications

       

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

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (a) If to the
Purchaser:

       

      Boardwalk
Pipelines Holding Corp.

      9
Greenway Plaza, Suite 2800

      Houston,
TX 77046

      Attention:  Corporate
Secretary

      Facsimile:
(866) 459-7336

      

      with a
copy to:

      Loews
Corporation

      667
Madison Avenue

      New York,
NY 10021

      Attention:  Corporate
Secretary

      Facsimile:
(212) 521-2997

      

      (b) If to
Boardwalk:

       

      Boardwalk
Pipeline Partners, LP

      9
Greenway Plaza, Suite 2800

      Houston,
TX 77046

      Attention:  Corporate
Secretary

      Facsimile:
(866) 459-7336

      

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

       

      Section
6.6 Removal of
Legend

       

      .  The
Purchaser may request Boardwalk to remove the legend described in Section
4.9 from the certificates evidencing the Units by submitting to
Boardwalk such certificates, together with an opinion of counsel to the effect
that such legend is no longer required under the Securities Act or applicable
state laws, as the case may be. Boardwalk shall cooperate with the Purchaser to
effect the removal of such legend.

       

      Section
6.7 Entire
Agreement

       

      .  This
Agreement, the other Operative Documents and the other agreements and documents
referred to herein are intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter
contained herein and therein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein or the other
Operative Documents with respect to the rights granted by Boardwalk or any of
its Affiliates or the Purchaser or any of its Affiliates set forth herein or
therein.  This Agreement, the other Operative Documents and the other
agreements and documents referred to herein or therein supersede all prior
agreements and understandings between the parties with respect to such subject
matter.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      Section
6.8 Governing
Law

       

      .  THIS AGREEMENT WILL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW
YORK.

       

      Section
6.9 Execution in
Counterparts

       

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

       

      Section
6.10 Termination

       

      .

       

      (a) Notwithstanding
anything herein to the contrary, this Agreement may be terminated at any time at
or prior to the Closing by either party, upon a breach in any material respect
by the other party of any covenant or agreement set forth in this
Agreement.

       

      (b) Notwithstanding
anything herein to the contrary, this Agreement shall automatically terminate at
any time at or prior to the Closing if a statute, rule, order, decree or
regulation shall have been enacted or promulgated, or if any action shall have
been taken by any Governmental Authority of competent jurisdiction that
permanently restrains, permanently precludes, permanently enjoins or otherwise
permanently prohibits the consummation of the transactions contemplated by this
Agreement or makes the transactions contemplated by this Agreement
illegal.

       

      (c) In the
event of the termination of this Agreement as provided in this Section
6.10, this Agreement shall
forthwith become null and void.  In the event of such termination,
there shall be no liability on the part of any party hereto; provided that nothing herein
shall relieve any party from any liability or obligation with respect to any
willful breach of this Agreement.

       

      Section
6.11 Recapitalization, Exchanges,
Etc. Affecting the Units

       

      .  The
provisions of this Agreement shall apply to the full extent set forth herein
with respect to any and all units of Boardwalk or any successor or assign of
Boardwalk (whether by merger, consolidation, sale of assets or otherwise) which
may be issued in respect of, in exchange for or in substitution of, the Units,
and shall be appropriately adjusted for combinations, recapitalizations and the
like occurring after the date of this Agreement and prior to the
Closing.

       

      

      

      [Signature
pages follow.]

       

      
        
           

        

        
          15

          
            

          

        

        
           

          
            Exhibit
10.1                                                                                                      Execution
Version

            

          

        

      

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

       

      
        	
                 
      

              	
                BOARDWALK
      PIPELINE PARTNERS, LP

              

      

      

      
        	
                 
      

              	
                By:

              	
                BOARDWALK
      GP, LP

              

      

      
        	
                 
      

              	
                (its
      General Partner)

              

      

      

      
        	
                 
      

              	
                By:

              	
                BOARDWALK
      GP, LLC

              

      

      
        	
                 
      

              	
                (its
      General Partner)

              

      

      

      

      
        	
                 
      

              	
                By:

              	 	 

      

      
        	
                 
      

              	
                Name:  Jamie
      L. Buskill

              

      

      
        	
                 
      

              	
                Title:    Chief
      Financial Officer

              

      

      

      

      
        	
                 
      

              	
                BOARDWALK
      PIPELINES HOLDING CORP.

