Document:

Purchase and Sale Agreement

 Exhibit 10.30 
 PURCHASE AND SALE AGREEMENT 
 by and between 
 TransCan Northwest Border Ltd. 
 and 
 Northern Plains Natural Gas Company, LLC 
 for
the purchase and sale of 
 all of the shares of common stock of 
 Northwest Border Pipeline Company, 
 a Delaware corporation 
 Dated as of February 14, 2006 

 PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of this 14th day of February, 2006, by and among TransCan Northwest Border Ltd., a Delaware corporation (the
“Seller”), and Northern Plains Natural Gas Company, LLC, a Delaware limited liability company (the “Buyer”) (each a “Party” and, together, the “Parties”). 
 WHEREAS, the Seller owns 100% of the issued and outstanding Common Stock (as defined in Section 3.2) of Northwest Border Pipeline Company, a
Delaware corporation (the “Company”); 
 WHEREAS, the Company owns a 0.175% general partner percentage interest
(“Company’s NBP GP Interest”) in Northern Border Partners, L.P, a publicly traded master limited partnership formed under the laws of Delaware (“NBP”), and a 0.17677% general partner percentage interest
(“Company’s NBILP GP Interest”) in Northern Border Intermediate Limited Partnership, a Delaware limited partnership (“NBILP”, and together with NBP, the “Partnerships” and the Company’s
NBILP GP Interest together with the Company’s NBP GP Interest, the “Company’s GP Interests”); 
 WHEREAS, the
remaining general partner percentage interests (the “Other GP Interests”) in each of NBP and NBILP are held by the Buyer and Pan Border Gas Company, LLC, a Delaware limited liability company and an affiliate of the Buyer;

 WHEREAS, upon the terms and subject to the conditions set forth herein, the Seller desires to sell to the Buyer, and the Buyer desires to
purchase from the Seller, all of the Common Stock; 
 WHEREAS, TransCanada PipeLines Limited, a Canadian corporation
(“TCPL”), and TransCanada PipeLine USA Ltd., a Nevada corporation and wholly owned subsidiary of TCPL ( “Seller Parent”), concurrent with the execution of this Agreement, have executed and delivered a Seller Parent
guarantee (the “Seller Parent Guarantee”) for the benefit of the Buyer which guarantees the performance by the Seller of the Seller’s obligations under this Agreement; and 
 WHEREAS, ONEOK, Inc., an Oklahoma corporation (“Buyer Parent”), concurrent with the execution of this Agreement, has executed and
delivered a Buyer Parent guarantee (the “Buyer Parent Guarantee”) for the benefit of the Seller which guarantees the performance by the Buyer of the Buyer’s obligations under this Agreement. 
 NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein, the Parties hereto hereby agree as follows:

 ARTICLE I 
 SALE AND PURCHASE 
 Section 1.1 Agreement to Sell and to Purchase. Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing (as defined in Section 2.1 below), the Seller shall sell, assign, transfer, convey and deliver all of the Common Stock, free and clear of any liens, claims, charges, mortgages,
security interests, agreements, obligations or other legal or equitable encumbrances of any kind (“Encumbrances”), other than those specified in (a) the Amended and Restated Agreement of Limited Partnership of NBP dated as of
October 1, 1993, as amended (the “NBP Partnership Agreement”), or (b) the Amended and Restated Agreement of Limited Partnership of NBILP dated as of October 1, 1993, as amended (“NBILP Partnership
Agreement”, and together with the NBP Partnership Agreement, the “Partnership Agreements”), to the Buyer, and the Buyer shall purchase and accept such Common Stock from the Seller in exchange for a cash payment of
(i) $40 million (the “Base Purchase Price”), minus (ii) in recognition of costs and expenses to be incurred by the Buyer and in recognition of the Buyer entering into a transition services agreement with the Seller
or the Seller’s affiliate (the terms and conditions of which are summarized on Exhibit A) each with respect to the assumption by the Seller or the Seller’s affiliate of the operatorship of Northern Border Pipeline Company, a Texas
general partnership (“NBPC”) (the “Operatorship Transfer”), an amount equal to $10 million, plus (iii) the aggregate amount of all cash capital contributions or other cash payments made by the Company to
NBP or NBILP from and after 11:59 p.m. on December 31, 2005 (the “Effective Time”), minus (iv) the aggregate amount of all distributions, dividends, or payments made by NBP or NBILP to the Company on or after the
Effective Time that relate to cash received by the Company after the Effective Time to the extent the Company distributes such amount prior to the Closing Date (the “Adjusted Purchase Price”). 
 ARTICLE II 
 CLOSING 
 Section 2.1 Closing. The closing of the sale and purchase of Common Stock (the “Closing”) shall occur on a date (such date, the
“Closing Date”) following the satisfaction or waiver of each of the conditions precedent specified in this Agreement hereof (any or all of which may be waived in writing by the respective parties whose performance is conditioned
upon satisfaction of such conditions precedent). Subject to the satisfaction or waiver of each of the conditions precedent specified in this Agreement hereof pursuant to the previous sentence, the Closing shall occur immediately prior to the closing
of a transaction pursuant to which affiliates of the Buyer are conveying certain of its subsidiaries to NBP (“Asset Transfer Transactions”) pursuant to one or more contribution agreements or purchase and sale agreements. Immediately
following the Closing of the Asset Transfer Transactions, NBILP and TC PipeLines Intermediate Limited Partnership, an affiliate of the Seller, will close a transaction pursuant to which NBILP will sell a 20% general partnership interest in NBPC to
TC PipeLines Intermediate Limited Partnership (“Northern Border Pipeline Interest Transaction”), which transaction requires the execution of binding documentation evidencing the 

  

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Operatorship Transfer. The Closing shall take place at the offices of Gable & Gotwals, 100 W. 5th Street, Suite 1800, Tulsa, OK 74103, or at such other place as the Seller and the Buyer shall agree. 
 Section 2.2 Payments at Closing. Not less than three (3) business days prior to the Closing Date the Seller shall deliver to the Buyer a
statement certified by the Seller certifying any adjustments that should be made to the Base Purchase Price necessary to determine the Adjusted Purchase Price. Subject to the parties agreeing to the Seller’s calculation of the Adjusted Purchase
Price, at the Closing, the Buyer shall pay the Adjusted Purchase Price to the Seller by wire transfer of immediately available funds to an account designated by the Seller in writing not less than two (2) business days prior to the Closing
Date. 
 Section 2.3 Deliveries by the Seller. At the Closing, the Seller shall deliver the following documents to the Buyer:

 (a) certificates evidencing the Common Stock, duly endorsed in blank or with appropriate stock powers; 
 (b) resolutions of the Board of Directors of (i) the Seller authorizing the execution, delivery and performance of this Agreement and all other
documents related hereto, and (ii) each of TCPL and the Seller Parent, authorizing the execution, delivery and performance of the Seller Parent Guarantee and for each of (i) and (ii) hereof, a certificate of the Secretary of the
Seller, TCPL and the Seller Parent, as applicable, dated as of the date of the Closing, to the effect that such resolutions were duly adopted and are in full force and effect; 
 (c) certificates of (i) an officer of the Seller stating that the conditions specified in Sections 6.3(a) and (b) have been
satisfied, and (ii) the Secretary of the Seller, TCPL and the Seller Parent (as applicable) certifying true and complete copies of the certificate of incorporation and bylaws of the Seller, TCPL and the Seller Parent (as applicable);

 (d) resignations of each director and officer of the Company and each of the Company’s representatives on or to the Policy Committee
of NBP and NBILP, the Management Committee of NBPC and any other committee of NBP, NBILP or any of their respective affiliates, including NBPC, for which the Company has representatives; 
 (e) the certificate of incorporation and bylaws of the Company, certified by the Secretary of the Company; 
 (f) a certificate of non-foreign status for the Seller satisfying the requirements of Treasury Regulation Sections 1.445-2(c) and 1.897(2)(h); and

 (g) such other certificates or documents as may be reasonably requested by the Buyer pursuant to this Agreement. 
  

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 Section 2.4 Deliveries by the Buyer. At the Closing, the Buyer shall deliver the following
documents to the Seller: 
 (a) resolutions of the Board of Directors of (i) the Buyer authorizing the execution, delivery and
performance of this Agreement and all other documents related hereto, and (ii) Buyer Parent, authorizing the execution, delivery and performance of the Buyer Parent Guarantee and for each of (i) and (ii) hereof, a certificate of the
Secretary of the Buyer and Buyer Parent, as applicable, dated as of the date of Closing, to the effect that such resolutions were duly adopted and are in full force and effect; 
 (b) certificates of (i) an officer of the Buyer stating that the conditions specified in Sections 6.2(a) and (b) have been satisfied or
waived, and (ii) certificate of Secretary of the Buyer and the Buyer Parent (as applicable) certifying true and complete copies of the certificate of incorporation and bylaws of the Buyer and the Buyer Parent (as applicable); and 
 (c) such other certificates or documents as may be reasonably requested by the Seller pursuant to this Agreement. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF
THE SELLER 
 The Seller represents and warrants to the Buyer that: 
 Section 3.1 Corporate Organization. The Seller and the Company are each a corporation duly incorporated, validly existing and in good standing
under the laws of Delaware. The Company has all requisite power and authority and all governmental licenses, authorizations, permits, consents and approvals to own its properties and assets and to conduct its business as now conducted. The Company
is duly qualified to do business as a foreign entity and is in good standing in every jurisdiction where the character of the properties owned or leased by it or the nature of the business conducted by it makes such qualification necessary except
for failures to be so qualified or in good standing as would not reasonably be expected to impair its ability to consummate the transactions contemplated by this Agreement. 
 Section 3.2 Capitalization; Title. The Company’s only authorized capital stock is 1,000 shares of common stock (the “Common
Stock”), all of which is issued and outstanding and owned of record and beneficially by the Seller. All of the Common Stock has been duly authorized and validly issued and is fully paid and nonassessible, free and clear of any Encumbrances.
There are no outstanding options, warrants, agreements, conversion rights, preemptive rights or other rights to subscribe for, purchase or otherwise acquire the Common Stock or any other equity security of the Company. Except for this Agreement,
there are no voting trusts or other agreements or understandings to which the Seller or the Company is a party that restrict or otherwise relate to the voting, dividend rights or disposition of the Common Stock. There is no indebtedness of the
Company having general voting rights issued and outstanding. The Company has no obligation to make any capital contributions to any Person, except as 

  

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required under the Partnership Agreements. Except for this Agreement, there are no outstanding obligations of any person to repurchase, redeem or otherwise
acquire outstanding Common Stock or any securities convertible into or exchangeable for any Common Stock. The Seller has good, valid and marketable title to the Common Stock and the sale and transfer of the Common Stock by the Seller to the Buyer
hereunder will transfer good, valid and marketable title to the Common Stock to the Buyer free and clear of any Encumbrances. 
 Section 3.3
Equity Interests; No Subsidiaries; No Encumbrances. The Company is the record and beneficial owner of, and has good, valid and marketable title to, the Company’s GP Interests. Except for the Company’s GP Interests, the Company does
not own, directly or indirectly, any shares of capital stock, voting rights or other equity interests or investments in any other Person. The Company’s NBP GP Interest and the Company’s NBILP GP Interest represent all of the Seller and its
affiliates’ interest in NBP and NBILP, respectively. The Company does not have any rights to acquire by any means, directly or indirectly, any capital stock, voting rights, equity interests or investments in another Person. Except as set forth
in the Partnership Agreements, the Company’s GP Interests and the capital accounts related thereto are, and will be at the Closing, owned by the Company free and clear of any Encumbrance. Except for the Partnership Agreements, the Seller and
its affiliates have not entered into and are not a party to, or subject to any agreement with respect to, or relating to, the Company’s GP Interests. 
 Section 3.4 Validity of Agreement; Authorization. The Seller has the requisite power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this
Agreement and the performance of its obligations hereunder have been duly authorized by the Board of Directors of the Seller and no other proceedings on the part of the Seller is necessary to authorize such execution, delivery and performance. This
Agreement has been duly executed and delivered by the Seller and constitutes the Seller’s valid and binding obligation enforceable against the Seller in accordance with its terms, except to the extent that its enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or other similar law affecting the enforcement of creditors’ rights generally. 
 Section 3.5 No Conflict or Violation. The execution, delivery and performance by the Seller of this Agreement does not and will not: 
 (a) violate or conflict with any provision of its certificate of incorporation or bylaws or any other organizational document of the Seller or the Company; 
 (b) violate, result in a breach of, constitute (with due notice or lapse of time or both) a default or permit termination of or cause any obligation, penalty or premium to arise or accrue under any material contract,
lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or instrument to which the Seller or the Company is a party or by which any of them is bound or to which any of their respective properties or assets is subject;

  

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 (c) violate any applicable provision of any law, statute, rule, or regulation (“Applicable
Law”) or judgment, order, writ, injunction, decree or award (“Order”) of any foreign, federal, tribal, state, provincial or local government, court, arbitrator, agency or commission or other governmental or regulatory body
or authority (“Governmental Authority”) in a manner that would have a Material Adverse Effect (as defined in Section 6.2(d) below); or 
 (d) result in the creation or imposition of any Encumbrance upon any of the properties or assets of the Company. 
 Section 3.6 Consents and Approvals; Compliance with Laws. No permit, license, approval or authorization of, or filing, registration or qualification with, or notification to or waiver or consent from, any Governmental Authority or
other Person (each a “Consent”) is required as a condition to the execution and delivery of this Agreement by the Seller or the performance of the Seller’s obligations hereunder other than those Consents that, if not obtained,
would not have a Material Adverse Effect. The Company is, and at all times since August 16, 2002 has been, in material compliance with all Applicable Laws. Since August 16, 2002, the Company has not received any written notice from any
Governmental Authority regarding any actual or possible material violation of or material failure to comply with any Applicable Laws. Other than the Consents held by the Company, no other Consents are required by the Company for the conduct of its
business as now being conducted. 
 Section 3.7 Tax Matters. 
 (a) For purposes of this Agreement, “Tax Returns” shall mean returns, reports, exhibits, schedules, information statements and other
documentation (including any additional or supporting material) filed or maintained, or required to be filed or maintained, in connection with the calculation, determination, assessment or collection of any Tax and shall include any amended returns
required as a result of examination adjustments made by the Internal Revenue Service or other Tax authority. For purposes of this Agreement, “Tax” or “Taxes” shall mean any and all federal, state, local, foreign and
other taxes, levies, fees, imposts and duties (including any interest, penalties or additions to the tax imposed in connection therewith or with respect thereto), including taxes imposed on, or measured by, income, franchise, profits or gross
receipts, ad valorem, value added, sales, use, service, real or personal property, capital stock, license, payroll, withholding, employment, social security, workers’ compensation, unemployment compensation, utility, severance, production,
excise, stamp, occupation, premium, windfall profits, transfer and gains taxes and customs duties and shall include any liability for Taxes under Treas. Reg. 1.1502-6 or any analogous provision of state, local or foreign law, as a transferee or
operation of law, or by contract. 
 (b) Except as set forth on Schedule 3.7, (i) the Company has duly and timely filed (or
joined in the filing of) when due all material Tax Returns required by applicable law to be filed by it; (ii) all such Tax Returns were true, correct and complete 

  

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in all material respects as of the time of such filing; (iii) all Taxes relating to periods ending on or before the date hereof owed by the Company,
Seller or the Seller Parent (whether or not shown on any Tax Return) at any time on or prior to the date hereof, if required to have been paid, have been paid (except for Taxes which are being contested in good faith in appropriate proceedings);
(iv) there is no action, suit, proceeding, audit or claim now pending against, or with respect to, the Company or the Seller Parent in respect of any Tax or Tax assessment, nor is any written claim for additional Tax or assessment asserted by
any Tax authority; (v) there is no power of attorney given by or binding upon the Company with respect to Taxes for any period for which the statute of limitations (including waivers or extensions) has not yet expired; (vi) the Company
does not have any outstanding request for any extension of time within which to pay its Taxes or file its Tax Returns; (vii) there has been no waiver or extension of any applicable statute of limitations for the assessment or collection of any
Taxes of the Company; (viii) the Seller and the Seller Parent are not “foreign persons” within the meaning of Section 1445 of the United States Internal Revenue Code of 1986, as amended (the “Code”);
(ix) the Company is not a party to any agreement providing for the payment of Taxes, payment for Tax losses, entitlements to refunds or similar Tax matters; (x) the Company has withheld and paid all Taxes required to be withheld by it in
connection with any amounts paid or owing to any employee, creditor, independent contractor or other third party; and (xi) the Company is and will be on the Closing Date a member of the selling consolidated group (within the meaning of
Section 338(h)(10)(B) of the Code) of which Seller Parent is the common parent. To the knowledge of the Seller, the Company has never had any material items of taxable income, deduction or expense, other than any such items derived from its
ownership of the Company’s GP Interests. 
 Section 3.8 Absence of Undisclosed Liabilities. The Company has no Indebtedness and
has no other liabilities or obligations of any nature whatsoever, whether known or unknown, accrued, absolute, contingent or otherwise, or whether due or become due (“Liabilities”) other than (a) Liabilities resulting directly
from the Company being a general partner in NBP or NBILP or being a former general partner in NBPC and (b) liens for current Taxes not yet due and payable and assessments not in default. The Seller is not aware of any Liabilities of the kind
described in clause (a) above that would have a disproportionate impact on the Company as opposed to the holders of the Other GP Interests or the current or former general partners of NBPC. “Indebtedness” means all outstanding
obligations for borrowed money, including (i) indebtedness evidenced by notes, bonds, debentures or other instruments (and including all outstanding principal, prepayment premiums, if any, and accrued interest, fees and expenses related
thereto), (ii) any outstanding obligations under capital leases and purchase money obligations, (iii) any amounts owed with respect to drawn letters of credit and (iv) any outstanding guarantees of obligations of the type described in
clauses (i) through (iii) above. 
 Section 3.9 No Litigation. There are no Legal Proceedings (as defined below) pending or,
to the Seller’s knowledge, threatened against or involving the Company. “Legal Proceeding” means any judicial, administrative or arbitral actions, suits, proceedings (public or private), investigations or governmental
proceedings before any Governmental Authority or arbitrator. 
  

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 Section 3.10 Employee Benefit Matters. The Company does not have any employees or any liabilities
under any plan, program or other arrangement providing for compensation, severance, termination or retirement pay, performance awards, stock or stock related awards or other employee benefits, including, without limitation, each “employee
benefit plan”, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. The Company is not a party to, or bound by, any collective bargaining agreement, contract or other understanding with a
labor union. There are no unfair labor practice or labor arbitration proceedings pending or, threatened in writing against the Company. 
 Section 3.11 Contracts. Except for the Partnership Agreements and the tax allocation agreements described on Schedule 3.7, the Company has not entered into and is not a party to, or subject to any agreement. 
 Section 3.12 Bank Accounts. The Company does not have any bank accounts. 
 Section 3.13 No Brokers. The Seller has not employed the services of an investment broker, financial advisor, broker or finder in connection with
this Agreement or the transactions contemplated hereby. 
 Section 3.14 Intercompany Matters. Except for (a) any intercompany
matters between the Company on the one hand and NBP or NBILP on the other that relate solely to the Company being a general partner in one or both of those partnerships, and (b) as described in Schedule 3.14, there are no intercompany
contracts or other arrangements between the Company on the one hand and the Seller and its affiliates (other than the Company) on the other, including any (i) outstanding loans made to the Company by NBP, NBILP, NBPC or their affiliates (each a
“Related Party”), (ii) outstanding loans made by the Company to a Related Party, (iii) outstanding receivables of the Company that are received by the Company from a Related Party, (iv) outstanding payables of the
Company that are payable to a Related Party, (v) services provided by any party above for or on behalf of the Company (including all costs and expenses charged to or on behalf of the Company in respect thereof) under arrangements existing after
the Closing, (vi) services provided by the Company for any Related Party (including all costs and expenses charged by the Company in respect thereof) under arrangements existing after the Closing and (vii) other outstanding Liabilities or
arrangements relating to the Company on the one hand and any Related Party on the other hand. 
 Section 3.15 Company’s
Activities. During the period that the Seller and its affiliates have been the owners of the Company, except for the agreements set forth on Schedule 3.14, the Company is and has been engaged solely in the business of acting as general
partner of each of NBP and NBILP and the Company has not had and does not have any assets or business operations that are not related to such activities. To the knowledge of the Seller, prior to date on which the Seller and its affiliates became the
owners of the Company, the Company was engaged solely in the business of acting as general partner of each of NBP, NBILP and NBPC, and did not have any assets or business operations that were not related to such activities. 
  

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 Section 3.16 Reliance by Seller. In entering into this Agreement, in selling the Common Stock and
in consummating the other transactions contemplated herein, the Seller has relied solely upon its own investigation and the express representations and warranties of the Buyer set forth in Article IV of this Agreement, and neither the Buyer
nor its respective officers, directors, shareholders, employees, affiliates, agents or representatives has made any representation or warranty as to the Buyer or this Agreement, except as expressly set forth in this Agreement. Seller is not aware of
any breach of, or any inaccuracy in, any of the representations and warranties made by it in this Agreement. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE BUYER 
 The Buyer represents and warrants to the Seller that: 
 Section 4.1 Corporate Organization. The Buyer is a limited liability
company duly organized, validly existing and in good standing under the laws of the state of Delaware and has all requisite power and authority to own its properties and assets and to conduct its business as now conducted, except for failures to
have such qualification as would not impair its ability to consummate the transactions contemplated by this Agreement. The Buyer is duly qualified to do business as a foreign entity in every jurisdiction where the character of the properties owned
or leased by the Buyer or the nature of the business conducted by the Buyer makes such qualifications necessary, except where the failure to be so qualified or in good standing would not reasonably be expected to impair its ability to consummate the
transactions contemplated by this Agreement. 
 Section 4.2 Validity of Agreement; Authorization. The Buyer has the requisite power
and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement by the Buyer and the performance of the Buyer’s obligations hereunder have been duly authorized by the Board of
Directors of the Buyer, and no other proceedings on the part of the Buyer are necessary to authorize the execution, delivery and performance. This Agreement has been duly executed and delivered by the Buyer and constitutes the valid and binding
obligation of the Buyer enforceable against the Buyer in accordance with its terms except to the extent that its enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally. 
 Section 4.3 No Conflict or Violation; No Defaults. The execution, delivery and performance by the
Buyer of this Agreement does not and will not: 
 (a) violate or conflict with any provision of its certificate of incorporation, bylaws or
other organizational document of the Buyer; 
 (b) violate, or result in a breach of, or constitute (with due notice or lapse of time or
both) a default under any material contract, lease, loan agreement, 

  

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mortgage, security agreement, trust indenture or other agreement or instrument to which the Buyer is a party or by which it is bound or to which any of its
properties or assets is subject; 
 (c) violate any Applicable Law or Order of any Governmental Authority in a manner that would have a
material adverse effect on the Buyer’s ability to consummate the transactions described herein; or 
 (d) result in the creation or
imposition of any Encumbrance upon any of the properties or assets of the Buyer where such Encumbrance would impair the Buyer’s ability to perform its obligations under this Agreement. 
 Section 4.4 Consents and Approvals. No Consent is required as a condition to the execution and delivery of this Agreement by the Buyer or the
performance of the Buyer’s obligations hereunder other than those Consents that, if not obtained, would have a material adverse effect on the Buyer’s ability to consummate the transactions described herein. 
 Section 4.5 No Brokers. Except for UBS Securities, LLC (the fees of which shall be paid solely by the Buyer), no broker, finder, investment banker
or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the transactions contemplated by this Agreement based upon arrangements made by the Buyer or any of its affiliates. 
 Section 4.6 Securities Act. The Buyer is acquiring the Common Stock for the Buyer’s own account and not with a view to a distribution thereof
within the meaning of Section 2(11) of the Securities Act of 1933, as amended. 
 Section 4.7 Buyer’s Investigation. The
Buyer is an informed and sophisticated purchaser of companies similar to the Company and, in connection with the transactions contemplated hereby, has sought the advice of experts who are experienced in the evaluation and purchase of companies
similar to the Company. The Buyer has undertaken such investigation of the Company as it has deemed necessary to enable it to make an informed decision with respect to this Agreement and the transactions contemplated hereby. In entering into this
Agreement, in purchasing the Common Stock and in consummating the other transactions contemplated herein, the Buyer has relied solely upon its own investigation and the express representations and warranties of Seller set forth in Article III
of this Agreement, and neither the Seller nor its respective officers, directors, shareholders, employees, affiliates, agents or representatives has made any representation or warranty as to the Seller, the Company or this Agreement, except as
expressly set forth in this Agreement. Buyer is not aware of any breach of, or any inaccuracy in, any of the representations and warranties made by it in this Agreement. 
  

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 ARTICLE V 
 COVENANTS 
 Section 5.1 Filings. Intentionally deleted. 
 Section 5.2 Other Actions. Each of the Buyer and the Seller, on its own behalf and on behalf of the Partnerships, shall use its commercially
reasonable efforts to consummate the transactions contemplated herein and make effective as promptly as practicable, including (a) defending lawsuits or other proceedings challenging this Agreement or the consummation of any part of the
transactions contemplated herein, (b) using commercially reasonable efforts to lift any injunction or order adversely affecting this Agreement or the consummation of the transactions contemplated herein, or (c) using commercially
reasonable efforts to take any other action as may be required in connection with the consummation of the transactions to give effect to the transactions contemplated herein, including by promptly making all filings and notifications required to be
made with any Governmental Authority, if any. 
 Section 5.3 Further Assurances. Following the Closing, the Seller shall execute and
deliver such further instruments of assignment, transfer, conveyance, endorsement, direction or authorization and other documents as the Buyer may reasonably request in order to perfect title of the Buyer and its successors and assigns to the Common
Stock or otherwise to effectuate the purposes of this Agreement. 
 Section 5.4 Tax Covenants. 
 (a) Seller Group. For purposes of this Section 5.4, the “Seller Group” means, with respect to Seller Parent, the
affiliated group of entities filing a consolidated federal income Tax Return of which the Seller and the Company are members (with the Seller Parent being the common parent of the Seller Group). 
 (b) Preparation of Tax Returns and Payment of Taxes. The Seller covenants that it shall be responsible for (i) all Liability for federal,
state or local income Taxes of the Company for all periods ending on or before the Closing Date; (ii) all Liability for other Taxes of the Company for Pre-Closing Periods (as defined below), (iii) all Liability of the Company for Taxes for
the portion of any Straddle Period (as defined below) through the Closing Date as provided in Section 5.4(e); and (iv) all Liability for Pre-Closing Periods imposed upon the Company for Taxes of any other person or entity pursuant
to Treas. Reg. Section 1.1502-6 or any other provision of state or local law. 
 (c) Consolidated, Combined or Unitary Returns.
Seller Parent shall cause to be included in the consolidated federal income Tax Returns (and the state income Tax Returns of any state that permits consolidated combined, or unitary income Tax Returns, if any) of the Seller Group for all taxable
periods ending on or before the Closing Date (“Pre-Closing Periods”) all tax items of the Company which are required to be included herein, shall cause such income Tax Returns to be timely filed with the appropriate taxing
authorities, and shall timely pay (and be entitled to any refund) all Taxes due with respect to the periods covered by such income Tax Returns. 
 (d) Other Tax Filings. With respect to any federal, state or foreign income or franchise Tax Return covering a Pre-Closing Period that is required to be filed after the Closing Date with respect to the Company that is not described
in Section 5.4(c), Seller Parent shall cause such Tax Return to be prepared, shall cause to be included in 

  

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such Tax Return all tax items required to be included therein, shall cause such Tax Return to be timely filed and shall remit the amount shown as due on such
Tax Return with the appropriate taxing authority. Not later than 30 days prior to the due date of each such Tax Return, Seller Parent shall furnish to Buyer a copy of such Tax Return. Seller Parent shall permit the Buyer to review and comment on
each such Tax Return prior to filing and shall make such revisions to such Tax Returns as are reasonably and timely requested by the Buyer. With respect to any other Tax Returns covering a Pre-Closing Period that is required to be filed after the
Closing Date with respect to the Company and that is not described in Section 5.4(c) or the preceding sentences of this Section 5.4(d), the Buyer shall cause such Tax Return to be prepared and shall cause to be included in
such Tax Return all tax items required to be included therein. Not later than 30 days prior to the due date of each such Tax Return, the Buyer shall furnish to Seller Parent a copy of such Tax Return. The Buyer shall permit Seller Parent to review
and comment on each such Tax Return prior to filing and shall make such revisions to such Tax Returns as are reasonably requested by Seller Parent; provided Buyer shall not be required to make any revisions inconsistent with Section 5.4
(f). Not later than five days prior to the due date of any Tax Return covering a Pre-Closing Period (other than a Tax Return described in Section 5.4(c) and any income or franchise Tax Return covering a Pre-Closing Period described
above), Seller Parent shall remit to the Buyer the amount shown as due on such Tax Return. The Buyer shall cause such Tax Return to be filed and shall remit the amount shown as due on the Tax Return with the appropriate taxing authority. Seller
Parent shall be entitled to any refund of Taxes due with respect to any Pre-Closing Period, and the Buyer shall pay over to Seller Parent any such refund, net of any taxes or other costs incurred with respect to such refund, within 15 days after
receipt thereof. 
 (e) Allocations. With respect to any Tax Return covering a taxable period beginning before the Closing Date and
ending after the Closing Date (a “Straddle Period”) that is required to be filed after the Closing Date with respect to the Company, the Buyer shall cause such Tax Return to be prepared, shall cause to be included in such Tax Return
all Tax items required to be included therein, shall furnish a copy of such Tax Return to Seller Parent not later than 30 days prior to the due date (taking into account extensions) of each such Tax Return, shall file timely such Tax Return with the
appropriate taxing authority, and shall timely pay all Taxes due with respect to the period covered by such Tax Return. The Buyer shall permit Seller Parent to review and comment on each such Tax Return prior to filing and shall make such revisions
to such Tax Returns as are reasonably requested by Seller Parent; provided that Buyer shall not be required to make any revision that would be inconsistent with the Company’s past practices with respect to the item in question unless otherwise
required by law. The Buyer shall determine (by an interim closing of the books as of the Closing Date except for ad valorem Tax which shall be pro rated on a daily basis) the Tax that would have been due with respect to the period covered by such
Tax Return if such taxable period ended on and included the Closing Date. If (i) the amount of Tax so determined exceeds (ii) the amount of payments made in respect to such Tax as of the Closing Date, Seller Parent shall pay to the Buyer
the amount of such excess not later than five days after receipt from the Buyer of evidence of the filing of such Tax Return; if the amount determined in clause (ii) exceeds the amount determined in clause (i), the Buyer shall pay to Seller
Parent the amount of such excess not later than five days after the filing of such 

  

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Tax Return. Any Tax refunds that are received by the Buyer or the Company that relate to Tax periods or portions thereof ending on or before the Closing Date
shall be for the account of Seller Parent, and the Buyer shall pay over to Seller Parent any such refund, or appropriate portion thereof, net of any taxes or costs resulting from the receipt of such refund, within 15 days after receipt thereof.

