Document:

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                                                                    EXHIBIT 4.3

                              AMENDED AND RESTATED

                              DECLARATION OF TRUST

                                       OF

                       NORTHWESTERN CAPITAL FINANCING III

                                JANUARY 31, 2002

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                               TABLE OF CONTENTS

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<S>      <C>            <C>                                                                            <C>
ARTICLE I INTERPRETATION AND DEFINITIONS.................................................................1

         SECTION 1.1   Definitions.......................................................................1

ARTICLE II TRUST INDENTURE ACT...........................................................................7

         SECTION 2.1   Trust Indenture Act; Application..................................................7

         SECTION 2.2   Lists of Holders of Securities....................................................7

         SECTION 2.3   Reports by the Property Trustee...................................................8

         SECTION 2.4   Periodic Reports to Property Trustee..............................................8

         SECTION 2.5   Evidence of Compliance with Conditions Precedent..................................8

         SECTION 2.6   Events of Default; Waiver.........................................................8

         SECTION 2.7   Event of Default; Notice.........................................................10

ARTICLE III ORGANIZATION................................................................................10

         SECTION 3.1   Name.............................................................................10

         SECTION 3.2   Office...........................................................................10

         SECTION 3.3   Purpose..........................................................................11

         SECTION 3.4   Authority........................................................................11

         SECTION 3.5   Title to Property of the Trust...................................................11

         SECTION 3.6   Powers and Duties of the Regular Trustees........................................11

         SECTION 3.7   Prohibition of Actions by the Trust and the Trustees.............................14
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                               TABLE OF CONTENTS
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<S>      <C>            <C>                                                                            <C>
         SECTION 3.8   Powers and Duties of the Property Trustee........................................14

         SECTION 3.9   Certain Duties and Responsibilities of the Property Trustee......................16

         SECTION 3.10  Certain Rights of Property Trustee...............................................18

         SECTION 3.11  Delaware Trustee.................................................................20

         SECTION 3.12  Execution of Documents...........................................................20

         SECTION 3.13  Not Responsible for Recitals or Issuance of Securities...........................20

         SECTION 3.14  Duration of Trust................................................................20

         SECTION 3.15  Mergers..........................................................................20

ARTICLE IV SPONSOR......................................................................................22

         SECTION 4.1   Sponsor's Purchase of Common Securities..........................................22

         SECTION 4.2   Responsibilities of the Sponsor..................................................22

         SECTION 4.3   Expenses.........................................................................23

ARTICLE V TRUSTEES......................................................................................23

         SECTION 5.1    Number of Trustees..............................................................23

         SECTION 5.2    Delaware Trustee; Eligibility...................................................23

         SECTION 5.3    Property Trustee; Eligibility...................................................24

         SECTION 5.4    Qualifications of Regular Trustees and Delaware Trustee Generally...............25

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                               TABLE OF CONTENTS
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<S>      <C>            <C>                                                                            <C>
         SECTION 5.5    Initial Trustees................................................................25

         SECTION 5.6    Appointment, Removal and Resignation of Trustees................................25

         SECTION 5.7    Vacancies among Trustees........................................................27

         SECTION 5.8    Effect of Vacancies.............................................................27

         SECTION 5.9    Meetings........................................................................27

         SECTION 5.10   Delegation of Power.............................................................28

ARTICLE VI DISTRIBUTIONS................................................................................28

         SECTION 6.1    Distributions...................................................................28

ARTICLE VII ISSUANCE OF SECURITIES......................................................................28

         SECTION 7.1    General Provisions Regarding Securities.........................................28

         SECTION 7.2    Authentication..................................................................29

         SECTION 7.3    Rights of Holders...............................................................29

         SECTION 7.4    Subordination of Common Securities..............................................30

ARTICLE VIII TERMINATION OF TRUST.......................................................................30

         SECTION 8.1    Termination of Trust............................................................30

ARTICLE IX TRANSFER OF INTERESTS........................................................................31

         SECTION 9.1    Transfer of Securities..........................................................31

         SECTION 9.2    Transfer of Certificates........................................................32
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<S>      <C>            <C>                                                                            <C>

         SECTION 9.3    Deemed Security Holders.........................................................32

         SECTION 9.4    Book Entry Interests............................................................32

         SECTION 9.5    Notices to Clearing Agency......................................................33

         SECTION 9.6    Appointment of Successor Clearing Agency........................................33

         SECTION 9.7    Definitive Preferred Security Certificates......................................33

         SECTION 9.8    Mutilated, Destroyed, Lost or Stolen Certificates...............................34

ARTICLE X LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES AND OTHERS.........................35

         SECTION 10.1   Liability.......................................................................35

         SECTION 10.2   Exculpation.....................................................................35

         SECTION 10.3   Fiduciary Duty..................................................................36

         SECTION 10.4   Indemnification.................................................................37

         SECTION 10.5   Outside Businesses..............................................................37

ARTICLE XI ACCOUNTING...................................................................................38

         SECTION 11.1   Fiscal Year.....................................................................38

         SECTION 11.2   Certain Accounting Matters......................................................38

         SECTION 11.3   Banking.........................................................................38

         SECTION 11.4   Withholding.....................................................................39
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                               TABLE OF CONTENTS
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ARTICLE XII AMENDMENTS AND MEETINGS.....................................................................39

         SECTION 12.1   Amendments......................................................................39

         SECTION 12.2   Meetings of the Holders of Securities; Action by Written Consent................40

ARTICLE XIII REPRESENTATIONS OF PROPERTY TRUSTEE........................................................42

         SECTION 13.1   Representations and Warranties of Property Trustee..............................42

ARTICLE XIV MISCELLANEOUS...............................................................................43

         SECTION 14.1   Notices.........................................................................43

         SECTION 14.2   Governing Law...................................................................44

         SECTION 14.3   Intention of the Parties........................................................44

         SECTION 14.4   Headings........................................................................44

         SECTION 14.5   Successors and Assigns..........................................................44

         SECTION 14.6   Partial Enforceability..........................................................44

         SECTION 14.7   Counterparts....................................................................44
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                              LIST OF DEFINED TERMS

<TABLE>
<S>                                                                            <C>
10% in liquidation amount of the Securities......................................6
66-2/3% in liquidation amount of the Securities..................................6
Affiliate........................................................................2
Authorized Officer...............................................................2
Book Entry Interest..............................................................2
Business Day.....................................................................2
Business Trust Act...............................................................2
Certificate......................................................................2
Clearing Agency..................................................................2
Clearing Agency Participant......................................................2
Code.............................................................................2
Commission.......................................................................2
Common Securities Guarantee......................................................3
Common Security..................................................................2
Common Security Certificate......................................................3
Covered Person...................................................................3
Debenture Issuer.................................................................3
Debenture Trustee................................................................3
Debentures.......................................................................3
Definitive Preferred Security Certificates.......................................3
Delaware Trustee.................................................................3
Direction........................................................................3
Distribution.....................................................................3
DTC..............................................................................3
Event of Default.................................................................3
Exchange Act.....................................................................3
Global Certificate...............................................................3
HOLDER...........................................................................3
Indemnified Person...............................................................4
Indenture........................................................................4
Investment Company...............................................................4
Investment Company Act...........................................................4
Legal Action.....................................................................4
List of Holders..................................................................4
Majority in liquidation amount of the Securities.................................4
Officers' Certificate............................................................4
Over-allotment Option............................................................5
Paying Agent.....................................................................5
Person...........................................................................5
Preferred Securities Guarantee...................................................5
Preferred Security...............................................................5
</TABLE>

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                              LIST OF DEFINED TERMS
                                  (continued)

<TABLE>
<S>                                                                            <C>
Preferred Security Beneficial Owner..............................................5
Preferred Security Certificate...................................................5
Property Trustee.................................................................5
Property Trustee Account.........................................................5
Prospectus.......................................................................5
Quorum...........................................................................5
Regular Trustee..................................................................5
Related Party....................................................................5
Responsible Officer..............................................................5
Rule 3a-7........................................................................6
Securities.......................................................................6
Securities Act...................................................................6
Sponsor..........................................................................6
Successor Entity.................................................................6
Successor Securities.............................................................6
Super Majority...................................................................6
Treasury Regulations.............................................................6
Trust Indenture Act..............................................................7
Trustee..........................................................................6
Underwriting Agreement...........................................................7
</TABLE>

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                       NORTHWESTERN CAPITAL FINANCING III

                          CROSS REFERENCE TABLE FOR THE
                    AMENDED AND RESTATED DECLARATION OF TRUST

<TABLE>
<CAPTION>

SECTION OF TRUST INDENTURE                                                        SECTION OF AMENDED AND RESTATED
ACT OF 1939, AS AMENDED                                                                      DECLARATION OF TRUST

<S>                   <C>                                                         <C>
Section 310          (a)(1)...................................................................................5.3
                     (a)(2)...................................................................................5.3
                     (a)(3)...................................................................................5.6
                     (a)(4)........................................................................Not Applicable
                     (b)...................................................................................5.3(c)
                     (c)...........................................................................Not Applicable
Section 311          (a)...................................................................................2.2(b)
                     (b)...................................................................................2.2(b)
                     (c)...........................................................................Not Applicable
Section 312          (a)...................................................................................2.2(a)
                     (b)...................................................................................2.2(b)
                     (c)..........................................................................Not  Applicable
Section 313          (a)......................................................................................2.3
                     (b)......................................................................................2.3
                     (c)......................................................................................2.3
                     (d)......................................................................................2.3
Section 314          (a)..............................................................................2.4, 3.6(j)
                     (b)...........................................................................Not Applicable
                     (c)(1)..............................................................................2.4, 2.5
                     (c)(2)..............................................................................2.4, 2.5
                     (c)(3)..............................................................................2.4, 2.5
                     (d)......................................................................................2.4
                     (e)......................................................................................2.4
Section 315          (a)................................................................................3.9, 3.10
                     (b)...................................................................................2.7(a)
                     (c)...................................................................................3.9(a)
                     (d)...................................................................................3.9(b)
                     (e)...........................................................................Not Applicable
Section 316          (a).............................................................................Exhibit 5(b)
                     (a)(1)(A).......................................................................Exhibit 5(b)
                     (a)(1)(B).......................................................................Exhibit 5(b)
                     (a)(2)........................................................................Not Applicable
                     (b).............................................................................Exhibit 5(b)
                     (c)......................................................................................2.2
Section 317          (a)(1)........................................................................Not Applicable
                     (a)(2)........................................................................Not Applicable
                     (b)...................................................................................3.8(h)
Section 318          (a)...................................................................................2.1(c)

</TABLE>

-----------------
Note: This Cross-Reference Table shall not, for any purpose, be deemed to be a
      part of the Amended and Restated Declaration of Trust.

<PAGE>

                              AMENDED AND RESTATED

                              DECLARATION OF TRUST

                                       OF

                       NORTHWESTERN CAPITAL FINANCING III

     AMENDED AND RESTATED DECLARATION OF TRUST ("DECLARATION") dated and
effective as of January 31, 2002, by the undersigned trustees (together with all
other Persons from time to time duly appointed and serving as trustees in
accordance with the provisions of this Declaration, the "TRUSTEES"),
NorthWestern Corporation, a Delaware corporation, as trust sponsor (the
"SPONSOR"), and the holders, from time to time, of undivided beneficial
interests in the assets of the Trust to be issued pursuant to this Declaration;

     WHEREAS, the Trustees and the Sponsor established a trust (the "TRUST")
under the Delaware Business Trust Act (the "BUSINESS TRUST ACT") pursuant to a
Declaration of Trust dated as of June 19, 1995 (as amended, the "ORIGINAL
DECLARATION"), and a Certificate of Trust filed with the Secretary of State of
the State of Delaware on June 19, 1995 for the sole purpose of issuing and
selling certain securities representing undivided beneficial interests in the
assets of the Trust and investing the proceeds thereof in certain Debentures (as
defined herein) of the Debenture Issuer (as defined herein);

     WHEREAS, the Original Declaration was amended pursuant to a First Amendment
to the Declaration of Trust of NWPS Capital Financing III dated June 30, 1998;
and

     WHEREAS, all of the Trustees and the Sponsor, by this Declaration, amend
and restate each and every term and provision of the Original Declaration as so
amended.

     NOW, THEREFORE, it being the intention of the parties hereto to continue
the Trust as a business trust under the Business Trust Act and that this
Declaration constitute the governing instrument of such business trust, the
Trustees declare that all assets contributed to the Trust will be held in trust
for the benefit of the holders, from time to time, of the securities
representing undivided beneficial interests in the assets of the Trust issued
hereunder, subject to the provisions of this Declaration.

                                   ARTICLE I
                         INTERPRETATION AND DEFINITIONS

SECTION 1.1 DEFINITIONS.

     In this Declaration, unless the context otherwise requires:

     (a)  capitalized terms used in this Declaration but not defined in the
          preamble above have the respective meanings assigned to them in this
          SECTION 1.1;

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     (b)  a term defined anywhere in this Declaration has the same meaning
          throughout;

     (c)  all references to "the Declaration" or "this Declaration" are to this
          Declaration as modified, supplemented or amended from time to time;

     (d)  all references in this Declaration to Articles and Sections and
          Exhibits are to Articles and Sections of and Exhibits to this
          Declaration unless otherwise specified;

     (e)  a term defined in the Trust Indenture Act has the same meaning when
          used in this Declaration unless otherwise defined in this Declaration
          or unless the context otherwise requires; and

     (f)  a reference to the singular includes the plural and vice versa.

     "AFFILIATE" has the same meaning as given to that term in Rule 405
promulgated under the Securities Act or any successor rule thereunder.

     "AUTHORIZED OFFICER" of a Person means any Person that is authorized to
bind such Person.

     "BOOK ENTRY INTEREST" means a beneficial interest in a Global Certificate,
ownership and transfers of which shall be maintained and made through book
entries by a Clearing Agency as described in SECTION 9.4.

     "BUSINESS DAY" means any day other than Saturday, Sunday or any other day
on which banking institutions in New York, New York are authorized or required
by applicable law to close.

     "BUSINESS TRUST ACT" means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code Section 3801 ET SEQ., as it may be amended from time to time, or any
successor legislation.

     "CERTIFICATE" means a Common Security Certificate or a Preferred Security
Certificate.

     "CLEARING AGENCY" means an organization registered as a "Clearing Agency"
pursuant to Section 17A of the Exchange Act that is acting as depositary for the
Preferred Securities and in whose name or in whose nominee's name shall be
registered a Global Certificate and which shall undertake to effect book entry
transfers and pledges of the Preferred Securities.

     "CLEARING AGENCY PARTICIPANT" means a broker, dealer, bank, other financial
institution or other Person for whom from time to time the Clearing Agency
effects book entry transfers and pledges of securities deposited with the
Clearing Agency.

     "CODE" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor legislation.

     "COMMISSION" means the Securities and Exchange Commission.

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     "COMMON SECURITY" has the meaning specified in SECTION 7.1.

     "COMMON SECURITIES GUARANTEE" means the guarantee agreement to be dated as
of January 31, 2002 of the Sponsor in respect of the Common Securities.

     "COMMON SECURITY CERTIFICATE" means a definitive certificate in fully
registered form representing a Common Security substantially in the form of
ANNEX II to EXHIBIT A.

     "COVERED PERSON" means: (a) any officer, director, shareholder, partner,
member, representative, employee or agent of (i) the Trust or (ii) the Trust's
Affiliates; and (b) any Holder of Securities.

     "DEBENTURE ISSUER" means NorthWestern Corporation in its capacity as issuer
of the Debentures.

     "DEBENTURE TRUSTEE" means JPMorgan Chase Bank (as successor to The Chase
Manhattan Bank, N.A.), as trustee under the Indenture, until a successor is
appointed thereunder, and thereafter means such successor trustee.

     "DEBENTURES" means the series of Debentures entitled "8.10% Junior
Subordinated Deferrable Interest Debentures due January 15, 2032" of the
Debenture Issuer to be issued to the Property Trustee by the Debenture Issuer
under the Indenture, a specimen certificate of which is attached as EXHIBIT B.

     "DEFINITIVE PREFERRED SECURITY CERTIFICATES" has the meaning set forth in
SECTION 9.4.

     "DELAWARE TRUSTEE" has the meaning set forth in SECTION 5.2.

     "DIRECTION" by a Person means a written direction signed: (a) if the Person
is a natural person, by that Person; or (b) in any other case, in the name of
such Person by one or more Authorized Officers of that Person.

     "DISTRIBUTION" means a distribution payable to Holders of Securities in
accordance with SECTION 6.1.

     "DTC" means The Depository Trust Company, the initial Clearing Agency.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended from
time to time, or any successor legislation.

     "EVENT OF DEFAULT" in respect of the Securities means an Event of Default
(as defined in the Indenture) has occurred and is continuing in respect of the
Debentures.

     "GLOBAL CERTIFICATE" has the meaning set forth in SECTION 9.4.

     "HOLDER" means a Person in whose name a Certificate representing a Security
is registered, such Person being a beneficial owner within the meaning of the
Business Trust Act.

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     "INDEMNIFIED PERSON" means any Trustee, any Affiliate of any Trustee, or
any officers, directors, shareholders, members, partners, employees,
representatives or agents of any Trustee, or any employee or agent of the Trust
or its Affiliates.

     "INDENTURE" means the Subordinated Debt Securities Indenture dated as of
August 1, 1995, between the Debenture Issuer and JPMorgan Chase Bank (as
successor to The Chase Manhattan Bank, (N.A.)), as trustee, as supplemented by
the First Supplemental Indenture, dated as of August 1, 1995, the Second
Supplemental Indenture, dated as of November 15, 1998, the Third Supplemental
Indenture, dated as of December 21, 2001 and the Fourth Supplemental Indenture,
dated as of January 31, 2002, pursuant to which the Debentures are to be issued
(the "FOURTH SUPPLEMENTAL INDENTURE").

     "INVESTMENT COMPANY" means an investment company as defined in the
Investment Company Act.

     "INVESTMENT COMPANY ACT" means the Investment Company Act of 1940, as
amended from time to time, or any successor legislation.

     "LEGAL ACTION" has the meaning set forth in SECTION 3.6(h).

     "LIST OF HOLDERS" has the meaning set forth in SECTION 2.2.

     "MAJORITY IN LIQUIDATION AMOUNT OF THE SECURITIES" means, except as
provided in the terms of the Securities and by the Trust Indenture Act, a vote
by the Holder(s) of Securities voting together as a single class or, as the
context may require, a vote by the Holder(s) of the Preferred Securities or the
Holder(s) of the Common Securities, each voting separately as a class,
representing a majority of the liquidation amount (including the stated amount
that would be paid on redemption, liquidation or otherwise, plus accumulated and
unpaid Distributions to the date upon which the voting percentages are
determined) of all Securities of such class.

     "OFFICERS' CERTIFICATE" means, with respect to any Person, a certificate
signed by two Authorized Officers of such Person. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Declaration shall include:

     (a)  a statement that each officer signing the Officers' Certificate has
          read the covenant or condition and the definition relating thereto;

     (b)  a brief statement of the nature and scope of the examination or
          investigation undertaken by each officer in rendering the Officers'
          Certificate;

     (c)  a statement that each such officer has made such examination or
          investigation as, in such officer's opinion, is necessary to enable
          such officer to express an informed opinion as to whether or not such
          covenant or condition has been complied with; and

                                       4
<PAGE>

     (d)  a statement as to whether, in the opinion of each such officer, such
          condition or covenant has been complied with.

     "OVERALLOTMENT OPTION" shall mean any overallotment option contained in the
Underwriting Agreement.

     "PAYING AGENT" has the meaning specified in SECTION 3.8(h).

     "PERSON" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

     "PREFERRED SECURITIES GUARANTEE" means the guarantee agreement to be dated
as of January 31, 2002 of the Sponsor in respect of the Preferred Securities.

     "PREFERRED SECURITY" has the meaning specified in SECTION 7.1.

     "PREFERRED SECURITY BENEFICIAL OWNER" means, with respect to a Book Entry
Interest, a Person who is the beneficial owner of such Book Entry Interest, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly as a Clearing Agency
Participant or as an indirect participant, in each case in accordance with the
rules of such Clearing Agency).

     "PREFERRED SECURITY CERTIFICATE" means a certificate representing a
Preferred Security substantially in the form of ANNEX I to EXHIBIT A.

     "PROPERTY TRUSTEE" means the Trustee meeting the eligibility requirements
set forth in SECTION 5.3.

     "PROPERTY TRUSTEE ACCOUNT" has the meaning set forth in SECTION 3.8(c).

     "PROSPECTUS" has the meaning set forth in the terms of the Securities set
forth in EXHIBIT A.

     "QUORUM" means a majority of the Regular Trustees or, if there are only two
Regular Trustees, both of them.

     "REGULAR TRUSTEE" means any Trustee other than the Property Trustee and the
Delaware Trustee.

     "RELATED PARTY" means, with respect to the Sponsor, any direct or indirect
wholly owned subsidiary of the Sponsor or any other Person that owns, directly
or indirectly, 100% of the outstanding voting securities of the Sponsor.

     "RESPONSIBLE OFFICER" means, with respect to the Property Trustee, any
vice-president, any assistant vice-president, the secretary, any assistant
secretary, the treasurer, any assistant

                                       5
<PAGE>

treasurer, any trust officer or assistant trust officer or any other officer in
the corporate trust department of the Property Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of that officer's knowledge of
and familiarity with the particular subject.

     "RULE 3a-7" means Rule 3a-7 promulgated under the Investment Company Act or
any successor rule thereunder.

     "SECURITIES" means the Common Securities and the Preferred Securities.

     "SECURITIES ACT" means the Securities Act of 1933, as amended from time to
time, or any successor legislation.

     "66-2/3% IN LIQUIDATION AMOUNT OF THE SECURITIES" means, except as provided
in the terms of the Preferred Securities and by the Trust Indenture Act, a vote
by the Holder(s) of the Securities voting together as a single class or, as the
context may require, a vote by the Holder(s) of the Preferred Securities or the
Holder(s) of the Common Securities, each voting separately as a class,
representing 66-2/3% of the liquidation amount (including the stated amount that
would be paid on redemption, liquidation or otherwise, plus accumulated and
unpaid Distributions to the date upon which the voting percentages are
determined) of all Securities of such class.

     "SPONSOR" means NorthWestern Corporation, a Delaware corporation, or any
successor entity in a merger, consolidation or amalgamation, in its capacity as
sponsor of the Trust.

     "SUCCESSOR ENTITY" has the meaning set forth in SECTION 3.15.

     "SUCCESSOR SECURITIES" has the meaning set forth in SECTION 3.15.

     "SUPER MAJORITY" means, with respect to a consent under the Indenture, the
consent of the Holders of greater than a majority in principal amount of
Debentures affected by such consent.

     "10% IN LIQUIDATION AMOUNT OF THE SECURITIES" means, except as provided in
the terms of the Preferred Securities and by the Trust Indenture Act, the vote
by the Holder(s) of the Securities voting together as a single class or, as the
context may require, the vote by the Holder(s) of the Preferred Securities or
the Holder(s) of the Common Securities, each voting separately as a class,
representing 10% of the liquidation amount (including the stated amount that
would be paid on redemption, liquidation or otherwise, plus accumulated and
unpaid Distributions to the date upon which the voting percentages are
determined) of all Securities of such class.

     "TREASURY REGULATIONS" means the income tax regulations, including
temporary and proposed regulations, promulgated under the Code by the United
States Treasury, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

                                       6
<PAGE>

     "TRUSTEE" or "TRUSTEES" means each Person who has signed this Declaration
as a trustee, so long as such Person shall continue in office in accordance with
the terms hereof, and all other Persons who may from time to time be duly
appointed, qualified and serving as Trustees in accordance with the provisions
hereof, and references herein to a Trustee or the Trustees shall refer to such
Person or Persons solely in their capacity as trustees hereunder.

     "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, as amended
from time to time, or any successor legislation.

     "UNDERWRITING AGREEMENT" means the Underwriting Agreement for the offering
and sale of the Preferred Securities in the form of EXHIBIT C.

                                   ARTICLE II
                               TRUST INDENTURE ACT

SECTION 2.1 TRUST INDENTURE ACT; APPLICATION.

     (a)  This Declaration is subject to the provisions of the Trust Indenture
          Act that are required to be part of this Declaration and shall, to the
          extent applicable, be governed by such provisions.

     (b)  The Property Trustee shall be the only Trustee which is a Trustee for
          the purposes of the Trust Indenture Act.

     (c)  If and to the extent that any provision of this Declaration limits,
          qualifies or conflicts with the duties imposed by Sections 310 to 317,
          inclusive, of the Trust Indenture Act, such imposed duties shall
          control.

     (d)  The application of the Trust Indenture Act to this Declaration shall
          not affect the nature of the Securities as equity securities
          representing undivided beneficial interests in the assets of the
          Trust.

SECTION 2.2 LISTS OF HOLDERS OF SECURITIES.

     (a)  Each of the Sponsor, the Debenture Issuer and the Regular Trustees on
          behalf of the Trust shall provide the Property Trustee (i) within 14
          days after each record date for payment of Distributions, a list, in
          such form as the Property Trustee may reasonably require, of the names
          and addresses of the Holders of the Securities (a "LIST OF HOLDERS")
          as of such record date, provided that none of the Sponsor, the
          Debenture Issuer or the Regular Trustees on behalf of the Trust shall
          be obligated to provide such List of Holders at any time the List of
          Holders does not differ from the most recent List of Holders given to
          the Property Trustee by the Sponsor, the Debenture Issuer and the
          Regular Trustees on behalf of the Trust, and (ii) at any other time,
          within 30 days of receipt by the Trust of a written request for a List
          of Holders as of a date no more than 14 days before such List of
          Holders is given to the Property Trustee. The Property Trustee shall
          preserve, in as current a

                                       7
<PAGE>

          form as is reasonably practicable, all information contained in the
          Lists of Holders given to it or which it receives in the capacity as
          Paying Agent (if acting in such capacity) provided that the Property
          Trustee may destroy any List of Holders previously given to it on
          receipt of a new List of Holders.

     (b)  The Property Trustee shall comply with its obligations under Sections
          311(a), 311(b) and 312(b) of the Trust Indenture Act.

SECTION 2.3 REPORTS BY THE PROPERTY TRUSTEE.