              

      

      

      

      
        	
                 
      

              	
                By:

              	 	 

      

      
        	
                 
      

              	
                Name:  Jamie
      L. Buskill

              

      

      
        	
                 
      

              	
                Title:    Chief
      Financial Officer

              

      

      

      
        
          
            Signature Page to
Unit Purchase Agreement 

            

          

           

        

        
          16

          
            

          

        

        
           

          
            Exhibit
10.1                                                                                                      Execution
Version

            

          

        

      

      Exhibit
A – Form of Amended and Restated Registration Rights Agreement

       

      

      Incorporated
by reference to Exhibit 4.1 to the 8-K filed by Boardwalk Pipeline Partners,
LP

      on
November 4, 2008

      
        
          
            Exhibit
A to Purchase Agreement

          

           

        

        
          17

          
            

          

        

        
           

          
            Exhibit
10.1                                                                                                      Execution
Version

            

          

        

      

      Exhibit
B – Form of Opinion of Vinson & Elkins L.L.P.

       

      

      Capitalized
terms used but not defined herein have the meanings assigned to such terms in
the  Unit Purchase Agreement (the “Purchase Agreement”).
Boardwalk shall furnish to the Purchaser at the Closing an opinion of Vinson
& Elkins L.L.P., counsel for Boardwalk, addressed to the Purchaser and dated
the Closing Date in form satisfactory to the Purchaser, stating
that:

      

      (i) The Units
to be issued and sold to the Purchasers by Boardwalk pursuant to the Purchase
Agreement and the limited partner interests represented thereby, have been duly
authorized in accordance with the Partnership Agreement and, when issued and
delivered to the Purchaser against payment therefor in accordance with the terms
of the Purchase Agreement, will be validly issued in accordance with the terms
of the Partnership Agreement, fully paid (to the extent required under the
Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by matters described in Sections 17-303, 17-607 and 17-804 of the
Delaware LP Act).

       

      (ii) Except
for the approvals required by the Commission in connection with Boardwalk’s
obligations under the Registration Rights Agreement, no authorization, consent,
approval, waiver, license, qualification, filing, declaration, qualification or
registration with, any Governmental Authority is required for the issuance and
sale by Boardwalk of the Units, the execution, delivery and performance by
Boardwalk of the Operative Documents or the consummation of the transactions
contemplated by the Operative Documents, except those that have been obtained or
as may be required under state securities or “Blue Sky” laws, as to which we do
not express any opinion.

       

      (iii) Assuming
the accuracy of the representations and warranties of the Purchaser and
Boardwalk contained in the Purchase Agreement, the issuance and sale of the
Units by Boardwalk to the Purchaser solely in the manner contemplated by the
Purchase Agreement is exempt from registration requirements of the Securities
Act of 1933, as amended; provided that such counsel will express no opinion as
to any subsequent sale.

       

      (iv) None of
the offering, issuance and sale by Boardwalk of the Units, or the execution,
delivery and performance of the Operative Documents (A) constitutes or will
constitute a violation of the Partnership Agreement, (B) constitutes or will
constitute a breach or violation of, or a default under (or an event which, with
notice or lapse of time or both, would constitute such an event), any agreement
filed or incorporated by reference as an exhibit to Boardwalk’s Annual Report on
Form 10-K for the period ended December 31, 2007  or (C) results or
will result in any violation of the Delaware Revised Uniform Limited Partnership
Act or U.S. federal law, which in the case of clauses (B) or (C) would be
reasonably expected to have a Material Adverse Effect; provided, however, that no
opinion is expressed pursuant to this paragraph (v) with respect to federal or
state securities or anti-fraud statutes, rules or regulations.

       

      (v) Each of
Operative Documents has been duly authorized and validly executed and delivered
by Boardwalk, and is enforceable against Boardwalk in accordance with its terms,
except as the enforceability thereof may be limited by (A) applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or
similar laws from time to time in effect affecting creditors’ rights and
remedies generally and by general principles of equity (regardless of whether
such principles are considered in a proceeding in equity or at law) and (B)
public policy, applicable law relating to fiduciary duties and indemnification
and an implied covenant of good faith and fair dealing.