 (f) Miscellaneous. Any Tax Return related to the Company to be prepared pursuant to the provisions of this Section 5.4
shall be prepared in a manner consistent with practices followed in prior years with respect to similar Tax Returns of the Company, except as otherwise required by law. The Buyer shall not file an amended Tax Return related to the Company for any
period ending on or prior to the Closing Date without the consent of Seller Parent, which shall not be unreasonably withheld, conditioned or delayed. 
 (g) Tax Indemnity. From and after the Closing Date, Seller Parent shall protect, defend, indemnify and hold harmless the Buyer and the Company from any and all Taxes (including any obligation to contribute to
the payment of any Taxes determined on a consolidated, combined, or unitary basis with respect to a group of corporations that includes or included the Company) which are (i) imposed on Seller Parent or any member (other than the Company) of
the consolidated, unitary or combined group which includes or included the Company for any period that ends on or before the Closing Date, that the Buyer or the Company pays, otherwise satisfies in whole or in part, or results in Encumbrances on any
of the Buyer’s or the Company’s assets; or (ii) imposed on the Company in respect of its income, business, property or operations or for which it may otherwise be liable (A) for any taxable period of the Company or portion
thereof ending prior to the Closing Date as provided in this Section 5.4 (including without limitation Taxes for which Seller Parent is responsible pursuant to Sections 5.4(b)-(e)), (B) resulting by reason of the several
Liability of the Company pursuant to Treas. Reg. Section 1.1502-6 or any analogous state, local or foreign law or regulation or by reason of its having been a member of any consolidated, combined or unitary group on or prior to the Closing
Date, (C) resulting from its ceasing to be a member of the Seller Group, (D) resulting from the making of the Section 338(h)(10) Elections (as defined below in Section 5.4(k)) if made pursuant to
Section 5.4(k), (E) resulting from the breach of Seller Parent’s covenants set forth in this Section 5.4 and/or breach of the representations and warranties set forth in Section 3.7 or (F) relating
to any reorganization of the Company done on or prior to the Closing Date. Seller shall have no Liability under this Section 5.4(g) to the extent that such Liability would not have been incurred but for (y) conduct of the Buyer or
its affiliates that conflict with this Agreement or (z) failures by the Buyer or its affiliates to make filings or take other actions required to be taken by the Buyer or its affiliates under this Agreement (in each case, including the Company
as an affiliate of the Buyer from and after the Closing Date and, in each case, other than matters resulting from or arising out of actions taken or failed to be taken at the direction of Seller). Indemnification for Taxes pursuant to this section,
shall also include any reasonable professional fees, accounting fees and other out of pocket costs incurred by Buyer and the Company relating to the Tax liability for which indemnification is provided or in enforcing this indemnity. 
  

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 (h) Access to Information. Seller Parent and each member of the Seller Group shall grant to the
Buyer (or its designees) access at all reasonable times to all of the information, books, and records relating to the Company within the possession of Seller or any member of the Seller Group (including work papers and correspondence with taxing
authorities), and shall afford the Buyer (or its designees) the right (at the Buyer’s expense) to take extracts therefrom and to make copies thereof, to the extent, reasonably necessary to permit the Buyer (or its designees) to prepare Tax
Returns and to conduct negotiations with taxing authorities. The Buyer shall grant or cause the Company to grant to Seller Parent (or its designees) access at all reasonable times to all of the information, books and records relating to the Company
within the possession of the Buyer or the Company (including work papers and correspondence with taxing authorities), and shall afford Seller Parent (or its designees) the right (at Seller Parent’s expense) to take extracts therefrom and to
make copies thereof, to the extent reasonably necessary to permit Seller Parent (or its designees) to prepare Tax Returns and to conduct negotiations with taxing authorities. 
 (i) Tax Sharing Agreements. Seller Parent shall as of the Closing Date ensure that no Tax allocation agreement or Tax sharing agreement with
respect to the Company is in force or effect or results in any obligation of the Company on and after the Closing Date and that there shall be no Liability of the Company on and after the Closing Date under any such agreement. 
 (j) Assistance and Cooperation. After the Closing Date, in the case of any audit, examination, claim or other proceeding
(“Proceeding”) with respect to Taxes of the Company for which Seller Parent is or may be liable or entitled to a refund pursuant to this Agreement in respect of tax periods ending on or before the Closing Date, the Buyer shall
promptly inform Seller Parent of such Proceeding, and shall afford Seller Parent, at Seller Parent’s expense, the opportunity to control the conduct of such Proceedings and, if there is substantial authority therefore, initiate any claim for
refund, file any amended return or take any other action which Seller Parent deems appropriate with respect to such Taxes; provided that Seller Parent (i) reaffirms in writing at the time that it takes control of the Proceeding that it is
responsible for 100% of all Tax liability relating to such Proceeding, (ii) agrees to fund all outlays required to pursue such Proceeding and (iii) agrees to reimburse Buyer for all reasonable out of pocket costs incurred by Buyer in
connection with such Proceedings. The Buyer shall execute or cause to be executed powers of attorney or other documents necessary to enable Seller Parent to control such Proceeding. Buyer shall be entitled to participate in any such Proceeding which
Seller has elected to control and shall be kept fully and timely informed by Seller Parent of all developments and communications. Any Proceeding with respect to Taxes of the Company for a period which includes but does not end on the Closing Date
shall be controlled by the Buyer. Notwithstanding any provision of this Section 5.4(j) to the contrary, Seller Parent shall not settle any Proceeding, initiate any claim for refund or file any amended Tax Return of the Company without
the prior written consent of the Buyer, which consent shall not be unreasonably withheld, conditioned or delayed if, as a result of such Proceeding, claim for refund or amended Tax Return, the Taxes payable by the Buyer or the Company for a taxable
period (or portion of a period) for which Seller Parent is not obligated to indemnify the Buyer or the 

  

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Company pursuant to this Section 5.4 would be (or there is a material risk that such Taxes would be) increased. Notwithstanding any provision of
this Section 5.4 to the contrary, the Buyer shall not settle any Proceeding, initiate any claim for refund or file any amended return with respect to the Company for a tax period ending on, before or including the Closing Date, without
the prior written consent of Seller Parent, which consent shall not be unreasonably withheld, conditioned, or delayed if, as a result of such Proceeding, claim for refund or amended Tax Return, the Taxes for which Seller Parent is obligated to
indemnify the Buyer or the company pursuant to this Section 5.4 would be (or there is a substantial risk that such Taxes would be ) increased, except as required to reflect any agreed audit adjustment. Seller Parent will allow the
Company and its counsel to participate at its own expense in any Proceedings related to the consolidated federal income Tax Returns of the Seller Group to the extent such returns relate to the Company. 
 (k) Section 338(h)(10) Election. 
 (i) With respect to the Buyer’s acquisition of the Common Stock, the Buyer and the Seller acknowledge and agree that the Buyer intends to make an election under Code Section 338(h)(10) (such election and any
available elections under any substantially similar state, local or foreign law that the Buyer specifies in its notice are collectively referred to as the “Section 338(h)(10) Election”), with respect to the Company. The Seller and
the Buyer (1) will report the purchase by the Buyer of the Common Stock under this Agreement consistent with such Section 338(h)(10) Election, (2) shall take no position contrary thereto in any Tax Return, any proceeding before any
taxing authority or otherwise and (3) shall cooperate with each other to take all other actions necessary and appropriate to effect and preserve a timely Section 338(h)(10) Election. The Buyer shall provide to the Seller within 150 days
after the Closing Date Buyer’s proposed allocation of the purchase price for the deemed sale of assets resulting from the making of the Section 338(h)(10) Election, setting forth the estimate fair market values of the assets of the
Company. On or before the date that is 180 days after the Closing Date, the Buyer and the Seller shall agree upon a final allocation of such purchase price (the “Final Allocation”). 
 (ii) The Buyer shall be responsible for the preparation and filing of all forms related to or required by such election (or any similar
state, local or foreign election) (such forms being referred to as the “Election Forms”). The Buyer shall deliver the Election Forms to the Seller within 150 days of the Closing Date. The Seller shall provide to the Buyer any
information required to complete such Election Forms and shall execute and deliver such Election Forms to the Buyer within 30 days of Seller’s receipt of such Election Forms. The Buyer shall be responsible for filing the Election Forms with the
proper Taxing Authorities; provided, that the Seller shall be responsible for filing any Election Form that must be filed with its Tax Returns. 
 (iii) The Buyer and the Seller each agree that it shall not, and shall not permit any of its respective affiliates to, take any action to modify the Election 

  

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Forms following the execution thereof, or to modify or revoke the Section 338(h)(10) Election, or any such election available under any similar state,
local or foreign law if requested by the Buyer, following the filing of any of the Election Forms, without the prior written consent of the Buyer or the Seller, as the case may be. 
 (iv) Each of the Buyer and the Seller shall file, and shall cause each of its respective affiliates to file, all Tax Returns in a manner
consistent with the information contained in the Election Forms as filed and the Final Allocation, unless otherwise required because of a change in Applicable Law relating to Taxes. 
 Section 5.5 Books and Records. Promptly after the Closing Date, the Seller shall deliver to the Buyer the corporate books and records of the
Company and all other assets and properties of the Company; provided, however, that the Seller shall deliver the Company’s minute books, which have been updated to include any minutes or resolutions through and including the
Closing Date, within ten days after the Closing Date. 
 Section 5.6 Partnership Contributions. From the date hereof until the Closing
Date, the Seller shall ensure that the Company makes any payments and capital contributions as required under the Partnership Agreements to NBP and NBILP. 
 Section 5.7 Intercompany Accounts . All liabilities and obligations of the Company to the Seller or any of its affiliates (other than the Company) and all liabilities and obligations of the Seller or any of its
affiliates (other than the Company) to the Company shall be paid or otherwise settled in accordance with this Section 5.7. At the Closing, all contracts, agreements or other arrangements between the Seller or any of its affiliates (other
than the Company) on the one hand, and the Company, on the other hand, shall be terminated. Prior to the Closing (i) if the obligations and liabilities owed by the Company to the Seller or any of its affiliates exceed the obligations and
liabilities owed by the Seller or any of its affiliates to the Company, then the Seller shall contribute, or cause to be contributed, to the Company such excess and (ii) if the obligations and liabilities owed by the Seller or any of its
affiliates to the Company exceed the obligations and liabilities owed by the Company to the Seller or any of its affiliates, then the Company shall dividend or make a return of capital to the Seller such excess. 
 Section 5.8 Conduct of Business Pending Closing. The Seller hereby covenants and agrees with the Buyer that except as provided in this Agreement,
or with the Buyer’s consent (which shall not be unreasonably withheld, conditioned or delayed) during the period from the date hereof to the Closing, the Seller shall use commercially reasonable efforts to cause the Company to: 
 (a) in all material respects conduct its operations according to its ordinary course of business consistent with past practice and in compliance with all
Applicable Laws; 
  

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 (b) preserve, maintain and protect its assets, rights and properties and corporate existence; and

 (c) pay when due or otherwise discharge all Taxes, assessments, government charges or Encumbrances imposed upon it or any of its
properties or assets, or upon the income or profit therefrom. 
 Nothing in this Section 5.8 shall be deemed to require the
Seller (or any of its affiliates) or the Company to make any payments or enter into or amend any contractual agreements, arrangements or understandings unless such payment or other action is in the ordinary course of business consistent with past
practice. 
 Section 5.9 Restrictions on Certain Actions. Without limiting the generality of Section 5.8, and except as
required by Applicable Law or as otherwise expressly provided in this Agreement, prior to the Closing, the Seller shall not permit the Company, without the prior written consent of the Buyer (which consent shall not be unreasonably withheld,
conditioned or delayed), to: 
 (a) amend its charter or bylaws or other governing instruments; 
 (b) (i) issue, sell, or deliver (whether through the issuance or granting of options, warrants, commitments, subscriptions, rights to purchase, or
otherwise) any shares of its capital stock of any class or any other securities or equity equivalents; or (ii) amend in any respect any of the terms of any such securities outstanding as of the date hereof; 
 (c) (i) split, combine or reclassify any shares of its capital stock; (ii) repurchase, redeem or otherwise acquire any of its securities; or
(iii) adopt a plan of complete or partial liquidation or resolutions providing for or authorizing a liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of the Company; 
 (d) (i) create, incur, guarantee or assume any Indebtedness or otherwise become liable or responsible for the obligations of any other person or entity,
except for obligations to or of NBPC, NBP or NBILP; (ii) make any loans, advances or capital contributions to, or investments in, any other person or entity; or (iii) mortgage or pledge any of its assets, tangible or intangible, or create
or suffer to exist any Encumbrance thereupon; 
 (e) acquire, sell, lease, transfer or otherwise dispose of, directly or indirectly, any
assets outside the ordinary course of business consistent with past practice; 
 (f) acquire (by merger, consolidation, or acquisition of
stock or assets or otherwise) any corporation, partnership or other business organization or division thereof; 
 (g) make any capital
expenditure or expenditures (other than contributions that may be required to be made to NBP or NBILP); 
  

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 (h) pay, discharge, or satisfy any claims, liabilities or obligations (whether accrued, absolute,
contingent, unliquidated or otherwise, and whether asserted or unasserted), other than the payment, discharge or satisfaction in the ordinary course of business consistent with past practice; 
 (i) enter into any material natural gas or other futures or options trading agreement or any price swaps, hedges, futures or similar material
instruments; 
 (j) make any payment or distribution under any Tax sharing or other similar arrangement; 
 (k) make any payment, dividend or other distribution to its shareholders; 
 (l) enter into, or permit to be entered into, any closing or other agreement or settlement with respect to Taxes affecting or relating to the Company, other than Taxes in respect of which the Company joins in a
consolidated, unitary or other combined group and such group is not controlled by Seller Parent; 
 (m) pursuant to or within the meaning of
the title 11 the United States Code, as amended, or any similar federal, state or foreign law for the relief of debtors, commence a voluntary case, consent to the entry of an order for relief in an involuntary case, consent to the appointment of a
receiver, trustee, assignee, liquidator or similar official of it or for all or any portion of its property or assets, or make a general assignment for the benefit of creditors; or 
 (n) commit or otherwise agree to do any of the foregoing; 
 provided, however, that notwithstanding the foregoing, the Company shall be permitted to declare a dividend, return of capital or other distribution or repayment to the Seller or the Seller Parent in accordance with
Section 5.7. 
 ARTICLE VI 
 CONDITIONS OF CLOSING 
 Section 6.1 Conditions Precedent to Obligations of Each Party. The respective obligations of the
Parties to consummate the transactions contemplated by this Agreement are subject to the fulfillment or waiver by the applicable Party, on or prior to the Closing, of each of the following conditions: 
 (a) Legal Proceedings. No Order issued by any court of competent jurisdiction preventing the consummation of the transactions contemplated hereby
shall be in effect, nor shall any Legal Proceeding by any Governmental Authority of competent jurisdiction having valid enforcement authority seeking such an Order be threatened or pending, nor shall there be any action taken, or any Applicable Law
or Order enacted, entered or enforced that has not been subsequently overturned or otherwise made 

  

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inapplicable to this Agreement, that makes the consummation of the transactions contemplated hereby illegal. 
 (b) Other Transactions. The satisfaction or waiver of all conditions to closing of the Northern Border Pipeline Interest Transaction (which
closing requires the execution of binding documentation for the Operatorship Transfer) and the Asset Transfer Transactions, which closings shall occur on the Closing Date. 
 Section 6.2 Conditions Precedent to Obligations of Seller. The obligations of the Seller to consummate the transactions contemplated by this
Agreement are subject to the fulfillment or waiver by the Seller, on or prior to the Closing, of each of the following conditions: 
 (a)
Representations and Warranties True. All the representations and warranties of the Buyer contained in this Agreement, and in any agreement, instrument, or document delivered pursuant hereto or in connection herewith, shall be true and correct
in all material respects on and as of the date of this Agreement and on and as of the Closing Date as if made again on and as of such date, provided, however, that (i) any such representation or warranty qualified by a reference to materiality
or Material Adverse Effect shall be true and correct in all respects and (ii) any such representation or warranty that is made as of a specific date need only be true and correct in all respects or true and correct in all material respects, as
the case may be, as of such specified date. 
 (b) Covenants and Agreements Performed. The Buyer shall have performed and complied
with in all material respects all covenants and agreements required by this Agreement to be performed or complied with by the Buyer on or prior to the Closing Date. 
 (c) Delivery of Documents. Each of the documents required to be executed and/or delivered by the Buyer to the Seller hereunder shall have been executed and/or delivered to the Seller. 
 Section 6.3 Conditions Precedent to Obligations of the Buyer. The obligations of the Buyer to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment or waiver by the Buyer, on or prior to the Closing, of each of the following conditions: 
 (a)
Representations and Warranties True. All the representations and warranties of the Seller contained in this Agreement, and in any agreement, instrument, or document delivered pursuant hereto or in connection herewith on or prior to the
Closing Date, shall be true and correct in all material respects on and as of the date of this Agreement and on and as of the Closing Date as if made again on and as of such date; provided, however, that (i) any such representation or warranty
qualified by a reference to materiality or a Material Adverse Effect shall be true and correct in all respects and (ii) any such representation or warranty that is made as of a specific date need only be true and correct in all respects or true
and correct in all material respects as the case may be, as of such specified date. 
  

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 (b) Covenants and Agreements Performed. The Seller shall have performed and complied with in all
material respects all covenants and agreements required by this Agreement to be performed or complied with by the Seller on or prior to the Closing Date. 
 (c) Delivery of Documents. Each of the documents required to be executed and/or delivered by the Seller to the Buyer hereunder shall have been executed and/or delivered to the Buyer. 
 (d) No Material Adverse Effect. No event, individually or in the aggregate, resulting in a Material Adverse Effect shall have occurred.
“Material Adverse Effect” means any fact, event, change, development, circumstance or effect that individually or in the aggregate with other facts, events, changes, developments, circumstances or effects, is (a) materially
adverse to the business, financial condition, properties or operations of the Company, or (b) prevents or materially impairs or materially delays the ability of the Seller to perform its obligations under this Agreement; provided, however, that
Material Adverse Effect shall exclude any fact, event, change, development, circumstance or effect arising or resulting from any material changes in any laws, statutes, rules, regulations, ordinances, judgments, orders or decrees that adversely
affect the U.S. natural gas pipeline industry and midstream industry generally and which is not specific to the Seller, its affiliates, the Company unless such fact, event, change, development, circumstance or effect has a disproportionate affect on
Seller or the Company. 
 ARTICLE VII 
 TERMINATION 
 Section 7.1 Termination. This Agreement may be terminated and the transactions contemplated hereby abandoned
at any time prior to the Closing in the following manner: 
 (a) automatically in the event that (i) the agreement with respect to the
Asset Transfer Transactions is terminated, (ii) the agreement with respect to the Northern Border Pipeline Interest Transaction is terminated or (iii) the Operatorship Transfer is abandoned; 
 (b) by mutual written consent of the Seller and the Buyer; 
 (c) by either the Seller or the Buyer, if any Governmental Authority with jurisdiction over such matters shall have issued an Order permanently restraining, enjoining, or otherwise prohibiting the sale of the Common
Stock hereunder; 
 (d) by the Seller, if (i) the Buyer fails to comply with any of its covenants or agreements contained herein, or
breaches its representations and warranties contained herein, and, if curable, does not cure such failure to comply or breach within 30 days after receipt by the Buyer from the Seller of written notice of such failure to comply 

  

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or breach, and (ii) such failure to comply or breach would result in a failure to satisfy the conditions to Closing set forth in
Section 6.2(a) or (b); 
 (e) by the Buyer, if (i) the Seller fail to comply with any of its covenants or agreements
contained herein, or breaches its representations and warranties contained herein, and, if curable, does not cure such failure to comply or breach within 30 days after receipt by the Seller from the Buyer of written notice of such failure to comply
or breach, and (ii) such failure to comply or breach would result in the failure to satisfy the conditions to Closing set forth in Section 6.3(a) or (b); or 
 (f) by either the Buyer or the Seller, upon written notice to the other, if the Closing shall not have occurred by the date and time specified in
Section 10.1(f) of the purchase and sale agreement for the Northern Border Pipeline Interest Transaction dated on or about the date of this Agreement; 
 provided, however, that the rights to terminate under Section 7.1 shall not be available to a Party if it was the failure of such Party (or as applicable, such Party’s affiliate) to fulfill any obligation
under this Agreement or under any agreement with respect to the Asset Transfer Transactions, the Northern Border Pipeline Interest Transaction or the Operatorship Transfer that was the cause of, or that resulted in the event or situation which gave
rise to the right to terminate. 
 Section 7.2 Effect of Termination. If a Party terminates this Agreement under
Section 7.1(c)-(f), then such Party shall promptly give written notice to the other Party specifying the provision hereof pursuant to which such termination is made, and this Agreement shall become void and have no further force or
effect, except that the agreements contained in this Article 7 and Article 9 shall survive the termination hereof. Nothing contained in this Section 7.2 shall relieve any Party from Liability for damages actually incurred
as a result of any breach of this Agreement. 
 ARTICLE VIII 
 INDEMNIFICATION 
 Section 8.1 Survival. The respective representations and warranties of the Parties
hereto contained herein or in any certificates or other documents delivered pursuant to this Agreement shall survive until the second anniversary of the Closing Date; provided, however, that the representations and warranties set forth
in Sections 3.2, 3.3, 3.4, 3.5(a), 3.13, 4.2, 4.3(a) and 4.5 shall survive indefinitely, and the representations and warranties set forth in Section 3.7 shall survive for a period
equal to the applicable statute of limitations for each type of Tax and Tax year (including any extensions thereof). 
 Section 8.2
Indemnification Coverage. 
 (a) From and after the Closing and subject to the terms and conditions contained herein, the Seller agrees
to indemnify, defend, save and hold the Buyer, the Company and each of their respective officers, directors, employees, agents and affiliates (other than the Seller and any of its affiliates) (collectively, the “Buyer Indemnified 

  

 21 

 
Parties”) harmless if any such Buyer Indemnified Party shall at any time or from time to time suffer any damage, judgment, fine, penalty, demand,
settlement, Liability, loss, claim or cause of action, cost, expense (including reasonable attorneys’, consultants’ and experts’ fees but excluding any and all Taxes (which matters are covered under Section 5.4 (g)) (each,
a “Loss”) arising out of: 
 (i) any breach or inaccuracy in any representation or warranty (other than
Section 3.7) of the Seller contained in this Agreement or any certificates or other documents delivered pursuant to this Agreement (it being understood that, for purposes of this Section 8.2(a)(i) only, any “Material
Adverse Effect” or similar materiality qualifier shall not be taken into account in determining whether there was a breach of inaccuracy in the representations and warranties contained in Sections 3.5(c) or 3.6); or 
 (ii) any failure by the Seller to perform or observe any term, provision, covenant or agreement by the Seller (other than
Section 5.4) to be performed or observed under this Agreement. 
 (b) From and after the Closing and subject to the terms and
conditions contained herein the Buyer shall indemnify and agree to defend, save and hold the Seller and its respective officers, directors, employees, agents and affiliates (collectively, the “Seller Indemnified Parties”) harmless
if any such Seller Indemnified Party shall at any time or from time to time suffer any Loss arising out of: 
 (i) any breach
or inaccuracy in any representation or warranty of the Buyer contained in this Agreement or any certificates or other documents delivered pursuant to this Agreement (it being understood that, for purposes of this Section 8.2(b)(i) only,
any “Material Adverse Effect” or similar materiality qualifier shall not be taken into account in determining whether there was a breach of inaccuracy in the representations and warranties contained in Sections 4.3(c) or
4.4); or 
 (ii) any failure by the Buyer to perform or observe any term, provision, covenant or agreement (other than
Section 5.4) on the part of the Buyer to be performed or observed by the Buyer under this Agreement. 
 (c) The foregoing
indemnification obligations shall be subject to the following limitations: 
 (i) the amount of any Losses suffered by a
Seller Indemnified Party or a Buyer Indemnified Party, as the case may be, shall be reduced by any third-party insurance which such party receives in respect of or as a result of such Losses. If any Losses for which indemnification is provided
hereunder is subsequently reduced by any third-party insurance or other indemnification benefit or recovery, the amount of the reduction shall be remitted to the Indemnifying Party (as hereinafter defined); 
  

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 (ii) (A) the Seller’s aggregate Liability under Section 8.2(a)(i) shall
neither (1) with respect to such Liabilities other than Liabilities relating to a breach of the representation set forth in Section 3.8 on account of facts or circumstances occurring after August 15, 2002 (collectively,
“Recent Liabilities”), exceed $30 million, nor (2) exceed $50 million (it being understood that, for the avoidance of doubt, in no event shall the Seller’s aggregate Liability under Section 8.2(a)(i) exceed $50
million) and (B) the Buyer’s aggregate Liability under Section 8.2(b)(i) shall not exceed $30 million; 
 (iii) no indemnification for any Losses asserted against the Buyer or the Seller, as the case may be, under Section 8.2(a)(i)(other than with respect to Recent Liabilities) or Section 8.2(b)(i) shall be required
unless and until the cumulative aggregate amount of such Losses exceeds $300,000 (the “Threshold”), at which point the Seller or the Buyer, as the case may be, shall be obligated to indemnify the Indemnified Party (as hereinafter
defined) for the entire amount of such Losses, subject to the limitations in Section 8.2(c)(i), (ii) and (v)(it being understood that, for the avoidance of doubt, the Seller’s indemnification for Recent
Liabilities shall not be subject to the Threshold); 
 (iv) no claim may be asserted nor may any action be commenced against a
Party for breach or inaccuracy of any representation or breach of a warranty, unless written notice of such claim or action is received by such Party describing in reasonable detail the facts and circumstances known at such time with respect to the
subject matter of such claim or action on or prior to the date on which the representation or warranty on which such claim or action is based ceases to survive as set forth in Section 8.1 (it being agreed and understood that if a claim for a
breach of a representation or warranty is timely made, the claim shall survive until the date on which such claim is finally liquidated or otherwise resolved); and 
 (v) an Indemnified Party shall not be entitled under this Agreement to multiple recovery for the same Losses. 
 Section 8.3 Procedures. Any Seller Indemnified Party or the Buyer Indemnified Party, as the case may be (an “Indemnified Party”),
shall notify the Seller or the Buyer, as the case may be (an “Indemnifying Party”), promptly in the event that (a) any claim, demand or proceeding is asserted or instituted by any person or entity other than the Parties to this
Agreement or their affiliates that could give rise to Losses for which an Indemnifying Party could be liable to an Indemnified Party under this Agreement or (b) any Indemnified Party under this Agreement shall have a claim to be indemnified by
any Indemnifying Party under this Agreement which does not involve a third party claim, demand or proceeding. Such notice shall identify with reasonable specificity the nature of such claim, demand or proceeding and the amount or estimated amount
thereof, if known (such amount or estimated amount shall not be conclusive of the final amount, if any, of such claim, demand or proceeding). Subject to Section 8.2(c)(iv), the failure to so notify or provide information to the
Indemnifying Party shall not relieve the Indemnifying Party of any Liability that it may have to any Indemnified 