     Within 60 days after May 15 of each year, the Property Trustee shall
provide to the Holders of the Preferred Securities such reports as are required
by Section 313 of the Trust Indenture Act, if any, in the form and in the manner
provided by Section 313 of the Trust Indenture Act. The Property Trustee shall
also comply with the requirements of Section 313(d) of the Trust Indenture Act.

SECTION 2.4 PERIODIC REPORTS TO PROPERTY TRUSTEE.

     Each of the Sponsor and the Regular Trustees on behalf of the Trust shall
provide to the Property Trustee such documents, reports and information as
required by Section 314 of the Trust Indenture Act (if any) and the compliance
certificate required by Section 314 of the Trust Indenture Act in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act.

SECTION 2.5 EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.

     Each of the Sponsor and the Regular Trustees on behalf of the Trust shall
provide to the Property Trustee such evidence of compliance with any conditions
precedent, if any, provided for in this Declaration that relate to any of the
matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate
or opinion required to be given by an officer pursuant to Section 314(c)(1) may
be given in the form of an Officers' Certificate.

SECTION 2.6 EVENTS OF DEFAULT; WAIVER.

     (a)  The Holders of a Majority in liquidation amount of the Preferred
          Securities may, by vote, on behalf of the Holders of all of the
          Preferred Securities, waive any past Event of Default in respect of
          the Preferred Securities and its consequences, provided that, if the
          Event of Default arises out of an event of default under the
          Indenture:

          (i)  which is not waivable under the Indenture, the Event of Default
               under the Declaration shall also not be waivable; or

          (ii) which requires the consent or vote of all or a Super Majority of
               the holders of the Debentures to be waived under the Indenture,
               the Event of Default under the Declaration may only be waived by
               the vote of all of the Holders of the Preferred Securities or the
               Holders of at least the proportion in liquidation

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<PAGE>

               amount of the Preferred Securities as represents the relevant
               Super Majority of the aggregate principal amount of the
               Debentures outstanding.

          Upon such waiver, any such default shall cease to exist, and any Event
          of Default with respect to the Preferred Securities arising therefrom
          shall be deemed to have been cured, for every purpose of this
          Declaration, but no such waiver shall extend to any subsequent or
          other default or an Event of Default with respect to the Preferred
          Securities or impair any right consequent thereon. Any waiver by the
          Holders of the Preferred Securities of an Event of Default with
          respect to the Preferred Securities shall also be deemed to constitute
          a waiver by the Holders of the Common Securities of any such Event of
          Default with respect to the Common Securities for all purposes of this
          Declaration without any further act, vote or consent of the Holders of
          the Common Securities.

     (b)  The Holders of a Majority in liquidation amount of the Common
          Securities may, by vote, on behalf of the Holders of all of the Common
          Securities, waive any past Event of Default with respect to the Common
          Securities and its consequences, provided that, if the Event of
          Default arises out of an event of default under the Indenture:

          (i)  which is not waivable under the Indenture, except where the
               Holders of the Common Securities are deemed to have waived such
               Event of Default under the Declaration as provided below in this
               SECTION 2.6(b), the Event of Default under the Declaration shall
               also not be waivable; or

          (ii) which requires the consent or vote of all or a Super Majority of
               the Holders of the Debentures to be waived under the Indenture,
               except where the Holders of the Common Securities are deemed to
               have waived such Event of Default under the Declaration as
               provided below in this SECTION 2.6(b), the Event of Default under
               the Declaration may only be waived by the vote of all of the
               Holders of the Common Securities or the Holders of at least the
               proportion in liquidation amount of the Common Securities as
               represents the relevant Super Majority of the aggregate principal
               amount of the Debentures outstanding.

          Each Holder of Common Securities will be deemed to have waived any
          such Event of Default and all Events of Default with respect to the
          Common Securities and its consequences until all Events of Default
          with respect to the Preferred Securities have been cured, waived or
          otherwise eliminated, and until such Events of Default have been so
          cured, waived or otherwise eliminated, the Property Trustee will be
          deemed to be acting solely on behalf of the Holders of the Preferred
          Securities and only the Holders of the Preferred Securities will have
          the right to direct the Property Trustee in accordance with the terms
          of the Securities. Subject to the foregoing provisions of this SECTION
          2.6(b), upon such waiver, any such default shall cease to exist and
          any Event of Default with respect to the Common Securities arising
          therefrom shall be deemed to have been cured, for

                                       9
<PAGE>

          every purpose of this Declaration, but no such waiver shall extend to
          any subsequent or other default or Event of Default with respect to
          the Common Securities or impair any right consequent thereon.

     (c)  A waiver of an Event of Default under the Indenture by the Property
          Trustee at the direction of the Holders of the Preferred Securities
          constitutes a waiver of the corresponding Event of Default under this
          Declaration.

SECTION 2.7 EVENT OF DEFAULT; NOTICE.

     (a)  The Property Trustee shall, within 90 days after the occurrence of an
          Event of Default, transmit by mail, first class postage prepaid, to
          the Holders of the Securities, notices of all defaults with respect to
          the Securities known to the Property Trustee, unless such defaults
          have been cured before the giving of such notice (the term "defaults"
          for the purposes of this SECTION 2.7(a) being hereby defined to be an
          Event of Default as defined in the Indenture, not including any
          periods of grace provided for therein and irrespective of the giving
          of any notice provided therein; provided that, except for a default in
          the payment of principal of (or premium, if any) or interest on any of
          the Debentures or in the payment of any sinking fund installment
          established for the Debentures, the Property Trustee shall be
          protected in withholding such notice if and so long as the board of
          directors, the executive committee or a trust committee of directors
          and/or Responsible Officers of the Property Trustee in good faith
          determines that the withholding of such notice is in the interests of
          the Holders of the Securities.

     (b)  The Property Trustee shall not be deemed to have knowledge of any
          default except:

          (i)  a default under Sections 501(a)(1) and 501(a)(2) of the
               Indenture; or

          (ii) any default as to which the Property Trustee shall have received
               written notice or a Responsible Officer charged with the
               administration of the Declaration shall have obtained written
               notice of.

                                  ARTICLE III
                                  ORGANIZATION

SECTION 3.1 NAME.

     The Trust is named "NorthWestern Capital Financing III", as such name may
be modified from time to time by the Regular Trustees following written notice
to the Holders of the Securities. The Trust's activities may be conducted under
the name of the Trust or any other name deemed advisable by the Regular
Trustees.

SECTION 3.2 OFFICE.

     The address of the principal office of the Trust is c/o NorthWestern
Corporation, 125 S.

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<PAGE>

Dakota Avenue, Suite 1100, Sioux Falls, South Dakota 57104. On 10 Business Days
written notice to the Holders of the Securities, the Regular Trustees may
designate another principal office. The name and business address of the
Delaware Trustee in the State of Delaware is Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890, or such
other address in the State of Delaware as the Delaware Trustee may designate by
written notice to the Holders of the Securities, the Sponsor, the Property
Trustee and the Regular Trustees.

SECTION 3.3 PURPOSE.

     The exclusive purposes and functions of the Trust are (a) to issue and sell
the Securities and use the proceeds from such sales to acquire the Debentures,
and (b) except as otherwise limited herein, to engage in only those other
activities necessary, appropriate, convenient or incidental thereto. The Trust
shall not borrow money, issue debt or reinvest proceeds derived from
investments, pledge any of its assets or otherwise undertake (or permit to be
undertaken) any activity that would (i) cause the Trust not to be classified for
United States federal income tax purposes as a grantor trust or (ii) cause each
Holder of Securities not to be treated as owning an undivided beneficial
interest in the Debentures at any time the Securities are outstanding.

SECTION 3.4 AUTHORITY.

     Subject to the limitations provided in this Declaration and to the specific
duties of the Property Trustee, the Regular Trustees shall have exclusive and
complete authority to carry out the purposes of the Trust. An action taken by
the Regular Trustees in accordance with their powers shall constitute the act of
and serve to bind the Trust, and an action taken by the Property Trustee in
accordance with its powers shall constitute the act of and serve to bind the
Trust. In dealing with the Trustees acting on behalf of the Trust, no Person
shall be required to inquire into the authority of the Trustees to bind the
Trust. Persons dealing with the Trust are entitled to rely conclusively on the
power and authority of the Trustees as set forth in this Declaration.

SECTION 3.5 TITLE TO PROPERTY OF THE TRUST.

     Except as provided in SECTION 3.8 with respect to the Debentures and the
Property Trustee Account or as otherwise provided in this Declaration, legal
title to all assets of the Trust shall be vested in the Trust. The Holders shall
not have legal title to any part of the assets of the Trust, but shall have an
undivided beneficial interest in the assets of the Trust.

SECTION 3.6 POWERS AND DUTIES OF THE REGULAR TRUSTEES.

     Subject to SECTION 4.2, the Regular Trustees shall have the exclusive
power, duty and authority to cause the Trust to engage in the following
activities:

     (a)  to issue and sell the Preferred Securities and the Common Securities
          in accordance with this Declaration; PROVIDED, HOWEVER, that the Trust
          may issue no more than one series of Preferred Securities and no more
          than one series of Common Securities,

                                       11
<PAGE>

          and, provided further, that there shall be no interests in the Trust
          other than the Securities, and the issuance of the Securities shall be
          limited to a one-time, simultaneous issuance of both the Preferred
          Securities and the Common Securities, subject to the issuance of
          additional Securities pursuant to the exercise of any Overallotment
          Option;

     (b)  in connection with the issue and sale of the Preferred Securities, to
          execute and deliver any documents required by any Clearing Agency in
          connection with the issuance of a Global Certificate;

     (c)  to acquire the Debentures with the proceeds of the sale of the
          Preferred Securities and the Common Securities; PROVIDED, HOWEVER,
          that the Regular Trustees shall cause legal title to the Debentures to
          be held of record in the name of the Property Trustee for the benefit
          of the Holders of the Preferred Securities and the Holders or Common
          Securities;

     (d)  to give the Debenture Issuer, the Sponsor and the Property Trustee
          prompt written notice of the occurrence of a Tax Event or an
          Investment Company Event (each as defined in the Indenture); provided
          that the Regular Trustees shall consult with the Debenture Issuer, the
          Sponsor and the Property Trustee before taking or refraining from
          taking any action in relation to a Tax Event or an Investment Company
          Event;

     (e)  to establish a record date with respect to all actions to be taken
          hereunder that require a record date be established, including and
          with respect to, for the purposes of Section 316(c) of the Trust
          Indenture Act, Distributions, voting rights, redemptions and
          exchanges, and to issue relevant notices to the Holders of Preferred
          Securities and Holders of Common Securities as to such actions and
          applicable record dates;

     (f)  To cause the Trust to execute and deliver to DTC on behalf of the
          Trust the Letter of Representations dated January 31, 2002;

     (g)  to take all actions and perform such duties as may be required of the
          Regular Trustees pursuant to the terms of the Securities;

     (h)  to bring or defend, pay, collect, compromise, arbitrate, resort to
          legal action or otherwise adjust claims or demands of or against the
          Trust ("LEGAL ACTION"), unless pursuant to SECTION 3.8(e), the
          Property Trustee has the exclusive power to bring such Legal Action;

     (i)  to employ or otherwise engage employees and agents (who may be
          designated as officers with titles) and managers, contractors,
          advisors and consultants and pay reasonable compensation for such
          services;

     (j)  to cause the Trust to comply with the Trust's obligations under the
          Trust Indenture Act;

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<PAGE>

     (k)  to give the certificate required by Section 314(a)(4) of the Trust
          Indenture Act to the Property Trustee, which certificate may be
          executed by any Regular Trustee;

     (l)  to incur expenses which are necessary or incidental to carry out any
          of the purposes of the Trust;

     (m)  to act as, or appoint another Person to act as, registrar and transfer
          agent for the Securities;

     (n)  to give prompt written notice to the Holders of the Securities of any
          notice received from the Debenture Issuer of its election to defer
          payments of interest on the Debentures by extending the interest
          payment period under the Indenture;

     (o)  to execute all documents or instruments, perform all duties and
          powers, and do all things for and on behalf of the Trust in all
          matters necessary or incidental to the foregoing;

     (p)  to take all action that may be necessary or appropriate for the
          preservation and the continuation of the Trust's valid existence,
          rights, franchises and privileges as a statutory business trust under
          the laws of the State of Delaware and of each other jurisdiction in
          which such existence is necessary to protect the limited liability of
          the Holders of the Securities or to enable the Trust to effect the
          purposes for which the Trust was created;

     (q)  to take any action, not inconsistent with this Declaration or with
          applicable law, that the Regular Trustees determine in their
          discretion to be necessary or desirable in carrying out the activities
          of the Trust as set out in this SECTION 3.6; PROVIDED, HOWEVER, such
          action shall not:

          (i)  cause the Trust to be deemed to be an Investment Company required
               to be registered under the Investment Company Act;

          (ii) cause the Trust to be characterized for United States federal
               income tax purposes as an association taxable as a corporation or
               a partnership but for each Holder of Securities to be treated as
               owning an undivided beneficial interest in the Debentures; and

         (iii) cause the Debentures to be treated as indebtedness of the
               Debenture Issuer for United States federal income tax purposes,
               provided that such action does not adversely affect the
               interests of Holders; and

     (r)  to take all action necessary to cause all applicable tax returns and
          tax information reports that are required to be filed with respect to
          the Trust to be duly prepared and filed by the Regular Trustees, on
          behalf of the Trust.

     The Regular Trustees must exercise the powers set forth in this SECTION 3.6
in a manner

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<PAGE>

that is consistent with the purposes and functions of the Trust set out in
SECTION 3.3, and the Regular Trustees shall not take any action that is
inconsistent with the purposes and functions of the Trust set forth in SECTION
3.3. Subject to this SECTION 3.6, the Regular Trustees shall have none of the
powers or the authority of the Property Trustee set forth in SECTION 3.8.

SECTION 3.7 PROHIBITION OF ACTIONS BY THE TRUST AND THE TRUSTEES.

     The Trust shall not, and the Trustees (including the Property Trustee)
shall not engage in any activity other than as required or authorized by this
Declaration. In particular, the Trust shall not and the Trustees (including the
Property Trustee) shall not:

     (a)  invest any proceeds received by the Trust from holding the Debentures
          but shall distribute all such proceeds to the Holders of the
          Securities pursuant to the terms of this Declaration and of the
          Securities;

     (b)  acquire any assets other than as expressly provided herein;

     (c)  possess Trust property for other than a Trust purpose;

     (d)  make any loans or incur any indebtedness;

     (e)  unless otherwise provided in this Declaration, possess any power or
          otherwise act in such a way as to vary the Trust assets or the terms
          of the Securities in any way whatsoever;

     (f)  issue any securities or other evidences of beneficial ownership of, or
          beneficial interest in, the Trust other than the Securities; or

     (g)  (i) direct the time, method and place of exercising any trust or power
          conferred upon the Debenture Trustee with respect to the Debentures,
          (ii) waive any past default that is waivable under Section 513 of the
          Indenture, (iii) exercise any right to rescind or annul any
          declaration that the principal of all the Debentures shall be due and
          payable or (iv) consent to any amendment, modification or termination
          of the Indenture or the Debentures, where such consent shall be
          required, unless the Trust shall have received an opinion of counsel
          to the effect that such modification will not cause the Trust to fail
          to be classified as a grantor trust for United States federal income
          tax purposes.

SECTION 3.8 POWERS AND DUTIES OF THE PROPERTY TRUSTEE.

     (a)  The legal title to the Debentures shall be owned by and held of record
          in the name of the Property Trustee in trust for the benefit of the
          Holders of the Securities. The right, title and interest of the
          Property Trustee to the Debentures shall vest automatically in each
          Person who may hereafter be appointed as Property Trustee in
          accordance with SECTION 5.6. Such vesting and cessation of title shall
          be effective whether or not conveyancing documents with regard to the
          Debentures

                                       14
<PAGE>

          have been executed and delivered.

     (b)  The Property Trustee shall not transfer its right, title and interest
          in the Debentures to the Regular Trustees or to the Delaware Trustee
          (if the Property Trustee does not also act as Delaware Trustee).

     (c)  The Property Trustee shall:

          (i)  establish and maintain a segregated non-interest bearing trust
               account (the "PROPERTY TRUSTEE ACCOUNT") in the name of and under
               the exclusive control of the Property Trustee on behalf of the
               Holders of the Securities and, upon the receipt of payments of
               funds made in respect of the Debentures held by the Property
               Trustee, deposit such funds into the Property Trustee Account and
               make payments to the Holders of the Preferred Securities and the
               Holders of the Common Securities from the Property Trustee
               Account in accordance with SECTION 6.1. Funds in the Property
               Trustee Account shall be held uninvested until disbursed in
               accordance with this Declaration. The Property Trustee Account
               shall be an account that is maintained with a banking institution
               the rating on whose long term unsecured indebtedness is at least
               equal to the lowest investment grade rating assigned by a
               "nationally recognized statistical rating organization", as that
               term is defined for purposes of Rule 436(g)(2) under the
               Securities Act;

          (ii) engage in such ministerial activities as shall be necessary or
               appropriate to effect the redemption of the Preferred Securities
               and the Common Securities to the extent the Debentures are
               redeemed or mature; and

         (iii) upon notice of distribution issued by the Regular Trustees in
               accordance with the terms of the Preferred Securities and the
               Common Securities, engage in such ministerial activities as
               shall be necessary or appropriate to effect the distribution of
               the Debentures to Holders of Securities.

     (d)  The Property Trustee shall take all actions and perform such duties as
          may be specifically required of the Property Trustee pursuant to the
          terms of the Securities.

     (e)  The Property Trustee shall take any Legal Action which arises out of
          or in connection with an Event of Default or the Property Trustee's
          duties and obligations under this Declaration or the Trust Indenture
          Act.

     (f)  The Property Trustee shall not resign as a Trustee unless either:

          (i)  the Trust has been completely liquidated and the proceeds of the
               liquidation distributed to the Holders of the Securities pursuant
               to the terms of the Securities; or

                                       15
<PAGE>

          (ii) a successor Property Trustee has been appointed and has accepted
               that appointment in accordance with SECTION 5.6.

     (g)  The Property Trustee shall have the legal power to exercise all of the
          rights, powers and privileges of a holder of Debentures under the
          Indenture and, if an Event of Default occurs and is continuing, the
          Property Trustee shall, for the benefit of the Holders of the
          Securities, enforce its rights as holder of the Debentures subject to
          the rights of the Holders pursuant to the terms of the Securities.

     (h)  The Property Trustee may authorize one or more Persons (each, a
          "PAYING AGENT") to pay Distributions, redemption payments or
          liquidation payments on behalf of the Trust with respect to all
          Securities and may remove any Paying Agent at any time and appoint a
          successor Paying Agent or additional Paying Agents at any time. Any
          Paying Agent shall comply with Section 317(b) of the Trust Indenture
          Act.

     (i)  Subject to this SECTION 3.8, the Property Trustee shall have none of
          the duties, liabilities, powers or the authority of the Regular
          Trustees set forth in SECTION 3.6.

     The Property Trustee must exercise the powers set forth in this SECTION 3.8
in a manner which is consistent with the purposes and functions of the Trust set
out in SECTION 3.3, and the Property Trustee shall not take any action which is
inconsistent with the purposes and functions of the Trust set out in SECTION
3.3.

SECTION 3.9 CERTAIN DUTIES AND RESPONSIBILITIES OF THE PROPERTY TRUSTEE.

     (a)  The Property Trustee, before the occurrence of any Event of Default
          and after the curing or waiver of all Events of Default that may have
          occurred, shall undertake to perform only such duties as are
          specifically set forth in this Declaration and no implied covenants
          shall be read into this Declaration against the Property Trustee. In
          case an Event of Default has occurred (that has not been cured or
          waived pursuant to SECTION 2.6), the Property Trustee shall exercise
          such of the rights and powers vested in it by this Declaration, and
          use the same degree of care and skill in their exercise, as a prudent
          person would exercise or use under the circumstances in the conduct of
          his or her own affairs.

     (b)  No provision of this Declaration shall be construed to relieve the
          Property Trustee from liability for its own negligent action, its own
          negligent failure to act or its own willful misconduct, except that:

          (i)  prior to the occurrence of an Event of Default and after the
               curing or waiving of all such Events of Default that may have
               occurred:

               (A)  the duties and obligations of the Property Trustee shall be
                    determined solely by the express provisions of this
                    Declaration and the Property Trustee shall not be liable
                    except for the performance of such duties and obligations as
                    are specifically set forth in this

                                       16
<PAGE>

                    Declaration, and no implied covenants or obligations shall
                    be read into this Declaration against the Property Trustee;
                    and

               (B)  in the absence of bad faith on the part of the Property
                    Trustee, the Property Trustee may conclusively rely, as to
                    the truth of the statements and the correctness of the
                    opinions expressed therein, upon any certificates or
                    opinions furnished to the Property Trustee and conforming to
                    the requirements of this Declaration; but in the case of any
                    such certificates or opinions that by any provision hereof
                    are specifically required to be furnished to the Property
                    Trustee, the Property Trustee shall be under a duty to
                    examine the same to determine whether or not they conform to
                    the requirements of this Declaration;

          (ii) the Property Trustee shall not be liable for any error of
               judgment made in good faith by a Responsible Officer of the
               Property Trustee, unless it shall be proved that the Property
               Trustee was negligent in ascertaining the pertinent facts;

         (iii) the Property Trustee shall not be liable with respect to any
               action taken or omitted to be taken by it in good faith in
               accordance with the direction of the Holders of not less than a
               Majority in liquidation amount of the Securities at the time
               outstanding relating to the time, method and place of conducting
               any proceeding for any remedy available to the Property Trustee
               or exercising any trust or power conferred upon the Property
               Trustee under this Declaration;

          (iv) no provision of this Declaration shall require the Property
               Trustee to expend or risk its own funds or otherwise incur
               personal financial liability in the performance of any of its
               duties or in the exercise of any of its rights or powers, if it
               shall have reasonable grounds for believing that the repayment of
               such funds or liability is not reasonably assured to it under the
               terms of this Declaration or adequate indemnity against such risk
               or liability is not reasonably assured to it;

          (v)  the Property Trustee's sole duty with respect to the custody,
               safe keeping and physical preservation of the Debentures and the
               Property Trustee Account shall be to deal with such property in a
               similar manner as the Property Trustee deals with similar
               property for its own account, subject to the protections and
               limitations on liability afforded to the Property Trustee under
               this Declaration, the Trust Indenture Act and Rule 3a-7;

          (vi) the Property Trustee shall have no duty or liability for or with
               respect to the value, genuineness, existence or sufficiency of
               the Debentures or the payment of any taxes or assessments levied
               thereon or in connection therewith;

                                       17
<PAGE>

         (vii) the Property Trustee shall not be liable for any interest on any
               money received by it and shall not be required to segregate money
               held by the Property Trustee from other funds held by it except
               in relation to the Property Trustee Account maintained pursuant
               to SECTION 3.8(c)(i) or as otherwise required by law; and

        (viii) the Property Trustee shall not be responsible for monitoring
               the compliance by the Regular Trustees or the Sponsor with their
               respective duties under this Declaration, nor shall the Property
               Trustee be liable for the default or misconduct of the Regular
               Trustees or the Sponsor.

SECTION 3.10 CERTAIN RIGHTS OF PROPERTY TRUSTEE.

     (a)  Subject to the provisions of SECTION 3.9:

          (i)  the Property Trustee may rely and shall be fully protected in
               acting or refraining from acting upon any resolution,
               certificate, statement, instrument, opinion, report, notice,
               request, direction, consent, order, bond, debenture, note, other
               evidence of indebtedness or other paper or document believed by
               it to be genuine and to have been signed, sent or presented by
               the proper party or parties;

          (ii) any direction or act of the Sponsor or the Regular Trustees
               contemplated by this Declaration shall be sufficiently evidenced
               by a Direction or an Officers' Certificate;

         (iii) whenever in the administration of this Declaration, the Property
               Trustee shall deem it desirable that a matter be proved or
               established before taking, suffering or omitting any action
               hereunder, the Property Trustee (unless other evidence is herein
               specifically prescribed) may, in the absence of bad faith on its
               part and, if the Trust is excluded from the definition of an
               Investment Company solely by means of Rule 3a-7, subject to the
               requirements of Rule 3a-7, request and rely upon an Officers'
               Certificate which, upon receipt of such request, shall be
               promptly delivered by the Sponsor or the Regular Trustees;

          (iv) the Property Trustee shall have no duty to see to any recording,
               filing or registration of any instrument (including any financing
               or continuation statement or any tax or securities) (or any
               rerecording, refiling or re-registration thereof);

          (v)  the Property Trustee may consult with counsel (which counsel may
               be counsel to the Sponsor or any of its Affiliates and may
               include any of its employees), and the written advice or opinion
               of such counsel with respect to legal matters shall be full and
               complete authorization and protection in respect of any action
               taken, suffered or omitted by it hereunder in good faith and

                                       18
<PAGE>

               in accordance with such advice or opinion, and the Property
               Trustee shall have the right at any time to seek instructions
               concerning the administration of this Declaration from any court
               of competent jurisdiction;

          (vi) the Property Trustee shall be under no obligation to exercise any
               of the rights or powers vested in it by this Declaration at the
               request or direction of any Holder, unless such Holder shall have
               provided to the Property Trustee adequate security and indemnity,
               which would satisfy a reasonable person in the position of the
               Property Trustee, against the costs, expenses (including
               attorneys' fees and expenses) and liabilities that might be
               incurred by it in complying with such request or direction,
               including such reasonable advances as may be requested by the
               Property Trustee, provided that nothing contained in this SECTION
               3.10(a)(vi) shall be taken to relieve the Property Trustee, upon
               the occurrence of an Event of Default, of its obligation to
               exercise the rights and powers vested in it by this Declaration;

         (vii) the Property Trustee shall not be bound to make any
               investigation into the facts or matters stated in any resolution,
               certificate, statement, instrument, opinion, report, notice,
               request, direction, consent, order, bond, debenture, note, other
               evidence of indebtedness or other paper or document, but the
               Property Trustee, in its discretion, may make such further
               inquiry or investigation into such facts or matters as it may see
               fit;

        (viii) the Property Trustee may execute any of the trusts or powers
               hereunder or perform any duties hereunder either directly or by
               or through agents or attorneys, and the Property Trustee shall
               not be responsible for any misconduct or negligence on the part
               of any agent or attorney appointed with due care by it hereunder;

          (ix) any action taken by the Property Trustee or its agents hereunder
               shall bind the Trust and the Holders of the Securities, and the
               signature of the Property Trustee or its agents alone shall be
               sufficient and effective to perform any such action; and no third
               party shall be required to inquire as to the authority of the
               Property Trustee to so act, or as to its compliance with any of
               the terms and provisions of this Declaration, both of which shall
               be conclusively evidenced by the Property Trustee's or its
               agent's taking such action;

          (x)  whenever in the administration of this Declaration the Property
               Trustee shall deem it desirable to receive instructions with
               respect to enforcing any remedy or right or taking any other
               action hereunder the Property Trustee (i) may request
               instructions from the Holders of the Securities, which
               instructions may only be given by the Holders of the same
               proportion and

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<PAGE>

               liquidation amount of the Securities as would be entitled to
               direct the Property Trustee under the terms of the Securities in
               respect of such remedies, right or action, (ii) may refrain from
               enforcing such remedy or right or taking such other action until
               such instructions are received, and (iii) shall be protected in
               acting in accordance with such instructions; and

          (xi) except as otherwise expressly provided by this Declaration, the
               Property Trustee shall not be under any obligation to take any
               action that is discretionary under the provisions of this
               Declaration.