       

      

      
        
          
            Exhibit B to Purchase Agreement

          

           

        

        
          18AMENDED PROMISSORY NOTE

AMENDED PROMISSORY NOTE

 

$16,200,000 

                 
October 27, 2008 

 

This Amended Promissory Note amends and restates a Promissory Note
originally dated on or about September 7,2007, as follows: 

 

FOR VALUE RECEIVED, NORTHCUT REFINING, LLC, a Wyoming limited
liability company ("Borrower," whether one or more) hereby promises to pay to
the order of PRIVATE CAPITAL GROUP, INC., a Utah corporation, as servicing agent
for loan Participants (together with any and all of its successors and assigns
and/or any other holder of this Note, "Lender"), without offset, in immediately
available funds in lawful money of the United States of America, at 486 West
50th North, American Fork, UT
84003 in the principal sum of SIXTEEN MILLION TWO HUNDRED THOUSAND DOLLARS
($16,200,000) (or the unpaid balance of all principal advanced against this
Note, if that amount is less), together with interest on the unpaid principal
balance of this Note from day to day outstanding as hereinafter provided. 

1.

 Payment
Schedule and Maturity Date. The entire unpaid principal balance of this Note
and all accrued but unpaid interest, costs and fees shall be due and payable in
full on August 1, 2009 (the "Maturity Date"), the final maturity of this Note.
Borrower shall again commence to pay Lender accrued but unpaid interest of Two
Hundred Fifty Thousand Dollars ($250,000) on or before December 1, 2008, and Two
Hundred Fifty Thousand Dollars ($250,000) on or before January 1,2009. On or
before February 1,2009, Borrower shall pay all accrued but unpaid interest,
which is estimated to be Four Million Three Hundred Nineteen Thousand Six
Hundred Five Dollars and 48/100 ($4,319,605.48). Additionally, commencing on
March 1, 2009 and on the first day of each month thereafter, Borrower shall also
pay Lender all other accrued but unpaid interest one (1) month in arrears. No principal need be paid
on this Promissory Note until the Maturity Date of August 1, 2009. 

2.

 Security;
Loan Documents. The security for this Note includes an existing gas refinery
and an oil refinery to be built (which, as it may have been or may be amended,
restated, modified or supplemented from time to time, is herein called the "Deed
of Trust") from Borrower to Lender, covering certain property in Converse
County, Wyoming, described therein (the "Property"). This Note, the Deed of
Trust, the Construction Loan Agreement between Borrower and Lender of even date
herewith (the "Loan Agreement") and all other documents now or hereafter
securing, guaranteeing or executed in connection with the loan evidenced by this
Note (the "Loan"), are, as the same have been or may be amended, restated,
modified or supplemented from time to time, herein sometimes called individually
a "Loan Document" and together the "Loan Documents." 

3.

Interest
Rate. Interest shall accrue on the principal balance at the rate of
twenty-four percent (24%) per annum. The interest shall be calculated daily on
the basis of a three hundred sixty (360) day year for all amounts outstanding
but, in any case, shall be computed on the actual number of days in the period
for which interest is charged, which period shall consist 

of three hundred sixty-five (365) or three hundred sixty-six (366)
days on an annual basis. If any payment of interest under this Promissory Note
would otherwise be due on a day which is not a business day, the payment instead
shall be due on the next succeeding business day, and such extension of time
shall be included in computing the interest due in respect of said payment.
After notice has been given that a Default has occurred under this Promissory
Note or the Construction Loan Agreement, the Deed of Trust or any of the Loan
Documents, and the failure of Borrower to timely cure the Default, the interest
rate payable hereunder, both before and after judgment and in any bankruptcy
proceeding, shall be at the rate of thirty-six percent (36%) per annum until
paid. 

 4. 

Prepayment. This Promissory Note may be prepaid at any time
without penalty. 

5.

Late
Charges. If Borrower shall fail to make any payment under the terms of this
Note within five (5) days after the date such payment is due, Borrower shall pay
to Lender on demand a late charge equal to four percent (4%) of such payment.
Such five (5) day period shall not be construed as in any way extending the due
date of any payment. The "late charge" is imposed for the purpose of defraying
the expenses of Lender incident to handling such delinquent payment. This charge
shall be in addition to, and not in lieu of, any other remedy Lender may have
and is in addition to any fees and charges of any agents or attorneys which
Lender may employ upon the occurrence of a Default (hereinafter defined)
hereunder, whether authorized herein or by law. 

6.