  

 23 

 
Party, except to the extent that the Indemnifying Party demonstrates that it has been materially prejudiced by the Indemnified Party’s failure to give
such notice, in which case the Indemnifying Party shall be relieved from its obligations hereunder to the extent of such material prejudice. The Indemnifying Party shall have the right, at its option, to defend, contest or otherwise protect the
Indemnified Party against any such claim or action by counsel of the Indemnifying Party’s choice at its sole cost and expense (which right shall include the right to settle or compromise such kind of action); provided, however,
that, if the Indemnifying Party assumes such defense, it shall not make any settlement or compromise without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed) unless the
sole relief provided is monetary damages that are paid in full by the Indemnifying Party. If the Indemnifying Party assumes the defense, the Indemnified Party shall have the right, but not the obligation, to participate at its own expense in the
defense thereof by counsel of the Indemnified Party’s choice and shall in any event use its reasonable best efforts to cooperate with and assist the Indemnifying Party. If the Indemnifying Party elects not to assume the defense or fails timely
to defend, contest or otherwise protect against such suit, action, investigation, claim or proceeding, the Indemnified Party shall have the right to do so, including, the right to make any compromise or settlement thereof, and the Indemnified Party
shall be entitled to recover the entire cost thereof from the Indemnifying Party, including, reasonable attorneys’ fees, disbursements and amounts paid as the result of such suit, action, investigation, claim or proceeding, so long as the
Indemnifying Party is obligated to indemnify the Indemnified Party for such matter pursuant to the terms of this Agreement. 
 Section 8.4
Remedy. Absent fraud, the sole remedy of a Party in connection with the transactions contemplated by this Agreement, shall, in each case, be as set forth in Section 5.4(g) and this Article VIII. 
 ARTICLE IX 
 MISCELLANEOUS PROVISIONS

 Section 9.1 Publicity. No Party shall, nor shall it permit its affiliates to, issue or cause the publication of any press release
or other announcement with respect to this Agreement or the transactions contemplated hereby without the consent of the other Party hereto, which consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, in
the event any such press release or announcement is required by any law or stock exchange rule to be made by the Party proposing to issue the same, such Party shall use its reasonable best efforts to consult in good faith with the other Party prior
to the issuance of any such press release or announcement. 
 Section 9.2 Successors and Assigns; No Third-Party Beneficiaries. This
Agreement shall inure to the benefit of, and be binding upon, the Parties hereto and their respective successors and assigns; provided, however, that no party shall assign or delegate any of the obligations created under this Agreement
without the prior written consent of the other parties; provided, further, that the Buyer may assign its rights hereunder to any direct or indirect wholly owned subsidiary of the Buyer Parent, in which 

  

 24 

 
case the Buyer Parent shall guarantee the performance of such assignee hereunder with the same effect as if such assignee were an original party hereunder in
lieu of the Buyer. Except for the Seller Indemnified Parties and the Buyer Indemnified Parties who shall be express third party beneficiaries solely for the purpose of enforcing their respective rights under Article VIII hereof, nothing in
this Agreement shall confer upon any person or entity not a party to this Agreement, or the legal representatives of such person or entity, any rights or remedies of any nature or kind whatsoever under or by reason of this Agreement. 
 Section 9.3 Fees and Expenses. Except as otherwise expressly provided in this Agreement, all legal, accounting and other fees, costs and expenses
of a party hereto incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such fees, costs or expenses. 
 Section 9.4 Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made if delivered personally or sent by overnight
courier or sent by facsimile or attached in “portable document format” to an electronic mail (with evidence of confirmation of receipt) to the Parties at the following addresses: 
 If to the Buyer, to: 
 Northern Plains Natural
Gas Company, LLC 
 100 W. 5th Street, Suite 1800 
 Tulsa, OK 74103-4217 
 Attention: John R. Barker 
 Facsimile:
918-588-7971 
 with a copy to: 
 Gable & Gotwals 
 100 W. 5th Street, Suite 1100 
 Tulsa, OK 74103-4217 
 Attention: Stephen W. Lake 
 Facsimile:
918-595-4990 
 If to the Seller, to: 
 c/o TransCanada PipeLines Limited 
 TransCanada PipeLines Tower 
 450 First Street, S.W. 
 Calgary, Alberta
T2P5H1 
 Fax: (403) 920-2410 
 Attention: Executive Vice-President and General Counsel 
  

 25 

 with a copy to: 
 Mayer, Brown, Rowe & Maw LLP 
 71 South Wacker Drive 
 Chicago, Illinois 60606 
 Fax:
(312) 701-7711 
 Attention: Marc F. Sperber 
                  William R. Kucera 
 or
to such other persons or at such other addresses as shall be furnished by either party by like notice to the other, and such notice or communication shall be deemed to have been given or made as of the date so delivered or mailed. No change in any
of such addresses shall be effective insofar as notices under this Section 9.4 are concerned unless such changed address is located in the United States of America and notice of such change shall have been given to such other party
hereto as provided in this Section 9.4. 
 Section 9.5 Interpretation. Unless otherwise indicated to the contrary in this
Agreement by the context or use thereof: 
 (a) the words “herein,” “hereto,” “hereof” and words of similar
import refer to this Agreement as a whole and not to any particular Section or paragraph hereof; 
 (b) words importing the masculine gender
shall also include the feminine and neutral genders, and vice versa; 
 (c) words importing the singular shall also include the plural, and
vice versa; 
 (d) reference to any Person includes such Person’s heirs, executors, personal representatives, administrators, successors
and assigns; provided, however, that nothing contained in this clause (d) is intended to authorize any assignment or transfer not otherwise expressly permitted by this Agreement; 
 (e) reference to a Person, means any individual, partnership, corporation, limited liability company, trust or other entity. Reference to a Person in a
particular capacity or capacities excludes such Person in any other capacity; 
 (f) reference to an affiliate, means, with respect to any
Person, any other Person that directly or indirectly controls, is controlled by or is under common control with, the Person in question. As used herein, the term control means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise; 
 (g)
reference to any contract means such contract as amended, supplemented or modified from time to time in accordance with the terms thereof; 
  

 26 

 (h) all references to Exhibits shall be deemed to be references to the Exhibits attached hereto which are
made a part hereof and incorporated herein by reference; 
 (i) accounting terms used but not defined herein shall be construed in accordance
with GAAP, and whenever the character or amount of any asset, liability or item of income or expense is required to be determined, or any consolidation or accounting computation is required to be made, such determination or computation shall be made
in accordance with GAAP; “GAAP” means United States generally accepted accounting principles and practices as in effect from time to time and applied consistently throughout the periods involved; and 
 (j) whenever the words “include,” “includes” or “including” are used in this Agreement they shall be deemed to be followed
by the words “without limitation.” 
 Section 9.6 Entire Agreement. This Agreement, together with the Schedules hereto, and
together with the Confidentiality Agreement dated July 26, 2005 between Buyer Parent and Seller Parent, represents the entire agreement and understanding of the Parties with reference to the transactions set forth herein and no representations
or warranties have been made in connection with this Agreement other than those expressly set forth herein or in the Schedules, certificates and other documents delivered in accordance herewith. This Agreement supersedes all prior negotiations,
discussions, correspondence, communications, understandings and agreements between the Parties relating to the subject matter of this Agreement and all prior drafts of this Agreement, all of which are merged into this Agreement. No prior drafts of
this Agreement and no words or phrases from any such prior drafts shall be admissible into evidence in any action or suit involving this Agreement. 
 Section 9.7 Waivers and Amendments. The Seller or the Buyer may by written notice to the other, waive any provision of this Agreement or in any document delivered pursuant to this Agreement by the other party intended for its
benefit. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach, whether or not similar, unless such waiver specifically states that it is to be construed
as a continuing waiver. This Agreement may be amended, modified or supplemented only by a written instrument executed by the Parties hereto. 
 Section 9.8 Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or
provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the Parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision
as may be possible and be valid and enforceable. 
 Section 9.9 Titles and Headings. The Article and Section headings and any table of
contents contained in this Agreement are solely for convenience of 

  

 27 

 
reference and shall not affect the meaning or interpretation of this Agreement or of any term or provision hereof. 
 Section 9.10 Signatures and Counterparts. Facsimile or electronic mail transmission in “portable document format” of any signed original
document and/or retransmission of any signed facsimile transmission or electronic transmission in “portable document format” shall be the same as delivery of an original. At the request of the Buyer or the Seller, the Parties will confirm
facsimile or such electronic transmission by signing a duplicate original document. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same
agreement. 
 Section 9.11 Enforcement of the Agreement. The Parties hereto agree that irreparable damage would occur if any of the
provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and
to enforce specifically the terms and provisions hereto, this being in addition to any other remedy to which they are entitled at law or in equity. In no event shall any party hereto be entitled to any punitive, incidental, indirect, special or
consequential damages (“Special Damages”) resulting from or arising out of this Agreement or the transactions contemplated hereby; provided that Special Damages asserted by any Party unrelated to the Parties hereto may become the
subject of indemnification pursuant to Article VIII. 
 Section 9.12 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal and substantive laws of Delaware and without regard to any conflicts of laws concepts which would apply the substantive law of some other jurisdiction. 
 Section 9.13 Consent to Jurisdiction; Exclusive Forum; Waiver of Jury Trial. With respect to any suit, action or proceeding initiated by a party
to this Agreement arising out of, under or in connection with this Agreement or the transactions contemplated hereby, each of the Seller and the Buyer hereby submit to the exclusive jurisdiction of any state or federal court sitting in Wilmington,
Delaware and irrevocably waive, to the fullest extent permitted by law, any objection that they may now have or hereafter obtain to the laying of venue in any such court in any such suit, action or proceeding and agree not to bring any action, suit
or proceeding in any other court, and agree to waive their right to a jury trial in any such proceeding. 
  

 28 

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

  

					
	TRANSCAN NORTHWEST BORDER LTD.
		
	By:	 	 /s/ Donald R. Marchand

		 	 Name:
	 	 Donald R. Marchand

		 	 Title:
	 	 Vice-President and Treasurer

		
	By:	 	 /s/ Rhondda E.S. Grant

		 	 Name:
	 	 Rhondda E.S. Grant

		 	 Title:
	 	 Secretary

	
	NORTHERN PLAINS NATURAL GAS COMPANY, LLC
		
	By:	 	 /s/ David L. Kyle

		 	 Name:
	 	 David L. Kyle

		 	 Title:
	 	 Chairman and Chief Executive Officer

 SECTION NUMBER REFERENCES FOR DEFINED TERMS 
  

			
	 Adjusted Purchase Price
	  	1.1
	 Agreement
	  	Preamble
	 Applicable Law
	  	3.5(c)
	 Asset Transfer Transactions
	  	2.1
	 Base Purchase Price
	  	1.1
	 Buyer
	  	Preamble
	 Buyer Indemnified Parties
	  	8.2(a)
	 Buyer Parent
	  	Recitals
	 Buyer Parent Guarantee
	  	Recitals
	 Closing
	  	2.1
	 Closing Date
	  	2.1
	 Code
	  	3.7(b)
	 Common Stock
	  	3.2
	 Company
	  	Recitals
	 Company’s GP Interests
	  	Recitals
	 Company’s NBILP GP Interest
	  	Recitals
	 Company’s NBP GP Interest
	  	Recitals
	 Consent
	  	3.6
	 Effective Time
	  	1.1
	 Election Forms
	  	5.4(k)(ii)
	 Encumbrances
	  	1.1
	 Final Allocation
	  	5.4(k)(i)
	 GAAP
	  	9.5(i)
	 Governmental Authority
	  	3.5(c)
	 Indebtedness
	  	3.8
	 Indemnified Party
	  	8.3
	 Indemnifying Party
	  	8.3
	 Legal Proceeding
	  	3.9
	 Liabilities
	  	3.8
	 Loss
	  	8.2(a)
	 Material Adverse Effect
	  	6.3(d)
	 NBILP
	  	Recitals
	 NBILP Partnership Agreement
	  	1.1
	 NBP
	  	Recitals
	 NBPC
	  	1.1
	 NBP Partnership Agreement
	  	1.1
	 Northern Border Pipeline Interest Transaction
	  	2.1
	 Operatorship Transfer
	  	1.1
	 Order
	  	3.5(c)
	 Other GP Interests
	  	Recitals
	 Party
	  	Preamble
	 Parties
	  	Preamble
	 Partnerships
	  	Recitals
	 Partnership Agreements
	  	1.1
	 Pre-Closing Periods
	  	5.4(c)
	 Proceeding
	  	5.4(j)
	 Recent Liabilities
	  	8.2(c)(ii)
	 Related Party
	  	3.14
	 Section 338(h)(10) Election
	  	5.4(k)(i)
	 Seller
	  	Preamble
	 Seller Indemnified Parties
	  	8.2(b)
	 Seller Group
	  	5.4(a)
	 Seller Parent
	  	Recitals
	 Seller Parent Guarantee
	  	Recitals
	 Special Damages
	  	9.11
	 Straddle Period
	  	5.4(e)
	 Tax
	  	3.7(a)
	 Taxes
	  	3.7(a)
	 Tax Returns
	  	3.7(a)
	 TCPL
	  	Recitals

 Schedule 3.7 
 Tax Matters 
 Exception to subsection 3.7(b)(ix): 
 1. Federal Tax Allocation Agreement among TransCanada PipeLine USA Ltd. and all of its 100% wholly owned subsidiaries through which Northwest Border Pipeline Company is a party effective January 1, 2005.

 2. Federal Tax Sharing Agreement among TransCan Northern Ltd. and all of its 100% wholly owned subsidiaries through which Northwest Border Pipeline
Company is a party effective January 1, 2004. 

 Schedule 3.14 
 Intercompany Matters 
 1. Federal Tax Allocation Agreement among TransCanada PipeLine USA Ltd. and all of its 100% wholly
owned subsidiaries through which Northwest Border Pipeline Company is a party effective January 1, 2005. 
 2. Federal Tax Sharing Agreement among
TransCan Northern Ltd. and all of its 100% wholly owned subsidiaries through which Northwest Border Pipeline Company is a party effective January 1, 2004.Purchase and Sale Agreement

 Exhibit 10.31 
  

 PURCHASE AND SALE AGREEMENT

 by and between 
 ONEOK, INC.

 and 
 NORTHERN BORDER PARTNERS,
L.P. 
 February 14, 2006 
  

 TABLE OF CONTENTS 
  

					
	 SECTION 1. PURCHASE AND SALE
	  	1
	 1.1
	 	 Interests
	  	1
	 1.2
	 	 Consideration and Payment
	  	1
	 1.3
	 	 The Closing
	  	1
	 1.4
	 	 Working Capital Adjustment
	  	2
		
	 SECTION 2. REPRESENTATIONS AND WARRANTIES OF ONEOK
	  	4
	 2.1
	 	 Organization and Authority of ONEOK
	  	4
	 2.2
	 	 Organization, Authority and Qualification of the Entities
	  	5
	 2.3
	 	 Capital of Companies; Beneficial Ownership
	  	5
	 2.4
	 	 Subsidiaries
	  	6
	 2.5
	 	 Financial Statements
	  	6
	 2.6
	 	 Taxes
	  	7
	 2.7
	 	 Absence of Certain Changes
	  	8
	 2.8
	 	 Ordinary Course
	  	9
	 2.9
	 	 Intellectual Property
	  	9
	 2.10
	 	 Contracts
	  	10
	 2.11
	 	 Compliance
	  	11
	 2.12
	 	 Litigation
	  	11
	 2.13
	 	 Insurance
	  	11
	 2.14
	 	 Related Transactions
	  	12
	 2.15
	 	 Employee Benefit Matters
	  	12
	 2.16
	 	 Environmental Matters
	  	13
	 2.17
	 	 Regulatory Matters
	  	13
	 2.18
	 	 Operating Assets
	  	14
	 2.19
	 	 Brokers’ Fees
	  	15
	 2.20
	 	 Books and Records
	  	15
	 2.21
	 	 Indebtedness
	  	15
	 2.22
	 	 Disclaimer
	  	15
		
	 SECTION 3. REPRESENTATIONS AND WARRANTIES OF NORTHERN BORDER
	  	16
	 3.1
	 	 Organization and Authority of Northern Border
	  	16
	 3.2
	 	 Litigation
	  	17
	 3.3
	 	 Securities Act
	  	17
	 3.4
	 	 Brokers’ Fees
	  	18
	 3.5
	 	 Opinion of Financial Adviser
	  	18
	 3.6
	 	 Disclaimer
	  	18
		
	 SECTION 4. COVENANTS OF ONEOK
	  	19
	 4.1
	 	 Conduct of the Entities
	  	19
	 4.2
	 	 Cash Management
	  	21
		
	 SECTION 5. COVENANTS OF NORTHERN BORDER
	  	21
	 5.1
	 	 Northern Border’s Efforts Regarding Financing Arrangements.
	  	21
	 5.2
	 	 Books and Records
	  	21
		
	 SECTION 6. COVENANTS OF ONEOK AND NORTHERN BORDER
	  	22
	 6.1
	 	 Access to Information
	  	22
	 6.2
	 	 Commercially Reasonable Efforts
	  	23

					
	 6.3
	 	 Regulatory and Other Authorizations; Notices and Consents
	  	23
	 6.4
	 	 Public Announcements
	  	24
	 6.5
	 	 Notices of Certain Events
	  	24
	 6.6
	 	 Entity Guarantees
	  	24
	 6.7
	 	 Intercompany Accounts
	  	25
	 6.8
	 	 Shared Contracts and Drop-Down Contracts
	  	25
	 6.9
	 	 ONEOK Marks
	  	26
	 6.10
	 	 Indebtedness for Borrowed Money
	  	26
	 6.11
	 	 Conversion Transactions
	  	26
	 6.12
	 	 Interim Financial Statements
	  	27
	 6.13
	 	 Cooperation Regarding Audits
	  	27
	 6.14
	 	 Insurance Matters
	  	27
		
	 SECTION 7. CONDITIONS TO CLOSING
	  	27
	 7.1
	 	 Conditions to the Obligations of ONEOK
	  	27
	 7.2
	 	 Conditions to the Obligations of Northern Border
	  	29
		
	 SECTION 8. TERMINATION OF AGREEMENT; RIGHTS TO PROCEED
	  	31
	 8.1
	 	 Termination
	  	31
	 8.2
	 	 Effect of Termination
	  	31
		
	 SECTION 9. INDEMNIFICATION
	  	32
	 9.1
	 	 Survival of Representations and Warranties, Etc.
	  	32
	 9.2
	 	 Indemnification
	  	32
	 9.3
	 	 Threshold; Cap
	  	33
	 9.4
	 	 Exclusive Remedy; Sole Recourse
	  	34
	 9.5
	 	 No Contribution
	  	35
	 9.6
	 	 Setoff
	  	35
	 9.7
	 	 Third Party Claims
	  	35
		
	 SECTION 10. TAX MATTERS
	  	36
	 10.1
	 	 Retention of Records
	  	36
	 10.2
	 	 Cooperation
	  	36
	 10.3
	 	 Transfer Taxes
	  	37
	 10.4
	 	 Tax Returns
	  	37
	 10.5
	 	 Allocation of Taxes
	  	38
	 10.6
	 	 Tax Indemnity
	  	39
	 10.7
	 	 Contests
	  	41
	 10.8
	 	 Amended Tax Returns
	  	41
	 10.9
	 	 Miscellaneous
	  	42
	 10.10
	 	 Allocation of the Purchase Price
	  	42
		
	 SECTION 11. MISCELLANEOUS
	  	43
	 11.1
	 	 Fees and Expenses
	  	43
	 11.2
	 	 Governing Law
	  	43
	 11.3
	 	 Notices
	  	43
	 11.4
	 	 Entire Agreement
	  	44
	 11.5
	 	 Assignability; Binding Effect
	  	44
	 11.6
	 	 Captions and Gender
	  	45
	 11.7
	 	 Execution in Counterparts
	  	45
	 11.8
	 	 Amendments
	  	45

  

 ii 

					
	 11.9
	 	 Publicity and Disclosures
	  	45
	 11.10
	 	 Severability
	  	45
	 11.11
	 	 Waiver of Jury Trial
	  	45
	 11.12
	 	 Arbitration
	  	45
	 11.13
	 	 Time of the Essence
	  	46
	 11.14
	 	 Remedies Cumulative; Specific Performance
	  	46
	 11.15
	 	 Further Assurances
	  	46
	 11.16
	 	 Third Party Beneficiaries
	  	46
	 11.17
	 	 Audit Committee Authority
	  	46
	 11.18
	 	 Certain Definitions
	  	47
	 11.19
	 	 Other Defined Terms
	  	54

  

	
	 Exhibit A — Companies/Company Subsidiaries

	
	 Exhibit B — Intentionally Omitted

	
	 Exhibit C — ONEOK Guaranty Agreement

	
	 Exhibit D — Target Working Capital

	
	 Exhibit E — Services Agreement

  

 iii 

 PURCHASE AND SALE AGREEMENT 
 This PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into as of February 14, 2006 by and between ONEOK, Inc., an Oklahoma corporation (“ONEOK”), and Northern Border
Partners, L.P., a Delaware limited partnership (“Northern Border”) (each a “Party” and together, the “Parties”). Capitalized terms used but not defined shall have the meaning given in
Section 11.18. 
 W I T N E S S E T H 
 WHEREAS, ONEOK owns all of the issued and outstanding Equity Interests (the “Shares”) of each of the Persons listed on Exhibit A hereto under the heading “Companies,” (the
“Companies”, and each, individually, a “Company”); 
 WHEREAS, the Companies and their Subsidiaries,
all of which are listed on Exhibit A under the heading “Company Subsidiaries”, own and operate natural gas gathering, processing, fractionating, transportation, storage, pipelines and natural gas liquids assets located in Kansas,
Oklahoma, Texas and Louisiana (the “Business”); and 
 WHEREAS, ONEOK wishes to sell the Shares to Northern Border
and Northern Border wishes to purchase the Shares, upon the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration
of the premises and mutual agreements and covenants herein contained, and intending to be legally bound hereby, the Parties hereto hereby agree as follows: 
 SECTION 1. PURCHASE AND SALE 
 1.1 Interests. At the Closing, ONEOK shall deliver or cause to be
delivered to Northern Border good and sufficient instruments of transfer transferring all of the Shares to Northern Border. Such instruments of transfer shall effectively vest in Northern Border good and marketable title to all of the Shares free
and clear of all Liens other than transfer restrictions imposed by applicable securities laws. 
 1.2 Consideration and
Payment. As consideration for the Shares, Northern Border will, at Closing, pay to ONEOK $1,350,000,000 (the “Purchase Price”) by wire transfer of immediately available funds to an account designated by ONEOK in
writing not less than two (2) business days prior to the Closing Date. 
 1.3 The Closing. 
 (a) Subject to the provisions of Section 8, the closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Gable & Gotwals, 100 W. 5th Street, Tulsa,
OK 74103, commencing at 10:00 a.m. local time on the first business day of the calendar month immediately following the satisfaction or waiver of all conditions to the obligations of the Parties to consummate the transactions contemplated hereby

 
(other than conditions with respect to actions the Parties shall take at the Closing itself, including without limitation, conditions in Section 7.1(h)
and 7.2(h) herein) or such other date as Northern Border and ONEOK may mutually determine (the “Closing Date”). 
 (b) At the Closing, ONEOK will deliver the following documents and deliverables to Northern Border: 
 (i) Good and
sufficient instruments of transfer transferring all of the Shares to Northern Border free and clear of all Liens other than transfer restrictions imposed by applicable securities laws; 
 (ii) An executed copy of a Services Agreement substantially in the form attached hereto as Exhibit E (the “Services
Agreement”); 
 (iii) A certificate certifying that the transactions contemplated hereby are exempt from withholding
under Code Section 1445 executed in accordance with the requirements of the Treasury regulations promulgated thereunder; 
 (iv) Resignations of the officers, directors and managers identified prior to Closing by Northern Border; 
 (v) An
executed copy of a Guaranty substantially in the form attached hereto as Exhibit C (the “ONEOK Guaranty Agreement”); 
 (vi) A written opinion from legal counsel to ONEOK addressed to Northern Border substantially in the form attached hereto as Schedule 1.3(b)(vi); and 
 (vii) Such other certificates, instruments of conveyance, and documents as may be reasonably requested by Northern Border prior to the
Closing Date to carry out the intent and purposes of this Agreement. 
 (c) At the Closing, Northern Border will deliver the
following documents and deliverables to ONEOK: 
 (i) An executed copy of the Services Agreement; 
 (ii) A written opinion from legal counsel to Northern Border addressed to ONEOK substantially in the form attached hereto as Schedule
1.3(c)(ii); and 
 (iii) Such other certificates, instruments, and documents as may be reasonably requested by ONEOK prior
to the Closing Date to carry out the intent and purposes of this Agreement. 
 1.4 Working Capital Adjustment.