     (b)  No provision of this Declaration shall be deemed to impose any duty or
          obligation on the Property Trustee to perform any act or acts or
          exercise any right, power, duty or obligation conferred or imposed on
          it, in any jurisdiction in which it shall be illegal, or in which the
          Property Trustee shall be unqualified or incompetent, in accordance
          with applicable law, to perform any such act or acts, or to exercise
          any such right, power, duty or obligation. No permissive power or
          authority available to the Property Trustee shall be construed to be a
          duty.

SECTION 3.11 DELAWARE TRUSTEE.

     Notwithstanding any other provision of this Declaration other than SECTION
5.2, the Delaware Trustee shall not be entitled to exercise any powers, nor
shall the Delaware Trustee have any of the duties and responsibilities of the
Regular Trustees or the Property Trustee described in this Declaration. Except
as set forth in SECTION 5.2, the Delaware Trustee shall be a Trustee for the
sole and limited purpose of fulfilling the requirements of Section 3807 of the
Business Trust Act.

SECTION 3.12 EXECUTION OF DOCUMENTS.

     Unless otherwise determined by the Regular Trustees, any Regular Trustee is
authorized to execute on behalf of the Trust any documents which the Regular
Trustees have the power and authority to execute pursuant to SECTION 3.6.

SECTION 3.13 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

     The recitals contained in this Declaration and the Securities shall be
taken as the statements of the Sponsor, and the Trustees do not assume any
responsibility for their correctness. The Trustees make no representations as to
the value or condition of the property of the Trust or any part thereof. The
Trustees make no representations as to the validity or sufficiency of this
Declaration or the Securities.

SECTION 3.14 DURATION OF TRUST.

     The Trust, unless dissolved pursuant to the provisions of Article Eight
hereof, shall dissolve on June 19, 2050.

                                       20
<PAGE>

SECTION 3.15 MERGERS.

     (a)  The Trust may not consolidate, amalgamate or merge with or into, or be
          replaced by, or convey, transfer or lease its properties and assets
          substantially as an entirety to, any corporation or other body, except
          as described in SECTION 3.15(b) and (c) of this Declaration or SECTION
          3 of EXHIBIT A.

     (b)  The Trust may, with the consent of the Regular Trustees and without
          the consent of the Holders of the Securities, the Delaware Trustee or
          the Property Trustee, consolidate, amalgamate or merge with or into,
          or be replaced by a trust organized as such under the laws of any
          State; provided, that:

          (i)  such successor entity (the "SUCCESSOR ENTITY") either:

               (A)  expressly assumes all of the obligations of the Trust under
                    the Securities; or

               (B)  substitutes for the Preferred Securities other securities
                    having substantially the same terms as the Securities (the
                    "SUCCESSOR SECURITIES") so long as the Successor Securities
                    rank the same as the Preferred Securities rank with respect
                    to Distributions and payments upon liquidation, redemption
                    and maturity;

          (ii) the Debenture Issuer expressly appoints a trustee of the
               Successor Entity which possesses the same powers and duties as
               the Property Trustee as the Holder of the Debentures;

         (iii) the Preferred Securities or any Successor Securities are listed,
               or any Successor Securities will be listed upon notification of
               issuance, on any national securities exchange or other
               organization on which the Preferred Securities are then listed;

          (iv) such merger, consolidation, amalgamation or replacement does not
               cause the Preferred Securities or any Successor Securities to be
               downgraded by any nationally recognized statistical rating
               organization;

          (v)  such merger, consolidation, amalgamation or replacement does not
               adversely affect the rights, preferences and privileges of the
               Holders of the Securities or any Successor Securities in any
               material respect under the documents governing the Securities or
               the Successor Securities (other than with respect to any dilution
               of such Holders' interests in the new entity);

          (vi) such Successor Entity has a purpose substantially identical to
               that of the Trust;

         (vii) prior to such merger, consolidation, amalgamation or
               replacement, the Sponsor has received an opinion of a nationally
               recognized independent counsel to

                                       21
<PAGE>

               the Trust experienced in such matters to the effect that:

               (A)  such merger, consolidation, amalgamation or replacement does
                    not adversely affect the rights, preferences and privileges
                    of the Holders of the Securities or any Successor Securities
                    in any material respect under the documents governing the
                    Securities or the Successor Securities (other than with
                    respect to any dilution of the Holders' interest in the new
                    entity); and

               (B)  following such merger, consolidation, amalgamation or
                    replacement, neither the Trust nor the Successor Entity will
                    be required to register as an Investment Company; and

        (viii) the Sponsor guarantees the obligations of such Successor Entity
               under the Successor Securities at least to the extent provided by
               the Preferred Securities Guarantee and the Common Securities
               Guarantee.

     (c)  Notwithstanding SECTION 3.15(b), the Trust shall not, except with the
          consent of the Holders of 100% in liquidation amount of the
          Securities, consolidate, amalgamate or merge with or into, or be
          replaced by, any other entity or permit any other entity to
          consolidate, amalgamate or merge with or into, or replace, it if such
          consolidation, amalgamation, merger or replacement would cause the
          Trust or Successor Entity to be classified as other than a grantor
          trust for United States federal income tax purposes.

                                   ARTICLE IV
                                     SPONSOR

SECTION 4.1 SPONSOR'S PURCHASE OF COMMON SECURITIES.

     The Sponsor will purchase all the Common Securities issued by the Trust, in
an amount at least equal to 3% of the capital of the Trust, at the same time as
the Preferred Securities are sold. If any additional Securities are issued
pursuant to the exercise of any Overallotment Option, then the Sponsor shall
purchase, on the date of such issuance, an additional number of Common
Securities such that the aggregate liquidation amount of the Common Securities
to be held by the Sponsor, upon such issuance and purchase, will equal at least
3% of the total capital of the Trust.

SECTION 4.2 RESPONSIBILITIES OF THE SPONSOR.

     In connection with the issue and sale of the Preferred Securities, the
Sponsor shall have the right and responsibility to engage in the following
activities and to execute on behalf of the Trust the documents referred to in
subsections (a) through (e) of this SECTION 4.2:

     (a)  to prepare, execute and file with the Commission a registration
          statement on Form S-3 in relation to the Preferred Securities,
          including any amendments thereto;

                                       22
<PAGE>

     (b)  to determine the States in which to take appropriate action to qualify
          or register for sale all or part of the Preferred Securities and to
          prepare, execute and file such documents as the Sponsor deems
          necessary or advisable in order to comply with the applicable laws of
          any such States;

     (c)  to prepare, execute and file an application to the New York Stock
          Exchange or any other national stock exchange or the Nasdaq National
          Market for listing upon notice of issuance of any Preferred
          Securities;

     (d)  to prepare, execute and file with the Commission a registration
          statement on Form 8-A relating to the registration of the Preferred
          Securities under Section 12(b) of the Exchange Act, including any
          amendments thereto; and

     (e)  to negotiate the terms of and execute and deliver the Underwriting
          Agreement providing for the sale of the Preferred Securities.

SECTION 4.3 EXPENSES.

     (a)  The Sponsor shall be directly responsible for and pay for all (and the
          Trust shall not be obligated to pay, directly or indirectly, for any)
          debts and obligations (other than with respect to the Securities) and
          all costs and expenses of the Trust, including, without limitation,
          the costs and expenses relating to the organization of the Trust, the
          issuance of the Preferred Securities, the fees and expenses of the
          Property Trustee and the Delaware Trustee, the costs and expenses
          related to the operation of the Trust, including, without limitation,
          the costs and expenses of accountants, attorneys, statistical or
          bookkeeping services, expenses of printing and engraving, Paying
          Agents(s), registrar(s), transfer agent(s), duplicating, travel,
          telephone and costs and expenses incurred in connection with the
          disposition of Trust assets.

     (b)  The Sponsor will pay any and all taxes and all liabilities, costs and
          expenses with respect to such taxes of the Trust.

                                   ARTICLE V
                                    TRUSTEES

SECTION 5.1 NUMBER OF TRUSTEES.

     The number of Trustees shall initially be three (3), and:

     (a)  at any time before the issuance of any Securities, the Sponsor may, by
          written instrument, increase or decrease the number of Trustees;

     (b)  after the issuance of any Securities the number of Trustees may be
          increased or decreased by vote of the Holders of a Majority in
          liquidation amount of the Common Securities voting as a class at a
          meeting of the Holders of the Common Securities, provided that at all
          times the number of Trustees shall be at least three (3) (the

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<PAGE>

          majority of which shall be Regular Trustees); and

     (c)  if there are only three Trustees, the Trustee that acts as Property
          Trustee shall also act as Delaware Trustee pursuant to SECTION 5.2.

SECTION 5.2 DELAWARE TRUSTEE; ELIGIBILITY.

     If required by the Business Trust Act, one Trustee (the "DELAWARE TRUSTEE")
shall be:

     (a)  a natural person who is a resident of the State of Delaware; or

     (b)  if not a natural person, an entity which has its principal place of
          business in the State of Delaware, and otherwise meets the
          requirements of applicable law; provided that if the Property Trustee
          has its principal place of business in the State of Delaware and
          otherwise meets the requirements of applicable law, then the Property
          Trustee shall also be the Delaware Trustee and SECTION 3.11 shall have
          no application.

SECTION 5.3 PROPERTY TRUSTEE; ELIGIBILITY.

     (a)  There shall at all times be one Trustee which shall act as Property
          Trustee which shall:

          (i)  not be an Affiliate of the Sponsor;

          (ii) be a corporation organized and doing business under the laws of
               the United States of America or any State or Territory thereof or
               of the District of Columbia, or a corporation or Person permitted
               by the Commission to act as an institutional trustee under the
               Trust Indenture Act, authorized under such laws to exercise
               corporate trust powers, having a combined capital and surplus of
               at least 50 million U.S. dollars ($50,000,000), and subject to
               supervision or examination by Federal, State, Territorial or
               District of Columbia authority. If such corporation publishes
               reports of condition at least annually, pursuant to law or to the
               requirements of the supervising or examining authority referred
               to above, then for the purposes of this SECTION 5.3(a)(ii), the
               combined capital and surplus of such corporation shall be deemed
               to be its combined capital and surplus as set forth in its most
               recent report of condition so published; and

         (iii) if the Trust is excluded from the definition of an Investment
               Company solely by means of Rule 3a-7 and, to the extent Rule 3a-7
               requires a trustee having certain qualifications to hold title to
               the "eligible assets" of the Trust, the Property Trustee shall
               possess those qualifications.

     (b)  If at any time the Property Trustee shall cease to be eligible to so
          act under SECTION 5.3(a), the Property Trustee shall immediately
          resign in the manner and with the effect set out in SECTION 5.6(c).

     (c)  If the Property Trustee has or shall acquire any "conflicting
          interest" within the meaning

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<PAGE>

          of Section 310(b) of the Trust Indenture Act, the Property Trustee and
          the Holders of the Common Securities (as if it were the obligor
          referred to in Section 310(b) of the Trust Indenture Act) shall in all
          respects comply with the provisions of Section 310(b) of the Trust
          Indenture Act.

     (d)  The Preferred Securities Guarantee shall be deemed to be specifically
          described in this Declaration for purposes of clause (i) of the first
          provision contained in Section 310(b) of the Trust Indenture Act.

SECTION 5.4 QUALIFICATIONS OF REGULAR TRUSTEES AND DELAWARE TRUSTEE GENERALLY.

     Each Regular Trustee and the Delaware Trustee (unless the Property Trustee
also acts as Delaware Trustee) shall be either a natural person who is at least
21 years of age or a legal entity that shall act through one or more Authorized
Officers.

SECTION 5.5 INITIAL TRUSTEES.

     The initial Regular Trustees shall be:

          Merle Lewis
          125 S. Dakota Avenue
          Suite 1100
          Sioux Falls, South Dakota  57104

          Richard Hylland
          125 S. Dakota Avenue
          Suite 1100
          Sioux Falls, South Dakota  57104

     The initial Delaware Trustee shall be:

          Wilmington Trust Company
          Rodney Square North
          1100 N. Market Street
          Wilmington, Delaware  19890-0001

     The initial Delaware Trustee shall also act as Property Trustee.

SECTION 5.6 APPOINTMENT, REMOVAL AND RESIGNATION OF TRUSTEES.

     (a)  Subject to SECTION 5.6(b), Trustees may be appointed or removed
          without cause at any time:

          (i)  until the issuance of any Securities, by written instrument
               executed by the Sponsor; and

          (ii) after the issuance of any Securities by vote of the Holders of a
               Majority in

                                       25
<PAGE>

               liquidation amount of the Common Securities voting as a class at
               a meeting of the Holders of the Common Securities; provided that
               if an Event of Default has occurred and is continuing, the
               Property Trustee and the Delaware Trustee may only be appointed
               or removed at such time by a vote of the Holders of a Majority in
               liquidation amount of the Preferred Securities voting as a class
               at a meeting of the Holders of the Preferred Securities.

     (b)  The Trustee that acts as Property Trustee shall not be removed in
          accordance with SECTION 5.6(a) until:

          (i)  a successor Property Trustee has been appointed and has accepted
               such appointment by written instrument executed by such successor
               Property Trustee and delivered to the Regular Trustees and the
               Sponsor; and

          (ii) unless such successor Property Trustee shall also serve as
               Delaware Trustee, a successor Trustee possessing the
               qualifications to act as Delaware Trustee under SECTIONS 5.2 and
               5.4 has been appointed and has accepted such appointment by
               written instrument executed by such successor Delaware Trustee
               and delivered to the Regular Trustees and the Sponsor.

     (c)  A Trustee appointed to office shall hold office until his successor
          shall have been appointed or until his death, retirement, removal,
          bankruptcy, dissolution, liquidation, resignation, incompetence or
          incapacity to perform the duties of a Trustee. Any Trustee may resign
          from office (without need for prior or subsequent accounting) by an
          instrument in writing signed by the Trustee and delivered to the
          Sponsor and the Trust, which resignation shall take effect upon such
          delivery or upon such later date as is specified therein; PROVIDED,
          HOWEVER, that:

          (i)  no such resignation of the Trustee that acts as the Property
               Trustee shall be effective:

               (A)  until a successor Property Trustee has been appointed and
                    has accepted such appointment by instrument executed by such
                    successor Property Trustee and delivered to the Trust, the
                    Sponsor and the resigning Property Trustee; or

               (B)  if the Trust is not deemed an Investment Company solely by
                    reason of Rule 3a-7, until the assets of the Trust have been
                    completely liquidated and the proceeds thereof distributed
                    to the Holders of the Securities; and

          (ii) no such resignation of the Trustee that acts as the Delaware
               Trustee shall be effective until a successor Delaware Trustee has
               been appointed and has accepted such appointment by instrument
               executed by such successor

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<PAGE>

               Delaware Trustee and delivered to the Trust, the Sponsor and the
               resigning Delaware Trustee.

     (d)  The Holders of the Common Securities shall use their best efforts to
          appoint promptly a successor Delaware Trustee or successor Property
          Trustee, as the case may be, if the Delaware Trustee or the Property
          Trustee delivers an instrument of resignation in accordance with this
          SECTION 5.6.

     (e)  If no successor Property Trustee or successor Delaware Trustee shall
          have been appointed and accepted appointment as provided in this
          SECTION 5.6 within 60 days after delivery to the Sponsor and the Trust
          of an instrument of resignation, the resigning Property Trustee or
          Delaware Trustee, as applicable, may petition any court of competent
          jurisdiction for appointment of a successor Property Trustee or
          successor Delaware Trustee. Such court may thereupon, after causing to
          be given such notice, if any, as it may deem proper and prescribe,
          appoint a successor Property Trustee or successor Delaware Trustee, as
          the case may be.

SECTION 5.7 VACANCIES AMONG TRUSTEES.

     If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to SECTION 5.1, or if the number of Trustees is
increased pursuant to SECTION 5.1, a vacancy shall occur. A resolution
certifying the existence of such vacancy by a majority of the Regular Trustees
shall be conclusive evidence of the existence of such vacancy. The vacancy shall
be filled with a Trustee appointed in accordance with SECTION 5.6.

SECTION 5.8 EFFECT OF VACANCIES.

     The death, resignation, retirement, removal, bankruptcy, dissolution,
liquidation, incompetence or incapacity to perform the duties of a Trustee shall
not operate to dissolve, terminate or annul the Trust. Whenever a vacancy in the
number of Regular Trustees shall occur, until such vacancy is filled by the
appointment of a Regular Trustee in accordance with SECTION 5.6, the Regular
Trustees in office, regardless of their number, shall have all the powers
granted to the Regular Trustees and shall discharge all the duties imposed upon
the Regular Trustees by this Declaration.

SECTION 5.9 MEETINGS.

     Meetings of the Regular Trustees shall be held from time to time upon the
call of any Regular Trustee. Regular meetings of the Regular Trustees may be
held at a time and place fixed by resolution of the Regular Trustees. Notice of
any in-person meetings of the Regular Trustees shall be hand delivered or
otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 48 hours before such meeting. Notice of any
telephonic meetings of the Regular Trustees or any committee thereof shall be
hand delivered or otherwise delivered in writing (including by facsimile, with a
hard copy by overnight courier) not less than 24 hours before a meeting. Notices
shall contain a brief statement of the time, place and anticipated purposes of
the meeting. The presence (whether in person or by telephone) of a

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<PAGE>

Regular Trustee at a meeting shall constitute a waiver of notice of such
meeting except where a Regular Trustee attends a meeting for the express purpose
of objecting to the transaction of any activity on the ground that the meeting
has not been lawfully called or convened. Unless provided otherwise in this
Declaration, any action of the Regular Trustees may be taken at a meeting by
vote of a majority of the Regular Trustees present (whether in person or by
telephone) and eligible to vote with respect to such matter, provided that a
Quorum is present, or without a meeting and without prior notice by the
unanimous written consent of the Regular Trustees.

SECTION 5.10 DELEGATION OF POWER.

     (a)  Any Regular Trustee may, by power of attorney consistent with
          applicable law, delegate to any other natural person over the age of
          21 his or her power for the purpose of executing any documents
          contemplated in SECTION 3.6, including any governmental filing; and

     (b)  the Regular Trustees shall have power to delegate from time to time to
          such of their number or to officers of the Trust the doing of such
          things and the execution of such instruments either in the name of the
          Trust or the names of the Regular Trustees or otherwise as the Regular
          Trustees may deem expedient, to the extent such delegation is not
          prohibited by applicable law or contrary to the provisions of the
          Trust, as set forth herein.

                                   ARTICLE VI
                                  DISTRIBUTIONS

SECTION 6.1 DISTRIBUTIONS.

     Holders shall receive Distributions in accordance with the applicable terms
of the Securities (a "DISTRIBUTION"). Distributions shall be made on the
Preferred Securities and the Common Securities in accordance with the
preferences set forth in their respective terms. If and to the extent that the
Debenture Issuer makes a payment of interest (including Compounded Interest and
Additional Sums (each as defined in the Indenture)), premium of and principal on
the Debentures held by the Property Trustee (the amount of any such payment
being a "PAYMENT AMOUNT"), the Property Trustee shall and is directed, to the
extent funds are legally available for that purpose, to make a Distribution of
the Payment Amount to Holders.

                                  ARTICLE VII
                             ISSUANCE OF SECURITIES

SECTION 7.1 GENERAL PROVISIONS REGARDING SECURITIES.

     (a)  The Trust shall issue one class of preferred securities representing
          undivided beneficial interests in the assets of the Trust having such
          terms as are set forth in EXHIBIT A and incorporated herein by
          reference (the "PREFERRED SECURITIES") and one class of common
          securities representing undivided beneficial interests in the assets
          of the

                                       28
<PAGE>

          Trust having such terms as are set forth in EXHIBIT A (the "COMMON
          SECURITIES"). The Trust shall issue no securities or other interests
          in the assets of the Trust other than the Preferred Securities and the
          Common Securities.

     (b)  The Certificates shall be signed on behalf of the Trust by any Regular
          Trustee. Such signatures may be by manual or facsimile signatures.
          Typographical and other minor errors or defects in the reproduction of
          any such signature shall not affect the validity of any Certificate.
          In case any Regular Trustee who shall have signed any Certificates
          shall cease to be a Regular Trustee before such Certificates shall be
          delivered by the Trust, such Certificates nevertheless may be
          delivered as though the Person who signed such Certificates had not
          ceased to be a Regular Trustee; and any Certificate may be signed on
          behalf of the Trust by such Persons who, at the actual date of
          execution of such Security, shall be the Regular Trustees of the
          Trust, even if such Person was not a Regular Trustee as of the date of
          this Declaration. Each Preferred Security shall be dated the date of
          its authentication. Certificates shall be printed, lithographed or
          engraved or may be produced in any other manner as is reasonably
          acceptable to the Regular Trustees, as evidenced by their execution
          thereof, and may have such letters, numbers or other marks of
          identification or designation and such legends or endorsements as the
          Regular Trustees may deem appropriate, or as may be required to comply
          with any law or with any rule or regulation of any stock exchange on
          which any Securities may be listed, or to conform to usage.

     (c)  The consideration received by the Trust for the issuance of the
          Securities shall constitute a contribution to the capital of the Trust
          and shall not constitute a loan to the Trust.

     (d)  Upon issuance of the Securities as provided in this Declaration, the
          Securities so issued shall be deemed to be validly issued, fully paid
          and non-assessable (except with respect to the Common Securities, as
          provided in SECTION 10.1(b)).

     (e)  Every Person, by virtue of having become a Holder or a Preferred
          Security Beneficial Owner in accordance with the terms of this
          Declaration, shall be deemed to have expressly assented and agreed to
          the terms of, and shall be bound, by this Declaration, the Preferred
          Securities Guarantee and the Indenture.

SECTION 7.2 AUTHENTICATION

     (a)  A Preferred Security or a Common Security shall not be valid until
          authenticated by the manual signature of an authorized signatory of
          the Property Trustee. The signature shall be conclusive evidence that
          the Preferred Security or the Common Security, respectively, has been
          authenticated under this Declaration.

     (b)  Upon a written order of the Trust signed by one Regular Trustee, the
          Property Trustee shall authenticate the Preferred Securities and the
          Common Securities for original issue. The aggregate number of
          Preferred Securities outstanding at any time shall

                                       29
<PAGE>

          not exceed the number set forth in the Terms of Exhibit A hereto.

     (c)  The Property Trustee may appoint an authenticating agent acceptable to
          the Trust to authenticate Preferred Securities and Common Securities.
          An authenticating agent may authenticate Preferred Securities and
          Common Securities whenever the Property Trustee may do so. Each
          reference in this Declaration to authentication by the Property
          Trustee includes authentication by such agent. An authenticating agent
          has the same rights as the Property Trustee to deal with the Sponsor
          or an Affiliate.

SECTION 7.3 RIGHTS OF HOLDERS.

     (a)  If the Property Trustee fails to enforce its rights under this
          Declaration or the Debentures, any Holder of Preferred Securities may,
          to the fullest extent permitted by law, institute a legal proceeding
          against the Debenture Issuer to enforce the Property Trustee's rights
          under the Declaration or the Debentures without first instituting any
          legal proceeding against the Property Trustee or any other Person.

     (b)  For as long as any Preferred Securities remain outstanding, to the
          fullest extent permitted by law and subject to the terms of this
          Declaration and the Indenture, upon an Event of Default, any Holder of
          Preferred Securities shall have the right to institute a proceeding
          directly against the Debenture Issuer, pursuant to Article X of the
          Fourth Supplemental Indenture, for enforcement of payment to such
          Holder of any amount payable in respect of Debentures having an
          aggregate principal amount equal to the aggregate liquidation amount
          of the Preferred Securities of such Holder.

SECTION 7.4 SUBORDINATION OF COMMON SECURITIES.

     Payment of Distributions on, and the Redemption Price of, the Preferred
Securities and Common Securities, as applicable, will be made pro rata based on
the liquidation amount of such Preferred Securities and Common Securities.
However, if on any date on which a Distribution is to be made, or any Redemption
Date, an Event of Default has occurred and is continuing, no payment of any
Distribution on, or Redemption Price of, any of the Common Securities, and no
other payment on account of the redemption, liquidation or other acquisition of
such Common Securities, shall be made unless payment in full in cash of all
accumulated and unpaid Distributions on all the outstanding Preferred Securities
for all Distribution periods terminating on or prior thereto, or in the case of
payment of the Redemption Price the full amount of such Redemption Price on all
the outstanding Preferred Securities then called for redemption, shall have been
made or provided for, and all funds available to the Property Trustee shall
first be applied to the payment in full in cash of all Distributions on, or the
Redemption Price of, the Preferred Securities then due and payable.

                                  ARTICLE VIII
                              TERMINATION OF TRUST

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<PAGE>

SECTION 8.1 TERMINATION OF TRUST.

     (a)  The Trust shall dissolve upon the first to occur of:

          (i)  the bankruptcy of the Holder of the Common Securities, the
               Sponsor or the Debenture Issuer;

          (ii) the filing of a certificate of dissolution or its equivalent with
               respect to the Holder of the Common Securities, the Sponsor or
               the Debenture Issuer, the revocation of the charter of the Holder
               of the Common Securities, the Sponsor or the Debenture Issuer and
               the expiration of 90 days after the date of revocation without a
               reinstatement thereof;

         (iii) the entry of a decree of judicial dissolution of the Holder of
               the Common Securities, the Sponsor, the Debenture Issuer or the
               Trust;

          (iv) the repayment of all of the Securities in connection with the
               redemption of all of the Debentures;

          (v)  the written direction to the Property Trustee from all of the
               Holders of the Common Securities at any time to dissolve the
               Trust and, subject to EXHIBIT A attached hereto, to distribute
               the Debentures to the Holders of the Securities in exchange for
               the Securities (which direction is optional and wholly within the
               discretion of the Holders of the Common Securities);

          (vi) before the issuance of any Securities, the written consent of all
               of the Regular Trustees and the Sponsor; or

         (vii) the expiration of the term of the Trust as provided in SECTION
               3.14.