Certain
Provisions Regarding Payments. All payments made as scheduled on this Note
shall be applied, to the extent thereof, to late charges, to accrued but unpaid
interest, unpaid principal, and any other sums due and unpaid to Lender under
the Loan Documents, in such manner and order as Lender may elect in its sole
discretion. All permitted prepayments on this Note shall be applied, to the
extent thereof, to accrued but unpaid interest on the amount prepaid, to the
remaining principal installments, and any other sums due and unpaid to Lender
under the Loan Documents, in such manner and order as Lender may elect in its
sole discretion, including but not limited to application to principal
installments in inverse order of maturity. Except to the extent that specific
provisions are set forth in this Note or another Loan Document with respect to
application of payments, all payments received by Lender shall be applied, to
the extent thereof, to the indebtedness secured by the Deed of Trust in such
manner and order as Lender may elect in its sole discretion, any instructions
from Borrower or anyone else to the contrary notwithstanding. Remittances in
payment of any part of the indebtedness other than in the required amount in
immediately available U.S. funds shall not, regardless of any receipt or credit
issued therefor, constitute payment until the required amount is actually
received by Lender in immediately available U.S. funds and shall be made without
offset, demand, counterclaim, deduction, or recoupment (each of which is hereby
waived) and' accepted subject to the condition that any check or draft may be
handled for collection in accordance with the practice of the collecting bank or
banks. Acceptance by the holder hereof of any payment in an amount less than the
amount then due on any indebtedness shall be deemed an acceptance on account
only, notwithstanding any notation on or accompanying such partial payment to
the contrary, and shall not in any way excuse the existence of a Default. 

8. 

Commercial Purpose. Borrower warrants that the Loan is
being made solely to acquire or carry on a business or commercial enterprise,
and/or Borrower is a business or commercial organization. Borrower further
warrants that all of the proceeds of this Note shall be used for commercial
purposes and stipulates that the Loan shall be construed for all purposes as a
commercial loan, and is made for other than personal, family, household or
agricultural purposes. 

 

9. 

WAIVER OF JURY TRIAL. BORROWER WAIVES TRIAL BY JURY IN
ANY ACTION OR PROCEEDING TO WHICH BORROWER AND LENDER MAY BE PARTIES, ARISING
OUT OF, IN CONNECTION WITH OR IN ANY WAY PERTAINING TO, THIS NOTE, THE LOAN
AGREEMENT, THE DEED OF TRUST OR ANY OF THE OTHER LOAN DOCUMENTS. IT IS AGREED
AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL
CLAIMS AGAINST ALL PARTIES TO SUCH ACTION OR PROCEEDINGS, INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY BORROWER, AND BORROWER HEREBY REPRESENTS THAT
NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE
THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.
BORROWER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE
SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL
COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL
COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL. 

 

10. 

Service of Process. Borrower hereby irrevocably designates
and appoints Tim Williams, whose address is 160 West Canyon Crest, Alpine, Utah,
84004, as Borrower's authorized agent to accept and acknowledge on Borrower's
behalf service of any and all process that may be served in any suit, action, or
proceeding instituted in connection with this Note in any state or federal court
sitting in the State of Utah or Wyoming. If such agent shall cease so to act,
Borrower shall irrevocably designate and appoint without delay another such
agent in the State of Utah satisfactory to Lender and shall promptly deliver to
Lender evidence in writing of such agent's acceptance of such appointment and
its agreement that such appointment shall be irrevocable. 

 

Borrower hereby consents to process being served in any suit,
action, or proceeding instituted in connection with this Note by (a) the mailing
of a copy thereof by certified mail, postage prepaid, return receipt requested,
to Borrower and (b) serving a copy thereof upon the agent hereby designated and
appointed by Borrower as Borrower's agent for service of process. Borrower
irrevocably agrees that such service shall be deemed to be service of process
upon Borrower in any such suit, action, or proceeding. Nothing in this Note
shall affect the right of Lender to serve process in any manner otherwise
permitted by law and nothing in this Note will limit the right of Lender
otherwise to bring proceedings against Borrower in the courts of any
jurisdiction or jurisdictions. 

11.

Successors
and Assigns. The terms of this Note and of the other Loan Documents shall
bind and inure to the benefit of the successors and assigns of the parties. The
foregoing sentence shall not be construed to permit Borrower to assign the Loan
except as otherwise permitted under the Loan Documents. As further provided in
the Loan Agreement, Lender may, at any time, sell, transfer, or assign this
Note, the Deed of Trust and the other Loan Documents, and any or all servicing
rights with respect thereto, or grant participations therein or issue mortgage
pass-through certificates or other securities evidencing a beneficial interest
in a rated or unrated public offering or private placement. 