 (a) As soon as practicable, but in no event later than 60 days following the Closing, ONEOK shall prepare and deliver to
Northern Border a calculation (the “Closing Working Capital Statement”) of the Net Working Capital of the Entities, on a consolidated basis, 

  

 2 

 
as of the close of business on the last day of the month immediately preceding the Closing Date (the “Closing Working Capital”). The Closing
Working Capital Statement shall be prepared in accordance with the principles set forth in the definition of Net Working Capital. 
 (b) ONEOK shall deliver a copy of the Closing Working Capital Statement to Northern Border promptly after it has been prepared. After receipt of the Closing Working Capital Statement, Northern Border shall have 30 days to review the Closing
Working Capital Statement, together with the work papers used in the preparation thereof. ONEOK shall (i) provide Northern Border and its Representatives reasonable access during normal business hours to all relevant personnel, work papers,
trial balances and other financial information to the extent necessary or useful to complete their review of the Closing Working Capital Statement, and (ii) cooperate with Northern Border’s and its Representatives’ reasonable requests
with respect to the review of the Closing Working Capital Statement, including by providing on a timely basis all information necessary or useful in reviewing the Closing Working Capital Statement. Unless Northern Border delivers written notice to
ONEOK on or prior to the 30th day after Northern Border’s receipt of the Closing Working Capital Statement specifying in reasonable detail the amount, nature and basis of all disputed items, Northern Border shall be deemed to have accepted and
agreed to the calculation of the Closing Working Capital. If Northern Border (or one of its Representatives) notifies ONEOK of an objection to the calculation of the Closing Working Capital, ONEOK and Northern Border shall, within 20 days (or such
longer period as the Parties may agree in writing) following such notice (the “Resolution Period”), attempt to resolve their differences and any resolution by them as to any disputed amounts shall be final, binding and conclusive
(other than as a result of manifest error or fraud). 
 (c) If, at the conclusion of the Resolution Period, there are any
amounts remaining in dispute, then such amounts remaining in dispute shall be submitted to a nationally recognized public accounting firm agreed by Northern Border and ONEOK (the “Neutral Auditors”). Northern Border and ONEOK shall
execute, if requested by the Neutral Auditors, a reasonable engagement letter, including customary indemnities. The Neutral Auditors shall act as an arbitrator to determine, based solely on the provisions of this Section 1.4(c) and the
presentations by ONEOK and Northern Border, and not by independent review, only those issues still in dispute. The Neutral Auditors’ determination shall be made within 30 days of the dispute being submitted for their determination, shall be set
forth in a written statement delivered to ONEOK and Northern Border and shall be final, non-appealable and binding on the Parties hereto, absent manifest error or fraud. A judgment of a court of competent jurisdiction may be entered upon the Neutral
Auditors’ determination. The Neutral Auditors shall have exclusive jurisdiction over, and resort to the Neutral Auditors as provided in this Section 1.4(c) shall be the only recourse and remedy of the Parties against one another with
respect to, any disputes arising out of or relating to the adjustments pursuant to this Section 1.4(c). The fees, costs and expenses of the Neutral Auditors shall be borne by Northern Border, on the one hand, and by ONEOK, on the other, based
upon the percentage which the portion of the contested amount not awarded to each Party bears to the amount actually contested by such Party. For example, if Northern Border claims that the Closing Working Capital is $1,000 less than the amount
determined by ONEOK, and ONEOK contests only $500 of the amount claimed by Northern Border, and if the Neutral Auditors ultimately resolve the dispute by awarding Northern Border $300 of the $500 contested, then the costs and expenses of the Neutral
Auditors will be allocated 60% (i.e., 300 ÷ 500) to ONEOK and 40% (i.e., 200 ÷ 500) to Northern Border. The term “Final Closing  

  

 3 

 
Working Capital” shall mean the definitive Closing Working Capital agreed to (or deemed to be agreed to) by Northern Border and ONEOK in
accordance with Section 1.4(b) hereof or resulting from the determinations made by the Neutral Auditors in accordance with this Section 1.4(c) (in addition to those items theretofore agreed to by ONEOK and Northern Border). 
 (d) In the event the Final Closing Working Capital 
 (i) exceeds the Target Working Capital, Northern Border shall pay the excess in cash to ONEOK; or 
 (ii) is less than the Target Working Capital, ONEOK shall pay the difference in cash to Northern Border (the payments contemplated by this
Section 1.4(d) are referred to as the “Net Working Capital Adjustment”). 
 All payments made pursuant to this Section 1.4 shall
be made by wire transfer of immediately available funds within five (5) days of the determination of the Final Closing Working Capital to an account designated in writing by the applicable Party. 
 SECTION 2. REPRESENTATIONS AND WARRANTIES OF ONEOK 
 Except as set forth in the disclosure schedules delivered by ONEOK (the “ONEOK Disclosure Schedules”) to Northern Border on the date hereof (it being agreed that any matter disclosed in a particular Schedule of the
Disclosure Schedules delivered by ONEOK shall be deemed to have been disclosed with respect to any other Sections of this Agreement to the extent that the relevance of such matter to such other Section is readily apparent from the information
disclosed), ONEOK represents and warrants to Northern Border that the statements contained in this Section 2 are true, correct and complete as of the date of this Agreement and will be true, correct and complete as of the Closing, except in
each case to the extent that such statements are expressly made only as of a specified date, in which case ONEOK represents and warrants that such statements are true, correct and complete as of such specified date. 
 2.1 Organization and Authority of ONEOK. 
 (a) ONEOK is a corporation duly incorporated, validly existing and in good standing under the laws of Oklahoma. 
 (b) ONEOK has all requisite right, authority and power to enter into this Agreement and each Related Agreement to be executed and
delivered by ONEOK and to carry out the transactions contemplated hereby and thereby. 
 (c) The execution, delivery and
performance by ONEOK of this Agreement and each Related Agreement have been duly authorized by all necessary action of ONEOK and no other action on the part of ONEOK is required in connection therewith. 
 (d) This Agreement and each Related Agreement to be executed and delivered by ONEOK constitutes, or when executed and delivered will
constitute, valid and binding obligations of ONEOK enforceable in accordance with their respective terms, except as such 

  

 4 

 
enforceability may be limited by bankruptcy, insolvency or other similar laws from time to time in effect which affect the enforcement of creditors’
rights generally. 
 (e) The execution, delivery and performance by ONEOK of this Agreement and each Related Agreement to be
executed and delivered by ONEOK, with or without the giving of notice or the passage of time, or both: 
 (i) do not and will
not conflict with or violate any provision of the organizational documents of ONEOK or any Entity; 
 (ii) do not and will not
conflict with or violate any Legal Requirements applicable to ONEOK or any of the Entities, or, except as set forth in Schedule 2.1(e)(ii) and any filings required to be made under the HSR Act, require ONEOK or any Entity to obtain any
approval, consent or waiver of, or make any filing with, any Governmental Authority that has not been obtained or made; 
 (iii) do not and will not require the consent, approval or waiver of any Person (other than any Governmental Authority), except as set forth in Schedule 2.1(e)(iii), or except for any such consents, approvals or waivers as have been
obtained or the failure of which to be obtained would not, individually or in the aggregate, have a Material Adverse Effect; and 
 (iv) does not and will not breach any Material Contract or result in or permit the termination of any such Material Contract. 
 2.2
Organization, Authority and Qualification of the Entities. Each Company and each Subsidiary thereof (each, a “Company Subsidiary” and, together with the Companies, each an “Entity” and, collectively,
the “Entities”) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, as set forth on Exhibit A, and has all necessary power and authority to own, operate or lease
the properties and assets now owned, operated or leased by it and to carry on its business as it is currently conducted. Each Entity is duly licensed or qualified to do business and is in good standing (to the extent applicable) in each jurisdiction
in which the properties owned or leased by it or the operation of its business makes such licensing or qualification necessary, except where the failure to be so qualified or licensed would not, individually or in the aggregate, have a Material
Adverse Effect. All material actions taken by the Entities have been duly authorized, and no Entity has taken any action that in any material respect conflicts with, constitutes a material default under or results in a material violation of the
organizational documents of such Entities. True and correct copies of the organizational documents of each Entity, each as in effect on the date hereof, have previously been made available to Northern Border. 
 2.3 Capital of Companies; Beneficial Ownership. 
 (a) All of the issued and outstanding shares of capital stock of each of the Companies that is a corporation are validly issued, fully
paid and nonassessable and are owned beneficially and of record, directly or indirectly, by ONEOK, and all of the limited liability company interests in each of the Companies that is a limited liability company are validly issued, fully paid and
nonassessable and are owned beneficially and of record, directly or indirectly, by ONEOK, in each case free and clear of all Liens. 
  

 5 

 (b) There are no outstanding options, warrants, rights, commitments, preemptive rights or
agreements of any kind for the issuance or sale of, or outstanding securities convertible into, any additional shares of capital stock of any class or limited liability company interests, as the case may be, of any Company which would entitle the
holders thereof to an interest in or rights in respect of that Company, and there are no agreements of any kind that may obligate ONEOK or any of its Affiliates (including the Companies) to sell, issue, purchase, redeem or otherwise transfer any
Shares to any Person. There are no voting agreements, proxies or other similar agreements or understandings with respect to the Shares. 
 2.4 Subsidiaries. 
 (a) Exhibit A lists, for each Company Subsidiary, its name, type of entity,
jurisdiction of its incorporation, formation or organization and the percentage Equity Interest owned by a Company. Except as set forth in Schedule 2.4(a), the Companies own, directly or indirectly, all of the issued and outstanding Equity
Interests of each Company Subsidiary, free and clear of all Liens other than transfer restrictions imposed by applicable securities laws, and the owner beneficially and of record of each Company Subsidiary is either a Company or a Company
Subsidiary, as applicable, and all Equity Interests of each Company Subsidiary are validly issued, fully paid and nonassessable. There are no options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any
character relating to the Equity Interests of the Company Subsidiaries or that may obligate the Company Subsidiaries to issue or sell any Equity Interests of any Company Subsidiary, and there are no agreements of any kind that may obligate any
Company to sell, issue, purchase, redeem or otherwise transfer any Equity Interests in any Company Subsidiary to any Person. There are no voting agreements, proxies or other similar agreements or understandings with respect to the Equity Interests
of the Company Subsidiaries. 
 (b) Other than the Company Subsidiaries, no Entity owns any Equity Interest in any Person
except as set forth in Schedule 2.4(b). The Entities own, directly or indirectly, 50% of the outstanding Equity Interests in Chisholm Pipeline Company, free and clear of all Liens, other than transfer restrictions imposed by applicable
securities laws. 
 2.5 Financial Statements. 
 (a) ONEOK has delivered to Northern Border true, correct and complete copies of a consolidated unaudited balance sheet of the Entities
(the “Balance Sheet”) as of December 31, 2005 (the “Balance Sheet Date”) and an unaudited statement of income of the Acquired Entities for the 12 months then ended (together, the “Financial
Statements”) copies of which are attached hereto as Schedule 2.5(a). The long-term Indebtedness listed in the Financial Statements under the caption “Long-term Debt, excluding current maturities” is all owed to ONEOK or its
Affiliates. 
 (b) Except (i) to the extent set forth in or reserved against in the Balance Sheet or as identified in
Schedule 2.5(b) hereto, (ii) for current liabilities (determined in accordance with GAAP) incurred in the ordinary course of business consistent with past practices since the Balance Sheet Date, and (iii) for immaterial Liabilities,
none of the Entities has any Liabilities of 

  

 6 

 
the type that would be required to be disclosed on a balance sheet of that Entity (or the notes thereto) prepared in accordance with GAAP. 
 (c) The Financial Statements have been prepared in accordance with GAAP (except as disclosed herein) during the periods covered thereby,
are complete and correct in all material respects, and present fairly in all material respects the financial condition of the applicable Entities at the dates of said statements and the results of their operations for the periods covered thereby,
except for normal year or period end adjustments and the absence of footnotes. 
 2.6 Taxes. 
 (a) The Entities have (giving effect to extensions) (x) duly and timely filed (or there has been filed on their behalf) with the
appropriate Governmental Authority all income and other material Tax Returns required to be filed by them, and all such Tax Returns are true, correct and complete in all material respects and (y) timely paid or accrued on the their books, or
there has been paid on their behalf, all material Taxes due and payable. 
 (b) The Entities have complied in all material
respects with all applicable Tax Laws relating to the payment and withholding of Taxes. 
 (c) There are no Liens that arose
in connection with Taxes upon the assets or properties of the Entities except for Liens described in clause (a) of the definition of “Permitted Liens.” 
 (d) The Entities have not requested (nor has any request been made by any Person on behalf of any of the Entities) in writing any
extension of time within which to file any Tax Return in respect of any taxable year which has not since been filed, and no outstanding written waivers or comparable written consents regarding the application of the statute of limitations with
respect to any Taxes or Tax Returns has been given by or on behalf of the Entities. 
 (e) To the Knowledge of ONEOK, no U.S.
federal, state, local or foreign audits, reviews or other administrative proceedings or court proceedings (“Audits”) are ongoing or have been initiated with regard to any Taxes or Tax Returns of the Entities, and the Entities have
not received any written notice of any such Audits. 
 (f) None of the Entities has agreed or is required to make any
adjustment by reason of a change in accounting method that would affect any taxable year ending after the Closing Date, and no Tax Authority has proposed any such adjustment or change in accounting method that would affect any taxable year ending
after the Closing Date. None of the Entities have an application pending with any Tax Authority requesting permission for any change in accounting method that relates to their business or operations and that would affect any taxable year ending
after the Closing Date. 
 (g) Each of the Entities is classified as a partnership or a disregarded entity for U.S. federal
income tax purposes, except for those Entities listed in Schedule 2.6. 
  

 7 

 (h) No written claim has been made, and to the Knowledge of ONEOK there has been no oral
or threatened claim, by any Tax Authority in a jurisdiction where an Entity does not file a Tax Return that it is or may be subject to Tax in that jurisdiction. 
 (i) None of the Entities is a party to any Tax allocation or sharing agreement or has any liability for the Taxes of another Person under
Treasury Regulations Section 1.1502-6 or similar law, as a transferee, successor, by contract or otherwise. 
 (j) ONEOK
is a United States person within the meaning of the Code. 
 (k) The unpaid Taxes of the Companies (A) did not, as of the
Balance Sheet Date, exceed the reserves established on the Financial Statements, and (B) do not exceed the reserve as adjusted for the passage of time through the Closing Date in accordance with past custom and practice of the Entities in
filing their Tax Returns. 
 (l) None of the assets or properties of the Entities (A) secures any debt the interest on
which is tax-exempt under Code Section 103(a), (B) is “tax-exempt use property” within the meaning of Code Section 168(h), (C) is “tax exempt bond financed property” within the meaning of Code
Section 168(g)(5), (D) is “limited use property” within the meaning of Revenue Procedure 76-30 or (E) will be treated as owned by another Person pursuant to the provisions of Code Section 168(f)(8). 
 (m) The transactions contemplated herein are not subject to tax withholding pursuant to the provisions of Section 3406 or Subchapter
A of Chapter 3 of the Code or any other Legal Requirement. 
 2.7 Absence of Certain Changes. As of the date hereof,
except as identified on Schedule 2.7, since the Balance Sheet Date there has not been: 
 (a) any change in the
financial condition, properties, assets, Liabilities, business or operations of the Entities that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; 
 (b) any contingent Liability incurred by any of the Entities as guarantor or otherwise with respect to the obligations of others (other
than any other Entity) in excess of $500,000, or any cancellation of any material debt or claim owing to any Entity, or waiver of any right that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect; 
 (c) other than Permitted Liens, any Lien placed on any of the material properties of the Entities, that remain in
existence on the date hereof and that will remain in existence on the Closing Date; 
 (d) any material obligation or
Liability of any nature incurred by any of the Entities, whether accrued, absolute, contingent or otherwise, asserted or unasserted, known or unknown, other than obligations and Liabilities incurred in the ordinary course of business consistent with
past practice and in accordance with the terms of this Agreement; 
  

 8 

 (e) any purchase, sale or other disposition, or any agreement or other arrangement for
the purchase, sale or other disposition, of any of the material properties or assets of any Entity other than in the ordinary course of business consistent with past practice and in accordance with the terms of this Agreement; 
 (f) any material change in accounting principles, methods or practices used by any Entity; 
 (g) any loss, damage, destruction or other casualty to any Entity’s property, plants, equipment or inventories (whether or not
covered by insurance) that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; 
 (h) any material change in the compensation levels of any Entity’s senior executives, any material changes in the manner in which other employees are generally compensated or any provision of additional or
supplemental benefits for its employees generally, except, in each case, normal periodic increases or promotions effected in the ordinary course of business consistent with past practice; 
 (i) any material commitment, guarantee, contractual obligation, capital expenditure or transaction entered into by any Entity, other than
in the ordinary course of business consistent with past practice, or any borrowing or other incurrence, assumption or guarantee of Indebtedness by any Entity other than short term Indebtedness owed to ONEOK or its Affiliates; or 
 (j) any agreement or understanding whether in writing or otherwise, for any Entity to take any of the actions specified in paragraphs
(a) through (i) above. 
 For purposes of this Section 2.7, materiality, as to any matter, shall be determined with respect to
all the Entities, taken as a whole. 
 2.8 Ordinary Course. Since the Balance Sheet Date, the Entities have conducted
their respective businesses in the ordinary course of business consistent with past practices. 
 2.9 Intellectual
Property. Each Entity owns or has the right to use all Intellectual Property Assets necessary for or used in the conduct of its business as currently conducted (“Entity Intellectual Property Assets”), and all such
Entity Intellectual Property Assets owned by any Entity are free and clear of all Liens (other than Permitted Liens). Neither the execution or delivery of this Agreement, nor the consummation of the transactions contemplated hereby will, with or
without notice or lapse of time, result in, or give any other Person the right or option to cause or declare, a breach or termination of, or cancellation or reduction in rights of any Entity under any Contract providing for the license of any Entity
Intellectual Property Assets to such Entity, except for any such terminations, cancellations or reductions that, individually or in the aggregate, would not have a Material Adverse Effect. No Entity is infringing or otherwise violating in any
material respect the Intellectual Property Assets of any other Person. 
  

 9 

 2.10 Contracts. 
 (a) As of the date hereof, Schedule 2.10(a) contains a true and complete listing of the following Contracts to which any Entity is
a party (collectively, the “Material Contracts”): 
 (i) except for any intercompany Indebtedness that will
be cancelled prior to Closing, each Contract for Indebtedness or the borrowing of money, or securing Indebtedness or the borrowing of money, by any Entity involving an obligation in excess of $500,000; 
 (ii) each natural gas transportation, storage, gathering or processing Contract that individually involves revenues of the Entities in
excess of $500,000 for the year to date period ended on the Balance Sheet Date; 
 (iii) each executory Contract for the
purchase of any fixed asset or service for a price in excess of $500,000, whether or not such purchase is in the ordinary course of business; 
 (iv) each Contract involving a remaining commitment by the Entities to pay capital expenditures in excess of $500,000; 
 (v) each Contract for lease of personal property or real property involving aggregate payments in excess of $500,000 in any calendar year; 
 (vi) each employment Contract and each Contract providing retention, severance or project bonus payments, in each case that have not been
paid in full as of the date of this Agreement; 
 (vii) each Contract with any union, trade organization or bargaining unit
representative; 
 (viii) each material acquisition, divestiture or merger agreement; 
 (ix) each joint venture or partnership agreement; 
 (x) except for Contracts otherwise described in this Section 2.10, each Contract between ONEOK or any of its Affiliates (other than
the Entities) or any officer, director or manager of any Entity, on the one hand, and any Entity on the other hand, involving payments by or to Entities in excess of $500,000 in any calendar year; 
 (xi) each Contract that provides for a limit on the ability of an Entity or its Affiliates to compete in any line of business or with any
Person or in any geographic area during any period of time after the Closing; 
 (xii) each Shared Contract involving payments
by or to Entities in excess of $500,000 in any calendar year; 
  

 10 

 (xiii) each Drop-Down Contract involving payments by or to Entities in excess of $500,000
in any calendar year; and 
 (xiv) each Contract not otherwise listed above involving aggregate payments (contingent or
otherwise), by or to the Entities in excess of $500,000 in any future calendar year that cannot be terminated by the Entities upon 60 days or less notice without penalty. 
 (b) True and complete copies of all Material Contracts have been made available to Northern Border. 
 (c) Except as would not, individually or in the aggregate, have a Material Adverse Effect, (i) each Material Contract is in full
force and effect and represents the legal, valid and binding obligation of the Entity that is a party thereto and, to the Knowledge of ONEOK, represents the legal, valid and binding obligation of the other parties thereto, and (ii) the Entities
are not and, to the Knowledge of ONEOK, no other party is in material breach of any Material Contract, and neither ONEOK nor any Entity has received any written or, to the Knowledge of ONEOK, oral notice of termination or breach of any Material
Contract. For purposes of this Section 2.10(c) only, “Material Contracts” shall also include all Contracts of the types described in Section 2.10(a) above entered into by any Entity between the date hereof through and including
the Closing Date. 
 2.11 Compliance. Each Entity is, and at all times since January 1, 2001 has been, in material
compliance with all applicable Legal Requirements, except for such instances of non-compliance that, individually or in the aggregate would not have a Material Adverse Effect. Since January 1, 2001, none of ONEOK or any Entity has received any
written notice from any Governmental Authority regarding any actual or possible material violation of or material failure by any Entity to comply with any Legal Requirement that has resulted, or would reasonably be expected to result, in any
material fine, penalty or Liability. Each Entity holds all Permits necessary for it to own and operate its assets and for the conduct of the Business as now being conducted, other than any Permits, the failure of which to hold would not,
individually or in the aggregate, have a Material Adverse Effect and there is no suspension or cancellation of any such Permits pending or, to the Knowledge of ONEOK, threatened. 
 2.12 Litigation. Except as disclosed in Schedule 2.12, there are no Legal Proceedings pending or, to the Knowledge of ONEOK,
threatened (a) that (i) seeks more than $1,000,000 in damages for which any Entity could be liable, (ii) seeks injunctive relief against any Entity, its assets or its activities or (iii) is, or seeks to be certified as, a class or similar
representative action and involves any Entity or the material assets of any Entity, or (b) that challenges or otherwise seeks to prevent, enjoin, alter or delay the consummation of the transactions contemplated hereby. No Entity (nor any of the
material assets of any Entity) is subject to any outstanding Governmental Order. 
 2.13 Insurance. Schedule 2.13
identifies all insurance policies maintained by, at the expense of or for the benefit of any Entity and identifies any material unresolved claims made thereunder. ONEOK has previously made available to Northern Border accurate and complete copies of
the insurance policies identified on Schedule 2.13. Each of such insurance 

  

 11 

 
policies is in full force and effect, and the Entities have paid all premiums due thereunder. Since January 1, 2005, no Entity has received any written
notice or other communication regarding any actual or possible (a) cancellation or invalidation of any insurance policy, (b) refusal of any coverage or rejection of any material claim under any insurance policy, or (c) material
adjustment in the amount of the premiums payable with respect to any insurance policy. 
 2.14 Related Transactions.
Except as set forth on Schedule 2.14, and other than through ownership of the Shares, no Related Party (a) has any direct or indirect ownership interest in any material asset used in or otherwise relating to the Business; (b) is indebted
to any Entity in an amount exceeding $500,000; (c) has any direct or indirect financial interest in any Material Contract; and (d) has any claim against any Entity in excess of $500,000 (other than rights to receive compensation for services
performed as an employee of the Entity or its Subsidiaries). Each of the following shall be deemed to be a “Related Party”: (i) ONEOK and its Affiliates (other than the Entities); (ii) each individual who is an officer or
director of ONEOK, its Affiliates or any Entity; (iii) each member of the immediate family of each of the individuals referred to in clause “(ii)” above; and (iv) any trust or other entity (other than ONEOK or any Entity, Northern Border
and any Subsidiary of Northern Border) in which any one of the individuals referred to in clauses “(ii)” and “(iii)” above holds (or in which more than one of such individuals collectively hold), beneficially or otherwise, a
controlling voting, proprietary or equity interest. 
 2.15 Employee Benefit Matters. Except as set forth on Schedule
2.15: 
 (a) All of the employees engaged in running and operating the Business are employees of ONEOK or its Affiliates
(other than the Entities). None of the Entities have any employees or any Liabilities under any current or former Employee Benefit Plan. 
 (b) No Entity has any Liabilities in respect of Employee Benefit Plans or employment matters relating to current or former employees of such Entity or any current or former ERISA Affiliate of such Entity. 

(c) Neither ONEOK or any of its Affiliates (including the Entities) is a party to, or bound by, any collective bargaining agreement,
Contract or other understanding with a labor union with respect to any employees who perform services in connection with the businesses of the Entities, and, to the Knowledge of ONEOK, there are not any union organizing efforts underway with respect
to any such employees. There are no unfair labor practice or labor arbitration proceedings pending or, to the Knowledge of ONEOK, threatened against any Entity. 
 (d) Each Entity is in compliance, in all material respects, with all applicable Legal Requirements respecting employment, employment
practices, labor, terms and conditions of employment and wages and hours, and no Entity has or would reasonably be expected to have any Liability arising out of any failure of ONEOK or its Affiliates (other than the Entities) to comply with any such
Legal Requirements. 
 (e) None of the Entities is obligated to make any payments, or is party to any agreement that could
obligate it to make any payments, that would not be deductible under Code 

  

 12 

 
section 162(m) or 280G of the Code, or would be considered a payment under a nonqualified deferred compensation plan, as contemplated in Code section 409A.

 2.16 Environmental Matters. Notwithstanding any other provision in this Agreement, this Section 2.16 contains
the exclusive representations of ONEOK concerning Environmental Matters. Except as set forth on Schedule 2.16: 
 (a)
Each Entity is, and at all times since January 1, 2001 has been, in material compliance with all applicable Environmental Laws; 
 (b) There have been no releases of Hazardous Materials from, at, on or under any property now owned or leased (or formerly owned or leased) by any Entity which are required by applicable Environmental Laws to be remediated (or would, upon
discovery, be required to be remediated) by any Entity, except for any releases that have been fully remediated or that would not, individually or in the aggregate, have a Material Adverse Effect; 
 (c) Neither ONEOK nor any Entity has received any written request for information or written notification that it is a potentially
responsible party under CERCLA or any similar state Legal Requirement with respect to any on-site or off-site location for which liability is currently being asserted against them with respect to the activities or operations of the Entities and no
Entity has sent or contributed waste to any facility that is subject to a potential claim under CERCLA or any similar state Legal Requirement; 
 (d) There are no material writs, injunctions, decrees, notices of violation, Governmental Orders or judgments outstanding, or any Legal Proceedings pending or, to ONEOK’s Knowledge, threatened, involving any
Entity relating to (i) its compliance with any Environmental Law or (ii) the release, discharge, spill, treatment, storage or disposal of Hazardous Materials into the environment at any location that could reasonably be expected to result
in any Entity incurring any material Liability under Environmental Law; 
 (e) Each Entity has obtained, currently maintains
and is in material compliance with all Environmental Permits, and all such Environmental Permits are in effect and no Legal Proceeding is pending with respect to any such Environmental Permit; 
 (f) Except as otherwise disclosed in the Balance Sheet, no material expenditures, capital improvements or changes in operation are, or, to
the Knowledge of ONEOK, will be, necessary to achieve or maintain compliance with any Environmental Permit or Environmental Law, or will be necessary as a condition or result of the renewal, amendment or necessary modification of any Environmental
Permit; and 
 (g) ONEOK has provided or made available to Northern Border all information relevant to the environmental
compliance and condition of the Entities and all of their respective Business Facilities, and the estimated or reasonably anticipated remediation costs related thereto. 
 2.17 Regulatory Matters. No Entity is a “public utility company,” “holding company” or “subsidiary” or “affiliate” of a holding company as such terms are
defined in the Public Utility Holding Company Act of 1935 (the “1935 Act”). Each Entity that is a “Natural 

  

 13 

 
Gas Company” as that term is defined in Section 2 of the Natural Gas Act (“NGA”) is in compliance, in all material respects, with all
provisions of the NGA and all rules and regulations promulgated by FERC pursuant thereto. Each such Natural Gas Company is in compliance, in all material respects, with all orders issued by FERC that pertain to material terms and conditions and
material rates charged for services. No approval of (a) the SEC under the 1935 Act or (b) FERC under the NGA or the Federal Power Act is required in connection with the execution of this Agreement by ONEOK or the transactions contemplated hereby
with respect to ONEOK or the Entities. The Form No. 2 Annual Reports filed by each Natural Gas Company with FERC for the years ended December 31, 2004 and December 31, 2003 were true, correct and complete, in all material respects, as of the dates
thereof and since December 31, 2004 no Natural Gas Company has become subject to any proceeding under Section 5 of the NGA or any general rate case proceeding commenced under Section 4 of the NGA by reason of a filing made with the FERC after
December 31, 2004. Except as set forth on Schedule 2.17, no approvals of state Governmental Authorities are required in connection with the execution of this Agreement by ONEOK or the transactions contemplated hereby with respect to ONEOK or
the Entities. 
 2.18 Operating Assets. 
 (a) Except as identified to the contrary in Schedule 2.18(a), (i) except for the Drop-Down Contracts and the Shared Contracts
and except as would not reasonably be expected to have a Material Adverse Effect, the Entities own or have the right to use the pipelines, storage facilities, gas processing facilities, fractionators, plants, equipment and related facilities and
assets (“Operating Assets”) necessary to enable them to conduct their business in the manner currently being conducted and the Entities own or have the right to use the Operating Assets that are reflected as being owned or leased by
such Entities on the Financial Statements; (ii) the Operating Assets are free and clear of Liens other than Permitted Liens; (iii) each Entity has good and indefeasible title to the real property it owns in fee, free and clear of all Liens
other than Permitted Liens; and (iv) each Entity has title to its rights-of-way and easements (A) free and clear of all Liens and claims of those claiming by, through or under ONEOK or its Affiliates (other than the Entities), other than
Permitted Liens; and (B) sufficient to allow such Entity to conduct its business in substantially the same manner as such business is currently being conducted; and (v) the Entities collectively own all of the rights, title and interest in
and to any and all of the properties, rights, claims, contracts, permits and other assets acquired by ONEOK and its Affiliates, either directly by asset purchase or indirectly by purchase of equity interests, pursuant to the terms of (A) that
certain Limited Liability Company Membership Interest and Stock Purchase Agreement by and between Koch Hydrocarbon Management Company, LLC and ONEOK, Inc. dated May 9, 2005 (relating to the purchase and sale of a 100% membership interest in
NGL/LP, LLC and all of the outstanding capital stock of Koch Underground Storage Company), (B) that certain Asset Purchase Agreement by and between Koch Pipeline Company, L.P. and ONEOK dated May 9, 2005 (relating to the purchase and sale
of Mid-Continent NGL Assets), (C) that certain Limited Liability Company Membership Interest Purchase Agreement by and between Koch Holdings Enterprises, LLC and ONEOK dated May 9, 2005 (relating to the purchase and sale of a 100%
membership interest in MB1/LP, LLC), and (D) that certain Limited Liability Company Membership Interest Purchase Agreement by and between Koch Hydrocarbon Management Company, LLC and ONEOK dated May 9, 2005 (relating to the purchase and
sale of a 100% membership interest in Koch Vesco Holdings, LLC), other than any 

  

 14 

 
such properties, rights, claims, contracts, permits and other assets as have been disposed of in the ordinary course of business. 
 (b) Except as identified to the contrary in Schedule 2.18(b), the Operating Assets are in good operating condition and repair,
ordinary wear and tear excepted, are free of material defects and are suitable for the use for which such assets are currently used. 
 2.19
Brokers’ Fees. Except for UBS Investment Bank (the fees of which shall be paid solely by ONEOK), no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission
in connection with the transactions contemplated by this Agreement based upon arrangements made by ONEOK or any of its Affiliates. 
 2.20
Books and Records. The respective books of account, minute books, stock or other equity record books and other records of each Entity, all of which have been made available to Northern Border, are complete and correct.