     (b)  As soon as is practicable after the occurrence of an event referred to
          in SECTION 8.1(a) and after the completion of the winding up of the
          Trust, the Trustees shall file a certificate of cancellation with the
          Secretary of State of the State of Delaware.

     (c)  The provisions of SECTION 3.9 and Article Ten shall survive the
          termination of the Trust.

                                   ARTICLE IX
                              TRANSFER OF INTERESTS

SECTION 9.1 TRANSFER OF SECURITIES.

     (a)  Securities may only be transferred, in whole or in part, in accordance
          with the terms and conditions set forth in this Declaration and in the
          terms of the Securities. To the fullest extent permitted by applicable
          law, any transfer or purported transfer of any Security not made in
          accordance with this Declaration shall be null and void.

                                       31
<PAGE>

     (b)  Subject to this Article Nine, Preferred Securities shall be freely
          transferable.

     (c)  Subject to this Article Nine, the Sponsor and any Related Party may
          only transfer Common Securities to (i) the Sponsor or a Related Party
          of the Sponsor; PROVIDED THAT, any such transfer is subject to the
          condition precedent that the transferor obtain the written opinion of
          nationally recognized independent counsel experienced in such matters
          that such transfer would not cause more than an insubstantial risk
          that:

               (A)  the Trust would be classified for United States federal
                    income tax purposes as an association taxable as a
                    corporation or a partnership and each Holder of Securities
                    would not be treated as owning an undivided beneficial
                    interest in the Debentures; and

               (B)  the Trust or the transferee would be an Investment Company
                    or would be controlled by an Investment Company; or

          (ii) any successor to the Sponsor pursuant to Section 802 of the
          Indenture.

SECTION 9.2 TRANSFER OF CERTIFICATES.

     The Regular Trustees shall provide for the registration of Certificates and
of transfers of Certificates, which will be effected without charge but only
upon payment (with such indemnity as the Regular Trustees may require) in
respect of any tax or other government charges which may be imposed in relation
to it. Upon surrender for registration of transfer of any Certificate, the
Property Trustee shall authenticate and the Regular Trustees shall cause one or
more new Certificates to be issued in the name of the designated transferee or
transferees. Every Certificate surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the
Regular Trustees duly executed by the Holder or such Holder's attorney duly
authorized in writing. Each Certificate surrendered for registration of transfer
shall be canceled by the Regular Trustees. A transferee of a Certificate shall
be entitled to the rights and subject to the obligations of a Holder hereunder
upon the receipt by such transferee of a Certificate. By acceptance of a
Certificate, each transferee shall be deemed to have agreed to be bound by this
Declaration and the documents incorporated by reference herein.

SECTION 9.3 DEEMED SECURITY HOLDERS.

     The Trustees may treat the Person in whose name any Certificate shall be
registered on the books and records of the Trust as the sole holder of such
Certificate and of the Securities represented by such Certificate for purposes
of receiving Distributions and for all other purposes whatsoever and,
accordingly, shall not be bound to recognize any equitable or other claim to or
interest in such Certificate or in the Securities represented by such
Certificate on the part of any Person, whether or not the Trust shall have
actual or other notice thereof.

SECTION 9.4 BOOK ENTRY INTERESTS.

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<PAGE>

     Unless otherwise specified in the terms of the Preferred Securities, the
Preferred Securities Certificates, on original issuance, will be issued in the
form of one or more, fully registered, global Preferred Security Certificates
(each a "GLOBAL CERTIFICATE"), to be delivered to DTC, the initial Clearing
Agency, by, or on behalf of, the Trust. Such Global Certificates shall initially
be registered on the books and records of the Trust in the name of Cede & Co.,
the nominee of DTC, and no Preferred Security Beneficial Owner will receive a
definitive Preferred Security Certificate representing such Preferred Security
Beneficial Owner's interests in such Global Certificates, except as provided in
SECTION 9.7. Unless and until definitive, fully registered Preferred Security
Certificates (the "DEFINITIVE PREFERRED SECURITY CERTIFICATES") have been issued
to the Preferred Security Beneficial Owners pursuant to SECTION 9.7:

     (a)  the provisions of this SECTION 9.4 shall be in full force and effect;

     (b)  the Trust and the Trustees shall be entitled to deal with the Clearing
          Agency for all purposes of this Declaration (including the payment of
          Distributions on the Global Certificates and receiving approvals,
          votes or consents hereunder) as the Holder of the Preferred Securities
          and the sole holder of the Global Certificates and shall have no
          obligation to the Preferred Security Beneficial Owners;

     (c)  to the extent that the provisions of this SECTION 9.4 conflict with
          any other provisions of this Declaration, the provisions of this
          SECTION 9.4 shall control; and

     (d)  the rights of the Preferred Security Beneficial Owners shall be
          exercised only through the Clearing Agency and shall be limited to
          those established by law and agreements between such Preferred
          Security Beneficial Owners and the Clearing Agency and/or the Clearing
          Agency Participants to receive and transmit payments of Distributions
          on the Global Certificates to such Clearing Agency Participants. DTC
          will make book entry transfers among the Clearing Agency Participants.

SECTION 9.5 NOTICES TO CLEARING AGENCY.

     Whenever a notice or other communication to the Preferred Security Holders
is required under this Declaration, unless and until Definitive Preferred
Security Certificates shall have been issued to the Preferred Security
Beneficial Owners pursuant to SECTION 9.7, the Regular Trustees shall give all
such notices and communications specified herein to be given to the Preferred
Security Holders to the Clearing Agency, and shall have no notice obligations to
the Preferred Security Beneficial Owners.

SECTION 9.6 APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

     If any Clearing Agency elects to discontinue its services as securities
depositary with respect to the Preferred Securities, the Regular Trustees may,
in their sole discretion, appoint a successor Clearing Agency with respect to
such Preferred Securities.

SECTION 9.7 DEFINITIVE PREFERRED SECURITY CERTIFICATES.

                                       33
<PAGE>

     (a)  If:

          (i)  a Clearing Agency notifies the Sponsor that it is unwilling or
               unable to continue its services as securities depositary with
               respect to the Preferred Securities and a successor Clearing
               Agency is not appointed pursuant to SECTION 9.6 within 90 days
               after such discontinuance;

          (ii) a Clearing Agency ceases to be registered under the Exchange Act
               at a time the Clearing Agency is required to be so registered to
               act as such depository and a successor Clearing Agency is not
               appointed pursuant to SECTION 9.6 within 90 days after notice of
               such cessation; or

         (iii) the Regular Trustees elect, with the consent of the Sponsor, to
               terminate the book entry system through the Clearing Agency with
               respect to the Preferred Securities;

     then:

          (iv) Definitive Preferred Security Certificates shall be prepared by
               the Regular Trustees on behalf of the Trust with respect to such
               Preferred Securities and be duly executed by the Trust and
               authenticated by the Property Trustee as herein provided; and

          (v)  upon surrender of the Global Certificates by the Clearing Agency,
               accompanied by registration instructions, the Regular Trustees
               shall cause Definitive Preferred Security Certificates to be
               delivered to Preferred Security Beneficial Owners in accordance
               with the instructions of the Clearing Agency. Neither the
               Trustees nor the Trust shall be liable for any delay in delivery
               of such instructions and each of them may conclusively rely on
               and shall be protected in relying on, said instructions of the
               Clearing Agency.

     (b)  The Definitive Preferred Security Certificates shall be printed,
          lithographed or engraved or may be produced in any other manner as is
          reasonably acceptable to the Regular Trustees, as evidenced by their
          execution thereof, and may have such letters, numbers or other marks
          of identification or designation and such legends or endorsements as
          the Regular Trustees may deem appropriate, or as may be required to
          comply with any law or with any rule or regulation made pursuant
          thereto or with any rule or regulation of any stock exchange on which
          Preferred Securities may be listed, or to conform to usage.

SECTION 9.8 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

     If:

     (a)  any mutilated Certificates should be surrendered to the Regular
          Trustees, or if the Regular

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<PAGE>

          Trustees shall receive evidence to their satisfaction of the
          destruction, loss or theft of any Certificate; and

     (b)  there shall be delivered to the Regular Trustees such security or
          indemnity as may be required by them to keep each of the Trustees, the
          Sponsor or any authenticating agent harmless,

then, in the absence of notice that such Certificate shall have been acquired by
a bona fide purchaser, any Regular Trustee on behalf of the Trust shall execute
and deliver, and the Property Trustee shall authenticate, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like denomination, if the Property Trustee's and the Trust's
requirements, as the case may be, are met. In connection with the issuance of
any new Certificate under this SECTION 9.8, the Regular Trustees may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith. Any duplicate Certificate issued
pursuant to this Section shall constitute conclusive evidence of an ownership
interest in the relevant Securities, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.

                                   ARTICLE X
                      LIMITATION OF LIABILITY OF HOLDERS OF
                         SECURITIES, TRUSTEES AND OTHERS

SECTION 10.1 LIABILITY.

     (a)  Except as expressly set forth in this Declaration, the Preferred
          Securities Guarantee, the Common Securities Guarantee and the terms of
          the Securities, the Sponsor shall not be:

          (i)  personally liable for the return of any portion of the capital
               contributions (or any return thereon) of the Holders of the
               Securities, which shall be made solely from assets of the Trust;
               or

          (ii) required to pay to the Trust or to any Holder of Securities any
               deficit upon dissolution of the Trust or otherwise.

     (b)  Pursuant to Section 3803(a) of the Business Trust Act, the Holder of
          the Common Securities shall be liable for all of the debts and
          obligations of the Trust (other than with respect to the Securities)
          to the extent not satisfied out of the Trust's assets.

     (c)  Pursuant to Section 3803(a) of the Business Trust Act, the Holders of
          the Preferred Securities shall be entitled to the same limitation of
          personal liability extended to stockholders of private corporations
          for profit organized under the General Corporation Law of the State of
          Delaware.

SECTION 10.2 EXCULPATION.

                                       35
<PAGE>

     (a)  No Indemnified Person shall be liable, responsible or accountable in
          damages or otherwise to the Trust or any Covered Person for any loss,
          damage or claim incurred by reason of any act or omission performed or
          omitted by such Indemnified Person in good faith on behalf of the
          Trust and in a manner such Indemnified Person reasonably believed to
          be within the scope of the authority conferred on such Indemnified
          Person by this Declaration or by law, except that an Indemnified
          Person shall be liable for any such loss, damage or claim incurred by
          reason of such Indemnified Person's gross negligence (or, in the case
          of the Property Trustee, except as otherwise set forth in SECTION 3.9)
          or willful misconduct with respect to such acts or omissions.

     (b)  An Indemnified Person shall be fully protected in relying in good
          faith upon the records of the Trust and upon such information,
          opinions, reports or statements presented to the Trust by any Person
          as to matters the Indemnified Person reasonably believes are within
          such other Person's professional or expert competence and who has been
          selected with reasonable care by or on behalf of the Trust, including
          information, opinions, reports or statements as to the value and
          amount of the assets, liabilities, profits, losses, or any other facts
          pertinent to the existence and amount of assets from which
          Distributions to Holders of Securities might properly be paid.

SECTION 10.3 FIDUCIARY DUTY.

     (a)  To the extent that, at law or in equity, an Indemnified Person has
          duties (including fiduciary duties) and liabilities relating thereto
          to the Trust or to any other Covered Person, an Indemnified Person
          acting under this Declaration shall not be liable to the Trust or to
          any other Covered Person for its good faith reliance on the provisions
          of this Declaration. The provisions of this Declaration, to the extent
          that they restrict the duties and liabilities of an Indemnified Person
          otherwise existing at law or in equity (other than the duties imposed
          on the Property Trustee under the Trust Indenture Act), are agreed by
          the parties hereto to replace such other duties and liabilities of
          such Indemnified Person.

     (b)  Unless otherwise expressly provided herein:

          (i)  whenever a conflict of interest exists or arises between an
               Indemnified Person and any Covered Person; or

          (ii) whenever this Declaration or any other agreement contemplated
               herein or therein provides that an Indemnified Person shall act
               in a manner that is, or provides terms that are, fair and
               reasonable to the Trust or any Holder of Securities,

          the Indemnified Person shall resolve such conflict of interest,
take such action or provide such terms, considering in each case the
relative interest of each party (including its own interest) to such conflict,
agreement, transaction or situation and the benefits and burdens relating

                                       36
<PAGE>

to such interests, any customary or accepted industry practices and any
applicable generally accepted accounting practices or principles. In the absence
of bad faith by the Indemnified Person, the resolution, action or term so made,
taken or provided by the Indemnified Person shall not constitute a breach of
this Declaration or any other agreement contemplated herein or of any duty or
obligation of the Indemnified Person at law or in equity or otherwise.

     (c)  Whenever in this Declaration an Indemnified Person is permitted or
          required to make a decision

          (i)  in its "discretion" or under a grant of similar authority, the
               Indemnified Person shall be entitled to consider such interests
               and factors as it desires, including its own interests, and shall
               have no duty or obligation to give any consideration to any
               interest of or factors affecting the Trust or any other Person;
               or

          (ii) in its "good faith" or under another express standard, the
               Indemnified Person shall act under such express standard and
               shall not be subject to any other or different standard imposed
               by this Declaration or by applicable law.

SECTION 10.4 INDEMNIFICATION.

     (a)  To the fullest extent permitted by applicable law, the Sponsor shall
          indemnify and hold harmless each Indemnified Person from and against
          any loss, damage, liability, tax, penalty, expense or claim of any
          kind or nature whatsoever incurred by such Indemnified Person by
          reason of the creation, operation, dissolution or termination of the
          Trust or any act or omission performed or omitted by such Indemnified
          Person in good faith on behalf of the Trust and in a manner such
          Indemnified Person reasonably believed to be within the scope of
          authority conferred on such Indemnified Person by this Declaration,
          except that no Indemnified Person shall be entitled to be indemnified
          in respect of any loss, damage or claim incurred by such Indemnified
          Person by reason of gross negligence (or, in the case of the Property
          Trustee, except as otherwise set forth in SECTION 3.9) or willful
          misconduct with respect to such acts or omissions.

     (b)  To the fullest extent permitted by applicable law, expenses (including
          legal fees) incurred by an Indemnified Person in defending any claim,
          demand, action, suit or proceeding shall, from time to time, be
          advanced by the Sponsor prior to the final disposition of such claim,
          demand, action, suit or proceeding upon receipt by the Sponsor of an
          undertaking by or on behalf of the Indemnified Person to repay such
          amount if it shall be determined that the Indemnified Person is not
          entitled to be indemnified as authorized in SECTION 10.4(a). This
          Section shall survive the termination of this Declaration or the
          earlier removal or resignation of any of the Trustees.

SECTION 10.5 OUTSIDE BUSINESSES.

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<PAGE>

     Any Covered Person, the Sponsor, the Debenture Issuer, the Delaware Trustee
and, subject to SECTION 5.3(c), the Property Trustee may engage in or possess an
interest in other business ventures of any nature or description, independently
or with others, similar or dissimilar to the business of the Trust, and the
Trust and the Holders of Securities shall have no rights by virtue of this
Declaration in and to such independent ventures or the income or profits derived
therefrom, and the pursuit of any such venture, even if competitive with the
business of the Trust, shall not be deemed wrongful or improper. No Covered
Person, the Sponsor, the Debenture Issuer, the Delaware Trustee or the Property
Trustee shall be obligated to present any particular investment or other
opportunity to the Trust even if such opportunity is of a character that, if
presented to the Trust, could be taken by the Trust, and any Covered Person, the
Sponsor, the Debenture Issuer, the Delaware Trustee and the Property Trustee
shall have the right to take for its own account (individually or as a partner
or fiduciary) or to recommend to others any such particular investment or other
opportunity. Any Covered Person, the Delaware Trustee and the Property Trustee
may engage or be interested in any financial or other transaction with the
Sponsor or any Affiliate of the Sponsor, or may act as depositary for, trustee
or agent for, or act on any committee or body of holders of, securities or other
obligations of the Sponsor or its Affiliates.

                                   ARTICLE XI
                                   ACCOUNTING

SECTION 11.1 FISCAL YEAR.

     The fiscal year of the Trust shall be the calendar year, or such other year
as is required by the Code.

SECTION 11.2 CERTAIN ACCOUNTING MATTERS.

     (a)  At all times during the existence of the Trust, the Regular Trustees
          shall keep, or cause to be kept, full books of account, records and
          supporting documents, which shall reflect in reasonable detail each
          transaction of the Trust. The books of account shall be maintained on
          the accrual method of accounting, in accordance with generally
          accepted accounting principles, consistently applied. The Trust shall
          use the accrual method of accounting for United States federal income
          tax purposes. The books of account and the records of the Trust shall
          be examined by and reported upon as of the end of each fiscal year by
          a firm of independent certified public accountants selected by the
          Regular Trustees.

     (b)  The Regular Trustees shall cause to be prepared and delivered to each
          Holder of Securities, within 90 days after the end of each fiscal year
          of the Trust, annual financial statements of the Trust, including a
          balance sheet of the Trust as of the end of such fiscal year, and the
          related statements of income or loss.

     (c)  The Regular Trustees shall cause to be duly prepared and delivered to
          each Holder of Securities any United States federal income tax
          information statement required by the Code, containing such
          information with regard to the Securities held by such

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<PAGE>

          Holder as is required by the Code and the Treasury Regulations.
          Notwithstanding any right under the Code to deliver any such statement
          at a later date, the Regular Trustees shall endeavor to deliver all
          such statements within 30 days after the end of each fiscal year of
          the Trust.

     (d)  The Regular Trustees shall cause to be duly prepared and filed with
          the appropriate taxing authority an annual United States federal
          income tax return on such form as is required by United States federal
          income tax law and any other annual income tax returns required to be
          filed by the Regular Trustees on behalf of the Trust with any state or
          local taxing authority.

SECTION 11.3 BANKING.

     The Trust shall maintain one or more bank accounts in the name and for the
sole benefit of the Trust; PROVIDED, HOWEVER, that all payments of funds in
respect of the Debentures held by the Property Trustee shall be made directly to
the Property Trustee Account, and no other funds of the Trust shall be deposited
in the Property Trustee Account. The sole signatories for such accounts shall be
designated by the Regular Trustees; PROVIDED, HOWEVER, that the Property Trustee
shall designate the sole signatories for the Property Trustee Account.

SECTION 11.4 WITHHOLDING.

     The Trust and the Regular Trustees shall comply with all withholding
requirements under United States federal, state and local law. The Trust shall
request, and the Holders shall provide to the Trust, such forms or certificates
as are necessary to establish an exemption from withholding with respect to each
Holder and any representations and forms as shall reasonably be requested by the
Trust to assist it in determining the extent of, and in fulfilling, its
withholding obligations. The Regular Trustees shall file required forms with
applicable jurisdictions and, unless an exemption from withholding is properly
established by a Holder, shall remit amounts withheld with respect to the Holder
to applicable jurisdictions. To the extent that the Trust is required to
withhold and pay over any amounts to any authority with respect to distributions
or allocations to any Holder, the amount withheld shall be deemed to be a
distribution in the amount of the withholding to the Holder. In the event of any
claimed over-withholding, to the fullest extent permitted by law, Holders shall
be limited to an action against the applicable jurisdiction. If the amount
required to be withheld was not withheld from actual Distributions made, the
Trust may reduce subsequent Distributions by the amount of such withholding.

                                  ARTICLE XII
                             AMENDMENTS AND MEETINGS

SECTION 12.1 AMENDMENTS.

     (a)  Except as otherwise provided in this Declaration or by any applicable
          terms of the Securities, this Declaration may be amended by, and only
          by, a written instrument approved and executed by the Regular Trustees
          (or, if there are more than two Regular Trustees, by a majority of the
          Regular Trustees); PROVIDED, HOWEVER, that:

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<PAGE>

          (i)  no amendment or modification shall be made, and any such
               purported amendment or modification shall be void and
               ineffective, to the extent the result thereof would be to

               (A)  cause the Trust to be classified as other than a grantor
                    trust for purposes of United States federal income taxation
                    as confirmed by an opinion of counsel;

               (B)  affect the powers, rights, duties, obligations or immunities
                    of the Property Trustee or the Delaware Trustee (unless such
                    amendment is consented to in writing by the Property Trustee
                    or the Delaware Trustee, as the case may be); or

               (C)  cause the Trust to be deemed an Investment Company that is
                    required to be registered under the Investment Company Act;

          (ii) at such time after the Trust has issued any Securities that
               remain outstanding, any amendment that would (A) materially
               adversely affect the rights, privileges or preferences of any
               Holder of Securities or (B) provide for the dissolution or
               winding-up of the Trust other than pursuant to this Declaration
               may be effected only with such additional requirements as may be
               set forth in the terms of such Securities shall require the
               approval of 66 2/3% in liquidation amount of the Preferred
               Securities affected thereby, voting together as a single class;

         (iii) Article Four shall not be amended without the consent of the
               Holders of a Majority in liquidation amount of the Common
               Securities; and

          (iv) the rights of the holders of the Common Securities under Article
               Five to increase or decrease the number of, and appoint and
               remove Trustees shall not be amended without the consent of the
               Holders of a Majority in liquidation amount of the Common
               Securities (except to the extent such amendment relates to the
               rights of the Holders of the Preferred Securities with respect to
               the Property Trustee, in which case such amendment may only be
               made in accordance with the terms of the Preferred Securities).

     (b)  Subject to SECTION 12.1(a)(ii), this Declaration may be amended
          without the consent of the Holders of the Securities to:

          (i)  cure any ambiguity;

          (ii) correct or supplement any provision in this Declaration that may
               be defective or inconsistent with any other provision of this
               Declaration;

         (iii) add to the covenants, restrictions or obligations of the
               Sponsor; and

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<PAGE>

          (iv) conform to any change in Rule 3a-7 or written change in
               interpretation or application of Rule 3a-7 by any legislative
               body, court, government agency or regulatory authority, which
               amendment does not have a material adverse effect on the right,
               preferences or privileges of the Holders of the Securities.

SECTION 12.2 MEETINGS OF THE HOLDERS OF SECURITIES; ACTION BY WRITTEN CONSENT.

     (a)  Meetings of the Holders of any class of Securities may be called at
          any time by the Regular Trustees (or as provided in the terms of the
          Securities) to consider and act on any matter on which the Holders of
          such class of Securities are entitled to act under the terms of this
          Declaration, the terms of the Securities or the rules of any stock
          exchange on which any Securities are listed or admitted for trading.
          The Regular Trustees shall call a meeting of the Holders of any class
          of Securities, if directed to do so by the Holders of at least 10% in
          liquidation amount of such class of Securities. Such direction shall
          be given by delivering to the Regular Trustees one or more written
          notices stating that the signing Holders of Securities wish to call a
          meeting and indicating the general or specific purpose for which the
          meeting is to be called. Any Holders of Securities directing the
          Regular Trustees to call a meeting shall specify in writing the
          Certificates held by the Holders of Securities exercising the right to
          call a meeting, and only those specified shall be counted for purposes
          of determining whether the required percentage set forth in the second
          sentence of this paragraph has been met.

     (b)  Except to the extent otherwise provided in the terms of the
          Securities, the following provisions shall apply to meetings of
          Holders of Securities:

          (i)  Whenever a vote, consent or approval of the Holders of Securities
               is permitted or required under this Declaration or the rules of
               any stock exchange on which any Securities are listed or admitted
               for trading, such vote, consent or approval may be given at a
               meeting of the Holders of Securities. Notice of any such meeting
               shall be given to all the Holders of Securities having a right to
               vote thereat at least 7 days and not more than 60 days before the
               date of such meeting. Each such notice will include a statement
               setting forth the following information (i) the date of such
               meeting or the date by which such action is to be taken; (ii) a
               description of any resolution proposed for adoption at such
               meeting on which such holders are entitled to vote or of such
               matter upon which written consent is sought; and (iii)
               instructions for the delivery of proxies or consents. Any action
               that may be taken at a meeting of the Holders of Securities may
               be taken without a meeting and without prior notice if a consent
               in writing setting forth the action so taken is signed by the
               Holders of Securities owning not less than the minimum amount of
               Securities in liquidation amount that would be necessary to
               authorize or take such action at a meeting at which all Holders
               of Securities having a right to vote thereon were present and

                                       41
<PAGE>

               voting. Prompt notice of the taking of action without a meeting
               shall be given to the Holders of Securities entitled to vote who
               have not consented in writing. The Regular Trustees may specify
               that any written ballot submitted to the Holder for the purpose
               of taking any action without a meeting shall be returned to the
               Trust within the time specified by the Regular Trustees.

          (ii) Each Holder of a Security may authorize any Person to act for it
               by proxy on all matters in which a Holder of Securities is
               entitled to participate, including waiving notice of any meeting,
               or voting or participating at a meeting. No proxy shall be valid
               after the expiration of 11 months from the date thereof unless
               otherwise provided in the proxy. Every proxy shall be revocable
               at the pleasure of the Holder of Securities executing it. Except
               as otherwise provided herein, all matters relating to the giving,
               voting or validity of proxies shall be governed by the General
               Corporation Law of the State of Delaware relating to proxies, and
               judicial interpretations thereunder, as if the Trust were a
               Delaware corporation and the Holders of the Securities were
               stockholders of a Delaware corporation.

         (iii) Each meeting of the Holders of the Securities shall be conducted
               by the Regular Trustees or by such other Person that the Regular
               Trustees may designate.

          (iv) Unless the Business Trust Act, this Declaration, the terms of the
               Securities or the listing rules of any stock exchange on which
               any Securities are then listed or trading otherwise provides, the
               Regular Trustees, in their sole discretion, shall establish all
               other provisions relating to meetings of the Holders of
               Securities, including notice of the time, place or purpose of any
               meeting at which any matter is to be voted on by any Holders of
               Securities, waiver of any such notice, action by consent without
               a meeting, the establishment of a record date, quorum
               requirements, voting in person or by proxy or any other matter
               with respect to the exercise of any such right to vote.