12.

General
Provisions. Time is of the essence with respect to Borrower's obligations
under this Note. If more than one person or entity executes this Note as
Borrower, all of said parties shall be jointly and severally liable for payment
of the indebtedness evidenced hereby. Borrower and all sureties, endorsers,
guarantors and any other party now or hereafter liable for the payment of this
Note in whole or in part, hereby severally (a) waive demand, presentment for
payment, notice of dishonor and of nonpayment, protest, notice of protest,
notice of intent to accelerate, notice of acceleration and all other notices
(except any notices which are specifically required by this Note or any other
Loan Document), filing of suit and diligence in collecting this Note or
enforcing any of the security herefor; (b) agree to any substitution,
subordination, exchange or release of any such security or the release of any
party primarily or secondarily liable hereon; (c) agree that Lender shall not be
required first to institute suit or exhaust its remedies hereon against Borrower
or others liable or to become liable hereon or to perfect or enforce its rights
against them or any security herefor; (d) consent to any extensions or
postponements of time of payment of this Note for any period or periods of time
and to any partial payments, before or after maturity, and to any other
indulgences with respect hereto, without notice thereof to any of them; and (e)
submit (and waive all rights to object) to non-exclusive personal jurisdiction
of any state or federal court sitting in the State of Utah or Wyoming, and venue
in any city or county in those states for the enforcement of any and all
obligations under this Note and the Loan Documents; (f) agree that their liability under this Note
shall not be affected or impaired by any determination that any security
interest or lien taken by Lender to secure this Note is invalid or unperfected;
and (g) hereby subordinate any and all rights against Borrower and any of the
security for the payment of this Note, whether by subrogation, agreement or
otherwise, until this Note is paid in full. A determination that any provision
of this Note is unenforceable or invalid shall not affect the enforceability or
validity of any other provision and the determination that the application of
any provision of this Note to any person or circumstance is illegal or
unenforceable shall not affect the enforceability or validity of such provision
as it may apply to other persons or circumstances. This Note may not be amended
except in a writing specifically intended for such purpose and executed by the
party against whom enforcement of the amendment is sought. Lender is hereby
authorized to disseminate any information it now has or hereafter obtains
pertaining to the Loan, including, without limitation, any security for this
Note and credit or other information on Borrower, any of its principals and any
guarantor of this Note, to any actual or prospective assignee or participant
with respect to the Loan, to any of Lender's affiliates, to any regulatory body
having jurisdiction over Lender, and to any other parties as necessary or
appropriate in Lender's reasonable judgment, as further provided in the Loan
Agreement. Captions and headings in this Note are for convenience only and shall
be disregarded in construing it. THIS NOTE, AND ITS VALIDITY, ENFORCEMENT AND
INTERPRETATION, SHALL BE GOVERNED BY UTAH LAW (WITHOUT REGARD TO ANY CONFLICT OF
LAWS PRINCIPLES) AND APPLICABLE UNITED STATES FEDERAL LAW. 

 

13. 

Notices; Time. All notices, requests, consents, approvals
or demands (collectively, "Notice") required or permitted by this Note to be
given by any party to any other party hereunder shall, unless specified
otherwise, be in writing (including facsimile (fax) transmission) and shall be
given to such party at its address or fax number set forth on the signature
pages hereof, or such other address or fax number as such party may hereafter
specify for the purpose by Notice to the other party. Each such Notice shall be
effective when actually received by the addressee or when the attempted initial
delivery is refused or when it cannot be made because of a change of address of
which the sending party has not been notified; provided, that notices to Lender
and notices of changed address or fax number, shall not be effective until
received. 

 

THE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. 

THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES. 

 

IN WITNESS WHEREOF, Borrower has duly executed this Note under
seal as of the date first above written. 

 

Accepted: 

BORROWER: 

PRIVATE CAPITAL GROUP, a Utah 

NORTHCUT REFINING, LLC, a Wyoming corporation
            limited
liability company 

By: Interline Resources Corporation, its Manager

By: /s/ Jared L. Lucero_____________

By: /s/ Michael R. Williams____________

Name: Jared L. Lucero, its President

Name: Michael R. Williams, Its President

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