 2.21 Indebtedness. No Entity has any Indebtedness to any Person other than Indebtedness owed to the other Entities or
to ONEOK or its other Affiliates. 
 2.22 Disclaimer. 
 (a) Except as and to the extent expressly set forth in Section 2, (i) ONEOK makes no representations or warranties, express or
implied, and (ii) ONEOK expressly disclaims all Liability and responsibility for any representation, warranty, statement or information made or communicated (orally or in writing) to Northern Border or any of its Subsidiaries, employees,
agents, consultants or representatives (including, without limitation, any opinion, information, projection or advice that may have been provided to Northern Border by any officer, director, employee, agent, consultant, representative or advisor of
ONEOK or any of its Affiliates). 
 (b) WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS EXPRESSLY REPRESENTED
OTHERWISE IN SECTION 2, ONEOK EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, ORAL OR WRITTEN, AS TO (I) TITLE TO ANY OF THE PROPERTIES OR OTHER ASSETS OF ANY OF THE ENTITIES, (II) THE CONTENTS, CHARACTER OR NATURE
OF ANY DESCRIPTIVE MEMORANDUM OR REPORT RELATING TO THE PROPERTIES OR OTHER ASSETS OF ANY OF THE ENTITIES, (III) ANY ESTIMATES OF THE VALUE OF THE ASSETS OR FUTURE REVENUES GENERATED BY THE PROPERTIES OR OTHER ASSETS OF ANY OF THE ENTITIES,
(IV) THE MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY, DESIGN OR MARKETABILITY OF THE PROPERTIES OR OTHER ASSETS OF ANY OF THE ENTITIES, OR (V) ANY OTHER MATERIALS OR INFORMATION THAT MAY HAVE BEEN MADE AVAILABLE OR COMMUNICATED TO
NORTHERN BORDER OR ITS AFFILIATES, OR ITS OR THEIR EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES OR ADVISORS IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY DISCUSSION OR PRESENTATION RELATING THERETO, AND FURTHER
DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OF MERCHANTABILITY, FITNESS FOR A 

  

 15 

 
PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR SAMPLES OF MATERIALS OF ANY EQUIPMENT, IT BEING EXPRESSLY UNDERSTOOD AND AGREED BY THE PARTIES HERETO THAT,
EXCEPT AS EXPRESSLY REPRESENTED OTHERWISE IN SECTION 2, NORTHERN BORDER SHALL BE DEEMED TO BE OBTAINING PIPELINES, STORAGE FACILITIES, PLANTS, EQUIPMENT AND RELATED FACILITIES AND OTHER ASSETS IN ITS PRESENT STATUS, CONDITION AND STATE OF REPAIR,
“AS IS” AND “WHERE IS” WITH ALL FAULTS AND THAT NORTHERN BORDER HAS MADE OR CAUSED TO BE MADE SUCH INSPECTIONS AS IT DEEMS APPROPRIATE. 
 SECTION 3. REPRESENTATIONS AND WARRANTIES OF NORTHERN BORDER 
 Except as set forth in the disclosure schedules (the
“Northern Border Disclosure Schedules”) delivered by Northern Border to ONEOK on the date hereof (it being agreed that any matter disclosed in a particular Schedule of the Northern Border Disclosure Schedules shall be deemed to have
been disclosed with respect to any other Sections of this Agreement to the extent that the relevance of such matter to such other Section is readily apparent from the information disclosed), Northern Border represents and warrants to ONEOK that the
statements contained in this Section 3 are true, correct and complete as of the date of this Agreement and will be true, correct and complete as of the Closing, except in each case to the extent that such statements are expressly made only as
of a specified date, in which case Northern Border represents and warrants that such statements are true, correct and complete as of such specified date. 
 3.1 Organization and Authority of Northern Border. 
 (a) Northern Border
is a limited partnership duly organized, validly existing and in good standing under the laws of Delaware. 
 (b) Northern
Border has all requisite right, authority and power to enter into this Agreement and each Related Agreement to be executed and delivered by Northern Border and to carry out the transactions contemplated hereby. 
 (c) The Partnership Policy Committee and the Audit Committee of Northern Border have each approved the execution, delivery and performance
of this Agreement and each of the other Northern Border Transaction Agreements, and the Audit Committee has determined that the Northern Border Transaction is fair and reasonable to Northern Border. Except as contemplated by this Agreement, the
execution, delivery and performance by Northern Border of this Agreement and each of the other Northern Border Transaction Agreements have been duly authorized by all necessary action of Northern Border and no other action on the part of Northern
Border is required in connection therewith. 
 (d) This Agreement and each Related Agreement (including, without limitation,
the Amendment) executed and delivered by Northern Border constitutes, or when executed and delivered will constitute, valid and binding obligations of Northern Border enforceable in accordance with their respective terms, except as such
enforceability may be 

  

 16 

 
limited by bankruptcy, insolvency or other similar laws from time to time in effect which affect the enforcement of creditors’ rights generally.

 (e) The execution, delivery and performance by Northern Border of this Agreement and each Related Agreement (including,
without limitation, the Amendment) executed and delivered by Northern Border, with or without the giving of notice or the passage of time, or both: 
 (i) do not and will not conflict with or violate any provision of the organizational documents of Northern Border; 
 (ii) do not and will not conflict with or violate any Legal Requirements applicable to Northern Border or, except as set forth in Schedule 3.1(e)(ii) and any filings required to be made under the HSR Act,
require Northern Border to obtain any approval, consent or waiver of, or make any filing with, any Governmental Authority that has not been obtained or made, except for such violations or failures to obtain such approval, consent or waiver would
not, individually or in the aggregate, have a material adverse effect on the ability of Northern Border to perform its obligations hereunder and consummate the transactions contemplated hereby on the Closing Date; 
 (iii) except as set forth on Schedule 3.1(e)(iii), do not and will not require the consent, approval or waiver of any Person (other
than any Governmental Authority), except for any such consents, approvals or waivers as have been obtained or the failure of which to be obtained would not, individually or in the aggregate, have a material adverse effect on the ability of Northern
Border to perform its obligations hereunder and consummate the transactions contemplated hereby on the Closing Date; 
 (iv)
does not and will not breach any contract material to the business or operations of Northern Border or result in or permit the termination of any such contract; and 
 (v) do not require the consent or approval of the holders of common units representing limited partnership interests in Northern Border
(“Common Units”). 
 (f) The Northern Border Partnership Agreement is in full force and effect and is binding
on all the partners thereto. After the Closing, the Amendment will be effective to amend the Northern Border Partnership Agreement in accordance with the provisions and terms of the Amendment. 
 3.2 Litigation. Except as set forth on Schedule 3.2, there are no Legal Proceedings pending or, to the Knowledge of Northern
Border, threatened that challenges or otherwise seeks to prevent, enjoin, alter or delay the consummation of the transactions contemplated hereby. 
 3.3 Securities Act. Northern Border is acquiring the Shares solely for the purpose of investment and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities
Act or state securities laws. Northern Border acknowledges that the Shares are not registered under the Securities Act or any applicable state securities law, and that such Shares may not be transferred or sold except pursuant to the 

  

 17 

 
registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and pursuant to state securities laws and regulations as
applicable. 
 3.4 Brokers’ Fees. Except for the fees payable to the financial advisor referenced in
Section 3.5 herein (the fees of which shall be paid solely by Northern Border), no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by Northern Border or any of its Affiliates. 
 3.5 Opinion of Financial
Adviser. Lehman Brothers Inc. has provided the Audit Committee of Northern Border (with a copy to the Partnership Policy Committee of Northern Border) with its opinion that, as of the date hereof and based upon and subject to the
matters set forth therein, the net consideration involved in the Northern Border Transaction is fair to Northern Border from a financial point of view. 
 3.6 Disclaimer. 
 (a) Except as and to the extent expressly set forth in
Section 3, (i) Northern Border makes no representations or warranties, express or implied, and (ii) Northern Border expressly disclaims all Liability and responsibility for any representation, warranty, statement or information made
or communicated (orally or in writing) to ONEOK or any of its Affiliates, employees, agents, consultants or representatives (including, without limitation, any opinion, information, projection or advice that may have been provided to ONEOK by any
officer, director, employee, agent, consultant, representative or advisor of Northern Border or any of its Subsidiaries). 
 (b) WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS EXPRESSLY REPRESENTED OTHERWISE IN SECTION 3, NORTHERN BORDER EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, ORAL OR WRITTEN, AS TO (I) TITLE TO
ANY OF THE PROPERTIES OR OTHER ASSETS OF NORTHERN BORDER OR ANY OF ITS SUBSIDIARIES, (II) THE CONTENTS, CHARACTER OR NATURE OF ANY DESCRIPTIVE MEMORANDUM OR REPORT RELATING TO THE PROPERTIES OR OTHER ASSETS OF NORTHERN BORDER OR ANY OF ITS
SUBSIDIARIES, (III) ANY ESTIMATES OF THE VALUE OF THE ASSETS OR FUTURE REVENUES GENERATED BY THE PROPERTIES OR OTHER ASSETS OF NORTHERN BORDER OR ANY OF ITS SUBSIDIARIES, (IV) THE MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY,
DESIGN OR MARKETABILITY OF THE PROPERTIES OR OTHER ASSETS OF NORTHERN BORDER OR ANY OF ITS SUBSIDIARIES, OR (V) ANY OTHER MATERIALS OR INFORMATION THAT MAY HAVE BEEN MADE AVAILABLE OR COMMUNICATED TO ONEOK OR ITS AFFILIATES, OR ITS OR THEIR
EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES OR ADVISORS IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY DISCUSSION OR PRESENTATION RELATING THERETO, AND FURTHER DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR SAMPLES OF MATERIALS OF ANY EQUIPMENT. 
  

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 SECTION 4. COVENANTS OF ONEOK 
 4.1 Conduct of the Entities. Except as set forth on Schedule 4.1, during the period from the date of this Agreement until the Closing (the “Pre-Closing Period”), ONEOK agrees
that, except as otherwise contemplated by this Agreement, the ONEOK Disclosure Schedules, or as Northern Border shall otherwise consent in writing (such consent not to be unreasonably withheld, delayed or conditioned): 
 (a) Ordinary Course. ONEOK shall cause the Entities to, (i) conduct their Business in the ordinary course consistent with past
practice and (ii) use commercially reasonable efforts to (A) preserve intact their current business organization, (B) preserve the relationships of the Entities with customers, suppliers, landlords, creditors, employees and other
Persons having business dealings with the Entities, (C) preserve and maintain in force all of the insurance policies of the Entities and each of the Permits of the Entities, (D) maintain and repair all property material to the operation of
the Business in a manner consistent with past practice, (E) make the capital expenditures identified in the budget previously provided to Northern Border and (F) make payments to all employees, vendors and other trade creditors in a timely
manner consistent with past practice. 
 (b) Governing Documents. ONEOK shall cause each Entity not to amend or waive
any rights under the organizational documents of such Entity, other than amendments or waivers necessary to execute, deliver and perform the transactions contemplated by this Agreement including, without limitation, pursuant to Section 6.12.

 (c) Issuance of Securities. ONEOK shall cause each Entity not to issue, transfer, sell or dispose of, or authorize
or agree to the issuance, transfer, sale or disposition of (whether through the issuance or granting of options, rights, warrants, or otherwise), any Equity Interests of any Entity or any options, rights, warrants or other securities convertible
into or exchangeable or exercisable for any Equity Interests of any Entity or amend any of the terms of any securities or agreements relating to such Equity Interests outstanding on the date hereof. 
 (d) Reclassifications. ONEOK shall cause each Entity not to split, combine or reclassify any Equity Interests of any Entity, or
redeem, purchase or otherwise acquire or offer to acquire any such Equity Interests of any Entity. 
 (e) No
Acquisitions. ONEOK shall cause each Entity not to form any Subsidiary or acquire or agree to acquire, by merging or consolidating with, or by purchasing an equity interest in or any of the assets of, any Person; provided, however, that, subject
to Section 4.1(h), the foregoing shall not restrict ONEOK or any Entity from purchasing assets in the ordinary course of operating the Entities. 
 (f) No Dispositions. ONEOK shall cause each Entity not to transfer, sell, lease, license, encumber or otherwise dispose of or agree to transfer, sell, lease, license, encumber or otherwise dispose of, any of
their respective assets other than (i) in the ordinary course of business consistent with past practice, (ii) pursuant to existing contractual obligations, (iii) the imposition of Permitted Liens and (iv) the transfer of assets
among the Entities. 
  

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 (g) Material Contracts. ONEOK shall cause each Entity not to enter into, or permit
any of the material assets owned or used by Entity to become bound by or modify, amend or prematurely terminate, or waive any material right or remedy under: 
 (i) any Contract containing covenants limiting the freedom of any of the Entities, Northern Border or any of its Subsidiaries or their
assignees or successors to compete in any line of business or with any Person or in any geographic area during any period of time following the Closing; 
 (ii) any Contract for the borrowing of money or related to Indebtedness of any Entity in excess of $500,000; 
 (iii) any Contract with any officer, employee, director of any Entity or ONEOK or any of their respective Affiliates; 
 (iv) any Contract with any union, trade organization or bargaining unit representative; or 
 (v) any acquisition, divestiture, merger, joint venture or partnership agreement that is material to the Business. 
 (h) Capital Expenditures. ONEOK shall cause each Entity not to make, authorize or enter into commitments to make capital expenditures in an amount that, when added to all other capital expenditures made during the Pre-Closing Period
on behalf of any Entity, exceeds $500,000, other than any capital expenditures contemplated by the budget previously provided to Northern Border. 
 (i) Indebtedness. ONEOK shall cause each Entity not to (i) lend money to any Person (except that any Entity may make routine advances to employees in the ordinary course of business) or (ii) incur,
assume, guarantee or otherwise become liable in respect of any Indebtedness. 
 (j) Accounting. ONEOK shall cause each
Entity not to change any of its methods of accounting or accounting practices in any material respect except as may be required by any Legal Requirement or GAAP. 
 (k) Tax Elections. ONEOK shall cause each Entity not to make any Tax election, other than (A) any Tax election made consistent
with prior practice of the Entity, (B) a Tax election that would not adversely affect Northern Border or any Entity for any taxable period or portion thereof beginning after the Closing Date or (C) a Tax election to effect a Conversion
Transaction as contemplated by Section 6.11. 
 (l) Proceedings. ONEOK shall cause each Entity not to settle any
material Legal Proceeding if, as a result of the settlement, the Entity would be liable after the Closing for settlement payments in excess of $5,000,000 or subject to any injunctive or similar equitable relief or otherwise be subject to any ongoing
obligations following the payment of any settlement amounts. 
  

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 (m) Regulatory Actions. ONEOK shall cause each Entity not to, other than routine
compliance filings, make any filings or submit any documents or information to FERC or any other Governmental Authority, other than routine compliance filings, without prior consultation with Northern Border. 
 (n) Agreements to Take Action. ONEOK shall cause each Entity not to agree or commit to take any of the actions described in clauses
“(b)” through “(m)” above. 
 4.2 Cash Management. Nothing contained in this Agreement shall prevent
or limit the ability of any Entity to distribute, dividend or otherwise transfer any cash to ONEOK, any other Entity or any other Affiliate of ONEOK during the Pre-Closing Period. 
 SECTION 5. COVENANTS OF NORTHERN BORDER 
 5.1 Northern Border’s Efforts Regarding
Financing Arrangements. 
 (a) Northern Border shall use commercially reasonable efforts to obtain commitments
from sources of financing (the “Financing Commitments”), before the Closing, in amounts, when added to available unrestricted funds are sufficient to enable Northern Border to satisfy its obligations under Section 1.2 of this
Agreement. 
 (b) Northern Border will promptly notify ONEOK if any of the institutions party to a Financing Commitment
withdraws, terminates or makes a material change in the amount or terms of such Financing Commitment that could reasonably be expected to adversely affect the ability of Northern Border to satisfy its obligations under Section 1.2 of this
Agreement. In addition, upon ONEOK’s reasonable request, Northern Border will advise ONEOK with respect to the status, proposed closing date, and material terms of the Financing Commitments. 
 (c) Northern Border will, and will cause its Affiliates to, use commercially reasonable efforts to (i) maintain the effectiveness of
the Financing Commitments in accordance with their terms or obtain alternative financing if necessary to satisfy its obligations under Section 1.2 of this Agreement, (ii) enter into definitive documentation with respect to the Financing
Commitments, or any alternative financing necessary satisfy its obligations under Section 1.2 of this Agreement, (iii) satisfy all funding conditions to the Financing Commitments or any alternative financing set forth in the definitive
documentation with respect to the financing contemplated by the Financing Commitments, or alternative financing necessary to satisfy its obligations under Section 1.2 of this Agreement, (iv) consummate the financing contemplated by the
Financing Commitments, (v) procure the execution and delivery of the Northern Border Credit Agreement Amendments and (vi) procure the execution and delivery of the waiver to the Viking Indenture described in Section 7.2(m).

 5.2 Books and Records. 
 (a) No later than ten (10) days after Closing, ONEOK will make available to Northern Border or its designee, at ONEOK’s sole cost and expense, originals of all files, records, information and data (in all
formats) owned by or primarily relating to the Entities that are in the possession or control of ONEOK or its Affiliates (together with all ONEOK’s and its 

  

 21 

 
Affiliate’s contractual rights to request other such files, records, information and data from any third party). 
 (b) For a period of five (5) years from the Closing Date: 
 (i) Northern Border shall not dispose of or destroy any of the material books and records relating to the Business for periods prior to
the Closing (the “Books and Records”) without first offering to turn over possession thereof to ONEOK by written notice from Northern Border to ONEOK at least 60 days prior to the proposed date of such disposition or destruction.
Within 30 days after receipt of such notice from Northern Border, ONEOK may notify Northern Border that it wishes to receive such Books and Records, and Northern Border shall deliver such Books and Records (to the extent such Books and Records are
not subject to an attorney-client or similar privilege or other confidentiality obligation) to a designated Representative of ONEOK upon receipt by Northern Border of a written agreement in form and substance reasonably satisfactory to Northern
Border in which ONEOK agrees to maintain the confidentiality of such Books and Records. If ONEOK does not notify Northern Border within 30 days of receipt of such notice, Northern Border may dispose of or destroy the Books and Records. 

(ii) Northern Border shall, on reasonable notice and at reasonable times at Northern Border’s principal place of business or at
any location where any Books and Records are stored, allow ONEOK and its agents reasonable access to all Books and Records that are not subject to attorney-client or similar privilege or other confidentiality obligation, to the extent such access is
requested for any legitimate purpose related to ONEOK’s prior ownership of the Entities and provided that Northern Border has received a written agreement in form and substance reasonably satisfactory to Northern Border in which ONEOK agrees to
maintain the confidentiality of such Books and Records. ONEOK shall have the right, at its own expense, to make copies of any such Books and Records; provided, however, that any such access or copying shall be had or done in such a manner so as not
to unduly interfere with the normal conduct of the Business. 
 (iii) Northern Border shall make available to ONEOK upon
reasonable notice to ONEOK and at reasonable times and upon written request Northern Border’s personnel to assist ONEOK in locating and obtaining any Books and Records. 
 SECTION 6. COVENANTS OF ONEOK AND NORTHERN BORDER 
 The parties hereto agree that: 

6.1 Access to Information. During the Pre-Closing Period, ONEOK will, and will cause each Entity to, (i) give Northern
Border and its Representatives reasonable access during normal business hours and on reasonable notice to the officers, personnel, properties, Tax Returns, books, records and work papers of and relating to any Entity, (ii) furnish to Northern
Border and its Representatives such financial and operating data and copies of such Tax Returns, books, records, work papers and other documents and information with respect to any Entity, as such Persons may reasonably request, and
(iii) instruct their respective Representatives to cooperate with Northern Border in its investigation of the Entities. The Parties agree that any 

  

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information provided, or caused to be provided, by the Entities pursuant to this Section 6.1 shall be kept confidential and not disclosed to any third
party, except to the extent required by any Legal Requirement. ONEOK shall cooperate to ensure that the provision of access hereunder to Northern Border and its authorized Representatives shall comply in all respects with the Federal Energy
Regulatory Commission’s (“FERC”) Standards of Conduct for Transmission Providers set forth in 18 C.F.R. Part 37, et al. 
 6.2 Commercially Reasonable Efforts. Subject to the terms and conditions of this Agreement and applicable Legal Requirements, each of the Parties hereto shall act in good faith and use its commercially reasonable
efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the transactions contemplated hereby as soon as practicable, including such actions or
things as the other Party may reasonably request in order to cause any of the conditions to such other Party’s obligation to consummate the transactions contemplated by this Agreement to be fully satisfied. 
 6.3 Regulatory and Other Authorizations; Notices and Consents. 
 (a) Each of ONEOK and Northern Border shall use commercially reasonable efforts to obtain promptly all authorizations, consents, orders
and approvals of all Governmental Authorities (including by making, or causing to be made, all appropriate filings of notifications or reports) necessary for its execution and delivery of, and the performance of its obligations pursuant to, and the
consummation of the transactions contemplated by, this Agreement (such authorizations, consents, orders and approvals, “Governmental Approvals”). ONEOK and Northern Border shall, and ONEOK shall cause the Entities to, cooperate in
promptly seeking to obtain the Governmental Approvals. 
 (b) Neither ONEOK nor Northern Border shall intentionally take any
action that would be reasonably expected to delay, impair or impede the receipt of any Governmental Approvals. ONEOK and Northern Border agree to make, or to cause to be made, all appropriate filings of notifications and reports required to obtain
the Governmental Approvals promptly after the date of this Agreement and to supply promptly any additional information and documentary material that may be requested by Governmental Authorities responsible therefor. As defined further below, the
parties shall cooperate in making any such filings. ONEOK and Northern Border agree to use their commercially reasonable efforts to avoid or eliminate each and every impediment under any Legal Requirement that may be asserted by any Governmental
Authority in connection with the Governmental Approvals so as to enable the Parties to expeditiously close the transactions contemplated by this Agreement. ONEOK and Northern Border agree to use commercially reasonable efforts to vacate or lift any
order relating to the Governmental Approvals that would have the effect of making any of the transactions contemplated by this Agreement illegal or otherwise prohibiting their consummation. Notwithstanding any other terms or provisions of this
Agreement, in no event shall Northern Border or its Subsidiaries be deemed to have any obligation to dispose of any assets or properties (including any assets or properties of the Entities) or to enter into any agreement with any Person in order to
obtain early termination or expiration of the waiting period under the HSR Act or to obtain any other Governmental Approvals. 
  

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 (c) Each Party shall promptly notify the other party of any communication it or any of
its Affiliates receives from any Governmental Authority relating to the matters that are the subject of this Agreement, including any filing, investigation or inquiry, and, subject to applicable Law, permit the other Party to review in advance any
proposed communication by such Party to, or filing by such party with, any Governmental Authority. No Party shall agree to participate in any meeting with any Governmental Authority in respect of any filings, investigation or other inquiry unless it
consults with the other Party in advance and, to the extent permitted by such Governmental Authority, affords the other Party the reasonable opportunity to attend and participate. Each Party will coordinate and cooperate fully with the other Party
in exchanging such information and providing such assistance as such other Party may reasonably request in connection with the foregoing and in seeking early termination of any applicable waiting periods under the HSR Act or in connection with any
other Governmental Approvals. Each Party will provide the other Party with copies of all correspondence, filings or communications between it or any of its Representatives, on the one hand, and any Governmental Authority, on the other hand, with
respect to this Agreement and the transactions contemplated by this Agreement, including with respect to the Party hereto making a filing, providing copies of all such documents to the non-filing Party and its Representatives prior to filing (except
that neither Party hereto shall be under an obligation of any kind to provide the other Party with documents, material or other information relating to such Party’s valuation of the Business). 
 (d) Northern Border and ONEOK shall (and shall each cause their respective Affiliates to) use commercially reasonable efforts to obtain
all consents, authorizations, waivers and approvals of third parties that any of Northern Border, ONEOK or their respective Affiliates (including the Entities) are required to obtain in order to consummate the transactions contemplated hereby.

 6.4 Public Announcements. During the Pre-Closing Period, ONEOK and Northern Border shall consult with each other
before issuing any press release or making any public statement with respect to the transactions contemplated hereby and, except as may be required by applicable Legal Requirements or stock exchange rules and regulations, shall not issue any such
press release or make any such public statement unless the text of such statement shall first have been agreed to by the parties. 
 6.5
Notices of Certain Events. Each Party hereto shall promptly notify the other Party hereto (i) following the receipt of any notice of any Legal Proceeding commenced or, to the Knowledge of ONEOK, or the Knowledge of Northern
Border, as applicable, threatened against it that relates to or seeks to prohibit the consummation of the transactions contemplated hereby, (ii) upon its discovery that any of its representations or warranties in this Agreement contain any
inaccuracies or that such Party has breached or otherwise failed to perform its obligations, covenants and agreements contained herein or (iii) upon its discovery of any development that is reasonably likely to result in a failure of a
condition to the Closing. 
 6.6 Entity Guarantees. 
 (a) Northern Border and ONEOK shall use commercially reasonable efforts to obtain from the respective beneficiary, in form and substance
reasonably satisfactory to ONEOK, 

  

 24 

 
on or before the Closing, valid and binding written releases of ONEOK and its Affiliates (other than the Entities), as applicable, from any liability or
obligation, whether arising before, on or after the Closing Date, under any Entity Guarantees in effect as of the Closing. If any Entity Guarantee has not been released as of the Closing Date, then Northern Border shall continue to use commercially
reasonable efforts after the Closing to cause each such unreleased Entity Guarantee to be released promptly. Schedule 6.6(a) to the ONEOK Disclosure Schedules contains a true, correct and complete list of all of the Entity Guarantees.

 (b) Notwithstanding anything to the contrary herein, the Parties acknowledge and agree that at any time on or after the
Closing Date, any of ONEOK and its Affiliates may, in its sole discretion, take any action to terminate, obtain release of or otherwise limit its liability under any and all outstanding Entity Guarantees. 
 (c) Northern Border shall indemnify and hold harmless ONEOK and its Affiliates from and after the Closing Date for any and all Damages
arising out of or relating to any Entity Guarantees. 
 6.7 Intercompany Accounts. Except for amounts related to normal
operational sales and cost of sales and fuel, prior to Closing ONEOK will settle all Intercompany Accounts and intercompany arrangements between any Entity, on the one hand, and ONEOK and its Affiliates (other than an Entity), on the other hand, and
the Entities will not have any Liability whatsoever with respect to such settled intercompany arrangements and Intercompany Accounts. ONEOK shall be solely liable for any contractual or other Liabilities, express or implied, arising out of the
termination, cancellation and elimination of any of the foregoing. 
 6.8 Shared Contracts and Drop-Down Contracts. 