          (v)  Any Preferred Securities that are owned by the Debenture Issuer
               or any of its Affiliates shall not be entitled to vote or consent
               and shall, for purposes of any vote or consent, be treated as if
               such Preferred Securities were not issued and outstanding.

                                  ARTICLE XIII
                       REPRESENTATIONS OF PROPERTY TRUSTEE

SECTION 13.1 REPRESENTATIONS AND WARRANTIES OF PROPERTY TRUSTEE.

     The Trustee which acts as initial Property Trustee represents and warrants
to the Trust and to the Sponsor at the date of this Declaration, and each
successor Property Trustee represents and warrants to the Trust and the Sponsor
at the time of the successor Property Trustee's

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<PAGE>

acceptance of its appointment as Property Trustee that:

     (a)  The Property Trustee is a Delaware banking corporation with trust
          powers, duly organized, validly existing and in good standing under
          the laws of the State of Delaware with trust power and authority to
          execute and deliver, and to carry out and perform its obligations
          under the terms of, the Declaration.

     (b)  The execution, delivery and performance by the Property Trustee of the
          Declaration has been duly authorized by all necessary corporate action
          on the part of the Property Trustee. The Declaration has been duly
          executed and delivered by the Property Trustee, and it constitutes a
          legal, valid and binding obligation of the Property Trustee,
          enforceable against it in accordance with its terms, subject to
          applicable bankruptcy, reorganization, moratorium, insolvency, and
          other similar laws affecting creditors' rights generally and to
          general principles of equity and the discretion of the court
          (regardless of whether the enforcement of such remedies is considered
          in a proceeding in equity or at law).

     (c)  The execution, delivery and performance of the Declaration by the
          Property Trustee does not conflict with or constitute a breach of the
          Articles of Organization or By-laws of the Property Trustee.

     (d)  No consent, approval or authorization of, or registration with or
          notice to, any state or federal banking authority is required for the
          execution, delivery or performance by the Property Trustee, of the
          Declaration.

                                  ARTICLE XIV
                                  MISCELLANEOUS

SECTION 14.1 NOTICES.

     All notices provided for in this Declaration shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by registered or certified mail, as follows:

     (a)  if given to the Trust, in care of the Regular Trustees at the Trust's
          mailing address set forth below (or such other address as the Trust
          may give notice of to the Holders of the Securities):

                      NORTHWESTERN CAPITAL FINANCING III
                      c/o NorthWestern Corporation
                      125 S. Dakota Avenue
                      Suite 1100
                      Sioux Falls, South Dakota  57104
                      Attention: Richard R. Hylland

     (b)  if given to the Property Trustee or the Delaware Trustee, at the
          mailing address set forth

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<PAGE>

          below (or such other address as the Property Trustee or the Delaware
          Trustee may give notice of to the Holders of the Securities):

                      WILMINGTON TRUST COMPANY
                      Rodney Square North
                      1100 N. Market Street
                      Wilmington, Delaware  19890-0001
                      Attention: Corporate Trust Administration

     (c)  if given to the Holder of the Common Securities, at the mailing
          address of the Sponsor set forth below (or such other address as the
          Holder of the Common Securities may give notice to the Trust):

                      NORTHWESTERN CORPORATION
                      125 S. Dakota Avenue
                      Suite 1100
                      Sioux Falls, South Dakota  57104
                      Attention: General Counsel

     (d)  if given to any other Holder, at the address set forth on the books
          and records of the Trust.

     All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

SECTION 14.2 GOVERNING LAW.

     This Declaration and the rights of the parties hereunder shall be governed
by and interpreted in accordance with the laws of the State of Delaware and all
rights and remedies shall be governed by such laws without regard to principles
of conflict of laws.

SECTION 14.3 INTENTION OF THE PARTIES.

     It is the intention of the parties hereto that the Trust not be
characterized for United States federal income tax purposes as an association
taxable as a corporation or a partnership but rather as a grantor trust or
otherwise in a manner that each Holder of Securities be treated as owning an
undivided beneficial interest in the Debentures. The provisions of this
Declaration shall be interpreted to further this intention of the parties.

SECTION 14.4 HEADINGS.

     Headings contained in this Declaration are inserted for convenience of
reference only and do not affect the interpretation of this Declaration or any
provision hereof.

SECTION 14.5 SUCCESSORS AND ASSIGNS.

                                       44
<PAGE>

     Whenever in this Declaration any of the parties hereto is named or referred
to, the successors and assigns of such party shall be deemed to be included, and
all covenants and agreements in this Declaration by the Sponsor and the Trustees
shall bind and inure to the benefit of their respective successors and assigns,
whether so expressed.

SECTION 14.6 PARTIAL ENFORCEABILITY.

     If any provision of this Declaration, or the application of such provision
to any Person or circumstance, shall be held invalid, the remainder of this
Declaration, or the application of such provision to Persons or circumstances
other than those to which it is held invalid, shall not be affected thereby.

SECTION 14.7 COUNTERPARTS.

     This Declaration may contain more than one counterpart of the signature
page, and this Declaration may be executed by the affixing of the signature of
each of the Trustees to one of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have the
same force and effect as though all of the signers had signed a single signature
page.

                            [SIGNATURE PAGE FOLLOWS]

                                       45
<PAGE>

     IN WITNESS WHEREOF, the undersigned has caused these presents to be
executed as of the day and year first above written.

                                   NORTHWESTERN CORPORATION
                                   as Sponsor and Debenture Issuer

                                   By: /s/ Kipp D. Orme
                                       -------------------------------
                                       Name:  Kipp D. Orme
                                       Title: Vice President - Finance and Chief
                                              Financial Officer

                                   NORTHWESTERN CAPITAL FINANCING III

                                   By: /s/ Merle Lewis
                                       -------------------------------
                                       Name:  Merle Lewis
                                       Title: Regular Trustee

                                   By: /s/ Richard Hylland
                                       -------------------------------
                                       Name:  Richard Hylland
                                       Title: Regular Trustee

                                   WILMINGTON TRUST COMPANY
                                   as Delaware Trustee and Property Trustee

                                   By: /s/ Anita Dallago
                                       -------------------------------
                                       Name:  Anita Dallago
                                       Title: Financial Services Officer

                                       46
<PAGE>

                                    EXHIBIT A

                               TERMS OF SECURITIES

                                    TERMS OF
                        8.10% TRUST PREFERRED SECURITIES
                          8.10% TRUST COMMON SECURITIES

     Pursuant to SECTION 7.1 of the Amended and Restated Declaration of Trust,
dated as of January 31, 2002 (as amended from time to time, the "DECLARATION"),
the designation, rights, privileges, restrictions, preferences and other terms
and provisions of the Preferred Securities and the Common Securities are set out
below (each capitalized term used but not defined herein has the meaning set
forth in the Declaration or, if not defined in such Declaration, as defined in
the Prospectus referred to below):

DESIGNATION AND NUMBER.

"Preferred Securities." 4,000,000 Preferred Securities of the Trust with an
aggregate liquidation amount with respect to the assets of the Trust of
$100,000,000 and a liquidation amount with respect to the assets of the Trust of
$25 per Preferred Security, are hereby designated for the purposes of
identification only as "8.10% Trust Preferred Securities" (the "PREFERRED
SECURITIES"). Pursuant to the Overallotment Option, the Trust may within 30 days
of the date of the initial issuance, issue up to 600,000 Preferred Securities
with an aggregate liquidation amount of up to $15,000,000. The Preferred
Security Certificates evidencing the Preferred Securities and the Property
Trustee's certificate of authentication, shall be substantially in the form
attached hereto as ANNEX I, with such changes and additions thereto or deletions
therefrom as may be required by ordinary usage, custom or practice or to conform
to the rules of any stock exchange on which the Preferred Securities are listed.

"Common Securities." 123,712 Common Securities of the Trust with an
aggregate liquidation amount with respect to the assets of the Trust of
$3,092,800 and a liquidation amount with respect to the assets of the Trust of
$25 per Common Security, are hereby designated for the purposes of
identification only as "8.10% Trust Common Securities" (the "COMMON
SECURITIES"). Pursuant to the Overallotment Option, the Trust may within 30 days
of the date of the initial issuance, issue up to 18,557 Common Securities with
an aggregate liquidation amount of up to $463,925. The Common Security
Certificates evidencing the Common Securities shall be substantially in the form
attached hereto as Annex II, with such changes and additions thereto or
deletions therefrom as may be required by ordinary usage, custom or practice.

DISTRIBUTIONS.

Distributions payable on each Security will be fixed at a rate per annum of
8.10% (the "COUPON RATE") of the stated liquidation amount of $25 per Security,
such rate being the rate of interest payable on the Debentures to be held by the
Property Trustee. Distributions in arrears for more than one quarter will
accumulate additional distributions thereon compounded quarterly at the Coupon
Rate (to the extent permitted by applicable law). The term "Distributions" as
used

<PAGE>

herein includes such periodic cash distributions and any such additional
distributions payable unless otherwise stated. A Distribution is payable only to
the extent that payments are made in respect of the Debentures held by the
Property Trustee. The amount of Distributions payable for any period will be
computed for any full quarterly Distribution period on the basis of a 360-day
year of twelve 30-day months, and for any period shorter than a full quarterly
Distribution period on the basis of the actual number of days elapsed in such a
90-day quarterly period.

Distributions on the Securities will be cumulative, will accumulate from
their original date of issuance and will be payable quarterly in arrears, on
January 15, April 15, July 15, and October 15 of each year, commencing on April
15, 2002, except as otherwise described below. So long as no Event of Default
has occurred and is continuing, the Debenture Issuer has the right under the
Indenture to defer payments of interest by extending the interest payment period
from time to time on the Debentures for a period not exceeding 20 consecutive
quarters, but not beyond the stated maturity of the Debentures (each an
"EXTENSION PERIOD"), and, as a consequence of such extension, Distributions will
also be deferred. Prior to the termination of any such Extension Period, the
Debenture Issuer may further extend such Extension Period; provided that such
Extension Period together with all such previous and further extensions thereof
may not exceed 20 consecutive quarters or extend beyond the stated maturity of
the Debentures. If Distributions are deferred, the deferred Distributions,
including additional accumulated Distributions thereon at the Coupon Rate
compounded quarterly to the extent permitted by law, shall be paid to Holders as
they appear on the books and records of the Trust on the first record date after
the end of the Extension Period. Upon the termination of any Extension Period
and the payment of all amounts then due, the Debenture Issuer may commence a new
Extension Period, subject to the above requirements.

Distributions on the Securities will be payable to the Holders thereof as
they appear on the books and records of the Trust on the relevant record dates.
While the Preferred Securities remain in book-entry only form, the relevant
record dates shall be one Business Day prior to the relevant payment dates which
payment dates correspond to the interest payment dates on the Debentures.
Subject to any applicable laws and regulations and the provisions of the
Declaration, each such payment in respect of the Trust Preferred Securities will
be made as described under the heading "Description of the Trust Preferred
Securities -- Book-Entry Only Issuance -- The Depository Trust Company" in the
Prospectus Supplement dated January 24, 2002, to the Prospectus dated July 27,
1999 (together, the "PROSPECTUS") included in the Registration Statement on Form
S-3 of the Sponsor, the Debenture Issuer and the Trust. The relevant record
dates for the Common Securities, and, if the Preferred Securities shall not
continue to remain in book-entry only form, the relevant record dates for the
Preferred Securities, shall conform to the rules of any securities exchange on
which the securities are listed and, if none, shall be 15 Business Days before
the relevant payment dates, which payment dates correspond to the interest
payment dates on the Debentures, even if such record date is not a Business Day.
Distributions payable on any Securities that are not punctually paid on any
Distribution payment date, as a result of the Debenture Issuer having failed to
make a payment under the Debentures, will cease to be payable to the Person in
whose name such Securities are registered on the relevant record date, and such
defaulted Distribution will instead be payable to the Person in whose name such
Securities are registered on the special record date or other specified date
determined in accordance with the

                                      A-2
<PAGE>

Indenture. If any date on which Distributions are payable on the Securities
is not a Business Day, then payment of the Distribution payable on such date
will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), except that if such
Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day, in each case with the same force and
effect as if made on such date.

In the event that there is any money or other property held by or for the
Trust that is not accounted for hereunder, such property shall be distributed
Pro Rata (as defined herein) among the Holders of the Securities.

LIQUIDATION DISTRIBUTION UPON DISSOLUTION.

If dissolution of the Trust occurs for any reason other than the repayment
of all of the Securities in connection with the redemption of the Debentures,
the Regular Trustees shall, after satisfaction of liabilities to creditors of
the Trust and obtaining any required Federal Energy Regulatory Commission or
state public utility commission approval, cause Debentures held by the Property
Trustee, having an aggregate principal amount equal to the aggregate stated
liquidation amount of the Securities, with an interest rate equal to the Coupon
Rate of, and bearing accrued and unpaid interest in an amount equal to the
accumulated and unpaid Distributions on, the Securities, to be distributed to
the Holders of the Securities in liquidation of such Holders' interests in the
Trust on a Pro Rata basis, as expeditiously as the Property Trustee determines
to be possible; provided that, if the foregoing distribution is not practical,
Holders will be entitled to receive out of the assets of the Trust available for
distribution to Holders, after satisfaction of liabilities to creditors of the
Trust as provided by applicable law, an amount equal to the aggregate stated
liquidation amount of $25 per Security plus accumulated and unpaid Distributions
thereon to the date of payment (the "LIQUIDATION DISTRIBUTION").

If, upon any such dissolution or winding-up of the Trust, the Liquidation
Distribution can be paid only in part because the Trust has insufficient assets
available to pay in full the aggregate Liquidation Distribution, then the
amounts payable directly by the Trust on the Securities shall be paid on a Pro
Rata basis. The Holder of Common Securities will be entitled to receive such
Liquidation Distribution on a Pro Rata basis, except that if an Event of Default
has occurred and is continuing, the Holders of Preferred Securities shall have a
priority over the Holder of Common Securities.

On and from the date fixed by the Regular Trustees for any distribution of
Debentures and dissolution of the Trust: (i) the Securities will no longer be
deemed to be outstanding, (ii) The Depository Trust Company ("DTC") or its
nominee (or any successor Clearing Agency or its nominee), as the record Holder
of the Preferred Securities, will receive a registered global certificate or
certificates representing the Debentures to be delivered upon such distribution
with respect to the Preferred Securities held by DTC or its nominee, and (iii)
any certificates representing the Securities, except for certificates
representing Preferred Securities held by DTC or its nominee (or any successor
Clearing Agency or its nominee), will be deemed to represent the Debentures
having an aggregate principal amount equal to the aggregate stated liquidation

                                      A-3
<PAGE>

amount of the Securities, with an interest rate equal to the Coupon Rate of, and
bearing accrued and unpaid interest in an amount equal to the accumulated and
unpaid Distributions on, such Securities until such certificates are presented
to the Debenture Issuer or its agent for transfer or reissue.

If the Debentures are distributed to the Holders of the Securities,
pursuant to the terms of the Indenture, the Debenture Issuer will use its best
efforts to have the Debentures listed on the New York Stock Exchange or on such
other exchange as the Preferred Securities were listed on immediately prior to
the distribution of the Debentures.

REDEMPTION.

Upon the repayment of the Debentures in whole or in part, whether at
maturity or upon earlier redemption, the proceeds from such repayment or
redemption shall be thereupon applied to redeem Securities having an aggregate
liquidation amount equal to the aggregate principal amount of the Debentures so
repaid or redeemed at a redemption price of $25 per Security plus an amount
equal to accumulated and unpaid Distributions thereon at the date of the
redemption, payable in cash (the "REDEMPTION PRICE"). Redemptions of the
Securities shall be made, and the Redemption Price shall be payable, on each
redemption date only to the extent that the Trust has funds then on hand and
legally available for the payment at such Redemption Price. Holders will be
given not less than 30 nor more than 60 days notice of such redemption.

If fewer than all the outstanding Securities are to be so redeemed, the
Common Securities and the Preferred Securities will be redeemed Pro Rata and the
Preferred Securities to be redeemed will be as described in PARAGRAPH 4(d)
below.

The Trust may not redeem fewer than all the outstanding Securities unless
all accumulated and unpaid Distributions have been paid on all Securities for
all quarterly Distribution periods terminating on or before the date of
redemption.

Redemption Procedures.

          Notice of any redemption of the Securities (a "REDEMPTION NOTICE")
          will be given by the Property Trustee on behalf of the Trust by mail
          to each Holder of Securities to be redeemed not fewer than 30 nor more
          than 60 days before the date fixed for redemption thereof, which will
          be the date fixed for redemption of the Debentures. For purposes of
          the calculation of the date of redemption and the dates on which
          notices are given pursuant to this PARAGRAPH 4(d), a Redemption Notice
          shall be deemed to be given on the day such notice is first mailed by
          first-class mail, postage prepaid, to Holders of Securities. Each
          Redemption Notice shall be addressed to the Holders of Securities at
          the address of each such Holder appearing in the books and records of
          the Trust. No defect in the Redemption Notice or in the mailing of
          either thereof with respect to any Holder shall affect the validity of
          the redemption proceedings with respect to any other Holder.

In the event that fewer than all the outstanding Securities are to be redeemed,
then the aggregate

                                      A-4
<PAGE>

liquidation amount of the Securities to be redeemed shall be redeemed Pro
Rata from each Holder of Securities, it being understood that, in respect of
Preferred Securities registered in the name of and held of record by DTC (or any
successor Clearing Agency) or any nominee, the distribution of the proceeds of
such redemption will be made to such Clearing Agency Participant (or Person on
whose behalf such nominee holds such Securities) in accordance with the
procedures applied by such Clearing Agency; provided that, if, as a result of
such Pro Rata redemption, such Clearing Agency Participants will hold fractional
interests in the Preferred Securities, the Clearing Agency will adjust the
amount of the interest of each Participant to be redeemed to avoid such
fractional interest.

If Securities are to be redeemed and the Trust gives a Redemption Notice,
which notice may only be issued if the Debentures are redeemed as set out in
this PARAGRAPH 4 (which notice will be irrevocable), then (A) while the
Preferred Securities are in book-entry only form, with respect to the Preferred
Securities, by 12:00 noon, New York City time, on the redemption date, provided
that the Debenture Issuer has paid to the Property Trustee a sufficient amount
of cash in connection with the related redemption or maturity of the Debentures,
the Property Trustee will deposit irrevocably with DTC (or successor Clearing
Agency) funds sufficient to pay the applicable Redemption Price with respect to
the Preferred Securities and will give DTC irrevocable instructions and
authority to pay the Redemption Price to the Holders of the Preferred
Securities, and (B) with respect to Preferred Securities issued in definitive
form and Common Securities, provided that the Debenture Issuer has paid the
Property Trustee a sufficient amount of cash in connection with the related
redemption or maturity of the Debentures, the Property Trustee will pay the
relevant Redemption Price to the Holders of such Securities by check mailed to
the address of the relevant Holder appearing on the books and records of the
Trust on the redemption date. If a Redemption Notice shall have been given and
funds deposited as required, then immediately prior to the close of business on
the date of such deposit, or on the redemption date, as applicable,
Distributions will cease to accumulate on the Securities so called for
redemption and all rights of the Holders of such Securities so called for
redemption will cease, except the right of the Holders of such Securities to
receive the Redemption Price, but without interest on such Redemption Price.
Neither the Regular Trustees nor the Trust shall be required to register or
cause to be registered the transfer of any Securities that have been so called
for redemption. If any date fixed for redemption of Securities is not a Business
Day, then payment of the Redemption Price payable on such date will be made on
the next succeeding day that is a Business Day (and without any interest or
other payment in respect of any such delay) except that, if such Business Day
falls in the next calendar year, such payment will be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on such date fixed for redemption. If payment of the Redemption Price in respect
of any Securities is improperly withheld or refused and not paid either by the
Property Trustee or by the Sponsor as guarantor pursuant to the relevant
Preferred Securities Guarantee or Common Securities Guarantee, Distributions on
such Securities will continue to accumulate from the original redemption date to
the actual date of payment, in which case the actual payment date will be
considered the date fixed for redemption for purposes of calculating the
Redemption Price.

Redemption Notices shall be sent by the Regular Trustees on behalf of the Trust
(A) in respect of the Preferred Securities, to DTC or its nominee (or any
successor Clearing Agency or its

                                      A-5
<PAGE>

nominee) if the Global Certificates have been issued or, if Definitive
Preferred Security Certificates have been issued, to the Holders thereof, and
(B) in respect of the Common Securities, to the Holders thereof.

Subject to the foregoing and applicable law (including, without limitation,
United States federal securities laws), the Sponsor or any of its Affiliates may
at any time and from time to time purchase outstanding Preferred Securities by
tender, in the open market or by private agreement, and may resell such
Preferred Securities.

VOTING RIGHTS -- PREFERRED SECURITIES.

Except as provided under PARAGRAPHS 5(b) and 7 and as otherwise required by
law, the Preferred Securities Guarantee and the Declaration, the Holders of the
Preferred Securities will have no voting rights.

If an Event of Default occurs and is continuing, then the Holders of the
Preferred Securities, acting as a single class, will have the exclusive right to
appoint, remove or replace the Property Trustee during the continuance of any
Event of Default in accordance with SECTION 5.6(a)(ii) of the Declaration. Not
later than 30 days after such right to appoint, remove or replace the Property
Trustee arises, the Regular Trustees will convene a meeting for the purpose of
appointing, removing or replacing the Property Trustee. Subject to the
requirements set forth in this paragraph, the Holders of a Majority in
liquidation amount of the Preferred Securities, voting separately as a class,
may direct the time, method, and place of conducting any proceeding for any
remedy available to the Property Trustee, or exercising any trust or power
conferred upon the Property Trustee under the Declaration, including (i)
directing the time, method, place of conducting any proceeding for any remedy
available to the Property Trustee, or exercising any trust or power conferred on
the Property Trustee with respect to the Debentures, (ii) waive any past event
of default under the Indenture that is waivable under Section 513 of the
Indenture, (iii) exercise any right to rescind or annul a declaration that the
principal of all the Debentures shall be due and payable, (iv) or consent to
any, amendment, modification or termination of the Indenture or the Debentures,
where such consent is required; PROVIDED, HOWEVER, that where a consent under
the Indenture would require the consent or act of the Holders of greater than a
majority in principal amount of the Debentures affected thereby, the Property
Trustee may only give such consent or take such action at the direction of the
Holders of at least the proportion in liquidation amount of the Preferred
Securities that the relevant super majority represents of the total principal
amount of the Debentures outstanding. The Property Trustee shall not revoke any
action previously authorized or approved by a vote of the Holders of the
Preferred Securities. Other than with respect to directing the time, method and
place of conducting any remedy available to the Property Trustee as set forth
above, the Property Trustee shall not take any action in accordance with the
directions of the Holders of the Preferred Securities under this paragraph
unless the Property Trustee has obtained an opinion of tax counsel to the effect
that for the purposes of United States federal income tax the Trust will not
fail to be classified as a grantor trust. If the Property Trustee fails to
enforce its rights under the Declaration or the Debentures, to the fullest
extent permitted by law, any Holder of Preferred Securities may, after a period
of 30 days has elapsed from such Holder's written request to the Property
Trustee to enforce such

                                      A-6
<PAGE>

rights, institute a legal proceeding directly against the Debenture Issuer
to enforce the Property Trustee's rights under the Declaration or the
Debentures, to the fullest extent permitted by law without first instituting a
legal proceeding against the Property Trustee or any other Person.
Notwithstanding the foregoing, if an Event of Default has occurred and is
continuing and such event is attributable to the failure of the Debenture Issuer
to pay interest or principal on the Debentures on the date such interest or
principal is otherwise payable (or in the case of redemption, on the redemption
date), then a Holder of Preferred Securities may directly institute a proceeding
against the Debenture Issuer for enforcement of payment to such holder of the
principal of or interest on the Debentures having a principal amount equal to
the aggregate liquidation amount of the Preferred Securities of such Holder on
or after the respective due dates specified in the Debentures. In connection
with such direct action, the Debenture Issuer will be subrogated to the rights
of such Holder of Preferred Securities under the Declaration to the extent of
any payment made by the Debenture Issuer to such Holder of Preferred Securities
in connection with such direct action.

          The Property Trustee shall notify all Holders of the Preferred
          Securities of any notice of default received from the trustee
          under the Indenture with respect to the Debentures. Such
          notice shall state that such event of default also constitutes
          an Event of Default under the Declaration. Until any Event of
          Default has been cured, waived or eliminated, the Property
          Trustee will act solely on behalf of the holders of the
          Preferred Securities.

    Any approval or direction of Holders of Preferred Securities may be
given at a separate meeting of the Holders of the Preferred Securities convened
for such purpose, at a meeting of all of the Holders of the Securities or
pursuant to written consent. The Regular Trustees will cause a notice of any
meeting at which the Holders of the Preferred Securities are entitled to vote to
be mailed to each Holder of record of Preferred Securities. Each such notice
will include a statement setting forth (i) the date of such meeting, (ii) a
description of any resolution proposed for adoption at such meeting on which
such Holders are entitled to vote and (iii) instructions for the delivery of
proxies or consents.

          No vote or consent of the Holders of the Preferred Securities
          will be required for the Trust to redeem and cancel the
          Preferred Securities or to distribute the Debentures in
          accordance with the Declaration and the terms of the
          Securities.

          Notwithstanding that Holders of the Preferred Securities are
          entitled to vote or consent under any of the circumstances
          described above, any of the Preferred Securities that are
          owned by the Sponsor or any Affiliate of the Sponsor shall not
          be entitled to vote or consent and shall, for purposes of such
          vote or consent, be treated as if they were not outstanding.

VOTING RIGHTS -- COMMON SECURITIES.

Except as provided under PARAGRAPHS 6(b), 6(c) and 7, and as otherwise
required by law and the Declaration, the Holders of the Common Securities will
have no voting rights.

                                      A-7
<PAGE>

The Holders of the Common Securities are entitled, in accordance with
Article Five of the Declaration, to vote to appoint, remove or replace any
Trustee or to increase or decrease the number of Trustees, subject to the
exclusive right of the Holders of the Preferred Securities to appoint, remove or
replace the Property Trustee as provided in PARAGRAPH 5(b).