(a) Schedule 6.8(a) contains a true and complete listing of all Shared Contracts and Drop-Down Contracts. Commencing on the date
hereof, (i) Northern Border and ONEOK shall use commercially reasonable efforts to cause the Shared Contracts to be replaced with separate Contracts that provide that each Entity receive only such rights and obligations under a replacement
Contract substantially and materially similar to those contract rights and obligations utilized by it in the conduct of its business immediately prior to the date hereof and (ii) Northern Border and ONEOK shall use commercially reasonable
efforts to cause the Drop-Down Contracts to be assigned to one or more Entities, as applicable, or, if any such Drop-Down Contracts are not assignable or if ONEOK is not able to obtain any consent required to so assign such Drop-Down Contracts, use
commercially reasonable efforts to cause such Drop-Down Contracts to be replaced with separate Contracts that provide that the Entity receives the rights and obligations under a replacement Contract as are substantially and materially similar to
those contract rights and obligations of ONEOK under such Drop-Down Contracts immediately prior to the date hereof. The administrative costs and expenses arising from the separation, replacement or assignment of a Shared Contract or Drop-Down
Contract (excluding any costs incurred under the payment terms under any such Contract or any replacement Contract) shall be borne by ONEOK. 
 (b) If the Parties are not able to effect the separation and replacement of a Shared Contract or to effect the assignment or replacement of a Drop-Down Contract prior to the 

  

 25 

 
Closing, then, from the Closing until such Contract is separated and replaced (in the case of a Shared Contract), assigned or replaced (in the case of a
Drop-Down Contract) or expires by its terms, to the extent permissible under any Legal Requirement and under the terms of such Contract, ONEOK shall, and Northern Border shall cause each Entity to, (i) assume and perform the liabilities and
obligations under such Contract relating to its respective business (and shall promptly reimburse the other Party for any expenses relating thereto incurred by the other Party or its Affiliates), (ii) hold in trust for the benefit of the other
Party, and shall promptly forward to the other Party, any monies or other benefits received pursuant to such Shared Contract relating to the business of the other Party (or its Affiliates) and (iii) endeavor to institute alternative
arrangements intended to put the Parties in substantially the same economic position as if such Contract were separated and replaced (in the case of a Shared Contract) or assigned or replaced (in the case of a Drop-Down Contract). 
 6.9 ONEOK Marks. Northern Border shall obtain no right, title, interest, license or any other right whatsoever to use the word
“ONEOK” or any Trademarks containing or comprising the foregoing, or any Trademark confusingly similar thereto or dilutive thereof (collectively, the “ONEOK Marks”). Notwithstanding the preceding sentence, effective upon
the Closing Date, ONEOK, on behalf of itself and its Affiliates hereby grants to the Entities and Northern Border a nonexclusive, nontransferable, royalty-free license, without right to sublicense, to use, solely in the Entities’ businesses as
they are presently conducted, any and all of the ONEOK Marks solely to the extent appearing on existing advertising materials and property of the Companies (such as signage, vehicles, and equipment) for a period of 6 months from the Closing Date
(“License Period”); provided, however, that with respect to pipeline and gas storage signage the License Period shall be deemed to be a period of 12 months from the Closing Date. Northern Border and the Entities may use such
existing inventory, advertising materials and property during the License Period, but shall not create new inventory, advertising materials or property using the ONEOK Marks. Northern Border and the Entities shall promptly replace or remove all
ONEOK Marks on inventory, advertising materials and other assets, provided that all such use shall cease no later than the end of the License Period. As promptly as practicable and no later than 60 days after the Closing Date, Northern Border shall
change the name of any Entity that contains a reference to “ONEOK” to a name that does not contain such reference. The Parties agree, because damages would be an inadequate remedy, that a Party seeking to enforce this Section 6.9
shall be entitled to seek specific performance and injunctive relief as remedies for any breach thereof in addition to other remedies available at law or in equity. 
 6.10 Indebtedness for Borrowed Money. Immediately prior to the Closing, (i) ONEOK shall repay or otherwise settle any Indebtedness due to the Entities from ONEOK or its Affiliates (other than
the Entities) and (ii) ONEOK shall cause the repayment or settlement any Indebtedness due from the Entities to ONEOK or its Affiliates (other than the Entities), in each case, including interest and other amounts accrued thereon or due in
respect thereof, other than any Indebtedness fully reflected in the Closing Working Capital. 
 6.11 Conversion
Transactions. ONEOK shall, prior to the Closing Date, subject to having obtained any and all necessary approvals and consents from Governmental Authorities, (a) cause each of the Converting Companies to convert from corporations
into an Eligible Person under the laws of the jurisdiction in which each is organized on the date of this Agreement (the 

  

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“Conversion Transactions”) (and use its best efforts, after consulting with Northern Border, to form such Eligible Person as instructed by
Northern Border) and (b) cause each of the Companies and Company Subsidiaries that is not on the date hereof treated as a partnership or an entity disregarded from its owner for United States federal income tax purposes to be so treated on or
before the Closing Date and (c) cause each such Company and Company Subsidiary described in (a) or (b) above to be continuously treated as a partnership or a disregarded entity from its owner for United States federal income tax
purposes from the date it becomes so treated through the Closing Date. 
 6.12 Interim Financial Statements. From time
to time after the date hereof, ONEOK will deliver to Northern Border copies of the monthly and quarterly financial statements (which shall include a balance sheet and a statement of income) for the Entities for all periods after the Balance Sheet
Date through and including the Closing Date (collectively, the “Interim Financial Statements”). The Interim Financial Statements will be prepared on the same basis as the Financial Statements and will present fairly in all material
respects the financial position, results of operations and cash flows of the Entities as of such dates and for the periods then ended (subject to normal year-end audit adjustments consistent with prior periods). 
 6.13 Cooperation Regarding Audits. ONEOK acknowledges and understands that Northern Border may be required to obtain certain
information relating to the Entities including, but not limited to, audited or unaudited financial statements of the Entities, and disclose such information in registration statements and other documents filed with the Securities and Exchange
Commission under the federal securities laws or in disclosure documents given to investors in certain securities offerings, including in connection with the third-party financing required to satisfy Northern Border’s obligations under
Section 1.2 of this Agreement. At Northern Border’s cost, ONEOK agrees to use commercially reasonable efforts to cooperate, and shall cause its Affiliates, accountants, counsel and other agents and representatives to cooperate, with
Northern Border in connection therewith with respect to the Entities for periods prior to the Closing, including the execution and delivery of any customary audit representation letters, consents or comfort letters and representation letters for
such periods presented to ONEOK by Northern Border and its auditors for execution in connection therewith. 
 SECTION 7. CONDITIONS TO CLOSING

 7.1 Conditions to the Obligations of ONEOK. The obligation of ONEOK to consummate this Agreement and the
transactions contemplated hereby is subject to the fulfillment, prior to or at the Closing, of the following conditions precedent unless waived by ONEOK in its sole discretion: 
 (a) Accuracy of Representations and Warranties. All representations and warranties made by Northern Border herein and in any
Related Agreement shall be true and correct when made and on and as of the Closing, except for representations and warranties that are made as of a specific date or time, which shall be true and correct only as of such specific date or time, except
for such failures of such representations and warranties to be true and correct (without giving effect to any limitation or qualification as to Northern Border Material Adverse Effect or “materiality” (including the word
“material”) set forth therein) as would not, individually or in the aggregate, have a material adverse effect on the ability of Northern Border 

  

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to perform its obligations hereunder and consummate the transactions contemplated hereby on the Closing Date. 
 (b) Compliance with Covenants. Northern Border shall have performed in all material respects all obligations and agreements, and
complied in all material respects with all covenants, contained in this Agreement and any Related Agreements to be performed or complied with by it prior to or on the Closing. 
 (c) No Material Change. Since the date hereof, there shall not have occurred any event, development or circumstance that,
individually or in the aggregate, has had or would reasonably be expected to have a Northern Border Material Adverse Effect. 
 (d) Certificate from Officers. Northern Border shall have delivered to ONEOK a certificate of Northern Border’s Chief Financial and Accounting Officer dated as of the Closing to the effect that the statements set forth in
paragraphs (a), (b) and (c) above in this Section 7.1 are true and correct. 
 (e) No Injunction. At the
time of Closing there shall be no effective injunction, writ or preliminary restraining order or any Governmental Order of any nature issued by a Governmental Authority of competent jurisdiction to the effect that the transactions contemplated by
this Agreement may not be consummated as herein provided, and no proceeding or lawsuit shall have been commenced by any Governmental Authority or other Person for the purpose of obtaining any such injunction, writ or preliminary restraining order.

 (f) Hart-Scott-Rodino. All required filings under the HSR Act shall have been completed and all applicable time
limitations under such Act shall have expired without a request for further information by the relevant Governmental Authorities under such Act, or in the event of such a request for further information, the expiration of all applicable time
limitations under the Act shall have occurred without the objection of such federal authorities. 
 (g) Governmental
Approvals. The consent of (i) Kansas Corporation Commission for transfer of Certificates of Convenience and Necessity and transfer of tariffs related to Mid-Continent Marketing Center (“KCC Consent”) and (ii) Oklahoma
Corporation Commission for the sale of ONEOK Gas Transportation, L.L.C. (“OCC Consent”), shall have been obtained. 
 (h) Other Transactions. The transactions contemplated by the Contribution Agreement by and among ONEOK, Northern Border and NBILP, dated concurrently with this Agreement (the “Contribution
Agreement”), the Purchase and Sale Agreement between TransCan Northwest Border Ltd and Northern Plains Natural Gas Company, LLC (the “GP Purchase Agreement“) and the Partnership Interest Purchase and Sale Agreement by and between
NBILP and TC PipeLines Intermediate Limited Partnership, dated February 14, 2006 (the “TransCanada Agreement” and, together with the Contribution Agreement and the GP Purchase Agreement, the “Other Transaction
Agreements”), shall have been consummated on the Closing Date (the transactions contemplated by the GP Purchase Agreement shall be consummated immediately prior to the Closing and ONEOK or its Affiliates shall, immediately following such
consummation, own 100% of the general partnership interests in Northern 

  

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Border, the transactions contemplated by the Contribution Agreement shall be consummated simultaneously with the Closing and the transactions contemplated by
the TransCanada Agreement shall be consummated immediately following the Closing). 
 (i) Amendment to Credit Facility.
An amendment to each of (A) the Credit Agreement dated as of September 17, 2004 by and among ONEOK, Bank of America, N.A., and the financial institutions therein named as Lenders, as amended, and (B) the Credit Agreement dated
June 27, 2005 among ONEOK, Inc., as Borrower, Citibank, N.A., as Administrative Agent, and the Lenders party thereto, as amended, shall have been executed and delivered by the parties thereto in form and substance reasonably satisfactory to
ONEOK that permits ONEOK to enter into and perform its obligations under this Agreement. 
 (j) Delivery of
Deliverables. Each of the deliveries set forth in Section 1.3(c) shall have been made. 
 7.2 Conditions to the Obligations of
Northern Border. Northern Border’s obligation to consummate this Agreement and the transactions contemplated hereby is subject to the fulfillment, prior to or at the Closing, of the following conditions precedent unless waived by
Northern Border in writing in its sole discretion: 
 (a) Accuracy of Representations and Warranties. All
representations and warranties made by ONEOK herein and in any Related Agreement shall be true and correct when made and on and as of the Closing, except for representations and warranties that are made as of a specific date or time, which shall be
true and correct only as of such specific date or time; except for such failures of such representations and warranties to be true and correct (without giving effect to any limitation or qualification as to “materiality” (including the
word “material”) or “Material Adverse Effect” set forth therein) as would not, individually or in the aggregate, have a Material Adverse Effect. 
 (b) Compliance with Covenants. ONEOK shall have performed in all material respects all obligations and agreements, and complied in
all material respects with all covenants, contained in this Agreement and any Related Agreements to be performed or complied with by it prior to or on the Closing. 
 (c) No Material Change. Since the date hereof, there shall not have occurred any event, development or circumstance with respect to
ONEOK or the Entities that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect or a material adverse effect on the ability of ONEOK to perform its obligations hereunder and consummate the
transactions contemplated hereby on the Closing Date. 
 (d) Certificate from Officers. ONEOK shall have delivered to
Northern Border a certificate of ONEOK’s Chief Financial Officer dated as of the Closing to the effect that the statements set forth in paragraphs (a), (b) and (c) above in this Section 7.2 are true and correct. 
 (e) No Injunction. At the time of Closing there shall be no effective injunction, writ or preliminary restraining order or any
Governmental Order of any nature issued by a Governmental Authority of competent jurisdiction to the effect that the transactions 

  

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contemplated by this Agreement may not be consummated as herein provided, and no proceeding or lawsuit shall have been commenced by any Governmental
Authority or other Person for the purpose of obtaining any such injunction, writ or preliminary restraining order. 
 (f)
Hart-Scott-Rodino. All required filings under the HSR Act shall have been completed and all applicable time limitations under such Act shall have expired without a request for further information by the relevant Governmental Authorities under
such Act, or in the event of such a request for further information, the expiration of all applicable time limitations under the Act shall have occurred without the objection of such federal authorities. 
 (g) Governmental Approvals. The KCC Consent and the OCC Consent shall have been obtained. 
 (h) Other Transactions. The transactions contemplated by the Other Transaction Agreements shall have been consummated on the
Closing Date (the transactions contemplated by the GP Purchase Agreement shall be consummated immediately prior to the Closing and ONEOK or its Affiliates shall, immediately following such consummation, own 100% of the general partner interests in
Northern Border, the transactions contemplated by the Contribution Agreement shall be consummated simultaneously with the Closing and the transactions contemplated by the TransCanada Agreement shall be consummated immediately following the Closing).

 (i) Conversion Transactions. The Conversion Transactions shall have been completed in form and substance
satisfactory to Northern Border. 
 (j) Funding. Northern Border shall have received the proceeds of the financing
contemplated by the Financing Commitments on substantially the same terms and subject to the conditions set forth therein. 
 (k) Amendment of Certain Debt Agreements. Amendments to (i) that certain Revolving Credit Agreement, dated as of May 16, 2005, by and among Northern Border, the lenders named therein and Citibank, N.A., and (ii) that
certain Revolving Credit Agreement, dated as of May 16, 2005, by and among Northern Border Pipeline Company, the lenders named therein, and Citibank N.A., (the “Northern Border Credit Agreements”) that permit Northern
Border to enter into and consummate the transactions contemplated by the Northern Border Transaction Agreements without violating the terms of, or causing a default under, either such credit agreement, in the form attached hereto as Exhibit F
(the “Northern Border Credit Agreement Amendments”), shall have been executed and delivered by the parties thereto. 
 (l) Delivery of Deliverables. Each of the deliveries set forth in Section 1.3(b) shall have been made 
 (m) Waiver Under Viking Indenture. A waiver by the holders of a majority of the principal amount of the notes outstanding under the Amended and Restated Indenture Agreement dated as of November 30, 2004
the (“Viking Indenture”) between Viking Gas Transmission Company and Wells Fargo Bank, National Association, as Trustee as are reasonably necessary to permit Northern Border to enter into and consummate the transaction 

  

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contemplated by the Northern Border Transaction Agreements without violating the terms thereof or causing a default thereunder shall have been obtained.

 SECTION 8. TERMINATION OF AGREEMENT; RIGHTS TO PROCEED 
 8.1 Termination. 
 (a) This Agreement may be terminated on or prior to the
Closing Date only as follows: 
 (i) by mutual written consent of the Parties to this Agreement; 
 (ii) at the election of either ONEOK or Northern Border, if the Closing shall not have occurred on or prior to June 30, 2006;
provided that no Party shall be entitled to terminate this Agreement pursuant to this Section 8.1(a)(ii) if such Party’s failure to fulfill any obligation under this Agreement has been the primary cause of the failure of the Closing to
occur on or before such date; and provided further that upon the occurrence of a request for additional information being received from a Governmental Authority pursuant to the HSR Act, such date shall be extended to September 30, 2006;

 (iii) by either ONEOK or Northern Border, if a Governmental Authority shall have issued an order, decree or ruling
permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement, and such order, decree or ruling shall have become final and nonappealable, provided that the terminating Party has satisfied its
obligations under Section 6 in response to actions or requests of such Governmental Authority; 
 (iv) by ONEOK, if ONEOK
is not in material breach of its obligations under this Agreement and there has been a breach of any representation, warranty, covenant, or agreement of Northern Border contained in this Agreement such that any of the conditions set forth in
Section 7.1 would not be satisfied at or prior to the Closing, and, if such breach is of a character that it is capable of being cured, such breach has not been cured by Northern Border within 15 days after written notice thereof from ONEOK; or

 (v) by Northern Border, if Northern Border is not in material breach of its obligations under this Agreement and there has
been a breach of any representation, warranty, covenant, or agreement of ONEOK contained in this Agreement such that any of the conditions set forth in Section 7.2 would not be satisfied at or prior to the Closing, and, if such breach is of a
character that it is capable of being cured, such breach has not been cured by ONEOK within 15 days after written notice thereof from Northern Border. 
 (b) The termination of this Agreement shall be effectuated by the delivery of a written notice of such termination from the party terminating this Agreement to the other party. 
 8.2 Effect of Termination. All obligations of the parties hereunder shall cease upon any termination pursuant to Section 8.1;
provided, however, that (i) the provisions of this Section 8, Section 6.1 (solely with respect to confidentiality obligations) and Section 11 hereof shall survive any termination of this Agreement, and (ii) nothing herein
shall relieve any party 

  

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from any Liability for any intentional breach (including any “efficient breach”) of this Agreement or a failure to comply with any of its
covenants, conditions or agreements contained herein. 
 SECTION 9. INDEMNIFICATION 
 9.1 Survival of Representations and Warranties, Etc. 
 The representations and warranties of ONEOK and Northern Border contained in this Agreement shall survive the Closing and expire on the
second anniversary of the Closing Date; provided, however, that (i) the representations and warranties of ONEOK in Sections 2.1 (Organization and Authority of ONEOK), 2.2 (Organization, Authority and Qualification of the Entities), 2.3 (Capital
of Companies; Beneficial Ownership) and 2.4 (Subsidiaries) shall survive indefinitely, (ii) the representations and warranties of ONEOK in Section 2.16 (Environmental Matters) shall survive the Closing and expire on the fourth anniversary
of the Closing Date, (iii) the representations and warranties of ONEOK in Section 2.6 (Taxes) shall survive the Closing and expire on the 60th day following the expiration of the applicable statute of limitations relating thereto and (iv) the representations and warranties of Northern Border in Section 3.1 (Organization and
Authority of Northern Border) shall survive indefinitely. No Northern Border Indemnitee shall be entitled to indemnification for a breach of a representation or warranty under this Section 9 unless it shall have given ONEOK written notice that
it seeks indemnification (which notice may be, in the case of third-party Claims, notice under Section 9.7) on or before the expiration of such representation or warranty. No ONEOK Indemnitee shall be entitled to indemnification for a breach of
a representation or warranty under this Section 9 unless it shall have given the Northern Border written notice that it seeks indemnification (which notice may be, in the case of third-party Claims, notice under Section 9.7) on or before
the expiration of such representation or warranty. Each notice delivered under the preceding two sentences shall include a good faith estimate of the amount claimed and a detailed description of the circumstances surrounding the Damages in respect
of which indemnification is claimed. The terms of this Agreement that by their nature are intended to survive the Closing shall survive the Closing indefinitely (or for their respective terms, if any). 
 9.2 Indemnification. 
 (a) From and after the Closing, ONEOK shall hold harmless and indemnify the Northern Border Indemnitees from and against, and shall compensate and reimburse each of the Northern Border Indemnitees for, (i) any
Damages which are directly or indirectly suffered or incurred by any of the Northern Border Indemnitees or to which any of the Northern Border Indemnitees may otherwise become subject (regardless of whether or not such Damages relate to any
third-party Claim) as a result of, caused by or arising out of (including any allegations by a third party): (A) other than in connection with Section 2.16 of this Agreement (which is covered under Section 9.2(a)(ii) below), any
inaccuracy in or breach of any representation or warranty of ONEOK set forth in this Agreement (without giving effect to any limitation or qualification as to “materiality” (including the word “material” or “Material Adverse
Effect”) contained or incorporated directly or indirectly in such representation or warranty; or (B) any breach of any covenant or obligation of ONEOK under this Agreement; or (ii) any Damages with respect to any inaccuracy in or
breach of any representation or warranty of ONEOK set forth in Section 

  

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2.16 of this Agreement (without giving effect to any limitation or qualification as to “materiality” (including the word “material” or
“Material Adverse Effect”) or the “Knowledge of ONEOK” contained or incorporated directly or indirectly in such representation or warranty), in each case in this subsection (ii) except for Damages that arise out of matters
discovered by or on behalf of Northern Border or its Subsidiaries as a result of a Phase II, Phase III or similar environmental subsurface investigation undertaken voluntarily after Closing by or on behalf of Northern Border or any of its
Subsidiaries, including the Entities, and except for remediation costs and expenses for matters which are not required to be remediated under applicable law. 
 (b) From and after the Closing, Northern Border shall hold harmless and indemnify the ONEOK Indemnitees from and against, and shall
compensate and reimburse each of the ONEOK Indemnitees for, any Damages which are directly or indirectly suffered or incurred by any of the ONEOK Indemnitees or to which any of the ONEOK Indemnitees may otherwise become subject (regardless of
whether or not such Damages relate to any third-party Claim) as a result of, caused by or arising out of: (i) any inaccuracy in or breach of any representation or warranty of Northern Border set forth in this Agreement (without giving effect to
any limitation or qualification as to “materiality” (including the word “material” or “Northern Border Material Adverse Effect”) contained or incorporated directly or indirectly in such representation or warranty); or
(ii) any breach of any covenant or obligation of Northern Border under this Agreement; provided, however, that no ONEOK Indemnitee shall have any claim or recourse against Northern Border, and Northern Border shall have no obligation to
indemnify any ONEOK Indemnitee under the terms of this Agreement, with respect to any breach by Northern Border of any representation or warranty of Northern Border set forth in this Agreement if to the Knowledge of ONEOK, Northern Border is in
breach of any representation or warranty on the date hereof. For purposes of this Section 9.2(b) only, the term “Knowledge of ONEOK” shall include the actual knowledge of David Kyle. 
 (c) To the extent that ONEOK or its Affiliates (other than the Entities) has the right to seek indemnification from third parties for the
benefit of the Entities or their assets, and the Entities are not entitled to seek such indemnification on their own accord, ONEOK, upon Northern Border’s written request, shall assign such indemnification rights to Northern Border or, if such
rights cannot be assigned, assert (at Northern Border’s cost) a claim relating to such matter against such third party on behalf of the applicable Entities, and provide to Northern Border all benefits of such indemnification as, when and if
provided by such third party. Notwithstanding the foregoing, neither ONEOK nor its Affiliates shall be obligated to make any additional payments or to take any action that would cause them to incur or be subject to any additional liabilities or
costs with respect to any actions taken under this Section 9.2(c). 
 9.3 Threshold; Cap. 
 (a) ONEOK shall not be required to make any indemnification payment in respect of any claim or series of substantially related claims made
pursuant to Section 9.2(a) of this Agreement, or pursuant to Section 9.2(a)(i)(A) or (B) or Section 9.2(a)(ii) of the Contribution Agreement, unless the amount of any Damages that have been directly or indirectly suffered or
incurred by any one or more of the Northern Border Indemnitees or to which any one or more of the Northern Border Indemnitees has or have otherwise become subject with respect to such claim (or such substantially related claims) exceeds $100,000
(the “Minimum Claim  

  

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Amount”). In addition, ONEOK shall not be required to make any indemnification payment pursuant to Section 9.2(a) of this Agreement, or
pursuant to Section 9.2(a)(i)(A) or (B) or Section 9.2(a)(ii) of the Contribution Agreement, until such time as the total amount of all individual claims exceeding the Minimum Claim Amount (such total amount, the “Aggregate
Northern Border Damages”) exceeds $45,000,000 in the aggregate (the “Indemnity Threshold”). If the total amount of such Aggregate Northern Border Damages exceeds the Indemnity Threshold, then, subject to
Section 9.3(b), the Northern Border Indemnitees shall be entitled to be indemnified against and compensated and reimbursed for all Aggregate Northern Border Damages in excess of the Indemnity Threshold. Northern Border shall not be required to
make any indemnification payment in respect of any claim (or series of substantially related claims) made pursuant to Section 9.2(b) of this Agreement or pursuant to Section 9.2(b) of the Contribution Agreement unless the amount of any
Damages that have been directly or indirectly suffered or incurred by any one or more of the ONEOK Indemnitees or to which any one or more of the ONEOK Indemnitees has or have otherwise become subject with respect to such claim (or such
substantially related claims) exceeds the Minimum Claim Amount. In addition, Northern Border shall not be required to make any indemnification payment pursuant to Section 9.2(b) of this Agreement or pursuant to Section 9.2(b) of the
Contribution Agreement until such time as the total amount of all individual claims exceeding the Minimum Claim Amount (such total amount, the “Aggregate ONEOK Damages”) exceeds the Indemnity Threshold. If the total amount of such
Aggregate ONEOK Damages exceeds the Indemnity Threshold, then, subject to Section 9.3(b), the Northern Border Indemnitees shall be entitled to be indemnified against and compensated and reimbursed for all Aggregate ONEOK Damages in excess of
the Indemnity Threshold. 
 (b) The maximum liability of ONEOK under Section 9.2(a) of this Agreement and under
Section 9.2(a)(i)(A) or (B) or Section 9.2(a)(ii) of the of the Contribution Agreement, taken in the aggregate, shall be $360,000,000 (the “ONEOK Indemnity Cap”). The maximum liability of Northern Border under
Section 9.2(b) of this Agreement and of both NBP and NBILP under Section 9.2(b) of the Contribution Agreement, taken in the aggregate, shall be $198,000,000 (the “Northern Border Indemnity Cap”). 
 (c) The limitations set forth in Section 9.3(a) and Section 9.3(b) shall not apply to any of the matters described in Sections
1.4 (Working Capital Adjustment), 2.1 (Organization and Authority of ONEOK), 2.2 (Organization, Authority and Qualification of the Entities), 2.3 (Capital of Companies; Beneficial Ownership), 2.4 (Subsidiaries) and 3.1 (Organization and Authority of
Northern Border). 
 9.4 Exclusive Remedy; Sole Recourse. With the exception of claims based upon fraud or intentional
misrepresentation, from and after the Closing, the indemnification provisions set forth in this Section 9 and the Tax indemnification provisions set forth in Section 10.6 shall be the sole and exclusive remedy of both the Northern Border
Indemnitees and the ONEOK Indemnitees for Damages under this Agreement (it being understood that nothing in this Section 9.4 or elsewhere in this Agreement shall affect the Parties’ rights to specific performance or other equitable
remedies with respect to the covenants referred to in this Agreement to be performed after the Closing). 
  

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 9.5 No Contribution. ONEOK shall not have and shall not exercise or assert (or
attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against any Entity in connection with any indemnification obligation or any other Liability to which it may become subject under or in connection
with this Agreement. 
 9.6 Setoff. Notwithstanding anything herein to the contrary, Damages shall be calculated net of
any insurance or indemnification proceeds and Tax Benefits actually received by an Indemnitee or its Affiliates in connection with the facts giving rise to the right of indemnification (net of any fees, costs or expenses incurred in enforcing such
Indemnitee’s rights to recover such insurance proceeds). 
 9.7 Third Party Claims. 
 (a) Upon receipt by any Person seeking to be indemnified pursuant to Section 9.2 (the “Indemnitee”) of notice of any
third-party claim, (each a “Claim”) against it which has or is expected to give rise to a claim for Damages, the Indemnitee shall give prompt written notice thereof to the Person from which it seeks to be indemnified (the
“Indemnitor”), indicating the nature of such Claim and the basis therefor; provided, however, that any delay or failure by the Indemnitee to give notice to the Indemnitor shall relieve the Indemnitor of its obligations
hereunder only to the extent, if at all, that it is materially prejudiced by reason of such delay or failure. 
 (b) The
Indemnitor shall have 30 days (or such shorter period as may be required by applicable Legal Requirements) after receipt of the Indemnitee’s notice to elect, at its option, to assume the defense of, at its own expense and by its own counsel,
any such Claim. If the Indemnitor desires to undertake to defend any such Claim, it shall promptly notify the Indemnitee of its intention to do so. Notwithstanding an election by the Indemnitor to assume the defense of such Claim, (i) the
Indemnitee shall have the right to employ separate counsel and to participate in the defense of such Claim, and the Indemnitor shall bear the reasonable fees, costs and expenses of such separate counsel if (A) the Indemnitee shall have
determined in good faith that an actual or potential conflict of interest makes representation by the same counsel or the counsel selected by the Indemnitor inappropriate, (B) the Indemnitee shall have determined in good faith that the Damages
in respect of such Claim may exceed the remaining balance of the applicable Indemnity Cap, or (C) the Indemnitor shall have authorized the Indemnitee to employ separate counsel at the Indemnitor’s expense, and (ii) the Indemnitee
shall have the right at any time after the Indemnitor assumes the defense of such Claim to assume the defense of such Claim if (y) the Indemnitor subsequently determines that it does not believe the Claim is one for which the Indemnitee is
entitled to indemnification, compensation or reimbursement under this Section 9.7 and requests that the Indemnitee assume the defense of such Claim (in which case the Indemnitee may, but shall not be obligated to, retain the legal counsel
previously retained by the Indemnitor to assist in the defense of such Claim) or (z) any Damages in respect of such Claim are reasonably likely to exceed the remaining balance of the applicable Indemnity Cap available to such Indemnitee (in
which case the Indemnitor shall bear the reasonable fees, costs and expenses of Indemnitee’s counsel, subject to the applicable Indemnity Cap, as applicable). The Indemnitee and Indemnitor and their counsel shall cooperate fully in the
compromise or defense of any Claim subject to this Section 9.7 and keep one another informed of all developments relating to any such Claims, and provide copies of all relevant correspondence and 

  

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documentation relating thereto. If an Indemnitor receiving a notice of Claim does not elect to defend such Claim within the time period referred to above,
the Indemnitee shall have the right, in addition to any other right or remedy it may have hereunder, at the Indemnitor’s expense, subject to the Indemnity Cap, as applicable, to defend such Claim. The Indemnitee’s defense of, or
participation in the defense of, any such Claim shall not in any way diminish or lessen the obligations of the Indemnitor under this Section 9.7. In no event may an Indemnitor or an Indemnitee settle or compromise any Claim without the consent
of the other (which consent will not be unreasonably withheld, conditioned or delayed); provided, however, that an Indemnitor may settle or compromise a claim without the consent of the Indemnitee so long as (i) the relief
consists solely of money damages in an amount greater than the Indemnity Threshold and less than the remaining balance of the applicable Indemnity Cap with respect to the Indemnitor and includes a provision whereby the plaintiff or claimant in the
matter releases the Indemnitor and the Indemnitee from all liability with respect thereto, and (ii) such Indemnitor acknowledges the Indemnitee is entitled to indemnification, compensation and reimbursement under this Section 9.7). If
remediation is required in connection with any Claims for which the Northern Border Indemnitees are entitled to indemnification under Section 9.2(a)(ii) above, ONEOK shall have the right to conduct, control and direct such remediation;
provided, however, that any remediation activities undertaken by ONEOK shall be conducted (i) in compliance with all applicable Legal Requirements and any health and safety plan or other reasonable plans or guidelines imposed by Northern Border
on Persons entering its properties, and (ii) in a manner that minimizes any short or long-term interference with Northern Border’s operations. ONEOK shall consult with Northern Border in its determination of the appropriate remediation
standard to which remediation will be performed, and any institutional controls that ONEOK intends to employ to meet such remediation standard. 
 SECTION
10. TAX MATTERS 
 10.1 Retention of Records. Each of Northern Border and ONEOK shall retain, and Northern Border
shall cause each of the Entities to retain, all Tax Records in its possession for all open Tax Periods ending on or before or including the Closing Date, until 6 months following the expiration of the statute of limitations (and any extensions
thereof) of the respective Tax Periods. “Tax Records” means any Tax Return, Tax Return workpapers, documentation relating to any Audit, and any other books of account or records (whether on paper, computer disk or any other medium)
required or advisable to be maintained under the applicable Tax law or under any record retention agreement with any Tax Authority. 
 10.2
Cooperation. Northern Border and ONEOK covenant and agree that subsequent to the Closing, upon reasonable notice and during normal business hours, they and their Affiliates will (i) give the other Party and its Representatives
information, books and records (or copies thereof) relevant to the Entities, to the extent necessary to enable the other Party to prepare its Tax Returns (and any Tax Returns for which it has preparation or filing responsibility hereunder) or
determine the amount of any refund, credit or other amount the amount of which the requesting Party may be entitled to receive pursuant to this Agreement, and (ii) provide the other Party and its Representatives with such information, books and
records (or copies thereof) as may reasonably be requested in connection with any Tax Return, inquiry, election, Audit or other examination by any Tax Authority, or judicial or administrative proceedings relating to liability for Taxes. ONEOK and
Northern Border also shall make 

  

 36 

 
available to each other, as reasonably requested, and at the expense of the requesting Party, knowledgeable employees or advisors of the Party or its
Affiliates of which the request is made and personnel responsible for preparing and maintaining information, books, records and documents in connection with Tax filings, Audits, disputes or litigation. Notwithstanding the foregoing or any other
provision in this Agreement, neither Northern Border nor the Entities (or any Affiliates of either) shall have the right to receive or obtain any information relating to Taxes of ONEOK, any of its Affiliates, or any of its predecessors other than
information relating solely to or otherwise affecting the calculation of Taxes of or attributable to the Entities or any of their subsidiaries. Northern Border and ONEOK each agree, upon request, to use their reasonable efforts to obtain any
certificate or other document from any Tax Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the transactions contemplated by this Agreement. 
 10.3 Transfer Taxes. All transfer, documentary, recording, notarial, sales, use, registration, stamp and other similar taxes, fees and
expenses (including, but not limited to, all applicable stock transfer, real estate transfer or gains Taxes and including any penalties, interest and additions to such tax) incurred in connection with this Agreement and the transactions contemplated
hereby shall be borne by ONEOK. Northern Border and ONEOK shall cooperate in timely making and filing all Tax Returns as may be required to comply with the provisions of laws relating to such Transfer Taxes. 
 10.4 Tax Returns. 
 (a) ONEOK shall prepare (or cause to be prepared) and timely file all Tax Returns required to be filed with any Tax Authority with respect to the Entities for all Tax Periods ending on or before the Closing Date and
shall pay all Taxes (in excess of any applicable accruals therefor included within the calculation of Final Closing Working Capital) due with respect to such Tax Returns. Northern Border shall timely pay all Taxes due with respect to such Tax
Returns to the extent of any applicable accruals included within the calculation of Final Closing Working Capital. ONEOK shall provide Northern Border with drafts of such Tax Returns at least 10 days prior to the due date for filing such Tax Returns
(taking into account extensions) for Northern Border’s review and comment; provided that in the case of a Tax Return which is a Consolidated Return, ONEOK shall only be required to provide the portions of such Consolidated Return relating
solely to the income, gain, loss and deduction of the Entities. The final form of any such Tax Return required to be provided to Northern Border (and the portion of any such Consolidated Return relating solely to the Entities), pursuant to the
preceding sentence, shall be subject to Northern Border’s prior written consent, which shall not be unreasonably withheld; provided that Northern Border shall not withhold consent to the filing of any such Tax Return if such Tax Return (or in
the case of a Consolidated Return the portion thereof relating to the Entities) is prepared in a manner consistent with Section 10.4(c) of this Agreement and the treatment of any items that are not covered by past practice would not have an
adverse effect on the Taxes of the Entities for any period beginning on or after the Closing Date or the portion of any Straddle Period (as defined below) that is Northern Border’s responsibility. In the case of any Tax Return required to be
filed by ONEOK pursuant to this Section 10.4(a) after the Closing Date, Northern Border shall arrange for the signing of such Tax Returns or shall provide ONEOK with such powers or attorney or other authorization, in each case as may be
necessary to effect such filings in accordance with applicable Tax Law. 
  

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 (b) Northern Border shall prepare (or cause to be prepared) and timely file all Tax
Returns for all Tax Periods ending after the Closing Date, including all Tax Returns for periods which include but do not end on the Closing Date (“Straddle Periods”) (the “Northern Border Returns”). If ONEOK is
responsible under Section 10.5 of this Agreement for any Taxes due with respect to a Northern Border Return, Northern Border shall provide ONEOK with a substantially final draft of each such Tax Return at least 10 days prior to the due date for
filing such Tax Returns (taking into account extensions) for ONEOK’s review and comment and the final form for any such Northern Border Returns shall be subject to ONEOK’s prior written consent, which shall not be unreasonably withheld;
provided however, that ONEOK shall not withhold consent if such Tax Return is prepared in a manner consistent with Section 10.4(c) of this Agreement and the treatment of any items that are not covered by past practice would not have a material
adverse effect on the Tax liabilities of ONEOK or the Entities for any Pre-Closing Period. Northern Border shall timely pay all Taxes due with respect to such Returns and ONEOK shall promptly reimburse Northern Border for any such Taxes which are
its responsibility pursuant to Section 10.5 of this Agreement. 
 (c) Except as otherwise agreed by the parties, any Tax
Return that includes any of the Entities’ assets or activities for any Pre-Closing Period shall be prepared in accordance with ONEOK’s past Tax accounting practices used with respect to the Tax Returns in question (unless the party
responsible for preparing the Tax Return determines that the past practices are no longer permissible under the Code or other applicable Tax law), and to the extent any items are not covered by past practices (or in the event such past practices are
no longer permissible under the Code or other applicable Tax law), in accordance with reasonable Tax accounting practices selected by the party responsible for preparing the Tax Return. In the case of any Tax Return for an Entity for any Straddle
Period, any income, gain, loss and deduction shall be allocated based on a closing of the books method or such other method as may be agreed upon in writing by the parties. 
 (d) As part of the Services Agreement between ONEOK and Northern Border, ONEOK shall provide certain Tax Return filing assistance and
other Tax assistance relating to the Taxes of the Entities in respect of periods ending after the Closing Date. 
 10.5 Allocation of
Taxes. 
 (a) Allocation of Straddle Period Taxes. Northern Border and ONEOK shall, to the extent permitted by
applicable Tax Law and except as otherwise provided herein, elect with the relevant Tax Authority to close the Tax Period of the Entities as of and including the Closing Date. Subject to the preceding sentence, in the case of Taxes attributable to
the Entities that are payable with respect to any Straddle Period the portion of any such Taxes that are allocable to the portion of the Straddle Period ending on the Closing Date shall: (1) in the case of Taxes that are either (A) based
upon or related to income or receipts or (B) imposed in connection with any sale, transfer or assignment of property (real or personal, tangible or intangible) be deemed equal to the amount that would be payable if the Tax year ended on and
included the Closing Date and (2) in the case of Taxes (other than those described in clause (i)) imposed on a period basis with respect to the business or assets of the Entities or otherwise measured by the level of any item, be deemed to be
the amount of such Taxes for the entire Straddle Period (or, in the case of such Taxes determined on an arrears basis, the amount of such 

  

 38 

 
Taxes for the immediately preceding Tax Period) multiplied by a fraction the numerator of which is the number of calendar days in the portion of the Straddle
Period ending on and including the Closing Date and the denominator of which is the number of calendar days in the entire Straddle Period (the “Part-Year Fraction”). For purposes of clause (1) of the preceding sentence, any
exemption, deduction, credit or other item that is calculated on an annual basis shall be allocated to the portion of the Straddle Period ending on the Closing Date on a pro rata basis determined by multiplying the total amount of such item
allocated to the Straddle Period times the Part-Year Fraction. In the case of any Tax based upon or measured by capital (including net worth or long-term debt) or intangibles, any amount thereof required to be allocated under this
Section 10.5(a) shall be computed by reference to the level of such items on the Closing Date. ONEOK shall be responsible for and shall pay any Taxes (in excess of any applicable accruals therefor included within the calculation of Final
Closing Working Capital) allocable to the portion of the Straddle Period ending on the Closing Date and Northern Border shall be responsible for and shall pay any Taxes allocable to the portion of the Straddle Period after the Closing Date.

 (b) Post-Closing Tax Periods. From and after the Closing Date, for the portion of any Straddle Period that begins on
the day after the Closing Date and any other Tax Period beginning after the Closing Date, without duplication of any amount otherwise payable by Northern Border pursuant to this Agreement, Northern Border shall be responsible and pay, or cause the
Entities to pay, to the appropriate Tax Authority any other Taxes due with respect to the Entities for any such period. 
 (c)
Ad Valorem Taxes. Notwithstanding the foregoing, all ad valorem taxes (other than production, severance and similar Taxes measured by the quantity of or the value of production) related to the 2006 ad valorem tax year shall be pro-rated based
on the number of days during the 2006 ad valorem tax year falling before and falling on or after the Closing Date. ONEOK will pay to Northern Border at Closing an amount equal to the portion of the 2006 ad valorem taxes allocated to it pursuant to
this paragraph (to the extent such allocated amounts exceed any applicable accruals therefor included within the calculation of Final Closing Working Capital). ONEOK shall not be liable for any ad valorem taxes for the period following the Closing.
Northern Border assumes full responsibility for filing all ad valorem renditions and tax returns in all applicable tax jurisdictions due after the Closing Date. ONEOK will, upon request from Northern Border, provide reasonably requested historical
documentation of prior year filings related to ad valorem taxes to help facilitate Northern Border’s correct filing of ad valorem renditions and tax returns. ONEOK assumes full responsibility for filing all ad valorem taxes through the Closing
Date. 
 10.6 Tax Indemnity. 
 (a) ONEOK’s Indemnity for Taxes for Pre-Closing Date Periods. Notwithstanding any of the provisions of Section 9, from
and after the Closing Date, without duplication of any amount otherwise payable by ONEOK pursuant to this Agreement, ONEOK shall indemnify Northern Border and its respective Affiliates against: 
 (i) all Taxes (in excess of any applicable accruals therefor included within the calculation of Final Closing Working Capital) imposed or
payable by the Entities with 

  

 39 

 
respect to Tax Periods ending on or before the Closing Date and the portion of any Straddle Periods ending on the Closing Date (each such period a
“Pre-Closing Taxable Period”); 
 (ii) all Taxes that are imposed or payable by the Entities that are
attributable to (A) any termination of the Entities under Code Section 708 caused by the transactions contemplated herein, or (B) ONEOK or any member of an Affiliated, consolidated, combined or unitary Tax group of which the Entities
are or were members prior to the Closing Date (other than any Taxes of the Entities) that is imposed under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign law) by reason of such Entities being included
in any such Affiliated, consolidated, combined or unitary Tax group; and 
 (iii) any payments (in excess of any applicable
accruals therefor included within the calculation of Final Closing Working Capital) owed by the Entities to any third party (other than a Governmental Authority) under a tax sharing or other contractual agreement with respect to Taxes of the Entity
accruing on or before the Closing Date. 
 (b) Northern Border Indemnity for Taxes for Post-Closing Tax Periods.
Notwithstanding any of the provisions of Section 9, from and after the Closing Date, without duplication of any amount otherwise payable by Northern Border pursuant to this Agreement, Northern Border shall indemnify ONEOK and its respective
Affiliates against all Taxes imposed on or payable by Northern Border or the Entities relating to any Tax Period or portion thereof that begins after the Closing Date, including the portion of the Straddle Period beginning immediately after the
Closing Date and including any Taxes accruing after the Closing Date. 
 (c) Payments. Payment by the indemnitor of any
amount due under this Section 10.6 shall be made within 10 days following written notice by the indemnitee that payment of such amounts to the appropriate Tax Authority is due, such written notice to reasonably demonstrate that the indemnitee
is entitled to such payment under the terms of this Agreement. 
 (d) Tax Refunds. If Northern Border or any of its
Affiliates (including, for this purpose, the Entities after the Closing Date) receives a refund of Taxes of the Entities with respect to a Pre-Closing Taxable Period (including any interest thereon), or in lieu thereof a credit against Taxes,
Northern Border shall pay (or cause the Entities to pay) to ONEOK the amount of such Tax refund or credit (net of any costs or expenses incurred by Northern Border or the Entities in obtaining the Tax refund or credit). Such payment shall be made
promptly following the receipt of such Tax refund or credit by Northern Border or any of its Affiliates. In addition, if the payments made (or deemed made) by or on behalf of the Entities with respect to the Pre-Closing Taxable Period portion of the
Straddle Period exceed the Taxes due with respect to such portion of the Straddle Period, Northern Border shall cause the Entities to pay to ONEOK such excess within 10 days following the filing of the relevant Tax Return with respect to such
Straddle Period. ONEOK shall have the sole right, at its expense, to pursue any Tax refunds with respect to Tax periods ending on or before the Closing Date. 
  

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 10.7 Contests. 
 (a) Notices. After the Closing Date, Northern Border and ONEOK each shall notify the other in writing within 5 business days of
receipt of any notice of the commencement of any Tax audit or administrative or judicial proceeding relating to the Taxes of any of the Entities (“Tax Controversy”) in respect to Pre-Closing Taxable Periods or the Straddle Periods,
the outcome of which may affect the Tax liabilities or indemnification obligations under this Agreement of the other party (“Tax Indemnitor”). Such notice shall include copies of any notice or other document received from any Tax
Authority in respect of such audit or other proceeding. If either Northern Border or ONEOK fail to give the other party prompt notice as required under this Agreement, then (i) if the failure of a party to give such notice precludes the Tax
Indemnitor from contesting an asserted Tax liability in any administrative or judicial forums, then the Tax Indemnitor shall not have any obligation to indemnify under this Agreement for any loss or damage arising out of such asserted Tax liability,
and (ii) if the Tax Indemnitor is not so precluded from contesting an asserted Tax liability, but such failure to give prompt notice results in a detriment to the Tax Indemnitor, then any amount which the Tax Indemnitor is otherwise required to
pay pursuant to this Agreement with respect to such liability shall be reduced by the amount of such detriment. 
 (b)
Control of Contests. ONEOK shall control the defense and settlement of any Tax Controversy involving any asserted liability for Taxes imposed with respect to the Entities relating to Tax Periods that end on or before the Closing Date for
which ONEOK is responsible pursuant to this Section 10. Northern Border shall control the defense and settlement of any Tax Controversy involving any asserted liability for Taxes imposed with respect to the Entities relating to Tax Periods that
end after the Closing Date. 
 (c) Procedures. If the resolution of any Tax Controversy would be grounds for
indemnification under this Agreement (including, for this purpose, as a result of altering the Tax Period in which items of income, gain, loss, deduction or credit are reported) by the party not in control of the conduct of such Tax Controversy (the
“Non-Controlling Party”) or otherwise adversely affect the Tax liability of the Non-Controlling Party, (i) the party in control of such Tax Controversy (the “Controlling Party”) shall keep the Non-Controlling
Party fully informed of any proceedings, events, and developments relating to or in connection with such Tax Controversy; (ii) the Non-Controlling Party shall be entitled to receive copies of all correspondence and documents relating to such
Tax Controversy; (iii) the Controlling Party shall consult with the Non-Controlling Party and shall not enter into any settlement with respect to any such Tax Controversy without the Non-Controlling Party’s prior written consent, such
consent not to be unreasonably withheld, conditioned or delayed; and (iv) at its own cost and expense, the Non-Controlling Party shall have the right to participate (but not control) the defense of such Tax Controversy; provided however, that
clauses (i) through (iv) shall apply only in respect of the portion of such Tax Controversy, correspondence and documents that relate solely to the Entities. 
 10.8 Amended Tax Returns. ONEOK shall not, without the prior written consent of Northern Border (which consent shall not be unreasonably withheld, conditioned or delayed), file any amended Tax Return or
claim for Tax refund filed or required to be filed hereunder to be filed by ONEOK to the extent such filing, if accepted, could be reasonably expected to have an adverse effect on the Tax liability of Northern Border, its Affiliates or any Entity or
any of the 

  

 41 

 
Entities for any Tax Period after the Closing; provided that no such consent shall be required for any amended return or claim for Tax refund resulting from
an audit adjustment. 
 10.9 Miscellaneous. 
 (a) Character of Payments. Any payment made by ONEOK, Northern Border, or any of their respective Subsidiaries (including the
Entities) under this Section 10 shall constitute an adjustment to the Purchase Price for all tax purposes. 
 (b)
Interest on Payments. To the extent any payment obligation under this Section 10 or Article 9 is not made on a timely basis (as determined by the relevant provision of this Section 10 or the relevant provision of Article 9), the
amount due and payable shall bear interest at a floating annual rate equal to the annual prime lending rate of The Chase Manhattan Bank in effect, from time to time, from the last date such payment would be timely under the relevant provision of
this Section 10 or Article 9, as applicable, to the date of the payment of such amount. 
 (c) Survival of Tax
Claims. Notwithstanding any other provision of this Agreement to the contrary, any obligations of the parties pursuant to this Section 10 shall be unconditional and absolute and shall survive until the expiration of 6 months after the
applicable statute of limitations (taking into account any applicable extensions or tollings thereof) relating to the Taxes at issue. 
 10.10 Allocation of the Purchase Price. 
 (a) Within one hundred twenty (120) days following the
Closing Date, ONEOK will prepare, or cause to be prepared, and delivered to Northern Border a statement of the fair market value of the interests in each of the Entities acquired pursuant to this Agreement, with the aggregate of the Entity fair
market values equaling the fair market value of the consideration provided in Section 1.2 of this Agreement. In addition, in the case of any Entities which are taxable as disregarded entities federal income tax, the statement shall also include
a statement of the fair market value of the assets of each of such Entities (such statement, together with the Entity fair market schedule, the “FMV Schedules”). The FMV Schedules as so prepared by ONEOK shall be deemed accepted by
Northern Border, unless Northern Border shall send ONEOK a written objection thereto within thirty (30) days following the Northern Border’s receipt thereof. In the event that Northern Border delivers a timely written objection as
aforesaid and Northern Border and ONEOK are unable to resolve such objection within twenty (20) business days after Northern Border is notified of ONEOK’s objection, the matters in dispute shall be submitted for final and binding
determination to the Neutral Auditors. The FMV Schedules as proposed by ONEOK, shall be adjusted to reflect the resolution of any timely objections made thereto by Northern Border in accordance with this Section 10.9 and the determinations of
the Neutral Auditors, which determinations will be binding absent manifest error or fraud. Northern Border and ONEOK shall each pay their own expenses of preparing and analyzing the schedules and resolving objections thereto; provided that the cost
of any appraisals required to prepare the FMV Schedule shall be borne 50 percent by Northern Border and 50 percent by ONEOK. The fees and expenses of the Neutral Auditors used to resolve objections to the schedules will be borne equally by Northern
Border and ONEOK. 
  

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 (b) Each party agrees that it shall not take any position that varies from or is
inconsistent with such valuation in any filing made by such party with the IRS or any other taxing authority, except to the extent an adjustment is required by the IRS or any other taxing authority. 
 SECTION 11. MISCELLANEOUS 
 11.1 Fees and
Expenses. Each of the parties will bear its own expenses in connection with the negotiation and the consummation of the transactions contemplated by this Agreement. 
 11.2 Governing Law. This Agreement shall be construed under and governed by the internal laws of the State of Delaware without regard to
its conflict of laws provisions. 
 11.3 Notices. All notices and other communications between the Parties shall be in writing
and shall be deemed to have been duly given (i) when delivered in person or by overnight delivery service, (ii) 3 days after posting in the United States mail having been sent registered or certified mail return receipt requested, or
(iii) upon receipt when delivered by facsimile transmission, in each case, to the addresses set forth below (or to such other address or addresses as the Parties may designate from time to time in writing): 
 TO ONEOK: 
 ONEOK,
Inc. 
 100 W. 5th Street, Suite 1800 
 Tulsa, OK 74103 
 Attention: President 
 Facsimile: (918) 588-7961 
 with copies to (which shall not constitute notice): 
 ONEOK, Inc. 
 100 W. 5th Street, Suite 1800 
 Tulsa, OK 74103 
 Attention: General Counsel 
 Facsimile: (918) 588-7971 
 and to: 
 Gable & Gotwals 

100 W. 5th Street,
Suite 1100 
 Tulsa, OK 74103-4217 
 Attention: Stephen W. Lake 
 Facsimile: (918) 595-4990 
  

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 TO NORTHERN BORDER: 
 Northern Border Partners, L.P. 
 13710 FNB
Parkway 
 Omaha, NE 68154-5200 
 Attention: Chief Executive Officer 
 Facsimile: (402) 490-7482 
 with copies to (which shall not constitute notice): 
 Northern Border Partners, L.P. 
 13710 FNB Parkway 
 Omaha, NE 68154-5200 
 Attention: Janet Place 
 Facsimile: (402) 492-7480 
 Locke
Liddell & Sapp LLP 
 600 Travis, 3400 JPMorgan Chase Tower 
 Houston, TX 77002 
 Attention: Michael T.
Peters 
 Facsimile: (713) 223-3717 
 and with a copy to (prior to the Closing): 
 Baker Botts L.L.P. 
 910 Louisiana 
 Houston, Texas 77002-4995

 Attention: R. Joel Swanson 
 Facsimile: (713) 229-1522 
 Any notice given hereunder may be given on behalf of any party by his counsel or other authorized
representatives. 
 11.4 Entire Agreement. This Agreement together with the Related Agreements, including the Schedules and
Exhibits referred to herein and therein and the other writings specifically identified herein and therein (including the Confidentiality Agreement) or contemplated hereby, is complete, reflects the entire agreement of the Parties with respect to its
subject matter, and supersedes all previous written or oral negotiations, commitments and writings. No promises, representations, understandings, warranties and agreements have been made by any of the Parties hereto except as referred to herein or
therein or in such Schedules and Exhibits or in such other writings and all inducements to the making of this Agreement relied upon by either Party hereto have been expressed herein or in such Schedules or Exhibits or in such other writings.

 11.5 Assignability; Binding Effect. This Agreement may not be assigned by ONEOK or Northern Border without the prior written
consent of the other parties to this Agreement. This Agreement shall be binding upon and enforceable by, and shall inure to the benefit of, the Parties hereto and their respective successors and permitted assigns. 
  

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 11.6 Captions and Gender. The captions in this Agreement are for convenience only and shall
not affect the construction or interpretation of any term or provision hereof. The use in this Agreement of the masculine pronoun in reference to a Party hereto shall be deemed to include the feminine or neuter, as the context may require.

 11.7 Execution in Counterparts. For the convenience of the Parties and to facilitate execution, this Agreement may be
executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document. 
 11.8 Amendments. This Agreement may not be amended or modified, nor may compliance with any condition or covenant set forth herein be waived, except by a writing duly and validly executed by both Northern Border and ONEOK, or
in the case of a waiver, the Party waiving compliance. 
 11.9 Publicity and Disclosures. No press releases or public
disclosure, either written or oral, of the transactions contemplated by this Agreement shall be made by a Party to this Agreement without the written consent of ONEOK and Northern Border. 
 11.10 Severability. The Parties agree that, in the event that any provision of this Agreement or the application of any such provision to
any Party is held by a court of competent jurisdiction to be contrary to law, the provision in question shall be construed so as to be lawful and the remaining provisions of this Agreement shall remain in full force and effect. 
 11.11 Waiver of Jury Trial. Each of the parties hereto hereby waives to the fullest extent permitted by applicable law any right it may
have to a trial by jury with respect to any Legal Proceeding directly or indirectly arising out of, under or in connection with this Agreement or the transactions contemplated by this Agreement. 
 11.12 Arbitration. All disputes arising out of or in connection with this Agreement and the transactions contemplated hereby and thereby,
which cannot be resolved through the procedures described herein or therein shall be finally resolved solely and exclusively by means of arbitration under the then-current rules for non-administered arbitration of the International Institute for
Conflict Prevention and Resolution (“CPR Rules”) to be conducted in English in the City of Tulsa. The arbitration shall be conducted by a panel of three (3) arbitrators appointed by agreement of the Parties, or failing such
agreement, under the CPR Rules, provided that any arbitrator selected shall be a retired federal judge of a court within the jurisdiction of the United States. The arbitration will proceed in accordance with the CPR Rules. The decision of the
arbitrators shall be final, conclusive, and binding upon the Parties, and a judgment upon the award may be obtained and entered in any federal or state court of competent jurisdiction. The Parties agree that any arbitration shall be kept
confidential and any element of such arbitration (including but not limited to any pleadings, briefs or other documents submitted or exchanged, any testimony or other oral submissions, and any awards) shall not be disclosed beyond the arbitral
tribunal, the Parties, their counsel and any persons necessary to conduct the arbitration, except as may be required in recognition and enforcement proceedings, if any, or in order to satisfy disclosure obligations imposed by any applicable law. The
Parties agree to cooperate in providing each other with all discovery, including but not limited to the exchange of documents and depositions of Parties and non-Parties, reasonably related to the issues in the arbitration. If 

  

 45 

 
the Parties are unable to agree on any matter relating to such discovery, any such difference shall be determined by the arbitrators. The award of the
arbitrators shall be final and binding upon the Parties, and shall not be subject to any appeal or review. The Parties agree that such award may be recognized and enforced in any court of competent jurisdiction. The Parties also agree to submit to
the non-exclusive personal jurisdiction of the federal and state courts sitting in Oklahoma, for the limited purpose of enforcing this arbitration agreement (including, where appropriate, issuing injunctive relief) or any award resulting from
arbitration pursuant to this Section 11.12. The Parties agree that except in the case of fraud the arbitration proceeding described in this Section 11.12 is the sole and exclusive manner in which the Parties may resolve disputes arising
out of or in connection with this Agreement. The arbitrators have the discretion to grant the prevailing Party in any arbitration attorneys’ fees and costs and make the non-prevailing Party responsible for all expenses of the arbitration.