Subject to SECTION 2.6 of the Declaration and to the rights of the Holders
of the Preferred Securities and only after any Event of Default with respect to
the Preferred Securities has been cured, waived or otherwise eliminated, and
subject to the requirements of the second to last sentence of this paragraph,
the Holders of a Majority in liquidation amount of the Common Securities, voting
separately as a class, may direct the time, method and place of conducting any
proceeding for any remedy available to the Property Trustee, or exercising any
trust or power conferred upon the Property Trustee under the Declaration,
including (i) directing the time, method and place of conducting any proceeding
for any remedy available to the Debenture Trustee, or exercising any trust or
power conferred on the Debenture Trustee with respect to the Debentures, (ii)
waiving any past default and its consequences that is waivable under SECTION 513
of the Indenture, or (iii) exercising any right to rescind or annul a
declaration that the principal of all the Debentures shall be due and payable,
PROVIDED, HOWEVER, that, where a consent or action under the Indenture would
require the consent or act of the Holders of all of the outstanding Common
Securities, the Property Trustee may only give such consent or take such action
at the direction of the Holders of all Common Securities. If an Event of Default
has occurred and is continuing, the Holder of Common Securities will be deemed
to have waived any right to take any action with respect to the Event of Default
until the Event of Default has been cured, waived or eliminated. Pursuant to
this PARAGRAPH 6(c), the Property Trustee shall not revoke any action previously
authorized or approved by a vote of the Holders of the Preferred Securities.
Other than with respect to directing the time, method and place of conducting
any remedy available to the Property Trustee or the Debenture Trustee as set
forth above, the Property Trustee shall not take any action in accordance with
the directions of the Holders of the Common Securities under this paragraph
unless the Property Trustee has obtained an opinion of tax counsel to the effect
that for the purposes of United States federal income tax the Trust will not
fail to be classified as a grantor trust. If the Property Trustee fails to
enforce its rights under the Declaration, to the fullest extent permitted by
law, any Holder of Common Securities may, after a period of 30 days has elapsed
from such Holder's written request to the Property Trustee to enforce such
rights, institute a legal proceeding directly against any Person to enforce the
Property Trustee's rights under the Declaration, without first instituting a
legal proceeding against the Property Trustee or any other Person.

          Any approval or direction of the Holders of the Common
          Securities may be given at a separate meeting of the Holders
          of the Common Securities convened for such purpose, at a
          meeting of all of the Holders of the Securities or pursuant to
          written consent. The Regular Trustees will cause a notice of
          any meeting at which the Holders of Common Securities are
          entitled to vote to be mailed to each Holder of record of the
          Common Securities. Each such notice will include a statement
          setting forth (i) the date of such meeting to be taken, (ii) a
          description of any resolution proposed for adoption at such
          meeting on which such Holders are entitled to vote and (iii)
          instructions for the delivery of proxies or consents.

                                      A-8
<PAGE>

          No vote or consent of the Holders of the Common Securities
          will be required for the Trust to redeem and cancel Common
          Securities or to distribute the Debentures in accordance with
          the Declaration and the terms of the Securities.

AMENDMENTS TO DECLARATION AND INDENTURE.

In addition to any requirements under SECTION 12.1 of the Declaration
(including, without limitation, those specified in SECTION 12.1(a)(i)), if any
proposed amendment to the Declaration provides for, or the Regular Trustees
otherwise propose to effect, (i) any action that would materially adversely
affect the powers, preferences or special rights of the Preferred Securities,
whether by way of amendment to the Declaration or otherwise, or (ii) the
dissolution, winding-up or termination of the Trust, other than as described in
SECTION 8.1 of the Declaration, then the Holders of the Preferred Securities
voting together as a single class, will be entitled to vote on such amendment or
proposal (but not on any other amendment or proposal) and such amendment or
proposal shall not be effective except with the approval of the Holders of at
least 66-2/3% in liquidation amount of the Preferred Securities, voting together
as a single class, provided (x) if any amendment or proposal referred to in
clause (i) above would materially adversely affect only the Preferred Securities
or the Common Securities, then only the affected class will be entitled to vote
on such amendment or proposal and such amendment or proposal shall not be
effective except with the approval of 66-2/3% in liquidation amount of such
class of Securities and (y) a reduction of the aggregate liquidation amount or
Distribution rate, a change in the payment dates or maturities of the Preferred
Securities or a reduction in the percentage in the liquidation amount of
outstanding Preferred Securities, the consent of the Holders of which is
required for an amendment to the Declaration shall not be permitted without the
consent of each Holder of Preferred Securities.

In the event the consent of the Property Trustee, as the holder of the
Debentures is required under the Indenture with respect to any amendment,
modification or termination of the Indenture or the Debentures, the Property
Trustee shall request the direction of the Holders of the Preferred Securities
with respect to such amendment, modification or termination and shall vote with
respect to such amendment, modification or termination as directed by a Majority
in liquidation amount of the Preferred Securities, voting together as a single
class; PROVIDED, HOWEVER, that where a consent or action under the Indenture
would require the consent or act of Holders of greater than a majority in
principal amount of Debentures affected thereby, the Property Trustee may only
give such consent or take such action at the written direction of at least the
proportion in liquidation amount of Holders of Preferred Securities that the
relevant super majority represents of the total principal amount of Debentures
outstanding; provided, further, that the Property Trustee shall not take any
action in accordance with the directions of the Holders of the Securities under
this PARAGRAPH 7(b) unless the Property Trustee has obtained an opinion of tax
counsel to the effect that for the purposes of United States federal income tax
the Trust will not be classified as other than a grantor trust A waiver of an
Event of Default under the Indenture shall constitute a waiver of the
corresponding Event of Default under this Declaration.

PRO RATA.

                                      A-9
<PAGE>

     A reference in these terms of the Securities to any payment, distribution
or treatment as being "Pro Rata" shall mean pro rata to each Holder of
Securities according to the aggregate liquidation amount of the Securities held
by the relevant Holder in relation to the aggregate liquidation amount of all
Securities outstanding unless, in relation to a payment, an Event of Default has
occurred and is continuing, in which case any funds available to make such
payment shall be paid first to each Holder of the Preferred Securities pro rata
according to the aggregate liquidation amount of Preferred Securities held by
the relevant Holder relative to the aggregate liquidation amount of all
Preferred Securities outstanding, and only after satisfaction of all amounts
owed to the Holders of the Preferred Securities, to each Holder of Common
Securities pro rata according to the aggregate liquidation amount of Common
Securities held by the relevant Holder relative to the aggregate liquidation
amount of all Common Securities outstanding.

RANKING.

     The Preferred Securities rank pari passu, and payment thereon shall be made
Pro Rata, with the Common Securities except that, where an Event of Default
occurs and is continuing, the rights of Holders of the Common Securities to
payment in respect of Distributions and payments upon liquidation, redemption
and otherwise are subordinated to the rights to payment of the Holders of the
Preferred Securities.

LISTING.

     The Regular Trustees shall use their best efforts to cause the Preferred
Securities to be listed on the New York Stock Exchange, Inc.

ACCEPTANCE OF SECURITIES GUARANTEE AND INDENTURE.

     Each Holder of the Preferred Securities and the Common Securities, by the
acceptance thereof, agrees to the provisions of the Preferred Securities
Guarantee and the Common Securities Guarantee, respectively, including the
subordination provisions therein and to the provisions of the Indenture.

NO PREEMPTIVE RIGHTS.

     The Holders of the Securities shall have no preemptive or similar rights to
subscribe for any additional securities.

MISCELLANEOUS.

     These terms constitute a part of the Declaration.

     The Sponsor will provide a copy of the Declaration and the Preferred
Securities Guarantee and the Indenture to any Holder without charge on written
request to the Trust at its principal place of business. These terms and the
rights of the parties hereunder shall be governed by and interpreted in
accordance with the laws of the State of Delaware, and all rights and

                                      A-10
<PAGE>

remedies shall be governed by such laws without regard to principles of
conflict of laws.

                                      A-11
<PAGE>

                                     ANNEX I

     This Preferred Security is a Global Certificate within the meaning of the
Declaration hereinafter referred to and is registered in the name of The
Depository Trust Company (the "DTC") or a nominee of DTC. This Preferred
Security is exchangeable for Preferred Securities registered in the name of a
person other than DTC or its nominee only in the limited circumstances described
in the Declaration, and no transfer of this Preferred Security (other than a
transfer of this Preferred Security as a whole by DTC to a nominee of DTC or by
a nominee of DTC to DTC or another nominee of DTC) may be registered except in
limited circumstances.

     Unless this Preferred Security is presented by an authorized representative
of The Depository Trust Company (55 Water Street, New York) to the Trust or its
agent for registration of transfer, exchange or payment, and any Preferred
Security issued is registered in the name of Cede & Co. or such other name as
requested by an authorized representative of The Depository Trust Company and
any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner
hereof, Cede & Co., has an interest herein.

CERTIFICATE NUMBER                                NUMBER OF PREFERRED SECURITIES

------------------                                ------------------------------

                                                             CUSIP NO. 668034200

                   Certificate Evidencing Preferred Securities
                                       of
                       NORTHWESTERN CAPITAL FINANCING III
                        8.10% Trust Preferred Securities
                 (liquidation amount $25 per Preferred Security)

     NORTHWESTERN CAPITAL FINANCING III, a business trust formed under the laws
of the State of Delaware (the "TRUST"), hereby certifies that ___________ (the
"HOLDER") is the registered owner of _____________ preferred securities of the
Trust representing undivided beneficial interests in the assets of the Trust
designated the 8.10% Trust Preferred Securities (liquidation amount $25 per
Preferred Security) (the "PREFERRED SECURITIES"). The Preferred Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer. The designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Preferred Securities
represented hereby are issued and shall in all respects be subject to the
provisions of the Amended and Restated Declaration of Trust of the Trust, dated
as of January 31, 2002, as the same may be amended from time to time (the
"DECLARATION"), including the designation of the terms of the Securities as set
forth in EXHIBIT A to the Declaration. Capitalized terms used herein but not
defined shall have the meanings given them in the Declaration.

     The Holder is entitled to the benefits of the Preferred Securities
Guarantee to the extent

                                      A-12
<PAGE>

provided therein. The Sponsor will provide a copy of the Declaration, the
Preferred Securities Guarantee and the Indenture to any Holder without charge
upon written request to the Trust at its principal place of business.

     Upon receipt of this certificate, the Holder is bound by the Declaration
and is entitled to the benefits thereunder.

     By acceptance, the Holder agrees to treat, for United States federal income
tax purposes, the Debentures as indebtedness and the Preferred Securities as
evidence of undivided beneficial ownership in the Debentures.

     Unless the Property Trustee's Certificate of Authentication hereon has been
properly executed, these Preferred Securities shall not be entitled to any
benefit under the Declaration or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Trust has executed this certificate this _____ day
of _________, 2002.

                                    NORTHWESTERN CAPITAL FINANCING III

                                    By:
                                        ------------------------------
                                        as Regular Trustee

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Preferred Securities referred to in the within-mentioned
Declaration.

Dated:             ,     2002                  as Property Trustee
       ------------  ---

                                               By:
                                                   -----------------------
                                                   Authorized Signatory

                                      A-13
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred
Security Certificate to:

(Insert assignee's social security or tax identification number)

(Insert address and zip code of assignee) and irrevocably appoints _____________

agent to transfer this  Preferred  Security  Certificate on the books of the
Trust.  The agent may  substitute  another to act for him or her.

Date: __________________________

Signature: ______________________
(Sign exactly as your name appears on the other side of this Preferred
Security Certificate)

                                      A-14
<PAGE>

                                    ANNEX II

     THIS SECURITY IS NOT TRANSFERABLE EXCEPT AS PROVIDED IN THE DECLARATION (AS
DEFINED BELOW)

CERTIFICATE NUMBER                                   NUMBER OF COMMON SECURITIES

------------------                                ------------------------------

                    Certificate Evidencing Common Securities
                                       of
                       NORTHWESTERN CAPITAL FINANCING III
                          8.10% Trust Common Securities
                  (liquidation amount $25 per Common Security)

     NORTHWESTERN CAPITAL FINANCING III, a business trust formed under the laws
of the State of Delaware (the "TRUST"), hereby certifies that
__________________________ (the "HOLDER"), is the registered owner of
_______________________________ common securities of the Trust representing
undivided beneficial interests in the assets of the Trust designated the 8.10%
Trust Common Securities (liquidation amount $25 per Common Security) (the
"COMMON SECURITIES"). The designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Common Securities represented
hereby are issued and shall in all respects be subject to the provisions of the
Amended and Restated Declaration of Trust of the Trust, dated as of January 31,
2002, as the same may be amended from time to time (the "DECLARATION"),
including the designation of the terms of the Securities as set forth in EXHIBIT
A to the Declaration. Capitalized terms used herein but not defined shall have
the meanings given them in the Declaration.

     The Holder is entitled to the benefits of the Common Securities Guarantee
to the extent provided therein. The Sponsor will provide a copy of the
Declaration, the Common Securities Guarantee and the Indenture to any Holder
without charge upon written request to the Trust at its principal place of
business.

     Upon receipt of this certificate, the Holder is bound by the Declaration
and is entitled to the benefits thereunder.

     By acceptance, the Holder agrees to treat for United States federal income
tax purposes the Debentures as indebtedness and the Common Securities as
evidence of undivided beneficial ownership in the Debentures.

                                      A-15
<PAGE>

     IN WITNESS WHEREOF, the Trust has executed this certificate this _____ day
of _________, 2002.

                                    NORTHWESTERN CAPITAL FINANCING III

                                    By:
                                        ------------------------------
                                        as Regular Trustee

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Common Securities referred to in the within-mentioned
Declaration.

Dated:             ,     2002                  as Property Trustee
       ------------  ---

                                               By:
                                                   -----------------------
                                                   Authorized Signatory

                                      A-16
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Common Security
Certificate to:

(Insert assignee's social security or tax identification number)

(Insert address and zip code of assignee) and irrevocably appoints _____________

agent to transfer this Common Security Certificate on the books of the Trust.
The agent may substitute another to act for him or her.

Date: __________________________

Signature: ______________________
(Sign exactly as your name appears on the other side of this Common
Security Certificate)

                                      A-17
<PAGE>

                                    EXHIBIT B

                              SPECIMEN OF DEBENTURE

<PAGE>

                                    EXHIBIT C

                             UNDERWRITING AGREEMENT

<PAGE>

--------------------------------------------------------------------------------

                       NORTHWESTERN CAPITAL FINANCING III
                      (a Delaware statutory business trust)

                            NORTHWESTERN CORPORATION
                            (a Delaware corporation)

                      4,000,000 TRUST PREFERRED SECURITIES

                              8.10% TRUST PREFERRED
                                   SECURITIES
              (Liquidation Amount $25 Per Trust Preferred Security)

                             UNDERWRITING AGREEMENT

Dated:  January 24, 2002

--------------------------------------------------------------------------------

<Page>

                                Table of Contents

<Table>
<S>             <C>                                                                                               <C>
PURCHASE AGREEMENT

Section 1.        Representations and Warranties..................................................................3
         (a)    Representations and Warranties by the Company and the Trust.......................................3
                (i)      Compliance with Registration Requirements................................................4
                (ii)     Incorporated Documents...................................................................4
                (iii)    Independent Accountants..................................................................5
                (iv)     Financial Statements.....................................................................5
                (v)      No Material Adverse Change in Business...................................................5
                (vi)     Good Standing of the Company.............................................................5
                (vii)    Good Standing of Subsidiaries............................................................6
                (viii)   Existence of Trust.......................................................................6
                (ix)     Common Securities........................................................................6
                (x)      Authorization of Declaration.............................................................6
                (xi)     Guarantee Agreements.....................................................................7
                (xii)    Preferred Securities.....................................................................7
                (xiii)   Authorization of Indenture...............................................................7
                (xiv)    Authorization of Debentures..............................................................7
                (xv)     Authorization of Agreement...............................................................8
                (xvi)    Capitalization...........................................................................8
                (xvii)   Absence of Defaults and Conflicts........................................................8
                (xviii)  Absence of Labor Dispute.................................................................9
                (xix)    Absence of Proceedings...................................................................9
                (xx)     Accuracy of Exhibits.....................................................................9
                (xxi)    Possession of Intellectual Property......................................................9
                (xxii)   Absence of Further Requirements.........................................................10
                (xxiii)  Possession of Licenses and Permits......................................................10
                (xxiv)   Title to Property.......................................................................10
                (xxv)    Investment Company Act..................................................................10
                (xxvi)   Environmental Laws......................................................................11
                (xxvii)  FERC....................................................................................11
         (b)    Officers' Certificates...........................................................................11

Section 2.        Sale and Delivery to Underwriters; Closing.....................................................11
         (a)    Initial Preferred Securities.....................................................................11
         (b)    Option Preferred Securities......................................................................11
         (c)    Payment..........................................................................................12
         (d)    Denominations; Registration......................................................................13

Section 3.        Covenants of the Company and the Trust.........................................................13
         (a)    Compliance with Securities Regulations and Commission Requests...................................13
         (b)    Filing of Amendments.............................................................................13
         (c)    Delivery of Registration Statements..............................................................14
         (d)    Delivery of Prospectus...........................................................................14
</Table>

                                       i
<Page>

<Table>
<S>             <C>                                                                                              <C>
         (e)    Continued Compliance with Securities Laws........................................................14
         (f)    Blue Sky Qualifications..........................................................................14
         (g)    Rule 158.........................................................................................15
         (h)    Use of Proceeds..................................................................................15
         (i)    Listing..........................................................................................15
         (j)    Restriction on Sale of Securities................................................................15
         (k)    Reporting Requirements...........................................................................15

Section 4.        Payment of Expenses............................................................................15
         (a)    Expenses.........................................................................................15
         (b)    Termination of Agreement.........................................................................16

Section 5.        Conditions of Underwriters' Obligations........................................................16
         (a)    Effectiveness of Registration Statement..........................................................16
         (b)    Opinions of Counsel for Company..................................................................16
         (c)    Opinion of Special Delaware Counsel for the Trust and the Company................................17
         (d)    Opinions of Counsel for the Property Trustee, the Debenture Trustee and the Guarantee Trustee....17
         (e)    Opinion of Counsel for Underwriters..............................................................17
         (f)    Officers' Certificates...........................................................................17
         (g)    Accountants' Comfort Letters.....................................................................18
         (h)    Bring-down Comfort Letters.......................................................................18
         (i)    Approval of Listing..............................................................................18
         (j)    Maintenance of Rating............................................................................18
         (k)    Conditions to Purchase Option Preferred Securities...............................................18
         (l)    Additional Documents.............................................................................20
         (m)    Termination of Agreement.........................................................................20

Section 6.        Indemnification................................................................................20
         (a)    Indemnification of Underwriters..................................................................20
         (b)    Indemnification of Trust by Company..............................................................21
         (c)    Indemnification of Trust, Company, Directors and Officers........................................21
         (d)    Actions against Parties; Notification............................................................21
         (e)    Settlement without Consent if Failure to Reimburse...............................................22

Section 7.        Contribution...................................................................................22

Section 8.        Representations, Warranties and Agreements to Survive Delivery.................................24

Section 9.        Termination of Agreement.......................................................................24
         (a)    Termination; General.............................................................................24
         (b)    Liabilities......................................................................................24

Section 10.       Default by One or More of the Underwriters.....................................................25

Section 11.       Notices........................................................................................26

Section 12.       Parties........................................................................................26
</Table>

                                       ii
<Page>

<Table>
<S>             <C>                                                                                              <C>
Section 13.       GOVERNING LAW AND TIME.........................................................................26

Section 14.       Effect of Headings.............................................................................26
</Table>

                                      iii
<PAGE>

<Table>
<S>                                                                                                       <C>
SCHEDULES
         Schedule  A - List of Underwriters...............................................................Sch A-1
         Schedule  B - List of Subsidiaries...............................................................Sch B-1

EXHIBITS

         Exhibit  A - Forms of Opinions of Company's Special Counsel........................................A-1-1
         Exhibit  B - Form of Opinion of Company's Counsel....................................................B-1
         Exhibit  C - Form of Opinion of Special Delaware Counsel for the Trust...............................C-1
</Table>

                                       iv
<PAGE>

                       NORTHWESTERN CAPITAL FINANCING III
                      (a Delaware statutory business trust)

                            NORTHWESTERN CORPORATION
                            (a Delaware corporation)

                               4,000,000 shares of

                                      8.10%

                                 TRUST PREFERRED
                                   SECURITIES

                             UNDERWRITING AGREEMENT
                             ----------------------

                                                                January 24, 2002

Morgan Stanley & Co. Incorporated
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
         Incorporated
SALOMON SMITH BARNEY INC.,
as Representatives of the several Underwriters named in Schedule A hereto
c/o  Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York  10036

Ladies and Gentlemen:

         Northwestern Capital Financing III (the "Trust"), a statutory business
trust organized under the Business Trust Act (the "Delaware Act") of the State
of Delaware (Chapter 38, Title 12 of the Delaware Code, 12 Del. C. ss. 3801 et
seq.) confirms its agreement with Morgan Stanley & Co. Incorporated, Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Salomon Smith
Barney Inc. and each of the Underwriters named in Schedule A hereto
(collectively the "Underwriters," which term shall also include any underwriter
substituted as hereinafter provided in Section 10 hereof), for whom Morgan
Stanley & Co. Incorporated, Merrill Lynch, Pierce, Fenner & Smith Incorporated
and Salomon Smith Barney Inc. are acting as Representatives (in such capacity,
the "Representatives") with respect to the issue and sale by the Trust and the
purchase by the Underwriters, acting severally and not jointly, of 8.10% Trust
Preferred Securities (liquidation amount $25 per preferred security) in the
respective numbers set forth in said Schedule A hereto (the "Initial Preferred
Securities"), and with respect to the grant by the Trust to the Underwriters,
acting severally and not jointly, of the option described in Section 2(b) hereof
to purchase all or any part of the additional Preferred Securities described
below to cover over-allotments, if any. The aforesaid 4,000,000 Initial

<PAGE>

Preferred Securities and all or part of the 600,000 Preferred Securities subject
to the option described in Section 2(b) hereof (the "Option Preferred
Securities") are hereinafter called, collectively, the "Preferred Securities."
The Preferred Securities are more fully described in the Prospectus (as defined
below).

         The Preferred Securities will be guaranteed by NorthWestern Corporation
(a Delaware corporation) (the "Company"), to the extent set forth in the
Prospectus, with respect to distributions and amounts payable upon liquidation
or redemption (the "Preferred Securities Guarantee") pursuant to the Preferred
Securities Guarantee Agreement (the "Preferred Securities Guarantee Agreement")
to be dated as of the Closing Time (as defined herein), executed and delivered
by the Company and Wilmington Trust Company (the "Guarantee Trustee"). The
Company and the Trust each understand that the Underwriters propose to make a
public offering of the Preferred Securities as soon as the Representatives deem
advisable after this Agreement has been executed and delivered, and the
Declaration (as defined herein), the Indenture (as defined herein), and the
Preferred Securities Guarantee Agreement have been qualified under the Trust
Indenture Act of 1939, as amended (the "1939 Act"). The entire proceeds from the
sale of the Preferred Securities will be combined with the entire proceeds from
the sale by the Trust to the Company of its common securities (the "Common
Securities") guaranteed by the Company, to the extent set forth in the
Prospectus, with respect to distributions and amounts payable upon liquidation
or redemption pursuant to the Common Securities Guarantee Agreement (the "Common
Securities Guarantee Agreement" and, together with the Preferred Securities
Guarantee Agreement, the "Guarantee Agreements"), to be dated as of the Closing
Time, executed and delivered by the Company for the benefit of the holders from
time to time of the Common Securities, and will be used by the Trust to purchase
$103,092,800 aggregate principal amount of 8.10% Junior Subordinated Deferrable
Interest Debentures due January 15, 2032 (the "Debentures") issued by the
Company and, if all or part of the Option Preferred Securities are purchased, up
to approximately an additional $15,463,925 aggregate principal amount of
Debentures (the "Option Debentures"). The aforesaid Initial Debentures and
Option Debentures are hereinafter called, collectively, the "Debentures." The
Preferred Securities and the Common Securities will be issued pursuant to the
Amended and Restated Declaration of Trust of the Trust, to be dated as of the
Closing Time (the "Declaration"), among the Company, as Sponsor, Wilmington
Trust Company, as property trustee (the "Property Trustee"), and Merle D. Lewis
and Richard R. Hylland, as administrative trustees (the "Administrative
Trustees" and together with the Property Trustee, the "Trustees"), and the
holders from time to time of undivided beneficial interests in the assets of the
Trust. The Debentures will be issued pursuant to an Indenture, dated as of
August 1, 1995 (the "Base Indenture"), between the Company and JPMorgan Chase
Bank (as successor to The Chase Manhattan Bank, N.A.), as trustee (the
"Debenture Trustee"), and a supplement to the Base Indenture, to be dated as of
the Closing Time (the "Supplemental Indenture," and together with the Base
Indenture as heretofore supplemented and amended, the "Indenture"), between the
Company and the Debenture Trustee. The Preferred Securities, the Preferred
Securities Guarantee and the Debentures are collectively referred to herein as
the "Securities." Capitalized terms used herein without definition have the
respective meanings specified in the Prospectus.

         The Company and the Trust have filed with the Securities and Exchange
Commission (the "Commission") registration statements on Form S-3 (Nos.
333-58491 and 333-82707), including a prospectus, relating to securities of the
Company and the Trust. Such registration

                                       2
<PAGE>

statements were filed under the Securities Act of 1933, as amended (the "1933
Act"), and have become effective. Promptly after execution and delivery of this
Agreement, the Company will prepare and file with the Commission a prospectus in
accordance with the provisions of paragraph (b) of Rule 424 ("Rule 424(b)") of
the rules and regulations of the Commission under the 1933 Act (the "1933 Act
Regulations"). The prospectus included in the registration statement No.
333-82707 at the time it became effective, as supplemented to reflect the terms
of the Securities and the terms of the offering of the Securities, as first
filed with the Commission pursuant to and in accordance with Rule 424(b) under
the 1933 Act Regulations, including all material incorporated by reference
therein pursuant to Item 12 of Form S-3 under the 1933 Act, is hereinafter
referred to as the "Prospectus." No document has been or will be prepared or
distributed in reliance on Rule 434 under the Act. "Preliminary prospectus"
shall be deemed to refer to (i) any prospectus used before the Registration
Statement (as defined herein) became effective and (ii) any prospectus that
omitted, as applicable, information pursuant to Rule 430A(b) of the 1933 Act
Regulations or other information to be included upon pricing in a prospectus
filed with the Commission pursuant to Rule 424(b) and was used after such
effectiveness and prior to the initial delivery of the Prospectus to the
underwriters by the Company. Such registration statements, including the
exhibits thereto (other than Form T-1), schedules thereto, if any, and the
documents incorporated by reference therein pursuant to Item 12 of Form S-3
under the 1933 Act, at the time registration statement No. 333-82707 became
effective and including the prospectus included in such registration statement
at the time it became effective, as supplemented to reflect the terms of the
Securities and the terms of the offering of the Securities, as first filed with
the Commission pursuant to and in accordance with Rule 424(b) under the 1933 Act
Regulations, are collectively herein called the "Registration Statement",
provided that references to the Registration Statement at the time it became
effective shall not be deemed to include the information first filed pursuant to
and in accordance with Rule 424(b) under the 1933 Act Regulations. For purposes
of this Agreement, all references to the Registration Statement, any preliminary
prospectus, the Prospectus or any amendment or supplement to any of the
foregoing shall be deemed to include the copy filed with the Commission pursuant
to its Electronic Data Gathering, Analysis and Retrieval system ("EDGAR").

         All references in this Agreement to financial statements and schedules
and other information which is "contained," "included" or "stated" in the
Registration Statement, any preliminary prospectus or the Prospectus (or other
references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information which is incorporated
by reference in the Registration Statement, any preliminary prospectus or the
Prospectus, as the case may be; and all references in this Agreement to
amendments or supplements to the Registration Statement, any preliminary
prospectus or the Prospectus shall be deemed to mean and include the filing of
any document under the Securities Exchange Act of 1934 (the "1934 Act") which is
incorporated by reference in the Registration Statement, any preliminary
prospectus or the Prospectus, as the case may be.

         SECTION 1. REPRESENTATIONS AND WARRANTIES.

         (a) REPRESENTATIONS AND WARRANTIES BY THE COMPANY AND THE TRUST. The
Company and the Trust jointly and severally represent and warrant to each
Underwriter as of the date

                                       3
<PAGE>

hereof, as of the Closing Time referred to in Section 2(c) hereof, and as of
each Date of Delivery (if any) referred to in Section 2(b) hereof, and agrees
with each Underwriter, as follows:

             (i) COMPLIANCE WITH REGISTRATION REQUIREMENTS. The Company meets
the requirements for use of Form S-3 under the 1933 Act. The Registration
Statement has become effective under the 1933 Act and no stop order suspending
the effectiveness of the Registration Statement has been issued under the 1933
Act and no proceedings for that purpose have been instituted or are pending or,
to the knowledge of the Company and the Trust, are contemplated by the
Commission, and any request on the part of the Commission for additional
information has been complied with.

         At the respective times the Registration Statement and any
post-effective amendments thereto became effective, at the time of the filing by
the Company of any annual report on Form 10-K, and at the Closing Time (and, if
any Option Securities are purchased, at the Date of Delivery), the Registration
Statement and any amendments and supplements thereto complied and will comply in
all material respects with the requirements of the 1933 Act and the 1933 Act
Regulations and the 1939 Act and the rules and regulations of the Commission
under the 1939 Act (the "1939 Act Regulations") and did not and will not contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading.
Neither the Prospectus nor any amendments or supplements thereto, at the time
the Prospectus or any such amendment or supplement was issued and at the Closing
Time (and, if any Option Securities are purchased, at the Date of Delivery),
included or will include an untrue statement of a material fact or omitted or
will omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. The representations and warranties in this subsection shall not
apply (A) to statements in or omissions from the Registration Statement or
Prospectus made in reliance upon and in conformity with information furnished to
the Trust or the Company in writing by any Underwriter through Morgan Stanley &
Co. Incorporated expressly for use in the Registration Statement or Prospectus
or (B) to that part of the Registration Statement that constitutes the
Statements of Eligibility and Qualification on Form T-1 (the "Form T-1") under
the Trust Indenture Act of the Debenture Trustee, the Property Trustee and the
Guarantee Trustee.

         Each preliminary prospectus and the prospectus filed as part of the
Registration Statement as originally filed or as part of any amendment thereto,
or filed pursuant to Rule 424 under the 1933 Act, complied when so filed in all
material respects with the 1933 Act Regulations and each preliminary prospectus
and the Prospectus delivered to the Underwriters for use in connection with this
offering was identical to the electronically transmitted copies thereof filed
with the Commission pursuant to EDGAR, except to the extent permitted by
Regulation S-T.

             (ii) INCORPORATED DOCUMENTS. The documents incorporated or deemed
to be incorporated by reference in the Registration Statement and the
Prospectus, when they were or hereafter are filed with the Commission, complied
and will comply in all material respects with the requirements of the 1933 Act
and the 1933 Act Regulations or the 1934 Act and the rules and regulations of
the Commission thereunder (the "1934 Act Regulations"), as applicable, and, when
read together with the other information in the Prospectus, at the time the
Registration

                                       4
<PAGE>

Statement became effective, at the time the Prospectus was issued and at the
Closing Time (and, if any Option Securities are purchased, at the Date of
Delivery), did not and will not contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading.

             (iii) INDEPENDENT ACCOUNTANTS. The accountants who certified the
financial statements and supporting schedules included in the Registration
Statement and Prospectus are independent public accountants as required by the
1933 Act and the 1933 Act Regulations.

             (iv) FINANCIAL STATEMENTS. The financial statements included in the
Registration Statement and the Prospectus, together with the related schedules
and notes, present fairly the financial position of the Company and its
consolidated subsidiaries at the dates indicated and the statement of
operations, stockholders' equity and cash flows of the Company and its
consolidated subsidiaries for the periods specified; said financial statements
have been prepared in conformity with generally accepted accounting principles
("GAAP") applied on a consistent basis (except that the unaudited financial
statements may be subject to normal year-end adjustments) throughout the periods
involved. The supporting schedules, if any, included in the Registration
Statement present fairly in accordance with GAAP the information required to be
stated therein. The selected financial data and any summary financial
information included in the Prospectus present fairly the information shown
therein and have been compiled on a basis consistent with that of the audited
and unaudited financial statements included in the Registration Statement. In
addition, any pro forma financial statements and the related notes thereto
included in the Registration Statement and the Prospectus, have been prepared in
accordance with the Commission's rules and guidelines with respect to pro forma
financial statements and have been properly compiled on the bases described
therein, and the assumptions used in the preparation thereof are reasonable and
the adjustments used therein are appropriate to give effect to the transactions
and circumstances referred to therein.

             (v) NO MATERIAL ADVERSE CHANGE IN BUSINESS. Since the respective
dates as of which information is given in the Registration Statement and the
Prospectus, except as otherwise stated therein, (A) there has been no material
adverse change in the condition, financial or otherwise, or in the earnings,
business affairs or business prospects of the Company and its subsidiaries
considered as one enterprise, whether or not arising in the ordinary course of
business (a "Material Adverse Effect"), (B) there have been no transactions
entered into by the Company or any of its subsidiaries, other than those in the
ordinary course of business, which are material with respect to the Company and
its subsidiaries considered as one enterprise, and (C) except for dividends on
the 4-1/2% Series and the 6-1/2% Series of preferred stock and regular quarterly
dividends on the Common Stock in amounts per share that are consistent with past
practice, there has been no dividend or distribution of any kind declared, paid
or made by the Company on any class of its capital stock.

             (vi) GOOD STANDING OF THE COMPANY. The Company has been duly
incorporated and is validly existing as a corporation in good standing under the
laws of the State of Delaware and has corporate power and authority and
franchises to own or lease and operate its properties and to conduct its
business as described in the Prospectus and to enter into and perform its
obligations under this Agreement; and the Company is authorized as a
domesticated

                                       5
<PAGE>

foreign corporation to transact business, and is in good standing, in the State
of Nebraska and is duly qualified as a foreign corporation to transact business
and is in good standing in each other jurisdiction in which such qualification
is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure so to qualify or to be in good
standing would not result in a Material Adverse Effect.

             (vii) GOOD STANDING OF SUBSIDIARIES. Each "significant subsidiary"
(as such term is defined in Rule 1-02 of Regulation S-X) of the Company and each
of Expanets, Inc., Blue Dot Services Inc., NorthWestern Growth Corporation and
CornerStone Propane Partners, L.P. (each, a "Subsidiary" and, collectively, the
"Subsidiaries") has been duly organized or formed and is validly existing as a
corporation or a limited partnership, as the case may be, in good standing under
the laws of its jurisdiction of incorporation or organization, has corporate or
partnership power and authority to own, lease and operate its properties and to
conduct its business as described in the Prospectus and is duly qualified as a
foreign corporation or limited partnership to transact business and is in good
standing in each jurisdiction in which such qualification is required, whether
by reason of the ownership or leasing of property or the conduct of business,
except where the failure so to qualify or to be in good standing would not
result in a Material Adverse Effect; except as otherwise disclosed in the
Registration Statement, all of the issued and outstanding shares of capital
stock or partnership interests, as the case may be, of each such Subsidiary have
been duly authorized and validly issued, are fully paid and non-assessable and
all of the capital stock or limited partnership interests, as the case may be,
of each Subsidiary owned by the Company, directly or through subsidiaries, is
owned free and clear of any security interest, mortgage, pledge, lien,
encumbrance, claim or equity; and none of the outstanding shares of capital
stock or limited partnership interests of any Subsidiary was issued in violation
of the preemptive or similar rights of any security holder of such Subsidiary.
The only subsidiaries of the Company are the subsidiaries listed on Schedule B
hereto.

             (viii) EXISTENCE OF TRUST. The Trust has been duly created and is
validly existing in good standing as a business trust under the Delaware Act, is
and will be treated as a "grantor trust" for federal income tax purposes under
existing law, has the business trust power and authority to conduct its business
as presently conducted and as described in the Prospectus and is not required to
be authorized to do business in any other jurisdiction.

             (ix) COMMON SECURITIES. The Common Securities have been duly
authorized by the Declaration and, when duly executed by the Trustee and
authenticated in the manner provided in the Declaration and issued and delivered
by the Trust to the Company in accordance with the terms of the Declaration and
against payment therefor as described in the Prospectus, will be validly issued
and (subject to the terms of the Declaration) fully paid undivided beneficial
interests in the assets of the Trust; the issuance of the Common Securities is
not subject to preemptive or other similar rights; and at the Closing Time, all
of the issued and outstanding Common Securities of the Trust will be directly
owned by the Company free and clear of any security interest, mortgage, pledge,
lien, encumbrance, claim or equity.

             (x) AUTHORIZATION OF DECLARATION. The Declaration has been duly
authorized by the Company and duly qualified under the 1939 Act and, when
validly executed and delivered by the Company and the Administrative Trustees,
and assuming the due authorization, execution and delivery of the Declaration by
the Delaware Trustee and the Property Trustee, the

                                       6
<PAGE>

Declaration will constitute a valid and binding obligation of the Company and
the Administrative Trustees, enforceable against the Company and the
Administrative Trustees in accordance with its terms, except as enforcement
thereof may be limited by bankruptcy, insolvency (including, without limitation,
all laws relating to fraudulent transfers), reorganization, moratorium or
similar laws affecting enforcement of creditors' rights generally or by general
principles of equity (regardless of whether enforcement is considered in a
proceeding in equity or at law) or an implied covenant of good faith and fair
dealing, and except that rights to indemnification and contribution thereunder
may be limited by federal or state securities laws or public policy relating
thereto.

             (xi) GUARANTEE AGREEMENTS. The Preferred Securities Guarantee
Agreement has been duly authorized by the Company and duly qualified under the
1939 Act, the Common Securities Guarantee Agreement has been duly authorized by
the Company and, when validly executed and delivered by the Company, and
assuming due authorization, execution and delivery of the Guarantee Agreements
by the Guarantee Trustee, will constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, except
as enforcement thereof may be limited by bankruptcy, insolvency (including,
without limitation, all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting enforcement of creditors' rights generally
or by general principles of equity (regardless of whether enforcement is
considered in a proceeding in equity or at law) or an implied covenant of good
faith and fair dealing, and except that rights to indemnification and
contribution thereunder may be limited by federal or state securities laws or
public policy relating thereto.

             (xii) PREFERRED SECURITIES. The Preferred Securities have been duly
authorized by the Declaration and, when duly executed by the Trustees and
authenticated in the manner provided for in the Declaration and issued and
delivered pursuant to this Agreement against payment of the consideration set
forth herein, will be validly issued and (subject to the terms of the
Declaration) fully paid and non-assessable undivided beneficial interests in the
assets of the Trust; the issuance of the Preferred Securities is not subject to
preemptive or other similar rights; and holders of Preferred Securities will be
entitled to the same limitation of personal liability extended to stockholders
of private corporations for profit incorporated under the General Corporation
Law of the State of Delaware.

             (xiii) AUTHORIZATION OF INDENTURE. The Indenture has been duly
authorized by the Company and duly qualified under the 1939 Act and, when duly
executed and delivered by the Company and assuming the due authorization,
execution and delivery of the Indenture by the Debenture Trustee, will
constitute a valid and binding agreement of the Company, enforceable against the
Company in accordance with its terms, except as enforcement thereof may be
limited by bankruptcy, insolvency (including, without limitation, all laws
relating to fraudulent transfers), reorganization, moratorium or similar laws
affecting enforcement of creditors' rights generally or by general principles of
equity (regardless of whether enforcement is considered in a proceeding in
equity or at law) or an implied covenant of good faith and fair dealing, and
except that rights to indemnification and contribution thereunder may be limited
by federal or state securities laws or public policy relating thereto.

             (xiv) AUTHORIZATION OF DEBENTURES. The Debentures have been duly
authorized by the Company, and when executed by the Company, authenticated and
delivered by the

                                       7
<PAGE>

Debenture Trustee and issued and delivered by the Company in the manner provided
for in the Indenture and sold and paid for as provided in this Agreement, the
Debentures will constitute valid and binding obligations of the Company entitled
to the benefits of the Indenture and enforceable against the Company in
accordance with their terms, except as enforcement thereof may be limited by
bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or similar laws affecting
enforcement of creditors' rights generally or by general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or at
law) or an implied covenant of good faith and fair dealing, and except that
rights to indemnification and contribution thereunder may be limited by federal
or state securities laws or public policy relating thereto.

             (xv) AUTHORIZATION OF AGREEMENT. This Agreement has been duly
authorized, executed and delivered by the Company and the Trust.

             (xvi) CAPITALIZATION. The authorized, issued and outstanding
capital stock of the Company is as set forth in the Prospectus in the column
entitled "Actual" under the caption "Capitalization" (except for the Company's
issuance of 3.68 million shares of common stock in October 2001 and subsequent
issuances, if any, pursuant to this Agreement, pursuant to reservations,
agreements or employee benefit plans referred to in the Prospectus or pursuant
to the exercise of convertible securities or options referred to in the
Prospectus). The shares of issued and outstanding capital stock of the Company
have been duly authorized and validly issued and are fully paid and
non-assessable; none of the outstanding shares of capital stock of the Company
was issued in violation of the preemptive or other similar rights of any
securityholder of the Company.

             (xvii) ABSENCE OF DEFAULTS AND CONFLICTS. Neither the Company, any
of its subsidiaries nor the Trust is in violation of its charter or by-laws or
other organizational documents or in default in the performance or observance of
any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note, lease or
other agreement or instrument to which the Company, any of its subsidiaries or
the Trust is a party or by which it or any of them may be bound, or to which any
of the property or assets of the Company, any subsidiary or the Trust is subject
(collectively, "Agreements and Instruments") except for such defaults that would
not result in a Material Adverse Effect; and the execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated herein and in the Registration Statement (including the issuance
and sale of the Securities and the use of the proceeds from the sale of the
Securities as described in the Prospectus under the caption "Use of Proceeds")
and compliance by the Company and the Trust with their obligations hereunder
have been duly authorized by all necessary corporate action and do not and will
not, whether with or without the giving of notice or passage of time or both,
conflict with or constitute a breach of, or default or Repayment Event (as
defined below) under, or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company, any subsidiary
or the Trust pursuant to, the Agreements and Instruments (except for Repayment
Events or such conflicts, breaches or defaults or liens, charges or encumbrances
that would not result in a Material Adverse Effect), nor will such action result
in any violation of (A) the provisions of the charter or by-laws or other
organizational documents of the Company, any subsidiary or the Trust or (B) any
applicable law, statute, rule, regulation, judgment, order, writ or decree of
any government, government

                                       8
<PAGE>

instrumentality or court, domestic or foreign, having jurisdiction over the
Company, any subsidiary or the Trust or any of their assets, properties or
operations, except, in the case of clause (B) hereof, for such violations that
would not result in a Material Adverse Effect. As used herein, a "Repayment
Event" means any event or condition which gives the holder of any note,
debenture or other evidence of indebtedness (or any person acting on such
holder's behalf) the right to require the repurchase, redemption or repayment of
all or a portion of such indebtedness by the Company, any subsidiary or the
Trust prior to the scheduled maturity thereof or any other scheduled payment
date.

             (xviii) ABSENCE OF LABOR DISPUTE. No labor dispute with the
employees of the Company or any subsidiary exists or, to the knowledge of the
Company, is imminent, which may reasonably be expected to result in a Material
Adverse Effect.

             (xix) ABSENCE OF PROCEEDINGS. Other than as disclosed in the
Registration Statement, there is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body,
domestic or foreign, now pending, or, to the knowledge of the Company or the
Trust, threatened, against or affecting the Company or any subsidiary, which is
required to be disclosed in the Registration Statement, or which might
reasonably be expected to result in a Material Adverse Effect, or which might
reasonably be expected to materially and adversely affect the properties or
assets thereof or the consummation of the transactions contemplated in this
Agreement or the performance by the Company or the Trust of its obligations
hereunder; the aggregate of all pending legal or governmental proceedings to
which the Company or any subsidiary is a party or of which any of their
respective property or assets is the subject which are not described in the
Registration Statement, including ordinary routine litigation incidental to the
business, could not reasonably be expected to result in a Material Adverse
Effect.

             (xx) ACCURACY OF EXHIBITS. There are no contracts or documents
which are required to be described in the Registration Statement, the Prospectus
or the documents incorporated by reference therein or to be filed as exhibits
thereto which have not been so described and filed as required.

             (xxi) POSSESSION OF INTELLECTUAL PROPERTY. The Company and its
subsidiaries own or possess, or can acquire on reasonable terms, adequate
patents, patent rights, licenses, inventions, copyrights, know-how (including
trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures), trademarks, service marks,
trade names or other intellectual property (collectively, "Intellectual
Property") necessary to carry on the business now operated by them except in
cases in which the failure to own or possess such Intellectual Property would
not have a Material Adverse Effect and neither the Company nor any of its
subsidiaries has received any notice or is otherwise aware of any infringement
of or conflict with asserted rights of others with respect to any Intellectual
Property or of any facts or circumstances which would render any Intellectual
Property invalid or inadequate to protect the interest of the Company or any of
its subsidiaries therein, and which infringement, conflict, invalidity or
inadequacy, singly or in the aggregate, might reasonably be expected to result
in a Material Adverse Effect.

                                       9
<PAGE>

             (xxii) ABSENCE OF FURTHER REQUIREMENTS. No filing with, or
authorization, approval, consent, license, order, registration, qualification or
decree of, any court or governmental authority or agency is necessary or
required for the performance by the Company or the Trust of its obligations
hereunder, in connection with the offering, issuance or sale of the Securities
hereunder or the consummation of the transactions contemplated by this
Agreement, except such as have been already obtained, except as may be required
under the 1933 Act or the 1933 Act Regulations or state securities or Blue Sky
laws, except for the FERC Order (as defined herein) and except for the
qualification of the Indenture, the Declaration and the Guarantee Agreements
under the 1939 Act.

             (xxiii) POSSESSION OF LICENSES AND PERMITS. The Company and its
subsidiaries possess such permits, licenses, approvals, consents and other
authorizations (collectively, "Governmental Licenses") issued by the appropriate
federal, state, local or foreign regulatory agencies or bodies necessary to
conduct the business now operated by them, except where the failure to have such
Governmental Licenses would not, singly or in the aggregate, have a Material
Adverse Effect; the Company and its subsidiaries are in compliance with the
terms and conditions of all such Governmental Licenses, except where the failure
so to comply would not, singly or in the aggregate, have a Material Adverse
Effect; all of the Governmental Licenses are valid and in full force and effect,
except when the invalidity of such Governmental Licenses or the failure of such
Governmental Licenses to be in full force and effect would not have a Material
Adverse Effect; and neither the Company nor any of its subsidiaries has received
any notice of proceedings relating to the revocation or modification of any such
Governmental Licenses which, singly or in the aggregate, would result in a
Material Adverse Effect.

             (xxiv) TITLE TO PROPERTY. The Company and its subsidiaries have
good and marketable title to all material real property owned by the Company and
its subsidiaries and good title to all other material properties owned by them,
in each case, free and clear of all mortgages, pledges, liens, security
interests, claims, restrictions or encumbrances of any kind (a) except such as
are described in the Prospectus, (b) except for liens and encumbrances granted
under debt agreements identified in the Prospectus and (c) except such as would
not have a Material Adverse Effect; and all of the leases and subleases material
to the business of the Company and its subsidiaries, considered as one
enterprise, and under which the Company or any of its subsidiaries holds
properties described in the Prospectus, are in full force and effect, and
neither the Company nor any subsidiary has any notice of any material claim of
any sort that has been asserted by anyone adverse to the rights of the Company
or any subsidiary under any of the leases or subleases mentioned above, or
affecting or questioning the rights of the Company or such subsidiary to the
continued possession of the leased or subleased premises under any such lease or
sublease.

             (xxv) INVESTMENT COMPANY ACT. Neither the Company nor the Trust is,
and upon the issuance and sale of the Preferred Securities as herein
contemplated and the application of the net proceeds therefrom as described in
the Prospectus neither will be, an "investment company" or an entity
"controlled" by an "investment company" as such terms are defined in the
Investment Company Act of 1940, as amended (the "1940 Act") required to register
under the 1940 Act.

                                       10
<PAGE>

             (xxvi) ENVIRONMENTAL LAWS. Except as described in the Registration
Statement and except as would not, singly or in the aggregate, result in a
Material Adverse Effect, (A) neither the Company nor any of its subsidiaries is
in violation of any federal, state, local or foreign statute, law, rule,
regulation, ordinance, code, policy or rule of common law or any judicial or
administrative interpretation thereof, including any judicial or administrative
order, consent, decree or judgment, relating to pollution or protection of human
health, the environment (including, without limitation, ambient air, surface
water, groundwater, land surface or subsurface strata) or wildlife, including,
without limitation, laws and regulations relating to the release or threatened
release of chemicals, pollutants, contaminants, wastes, toxic substances,
hazardous substances, petroleum or petroleum products (collectively, "Hazardous
Materials") or to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials (collectively,
"Environmental Laws"), (B) the Company and its subsidiaries have all permits,
authorizations and approvals required under any applicable Environmental Laws
and are each in compliance with their requirements, (C) there are no pending or,
to the knowledge of the Company, threatened administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of
noncompliance or violation, investigation or proceedings relating to any
Environmental Law against the Company or any of its subsidiaries and (D) there
are no events or circumstances that might reasonably be expected to form the
basis of an order for clean-up or remediation, or an action, suit or proceeding
by any private party or governmental body or agency, against or affecting the
Company or any of its subsidiaries relating to Hazardous Materials or any
Environmental Laws.

             (xxvii) FERC. The Federal Energy Regulatory Commission ("FERC") has
issued an appropriate order or orders with respect to the issuance and sale of
the Securities in accordance with this Agreement ("FERC Order"); the FERC Order
is in full force and effect; and the issuance and sale of the Securities are in
conformity with the terms of the FERC Order.

         (b) OFFICERS' CERTIFICATES. Any certificate signed by any officer of
the Company or any of its subsidiaries or the Trust delivered to the
Representatives or to counsel for the Underwriters shall be deemed a
representation and warranty by the Company or the Trust, respectively, to each
Underwriter as to the matters covered thereby.

         SECTION 2. SALE AND DELIVERY TO UNDERWRITERS; CLOSING.

         (a) INITIAL PREFERRED SECURITIES. On the basis of the representations
and warranties herein contained and subject to the terms and conditions herein
set forth, the Trust agrees to sell to each Underwriter, severally and not
jointly, and each Underwriter, severally and not jointly, agrees to purchase
from the Company, at the purchase price of $25 per Preferred Security, the
number of Initial Preferred Securities set forth in Schedule A opposite the name
of such Underwriter, plus any additional number of Initial Preferred Securities
which such Underwriter may become obligated to purchase pursuant to the
provisions of Section 10 hereof.

         (b) OPTION PREFERRED SECURITIES. In addition, on the basis of the
representations and warranties herein contained and subject to the terms and
conditions herein set forth, the Trust hereby grants an option to the
Underwriters, severally and not jointly, to purchase up to an additional 600,000
Preferred Securities (the "Option Preferred Securities") at a price per Option
Preferred Security equal to the price per Initial Preferred Security plus
accumulated distributions,

                                       11
<PAGE>

if any, from January 31, 2002 to the date of delivery and payment. Such option
will expire 30 days after the date of this Agreement and may be exercised in
whole or in part from time to time only for the purpose of covering
over-allotments which may be made in connection with the offering and
distribution of the Initial Preferred Securities upon notice by the
Representatives to the Trust and the Company setting forth the number of Option
Preferred Securities as to which the several Underwriters are then exercising
the option and the time, date and place of payment and delivery for such Option
Preferred Securities. Any such time and date of payment and delivery (each, a
"Date of Delivery") shall be determined by the Representatives, the Trust and
the Company, but shall not be sooner than four business days or later than seven
full business days after the exercise of said option, nor in any event prior to
the Closing Time, as hereinafter defined, unless agreed by the Representatives,
the Trust and the Company. If the option is exercised as to all or any portion
of the Option Preferred Securities, each of the Underwriters, acting severally
and not jointly, will purchase that proportion of the total number of Option
Preferred Securities then being purchased which the number of Initial Preferred
Securities set forth in Schedule A opposite the name of such Underwriter bears
to the total number of Initial Preferred Securities, subject in each case to
such adjustments as the Representatives in their discretion shall make to
eliminate any sales or purchases of fractional shares.