 11.13 Time of the Essence. Time is of the essence with respect to the performance of the obligations set forth in
this Agreement. 
 11.14 Remedies Cumulative; Specific Performance. The rights and remedies of the Parties hereto shall
be cumulative and not alternative. The Parties hereto agree that, in the event of any breach or threatened breach by any party to this Agreement of any covenant, obligation or other provision set forth in this Agreement for the benefit of any other
Party to this Agreement, such other Party shall be entitled (in addition to any other remedy that may be available to it and without the requirement of the posting of a bond) to (a) a decree or order of specific performance or mandamus to
enforce the observance and performance of such covenant, obligation or other provision and (b) an injunction restraining such breach or threatened breach. 
 11.15 Further Assurances. From and after the date of this Agreement, upon the request of either Party, the other Party shall execute and deliver such instruments, documents or other writings as
may be reasonably necessary to carry out and effectuate fully the intent and purposes of this Agreement. 
 11.16 Third Party
Beneficiaries. Nothing herein expressed or implied is intended to or shall be construed to confer upon or give any Person, other than the Parties hereto and their respective successors, permitted assigns and Affiliates (including, without
limitation, the Northern Border Indemnitees and the ONEOK Indemnitees), any rights or remedies under or by reason of this Agreement. 
 11.17
Audit Committee Authority. At or prior to the Closing, (a) any action, notice, consent, approval or waiver that is required to be taken or given or may be taken or given by Northern Border pursuant to Section 1.4 (Working
Capital Adjustment), Section 4.1 (Conduct of the Entities), Section 6.4 (Public Announcements), Section 7.2 (Conditions to the Obligations of Northern Border), and Section 8.1 (Termination), and (b) any amendment of this
Agreement or of any other Northern Border Transaction Agreement shall be made, taken or given by Northern Border, as the case may be, only with the concurrence, or at the direction, of the Audit Committee of Northern Border. 
  

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 11.18 Certain Definitions. (a) For purposes of this Agreement, the term: 

“Acquired Entities” means, collectively, the Entities and the “Entities” as defined in the Contribution Agreement.

 “Affiliates” means, with respect to the Person to which it refers, a Person that directly or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control with, such subject Person. Notwithstanding the other provisions of this definition and except as otherwise expressly provided in this Agreement, ONEOK’s Affiliates
shall be deemed to exclude Northern Border and its Subsidiaries and Northern Border’s Affiliates shall be deemed to exclude ONEOK and its Subsidiaries (including the Entities). 
 “Business Facility” includes any pipeline or pipeline easement or right-of-way, compressor station, hub, delivery point, receipt point,
interconnection, gas storage facility, gas processing facility, fractionator, storage field, well or other real or personal property that any Entity or any of its respective organizational predecessors currently owns, leases, manages or operates in
any manner or formerly owned, leased, managed or operated in any manner, including, without limitation, the Operating Assets. 
 “CERCLA” shall have the meaning ascribed to it in the definition of Environmental Laws. 
 “Code”
means the Internal Revenue Code of 1986, as amended. 
 “Contract” means any written or oral note, instrument, bond,
mortgage, indenture, lease, sublease, contract, subcontract, warranty, agreement, obligation, understanding, commitment or legally binding commitment or undertaking of any nature. 
 “Consolidated Return” means a consolidated United States Income Tax Return (within the meaning of Section 1501 of the Code and the
Treasury Regulations promulgated pursuant to Section 1502 of the Code) and any other combined, joint, consolidated or unitary Tax Return required to be filed with any Tax Authority that includes both (i) any Entity and (ii) ONEOK or
any subsidiary of ONEOK that is not an Entity. 
 “Converting Companies” means each of Chisholm Pipeline Holdings, Inc.,
ONEOK Transmission Company and ONEOK Underground Storage Company. 
 “Copyrights” shall have the meaning ascribed to it in
the definition of Intellectual Property Assets. 
 “Damages” means any loss, damage, injury, decline in value, lost
opportunity, liability (INCLUDING STRICT LIABILITY), claim, demand, settlement, judgment, award, fine, penalty, Tax, fee (including reasonable attorneys’ fees), charge, cost or expense of any nature (including costs and expenses of litigation,
administrative proceedings and investigations), whether arising in tort, contract or otherwise, but excluding any punitive damages except to the extent such punitive damages are awarded against any Indemnitees in a third-party Claim; provided,
however, notwithstanding any other provision of this Agreement to the contrary, to avoid double counting as to any matter, “Damages” shall not include any Liability to the extent 

  

 47 

 
that such Liability (or a reserve therefor (to the extent of such reserve)) is fully reflected as a current liability in the calculation of Final Closing
Working Capital. 
 “Drop-Down Contracts” means all Contracts (other than Shared Contracts, intercompany loan or credit
agreements that shall be terminated prior to or at the Closing, confidentiality agreements, benefit plans and employment or secondment agreements), to which an Entity is not a party and to which ONEOK or any Affiliate of ONEOK (other than an Entity)
is a party and which solely benefits one or more of the Entities. 
 “Eligible Person” means a Person treated
as a “domestic eligible entity” under section 301.7701-3(a) of the Treasury regulations promulgated under the Code. 
 “Employee Benefit Plan” means (i) each “employee benefit plan,” as such term is defined in Section 3(3) of ERISA, including any multiemployer plan (as defined in Section 3(40) of ERISA),
(ii) each plan that would be an employee benefit plan if it was subject to ERISA, such as plans for directors, (iii) each stock bonus, stock ownership, stock option, stock purchase, stock appreciation rights, phantom stock or other stock
plan (whether qualified or nonqualified), and (iv) each bonus, deferred compensation or incentive compensation plan; provided, however, that such term shall not include (a) routine employment policies and procedures developed and applied
in the ordinary course of business and consistent with past practice, including wage, vacation, holiday, and sick or other leave policies, (b) workers compensation insurance, and (c) directors and officers liability insurance. 

“Environmental Laws” means, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(“CERCLA”), 42 U.S.C. §§ 9601 et seq., the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq.,
the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq., the Clean Air Act, 42 U.S.C. §§ 7401 et seq., and the Clean Water Act (Federal Water Pollution Control Act), 33 U.S.C. §§ 1251 et seq., the Occupational
Safety and Health Act, 29 U.S.C. §§ 651 et seq., and all rules and regulations promulgated pursuant to any of the above statutes, and any federal, state, local, municipal, foreign or other law, statute, constitution, common law,
resolution, ordinance, code, edict, decree, order, rule, regulation, permit condition, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Authority, in
each case relating to Environmental Matters. 
 “Environmental Matters” means any matters arising out of or relating to
health and safety, or pollution or protection of the environment or workplace, including, without limitation, the ambient and indoor air, surface and ground waters, land and soils, buildings, and indoor workplaces, and any of the foregoing relating
to the use, generation, transport, treatment, storage, or disposal of any Hazardous Materials. 
 “Environmental Permit”
means all Permits required to comply with any applicable Environmental Law. 
  

 48 

 “Entity Guarantees” means all guaranties, letters of credit, bonds, sureties and other
credit support or assurances provided by ONEOK or its Affiliates (other than the Entities) in support of any obligations of the Entities. 
 “Equity Interests” means the capital stock, limited liability company membership interest, partnership interest or similar ownership interests of any Person. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “ERISA Affiliate” means, with respect to any Person, any other Person that is a member of a group described in Section 414(b), (c),
(m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes the first Person, or that is a member of the same “controlled group” as the first Person pursuant to Section 4001(a)(14) of ERISA. 
 “GAAP” means United States generally accepted accounting principles and practices as in effect from time to time and applied
consistently throughout the periods involved. 
 “Governmental Authority” means any foreign or domestic federal, state,
local, municipal, or other government or governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); or any body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, or regulatory or power of any nature, in each case having jurisdiction over ONEOK, the Entities, the Business or Northern Border. 
 “Governmental Order” means any order, ruling, writ, judgment, injunction, decree, stipulation, determination or award entered by or with
any Governmental Authority. 
 “Hazardous Material” means any substance, material or waste that is regulated by any
Environmental Law as hazardous, toxic, a pollutant, contaminant, solid waste or words of similar import, including, without limitation, petroleum, petroleum derivatives and by-products, asbestos, urea formaldehyde and polychlorinated biphenyls.

 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
promulgated thereunder. 
 “Indebtedness” means all outstanding obligations for borrowed money, including
(i) indebtedness evidenced by notes, bonds, debentures or other instruments (and including all outstanding principal, prepayment premiums, if any, and accrued interest, fees and expenses related thereto), (ii) any outstanding obligations
under capital leases and purchase money obligations, (iii) any amounts owed with respect to drawn letters of credit and (iv) any outstanding guarantees of obligations of the type described in clauses (i) through (iii) above (and,
for the avoidance of doubt, excludes accounts payable). 
 “Indemnity Cap” means the ONEOK Indemnity Cap or the Northern
Border Indemnity Cap, as applicable. 
 “Intellectual Property Assets” means: (A) patents, patent applications,
inventions, discoveries, and invention disclosures (whether or not patented) (collectively, “Patents”); (B)

  

 49 

 
trade names, trade dress, logos, slogans, internet domain names, registered and unregistered trademarks and service marks and related registrations,
applications for registration and renewals therefor (collectively, “Trademarks”); (C) copyrights in both published and unpublished works and all copyright registrations, applications and renewals therefor, and all derivatives,
translations, adaptations and combinations of the above (collectively, “Copyrights”); (D) know-how, trade secrets, confidential or proprietary information, data, processes and strategies, (collectively, “Trade
Secrets”); (E) other intellectual property rights and/or proprietary rights relating to any of the foregoing; (F) Software; and (G) goodwill, licenses, permits, consents, approvals, and claims of infringement against third
parties. 
 “Intercompany Accounts” shall mean all balances related to receivables, payables or other accounts between ONEOK
and its Subsidiaries (other than the Entities) on the one hand, and the Entities, on the other hand (but excluding all Indebtedness). 
 “IRS” means the Internal Revenue Service. 
 “Knowledge of Northern Border” or similar words or
phrases means the actual knowledge of Bill Cordes, Chris Skoog, Jerry Peters, Mike Nelson, Pierce Norton and Fred Rimington. 
 “Knowledge of ONEOK” or similar words or phrases means the actual knowledge of John Gibson, Pierce Norton, Sam McVay, Pete Walker, Terry Spencer, Steve Guy, Jim Haught and Curtis Dinan. 
 “Legal Proceeding” means any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative,
investigate or appellate proceeding), hearing, inquiry, audit, examination or investigation commenced, brought, conducted or heard by or before, or otherwise involving, any court or Governmental Authority or any arbitrator or arbitration panel.

 “Legal Requirement” means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of
common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling, order, judgment or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Authority,
including, without limitation, Tax Laws. 
 “Liabilities” means any and all debts, liabilities and obligations, whether
accrued or fixed, absolute or contingent, matured or unmatured or determined or determinable, including, without limitation, those arising under any Legal Requirement and those arising under any contract, agreement, arrangement, commitment or
undertaking. 
 “Lien” means any claim, restriction on voting, transfer or pledge, hypothecation, option, right of first
refusal, easement, preemptive right, community property interest, mortgage, lien (including, without limitation, environmental and tax liens), charge, encumbrance, security interest or other restriction of any kind, whether imposed by Legal
Requirement, agreement, understanding or otherwise. 
 “Material Adverse Effect” means with respect to the Entities any
event, change or effect that individually or in the aggregate has or would reasonably be expected to have a material 

  

 50 

 
adverse effect upon the condition (financial or otherwise), business, assets, liabilities, or results of operations of the Entities, taken as a whole;
excluding any adverse change, event or effect arising from: (i) conditions generally affecting the United States economy or generally affecting one or more industries in which the Entities operate; (ii) national or international political
conditions, including terrorism or the engagement by the United States in hostilities or acts of war; (iii) financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market
index); (iv) changes in GAAP which are not specific to the Entities; (v) changes in any laws, rules, regulations, orders, or other binding directives issued by any Governmental Authority generally affecting one or more industries in which
the Entities operate; (vi) the public announcement, pendency or completion of the transactions contemplated by this Agreement; or (vii) seasonal reductions in revenues and/or earnings of the entities in the ordinary course of business.
References in this Agreement to dollar amount thresholds shall not be deemed to be a measure of a Material Adverse Effect or materiality. 
 “Net Working Capital” means, at any date, the difference between the consolidated current assets of the Entities and the consolidated current liabilities of the Entities, in each case determined in accordance with GAAP
applied consistently in the manner applied in the Financial Statements, except as otherwise provided in the calculation of Target Working Capital as set forth in Exhibit D, and except as otherwise provided in Schedule 1.4, (but for the
purposes of preparing the Closing Working Capital Statement only, without regard to any income Tax assets or liabilities). 
 “Northern Border Indemnitees” means Northern Border, Northern Border’s Affiliates (including, without limitation, the Entities) and their respective Representatives. 
 “Northern Border Material Adverse Effect” means with respect to Northern Border any event, change or effect that individually or in the
aggregate has or would reasonably be expected to have a material adverse effect upon the condition (financial or otherwise), business, assets, liabilities, or results of operations of Northern Border, taken as a whole; excluding any adverse change,
event or effect arising from: (i) conditions generally affecting the United States economy or generally affecting one or more industries in which Northern Border operates; (ii) national or international political conditions, including
terrorism or the engagement by the United States in hostilities or acts of war; (iii) financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index);
(iv) changes in GAAP which are not specific to Northern Border; (v) changes in any laws, rules, regulations, orders, or other binding directives issued by any Governmental Authority generally affecting one or more industries in which
Northern Border operates; (vi) the public announcement, pendency or completion of the transactions contemplated by this Agreement or (vii) seasonal reductions in revenues and/or earnings of Northern Border in the ordinary course of
business. References in this Agreement to dollar amount thresholds shall not be deemed to be a measure of a Northern Border Material Adverse Effect or materiality. 
 “Northern Border Transaction” means the transactions provided for under the terms of the Northern Border Transaction Agreements when viewed on a collective basis. 
  

 51 

 “Northern Border Transaction Agreements” means this Agreement, the Contribution
Agreement, the TransCanada Agreement, the Amendment and each agreement, instrument, certificate or similar document executed and delivered by Northern Border pursuant to the terms of this Agreement, the Contribution Agreement, the TransCanada
Agreement and the Amendment. 
 “ONEOK Indemnitees” means ONEOK, ONEOK’s Affiliates and their respective
Representatives. 
 “Patents” shall have the meaning ascribed to it in the definition of Intellectual Property Assets.

 “Permit” means any license, franchise, permit, consent, permission, concession, order, approval, authorization,
qualification or registration from, of or with a Governmental Authority. 
 “Permitted Liens” means such of the following as
to which no enforcement, collection, execution, levy or foreclosure Legal Proceeding shall have been commenced: (a) Liens for Taxes, assessments and governmental charges or levies arising in the ordinary course of business and not yet
delinquent or Liens that are solely financial in nature and are accounted for as current liabilities in the determination of the Net Working Capital Adjustment; (b) Liens imposed by any applicable Legal Requirement, such as materialmen’s,
mechanics’, carriers’, workmen’s and repairmen’s liens and other similar liens arising in the ordinary course of business securing obligations or which are being contested in good faith by appropriate proceedings and for which
appropriate reserves have been established to the extent they exceed $500,000; (c) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations;
(d) deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of
business consistent with past practice; (e) all matters of record, including, without limitation, survey exceptions, reciprocal easement agreements and other encumbrances on title to real property, and all special exceptions included in title
insurance policies or title opinions issued to any Entity, in each case that could not result in future denial of possession and do not unreasonably interfere with the use of the properties in the Business; (f) all applicable zoning,
entitlement, conservation restrictions and other land use and environmental regulations that do not unreasonably interfere with the use of the properties in the Business; (g) all exceptions, restrictions, easements, charges, rights-of-way and
other Liens set forth in any Permits or other state, local or municipal franchise applicable to any Entity or any of their respective properties that do not unreasonably interfere with the use of the properties in the Business; (h) any
encumbrances, restrictions, defects in title or other similar Liens that could not result in future denial of possession and do not unreasonably interfere with the use of the properties in the Business; (i) the rights of licensors and licensees
under licenses executed in the ordinary course of business that do not unreasonably interfere with the use of the properties in the Business; and (j) Liens created by Northern Border or its successors and assigns. 
 “Person” means any individual, partnership, corporation, limited liability company, trust, other entity or Governmental Authority.

  

 52 

 “Related Agreements” means any agreement, instrument, certificate or similar document
executed and delivered pursuant to this Agreement (including, without limitation, the Other Transaction Agreements and the Amendment). 
 “Representative” means with respect to a Person, such Person’s officers, directors, managers, partners, employees, agents, attorneys, accountants, advisors and representatives. With respect to Northern Border,
“Representative” shall include the Chairman of its Audit Committee. 
 “Securities Act” means the Securities and
Exchange Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
 “SEC” means the Securities and
Exchange Commission. 
 “Shared Contract” means any Contract (other than Drop-Down Contracts, Intercompany Accounts,
confidentiality agreements, Employee Benefit Plans, and employment or secondment agreements), to which an Entity is not a party and to which ONEOK or any Affiliate of ONEOK (other than an Entity) is a party and which directly benefits both
(i) an Entity, and (ii) ONEOK or any Affiliate of ONEOK (other than an Entity). 
 “Software” means any and all of
the following, other than “shrink wrap” licenses, that are primarily used by any of the Entities: (i) computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or
object code, (ii) databases and compilations, including any and all data and collections of data, whether machine readable or otherwise, (iii) descriptions, flow-charts and other work product used to design, plan, organize and develop any
of the foregoing, screens, user interfaces, report formats, firmware, development tools, templates, menus, buttons and icons and (iv) documentation, including user manuals and other training documentation, related to any of the foregoing.

 “Subsidiary” means with respect to any Person, the corporations, partnerships, limited liability companies, joint
ventures, associations and other entities controlled by such Person directly or indirectly through one or more intermediaries. 
 “Target Working Capital” means the amount shown as the Target Working Capital on Exhibit D. 
 “Tax” or “Taxes” means all taxes, charges, levies, fees, or other assessments imposed by any federal, state, local or foreign Tax Authority, including, but not limited to, any income, gross income, gross
receipts, profits, capital stock, franchise, business, withholding payroll, social security, workers’ compensation, unemployment, disability, property, ad valorem, stamp, excise, occupation, service, sales, use, license, lease, transfer,
import, export, value added, goods and services, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax), and any interest, penalties, additions to tax, or
additional amounts in respect of the foregoing. 
 “Tax Authority” means, with respect to any Tax, the Governmental
Authority that imposes such Tax and the agency (if any) charged with the collection or administration of such Tax for such entity. 
  

 53 

 “Tax Benefits” means any refund of Taxes, reduction in liability for Taxes, or credit
against Taxes. 
 “Tax Law” means the law (including any applicable regulations or any administrative pronouncement) of any
Governmental Authority relating to any Tax. 
 “Tax Period” means, with respect to any Tax, the period for which the Tax is
reported as provided under the applicable Tax Law. 
 “Tax Return” means any report of Taxes due, any claims for refund of
Taxes paid, any information return with respect to Taxes or any other similar report, statement, declaration, or document required to be filed under applicable Tax Law, including any attachments, exhibits or other materials submitted with any of the
foregoing and including any amendments or supplements to any of the foregoing. 
 “Trademarks” shall have the meaning
ascribed to it in the definition of Intellectual Property Assets. 
 “Trade Secrets” shall have the meaning ascribed to it
in the definition of Intellectual Property Assets. 
 “Transfer Taxes” means all sales, use, transfer, stock transfer, real
property transfer, documentary, gains, stamp recording and similar Taxes and fees (including any penalties, interest or additions) incurred in connection with the transactions contemplated by this Agreement. 
 11.19 Other Defined Terms. For the purpose of this Agreement, the following terms shall have the meanings given in the indicated
Sections of this Agreement: 
 INDEX 
  

			
	 Term
	  	Section
	 1935 Act
	  	2.17
		
	 Aggregate Northern Border Damages
	  	9.3(a)
		
	 Aggregate ONEOK Damages
	  	9.3(a)
		
	 Agreement
	  	Preamble
		
	 Audits
	  	2.6(e)
		
	 Balance Sheet
	  	2.5(a)
		
	 Balance Sheet Date
	  	2.5(a)

  

 54 

			
	 Books and Records
	  	5.2(b)(i)
		
	 Business
	  	Recitals
		
	 Claim
	  	9.7(a)
		
	 Closing
	  	1.3(a)
		
	 Closing Date
	  	1.3(a)
		
	 Closing Working Capital
	  	1.4(a)
		
	 Closing Working Capital Statement
	  	1.4(a)
		
	 Common Units
	  	3.1(e)(v)
		
	 Companies
	  	Recitals
		
	 Company
	  	Recitals
		
	 Company Subsidiary
	  	2.2
		
	 Contribution Agreement
	  	7.1(h)
		
	 Controlling Party
	  	10.7(c)
		
	 Conversion Transactions
	  	6.11
		
	 CPR Rules
	  	11.12
		
	 Entities
	  	2.2
		
	 Entity
	  	2.2
		
	 Entity Intellectual Property Assets
	  	2.9
		
	 FERC
	  	6.1
		
	 Final Closing Working Capital
	  	1.4(c)
		
	 Financial Statements
	  	2.5(a)
		
	 FMV Schedules
	  	10.10(a)
		
	 Governmental Approvals
	  	6.3(a)
		
	 GP Purchase Agreement
	  	7.1(h)
		
	 Indemnitee
	  	9.7(a)

  

 55 

			
	 Indemnitor
	  	9.7(a)
		
	 Indemnity Threshold
	  	9.3(a)
		
	 Interim Financial Statements
	  	6.12
		
	 KCC Consent
	  	7.1(g)
		
	 License Period
	  	6.9
		
	 Material Contracts
	  	2.10(a)
		
	 Minimum Claim Amount
	  	9.3(a)
		
	 Net Working Capital Adjustment
	  	1.4(d)(ii)
		
	 Neutral Auditors
	  	1.4(c)
		
	 NGA
	  	2.17
		
	 Non-Controlling Party
	  	10.7(c)
		
	 Northern Border
	  	Preamble
		
	 Northern Border Credit Agreement Amendments
	  	7.2(k)
		
	 Northern Border Credit Agreements
	  	7.2(k)
		
	 Northern Border Disclosure Schedules
	  	3
		
	 Northern Border Indemnity Cap
	  	9.3(b)
		
	 Northern Border Returns
	  	10.4(b)
		
	 OCC Consent
	  	7.1(g)
		
	 ONEOK
	  	Preamble
		
	 ONEOK Disclosure Schedules
	  	2
		
	 ONEOK Guaranty Agreement
	  	1.3(b)(ii)
		
	 ONEOK Indemnity Cap
	  	9.3(b)
		
	 ONEOK Marks
	  	6.9
		
	 Operating Assets
	  	2.18(a)
		
	 Other Transaction Agreements
	  	7.1(h)

  

 56 

			
	 Parties
	  	Preamble
		
	 Party
	  	Preamble
		
	 Part-Year Fraction
	  	10.5(a)
		
	 Pre-Closing Period
	  	4.1
		
	 Pre-Closing Taxable Period
	  	10.6(a)(i)
		
	 Purchase Price
	  	1.2
		
	 Related Party
	  	2.14
		
	 Resolution Period
	  	1.4(b)
		
	 Services Agreement
	  	1.3(b)(ii)
		
	 Shares
	  	Recitals
		
	 Straddle Periods
	  	10.4(b)
		
	 Tax Controversy
	  	10.7(a)
		
	 Tax Indemnitor
	  	10.7(a)
		
	 Tax Records
	  	10.1
		
	 TransCanada Agreement
	  	7.1(h)
		
	 Viking Indenture
	  	7.2(m)

  

 57 

 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date set forth
above by their duly authorized representatives. 
  

			
	 ONEOK, INC.

		
	By:	 	 /s/ David L. Kyle

	 Name:
	 	 David L. Kyle

	 Title:
	 	Chairman of the Board, President and
Chief Executive Officer
	
	 NORTHERN BORDER PARTNERS, L.P.

		
	By:	 	 /s/ William R. Cordes

	 Name:
	 	 William R. Cordes

	 Title:
	 	Chief Executive Officer

  

 58 

 Schedule 1.3(b)(vi) 
 Form of Opinions to be Delivered by Counsel 
 for ONEOK 
 Unless otherwise defined herein, all capitalized terms defined in the Purchase and Sale Agreement shall have the same meanings when used herein.

  

	 	1.	ONEOK is a corporation duly organized, validly existing and in good standing under the laws of the State of Oklahoma. 

  

	 	2.	ONEOK has all requisite corporate right, authority and power to execute, deliver and perform its obligations under the Purchase and Sale Agreement and each Related Agreement.

  

	 	3.	The execution, delivery and performance by ONEOK of the Purchase and Sale Agreement and each Related Agreement have been duly authorized by all necessary corporate action of ONEOK,
and no other corporate action on the part of ONEOK is required in connection therewith. 

  

	 	4.	ONEOK has duly executed and delivered the Purchase and Sale Agreement and each Related Agreement. 

  

	 	5.	The Purchase and Sale Agreement and each Related Agreement executed and delivered by ONEOK pursuant to the Purchase and Sale Agreement constitutes valid and binding obligations of
ONEOK enforceable against ONEOK in accordance with their respective terms. 

  

	 	6.	The execution, delivery and performance by ONEOK of the Purchase and Sale Agreement and each Related Agreement executed and delivered by ONEOK, with or without the giving of notice
or the passage of time, or both, (i) do not and will not conflict with or violate any provision of the certificate of incorporation or bylaws of ONEOK, (ii) do not and will not conflict with or violate any law, or regulation of any
Governmental Authority, of the United States of America or the laws of the State of Oklahoma applicable to ONEOK, and (iii) do not and will not require under the federal laws of the United States of America or the laws of the State of Oklahoma,
any filing or registration by ONEOK with, or approval or consent to ONEOK of, any Governmental Authority of the United States of America or the State of Oklahoma that has not been made or obtained, except for such violations or failures to obtain
such approval, consent or waiver that would not, individually or in the aggregate, have a material adverse effect on the ability of ONEOK to perform its obligations under the Purchase and Sale Agreement and each Related Agreement and consummate the
transactions contemplated thereby on the Closing Date. 

  

 59 

 Schedule 1.3(c)(ii) 
 Form of Opinions to be Delivered by Counsel 
 for Northern Border 
 Unless otherwise defined herein, all capitalized terms defined in the Purchase and Sale Agreement shall have the same meanings when used herein.

  

	 	1.	The NBP Partnerships are limited partnerships duly organized, validly existing and in good standing under the laws of the State of Delaware. 

  

	 	2.	The NBP Partnerships have all requisite partnership right, authority and power to execute, deliver and perform their obligations under the Purchase and Sale Agreement and each
Related Agreement. 

  

	 	3.	The execution, delivery and performance by the NBP Partnerships of the Purchase and Sale Agreement and each Related Agreement have been duly authorized by all necessary partnership
action of the NBP Partnerships, and no other partnership action on the part of the NBP Partnerships is required in connection therewith. 

  

	 	4.	The NBP Partnerships have duly executed and delivered the Purchase and Sale Agreement and each Related Agreement. 

  

	 	5.	The Purchase and Sale Agreement and each Related Agreement executed and delivered by the NBP Partnerships pursuant to the Purchase and Sale Agreement constitutes valid and binding
obligations of the NBP Partnerships enforceable against the NBP Partnerships in accordance with their respective terms. 

  

	 	6.	The execution, delivery and performance by the NBP Partnerships of the Purchase and Sale Agreement and each Related Agreement executed and delivered by Northern Border, with or
without the giving of notice or the passage of time, or both, (i) do not and will not conflict with or violate any provision of the organizational documents of the NBP Partnerships, (ii) do not and will not conflict with or violate any
law, or regulation of any Governmental Authority, of the United States of America or the laws of the State of Delaware applicable to the NBP Partnerships, (iii) do not and will not require under the federal laws of the United States of America
or the laws of the State of Delaware, any filing or registration by the NBP Partnerships with, or approval or consent to the NBP Partnerships of, any Governmental Authority of the United States of America or the State of Delaware that has not been
made or obtained, except for such violations or failures to obtain such approval, consent or waiver that would not, individually or in the aggregate, have a material adverse effect on the ability of the NBP Partnerships to perform their obligations
under the Purchase and Sale Agreement and each Related Agreement and consummate the transactions contemplated thereby on the Closing Date, and (iv) do not require the consent or approval of the holders of Common Units. 

 

 60

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