         (c) PAYMENT. As compensation to the Underwriters for their commitments
hereunder and in view of the fact that the proceeds of the sale of the Preferred
Securities will be used to purchase the Debentures, the Company hereby agrees to
pay at the Closing Time and at each Date of Delivery to the Underwriters a
commission of $0.7875 per Preferred Security. Payment of the purchase price for,
and delivery of certificates for, the Preferred Securities shall be made at the
offices of Paul, Hastings, Janofsky & Walker LLP, 399 Park Avenue, New York, New
York 10022, or at such other place as shall be agreed upon by the
Representatives, the Company and the Trust, at 9:00 A.M. (Eastern time) on the
third (fourth, if the pricing occurs after 4:30 p.m. (Eastern time) on any given
day) business day after the date hereof (unless postponed in accordance with the
provisions of Section 10), or such other time not later than ten business days
after such date as shall be agreed upon by the Representatives, the Company and
the Trust (such time and date of payment and delivery being herein called
"Closing Time").

         In addition, in the event that any or all of the Option Preferred
Securities are purchased by the Underwriters, payment of the purchase price for,
and delivery of such Option Preferred Securities, shall be made at the
above-mentioned offices, or at such other place as shall be agreed upon by the
Representatives, the Trust and the Company, on the relevant Date of Delivery as
specified in the notice from the Representatives to the Trust and the Company.

         Payment shall be made to the Trust by wire transfer of immediately
available funds to the order of the Trust, against delivery to Morgan Stanley &
Co. Incorporated for the respective accounts of the Underwriters of certificates
for the Preferred Securities to be purchased by them. It is understood that each
Underwriter has authorized Morgan Stanley & Co. Incorporated, for its account,
to accept delivery of, receipt for, and make payment of the purchase price for
the Initial Preferred Securities and the Option Preferred Securities, if any,
which it has agreed to purchase. Morgan Stanley & Co. Incorporated, individually
and not as representative of the Underwriters, may (but shall not be obligated
to) make payment of the purchase price for the Initial Preferred Securities or
the Option Preferred Securities, if any, to be purchased by any Underwriter
whose

                                       12
<PAGE>

funds have not been received by the Closing Time or the relevant Date of
Delivery, as the case may be, but such payment shall not relieve such
Underwriter from its obligations hereunder.

         At Closing Time, or the Date of Delivery, as the case may be, the
Company will pay, or cause to be paid, the commission payable at such time under
this Section 2 to Morgan Stanley & Co. Incorporated on behalf of the
Underwriters by wire transfer of immediately available funds.

         (d) DENOMINATIONS; REGISTRATION. Certificates for the Initial Preferred
Securities and the Option Preferred Securities, if any, shall be in such
denominations and registered in such names as the Representatives may request in
writing at least two full business days before the Closing Time or the relevant
Date of Delivery, as the case may be. The certificates for the Initial Preferred
Securities and the Option Preferred Securities, if any, will be made available
for examination and packaging by the Representatives in The City of New York not
later than 5:00 P.M. (Eastern time) on the business day prior to the Closing
Time or the relevant Date of Delivery, as the case may be.

         SECTION 3. COVENANTS OF THE COMPANY AND THE TRUST. The Company and the
Trust jointly and severally covenant with each Underwriter as follows:

         (a) COMPLIANCE WITH SECURITIES REGULATIONS AND COMMISSION REQUESTS. The
Company and the Trust, subject to Section 3(b), will notify the Representatives
immediately, and confirm the notice in writing, (i) when any post-effective
amendment to the Registration Statement shall become effective, or any
supplement to the Prospectus or any amended Prospectus shall have been filed,
(ii) of the receipt of any comments from the Commission, (iii) of any request by
the Commission for any amendment to the Registration Statement or any amendment
or supplement to the Prospectus or for additional information and (iv) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of any order preventing or suspending the use of any
preliminary prospectus, the Prospectus, or of the suspension of the
qualification of the Preferred Securities for offering or sale in any
jurisdiction or of the initiation or threatening of any proceedings for any of
such purposes. The Company and the Trust will promptly effect the filings
necessary pursuant to Rule 424(b) and will take such steps as they deem
necessary to ascertain promptly whether the form of prospectus transmitted for
filing under Rule 424(b) was received for filing by the Commission and, in the
event that it was not, it will promptly file such prospectus. The Company and
the Trust will make every reasonable effort to prevent the issuance of any stop
order and, if any stop order is issued, to obtain the lifting thereof at the
earliest possible moment.

         (b) FILING OF AMENDMENTS. The Company and the Trust will give the
Representatives notice of their intention to file or prepare any amendment to
the Registration Statement or any amendment, supplement or revision to either
the prospectus included in the Registration Statement at the time it became
effective or to the Prospectus, whether pursuant to the 1933 Act, the 1934 Act
or otherwise, will furnish the Representatives with copies of any such documents
a reasonable amount of time prior to such proposed filing or use, as the case
may be, and will not file or use any such document to which the Representatives
or counsel for the Representatives shall reasonably object.

                                       13
<PAGE>

         (c) DELIVERY OF REGISTRATION STATEMENTS. The Company and the Trust have
furnished or will deliver to the Representatives and counsel for the
Underwriters, at their request and without charge, conformed copies of the
Registration Statement as originally filed and of each amendment thereto
(including exhibits filed therewith or incorporated by reference therein and
documents incorporated or deemed to be incorporated by reference therein), and
conformed copies of all consents and certificates of experts. The copies of the
Registration Statement and each amendment thereto furnished to the Underwriters
will be identical to the electronically transmitted copies thereof filed with
the Commission pursuant to EDGAR, except to the extent permitted by Regulation
S-T.

         (d) DELIVERY OF PROSPECTUS. The Company and the Trust have delivered to
each Underwriter, without charge, as many copies of each preliminary prospectus
as such Underwriter reasonably requested, and the Company hereby consents to the
use of such copies for purposes permitted by the 1933 Act. The Company will
furnish to each Underwriter, without charge, during the period when the
Prospectus is required to be delivered under the 1933 Act or the 1934 Act, such
number of copies of the Prospectus (as amended or supplemented) as such
Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the
electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T.

         (e) CONTINUED COMPLIANCE WITH SECURITIES LAWS. The Company and the
Trust will comply with the 1933 Act and the 1933 Act Regulations and the 1934
Act and the 1934 Act Regulations so as to permit the completion of the
distribution of the Securities as contemplated in this Agreement and in the
Prospectus. If at any time when a prospectus is required by the 1933 Act to be
delivered in connection with sales of the Preferred Securities, any event shall
occur or condition shall exist as a result of which it is necessary, in the
reasonable opinion of counsel for the Underwriters or for the Company, to amend
the Registration Statement or amend or supplement the Prospectus in order that
the Prospectus will not include any untrue statements of a material fact or omit
to state a material fact necessary in order to make the statements therein not
misleading in the light of the circumstances existing at the time it is
delivered to a purchaser, or if it shall be necessary, in the reasonable opinion
of such counsel, at any such time to amend the Registration Statement or amend
or supplement the Prospectus in order to comply with the requirements of the
1933 Act or the 1933 Act Regulations, the Company and the Trust will promptly
prepare and file with the Commission, subject to Section 3(b), such amendment or
supplement as may be necessary to correct such statement or omission or to make
the Registration Statement or the Prospectus comply with such requirements, and
the Company will furnish to the Underwriters such number of copies of such
amendment or supplement as the Underwriters may reasonably request.

         (f) BLUE SKY QUALIFICATIONS. The Company and the Trust will each use
its reasonable best efforts, in cooperation with the Underwriters, to qualify
the Preferred Securities for offering and sale under the applicable securities
laws of such states and other jurisdictions (domestic or foreign) as the
Representatives may designate and to maintain such qualifications in effect for
a period of not less than one year from the effective date of the Registration
Statement; PROVIDED, HOWEVER, that neither the Company nor the Trust shall be
obligated to file any general consent to service of process or to qualify as a
foreign corporation or as a dealer in securities in any jurisdiction in which it
is not so qualified or to subject itself to taxation in respect of doing

                                       14
<PAGE>

business in any jurisdiction in which it is not otherwise so subject. In each
jurisdiction in which the Preferred Securities have been so qualified, the
Company and the Trust will file such statements and reports as may be required
by the laws of such jurisdiction to continue such qualification in effect for a
period of not less than one year from the effective date of the Registration
Statement.

         (g) RULE 158. The Company will timely file such reports pursuant to the
1934 Act as are necessary in order to make generally available to its
securityholders as soon as practicable an earnings statement for the purposes
of, and to provide the benefits contemplated by, the last paragraph of Section
11(a) of the 1933 Act.

         (h) USE OF PROCEEDS. The Trust and the Company will use the net
proceeds received by them from the sale of the Securities in the manner
specified in the Prospectus under "Use of Proceeds".

         (i) LISTING. The Company will use its best efforts to effect the
listing of the Securities on the New York Stock Exchange.

         (j) RESTRICTION ON SALE OF SECURITIES. During a period of 30 days from
the date hereof, neither the Company nor the Trust will, without the prior
written consent of Morgan Stanley & Co. Incorporated, (i) directly or
indirectly, offer, pledge, sell, contract to sell, sell any option or contract
to purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase or otherwise transfer or dispose of any Preferred Securities
or Debentures or any securities convertible into, or exercisable or exchangeable
for Preferred Securities or Debentures or file any registration statement under
the 1933 Act with respect to any of the foregoing or (ii) enter into any swap or
any other agreement or any transaction that transfers, in whole or in part,
directly or indirectly, the economic consequences of ownership of the Preferred
Securities or Debentures, whether any such swap or transaction described in
clause (i) or (ii) above is to be settled by delivery of Preferred Securities,
Debentures or such other securities referenced above, in cash or otherwise. The
foregoing sentence shall not apply to the Preferred Securities or Debentures to
be sold hereunder.

         (k) REPORTING REQUIREMENTS. The Company and the Trust, during the
period when the Prospectus is required to be delivered under the 1933 Act or the
1934 Act, will file all documents required to be filed with the Commission
pursuant to the 1934 Act within the time periods required by the 1934 Act and
the 1934 Act Regulations.

         Section 4. PAYMENT OF EXPENSES.

         (a) EXPENSES. The Company will pay all expenses incident to the
performance of its and the Trust's obligations under this Agreement, including
(i) the preparation, printing and filing of the Registration Statement
(including financial statements and exhibits) as originally filed and of each
amendment thereto, (ii) the printing and delivery to the Underwriters of this
Agreement, any Agreement among Underwriters and such other documents as may be
required in connection with the offering, purchase, sale, issuance or delivery
of the Preferred Securities, (iii) the preparation, issuance and delivery of the
certificates for the Preferred Securities to the Underwriters, including any
stock or other transfer taxes and any stamp or other duties payable

                                       15
<PAGE>

upon the sale, issuance or delivery of the Preferred Securities to the
Underwriters, (iv) the fees and disbursements of the Company's and the Trust's
counsel, accountants and other advisors, (v) the filing fees incident to any
necessary filings under state securities laws and the reasonable fees and
disbursements of counsel for the Underwriters in connection therewith and in
connection with the preparation of the Blue Sky Survey and any supplement
thereto, (vi) the printing and delivery to the Underwriters of copies of each
preliminary prospectus and of the Prospectus and any amendments or supplements
thereto, (vii) the fees and expenses of any transfer agent or registrar for the
Preferred Securities, (viii) the reasonable fees and expenses of the Debenture
Trustee, including the fees of the securities rating services and disbursements
of counsel for the Debenture Trustee in connection with the Indenture and the
Debentures, (ix) the reasonable fees and expenses of the Delaware Trustee, the
Property Trustee and the Guarantee Trustee, including the reasonable fees and
disbursements of counsel for the Delaware Trustee, the Property Trustee and the
Guarantee Trustee, (x) any reasonable fees payable in connection with the rating
of the Preferred Securities and the Debentures, (xi) the cost and charges
associated with the approval of the Preferred Securities by The Depository Trust
Company for "book-entry" transfer and (xii) the fees and expenses incurred in
connection with the listing of the Preferred Securities and, if applicable, the
Debentures on the New York Stock Exchange.

         (b) TERMINATION OF AGREEMENT. If this Agreement is terminated by the
Representatives in accordance with the provisions of Section 5 or Section
9(a)(i) hereof, the Company shall reimburse the Underwriters for all of their
reasonable out-of-pocket expenses, including the reasonable fees and
disbursements of counsel for the Underwriters.

         Section 5. CONDITIONS OF UNDERWRITERS' OBLIGATIONS. The obligations of
the several Underwriters hereunder are subject to the accuracy of the
representations and warranties of the Company and the Trust contained in Section
1 hereof or in certificates of any officer of the Company, any subsidiary of the
Company or any Trustee delivered pursuant to the provisions hereof, to the
performance by the Company and the Trust of their respective covenants and other
obligations hereunder, and to the following further conditions:

         (a) EFFECTIVENESS OF REGISTRATION STATEMENT. The Registration Statement
has become effective and at the Closing Time no stop order suspending the
effectiveness of the Registration Statement shall have been issued under the
1933 Act or proceedings therefor initiated or threatened by the Commission, and
any request on the part of the Commission for additional information shall have
been complied with to the reasonable satisfaction of counsel to the
Underwriters. A prospectus shall have been filed with the Commission in
accordance with Rule 424(b).

         (b) OPINIONS OF COUNSEL FOR COMPANY.

                    (i) OPINIONS OF SPECIAL COUNSEL FOR COMPANY. At Closing
          Time, the Representatives shall have received the opinions, dated as
          of Closing Time, of Paul, Hastings, Janofsky & Walker LLP, special
          counsel and special tax counsel for the Company, in form and substance
          satisfactory to counsel for the Underwriters, together with signed or
          reproduced copies of such letters for each of the other Underwriters
          to the effect set forth in Exhibit A-1 and Exhibit A-2

                                       16
<PAGE>

          hereto and to such further effect as counsel to the Underwriters may
          reasonably request.

                    (ii) OPINION OF COUNSEL FOR COMPANY. At Closing Time, the
          Representatives shall have received the opinion, dated as of Closing
          Time, of Alan D. Dietrich, Esq., Vice President Legal Administration
          of the Company, in form and substance satisfactory to counsel for the
          Underwriters, together with signed or reproduced copies of such letter
          for each of the other Underwriters to the effect set forth in Exhibit
          B hereto and such further effect as counsel to the Underwriters may
          reasonably request.

         (c) OPINION OF SPECIAL DELAWARE COUNSEL FOR THE TRUST AND THE COMPANY.
At Closing Time, the Representatives shall have received the opinion, dated as
of the Closing Time, of Richards, Layton & Finger, P.A., special Delaware
counsel to the Trust and the Company, in form and substance satisfactory to
counsel for the Underwriters together with signed or reproduced copies of such
letter for each of the Underwriters to the effect set forth in Exhibit C hereto
and to such further effect as counsel to the Underwriters may reasonably
request.

         (d) OPINIONS OF COUNSEL FOR THE PROPERTY TRUSTEE, THE DEBENTURE TRUSTEE
AND THE GUARANTEE TRUSTEE. At Closing Time, the Representatives shall have
received opinions, dated as of Closing Time, of Richards, Layton & Finger, P.A.,
counsel to the Property Trustee and Guarantee Trustee, and of Seward & Kissel
LLP, counsel to the Debenture Trustee, in form and substance satisfactory to the
Representatives.

         (e) OPINION OF COUNSEL FOR UNDERWRITERS. At Closing Time, the
Representatives shall have received the opinion, dated as of Closing Time, of
Dewey Ballantine LLP, counsel for the Underwriters, together with signed or
reproduced copies of such letter for each of the other Underwriters with respect
to the matters set forth in paragraph 1 of Exhibit B and paragraphs 1, 2, 3, 5,
6, 7, 9, 10, 11 and the penultimate paragraph of Exhibit A-1 hereto. In giving
such opinion such counsel may rely, as to all matters governed by the laws of
jurisdictions other than the law of the State of New York and the federal law of
the United States, upon the opinions of counsel satisfactory to the
Representatives. Such counsel may also state that, insofar as such opinion
involves factual matters, they have relied, to the extent they deem proper, upon
certificates of officers of the Company and its subsidiaries and certificates of
public officials.

         (f) OFFICERS' CERTIFICATES. At Closing Time, there shall not have been,
since the date hereof or since the respective dates as of which information is
given in the Prospectus, (A) any material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one enterprise,
whether or not arising in the ordinary course of business, and the
Representatives shall have received a certificate of the President or a Vice
President of the Company and of the chief financial or chief accounting officer
of the Company, dated as of Closing Time, to the effect that (i) there has been
no such material adverse change, (ii) the representations and warranties in
Section 1(a) hereof are true and correct with the same force and effect as
though expressly made at and as of Closing Time, (iii) the Company has complied
with all agreements and satisfied all conditions on its part to be performed or
satisfied at or prior to Closing Time, and (iv) no stop order suspending the
effectiveness of the Registration Statement has been issued and, to the

                                       17
<PAGE>

Company's knowledge, no proceedings for that purpose have been instituted or are
pending or are contemplated by the Commission. At the Closing Time, the
Representatives shall have received a certificate of an Administrative Trustee
of the Trust, dated as of the Closing Time, also to that effect.

         (g) ACCOUNTANTS' COMFORT LETTERS. At the time of the execution of this
Agreement, the Representatives shall have received from each of Arthur Andersen
LLP and PricewaterhouseCoopers LLP a letter dated such date, in form and
substance satisfactory to the Representatives, together with signed or
reproduced copies of such letters for each of the Underwriters containing
statements and information of the type ordinarily included in accountants'
"comfort letters" to underwriters with respect to the financial statements,
certain financial information and the pro forma financial statements contained
in the Registration Statement and the Prospectus.

         (h) BRING-DOWN COMFORT LETTERS. At Closing Time, the Representatives
shall have received from each of Arthur Andersen LLP and PricewaterhouseCoopers
LLP a letter, dated as of the Closing Time, to the effect that they reaffirm the
statements made in the letters furnished pursuant to subsection (h) of this
Section 5, except that the specified date referred to shall be a date not more
than three business days prior to the Closing Time.

         (i) APPROVAL OF LISTING. At the Closing Time, the Preferred Securities
shall have been approved for listing on the New York Stock Exchange, subject
only to official notice of issuance.

         (j) MAINTENANCE OF RATING. At Closing Time and any relevant Date of
Delivery, the Preferred Securities shall be rated at least Baa3 (negative
outlook) by Moody's Investors Service, Inc. and BBB- by Standard & Poor's
Ratings Group, a division of McGraw-Hill, Inc., and the Company shall have
delivered to the Underwriters a letter dated the Closing Time, from each such
rating agency, or other evidence satisfactory to the Representatives, confirming
that the Preferred Securities have such ratings; and since the date of this
Agreement, there shall not have occurred a downgrading in the rating assigned to
the Preferred Securities or any of the Company's debt or preferred securities by
any "nationally recognized statistical rating agency," as that term is defined
by the Commission for purposes of Rule 436(g)(2) under the 1933 Act, and no such
organization shall have publicly announced that it has under surveillance or
review its rating of the Preferred Securities or any of the Company's debt or
preferred securities.

         (k) CONDITIONS TO PURCHASE OPTION PREFERRED SECURITIES. In the event
that the Underwriters exercise their option provided in Section 2(b) hereof to
purchase all or any portion of the Option Preferred Securities, the
representations and warranties of the Trust and the Company contained herein and
the statements in any certificates furnished by the Trust or the Company or any
of its subsidiaries hereunder shall be true and correct as of each Date of
Delivery, and, at the relevant Date of Delivery, the Representatives shall have
received:

                    (i) OFFICERS' CERTIFICATE. A certificate, dated such Date of
          Delivery, of the President or a Vice President of the Company and of
          the chief financial officer or chief accounting officer of the Company
          and of an Administrative Trustee of

                                       18
<PAGE>

          the Trust, confirming that the certificates delivered at the Closing
          Time pursuant to Section 5(f) hereof remain true and correct as of
          such Date of Delivery.

                    (ii) OPINIONS OF SPECIAL COUNSEL FOR COMPANY. The opinions
          of Paul, Hastings, Janofsky & Walker LLP, special counsel and special
          tax counsel for the Company, in form and substance satisfactory to
          counsel for the Underwriters, dated such Date of Delivery, relating to
          the Option Preferred Securities to be purchased on such Date of
          Delivery and otherwise to the same effect as the opinions required by
          Section 5(b)(i) hereof.

                    (iii) OPINION OF COUNSEL FOR COMPANY. The opinion of Alan D.
          Dietrich, Esq., Vice President Legal Administration of the Company, in
          form and substance satisfactory to counsel for the Underwriters, dated
          such Date of Delivery, relating to the Option Preferred Securities to
          be purchased on such Date of Delivery and otherwise to the same effect
          as the opinion required by Section 5(b)(ii) hereof.

                    (iv) OPINION OF SPECIAL DELAWARE COUNSEL FOR THE TRUST AND
          THE COMPANY. The opinion of Richards, Layton & Finger, P.A., special
          Delaware counsel to the Trust and the Company, in form and substance
          satisfactory to counsel for the Underwriters, dated such Date of
          Delivery, relating to the Option Preferred Securities to be purchased
          on such Date of Delivery and otherwise to the same effect as the
          opinion required by Section 5(c) hereof.

                    (v) OPINIONS OF COUNSEL FOR THE PROPERTY TRUSTEE, THE
          DEBENTURE TRUSTEE AND THE GUARANTEE TRUSTEE. The opinions of Richards,
          Layton & Finger, P.A., counsel to the Property Trustee and Guarantee
          Trustee, and of Seward & Kissel LLP, counsel to the Debenture Trustee,
          in form and substance satisfactory to counsel for the Underwriters,
          dated such Date of Delivery, relating to the Option Preferred
          Securities to be purchased on such Date of Delivery and otherwise to
          the same effect as the opinions required by Section 5(d) hereof.

                    (vii) OPINION OF COUNSEL FOR UNDERWRITERS. The opinion of
          Dewey Ballantine llp, counsel for the Underwriters, dated such Date of
          Delivery, relating to the Option Preferred Securities to be purchased
          on such Date of Delivery and otherwise to the same effect as the
          opinion required by Section 5(e) hereof.

                    (viii) Bring-down Comfort Letters. A letter from each of
          Arthur Andersen LLP and PricewaterhouseCoopers LLP, in form and
          substance satisfactory to the Representatives and dated such Date of
          Delivery, substantially in the same form and substance as the letters
          furnished to the Representatives pursuant to Section 5(h) hereof,
          except that the "specified date" in the letter furnished pursuant to
          this paragraph shall be a date not more than five days prior to such
          Date of Delivery.

                                       19
<PAGE>

         (l) ADDITIONAL DOCUMENTS. At Closing Time and at each Date of Delivery,
counsel for the Underwriters shall have been furnished with such documents and
opinions as they may require for the purpose of enabling them to pass upon the
issuance and sale of the Preferred Securities as herein contemplated, or in
order to evidence the accuracy of any of the representations or warranties, or
the fulfillment of any of the conditions, herein contained; and all proceedings
taken by the Company and Trust in connection with the issuance and sale of the
Preferred Securities as herein contemplated shall be satisfactory in form and
substance to the Representatives and counsel for the Underwriters.

         (m) TERMINATION OF AGREEMENT. If any condition specified in this
Section shall not have been fulfilled when and as required to be fulfilled, this
Agreement, or, in the case of any condition to the purchase of Option Preferred
Securities, on a Date of Delivery which is after the Closing Time, the
obligations of the several Underwriters to purchase the relevant Option
Preferred Securities, may be terminated by the Representatives by notice to the
Company at any time at or prior to Closing Time or such Date of Delivery, as the
case may be, and such termination shall be without liability of any party to any
other party except as provided in Section 4 and except that Sections 1, 6, 7 and
8 shall survive any such termination and remain in full force and effect.

         SECTION 6. INDEMNIFICATION.

         (a) INDEMNIFICATION OF UNDERWRITERS. Each of the Company and the Trust
jointly and severally agrees to indemnify and hold harmless each Underwriter and
each person, if any, who controls any Underwriter within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act as follows:

                    (i) against any and all loss, liability, claim, damage and
          expense whatsoever, as incurred, arising out of any untrue statement
          or alleged untrue statement of a material fact contained in the
          Registration Statement (or any amendment thereto) or the omission or
          alleged omission therefrom of a material fact required to be stated
          therein or necessary to make the statements therein not misleading or
          arising out of any untrue statement or alleged untrue statement of a
          material fact included in any preliminary prospectus or the Prospectus
          (or any amendment or supplement thereto), or the omission or alleged
          omission therefrom of a material fact necessary in order to make the
          statements therein, in the light of the circumstances under which they
          were made, not misleading;

                    (ii) against any and all loss, liability, claim, damage and
          expense whatsoever, as incurred, to the extent of the aggregate amount
          paid in settlement of any litigation, or any investigation or
          proceeding by any governmental agency or body, commenced or
          threatened, or of any claim whatsoever based upon any such untrue
          statement or omission, or any such alleged untrue statement or
          omission provided that (subject to Section 6(e) below) any such
          settlement is effected with the written consent of the Company; and

                    (iii) against any and all expense whatsoever, as incurred
          (including the fees and disbursements of counsel chosen by Morgan
          Stanley & Co. Incorporated), reasonably incurred in investigating,
          preparing or defending against any litigation, or any

                                       20
<PAGE>

          investigation or proceeding by any governmental agency or body,
          commenced or threatened, or any claim whatsoever based upon any such
          untrue statement or omission, or any such alleged untrue statement or
          omission, to the extent that any such expense is not paid under (i) or
          (ii) above;

PROVIDED, HOWEVER, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by any
Underwriter through Morgan Stanley & Co. Incorporated expressly for use in the
Registration Statement (or any amendment thereto) or any preliminary prospectus
or the Prospectus (or any amendment or supplement thereto); and PROVIDED,
FURTHER, that this indemnity shall not apply to any preliminary prospectus or
any amendment or supplement thereto to the extent that any such loss, claim,
damage or liability results from the fact that any Underwriter sold Preferred
Securities to a person as to whom it shall be established that there was not
sent or given, at or prior to the written confirmation of such sale, a copy of
the Prospectus as supplemented or amended and the loss, claim, damage or
liability of such Underwriter results from an untrue statement or omission of a
material fact contained in the preliminary prospectus or amendment or supplement
thereto which was corrected in the Prospectus or in the Prospectus as then
amended or supplemented and such correction would have cured the defect giving
rise to such loss, claim, damage or liability.

         (b) INDEMNIFICATION OF TRUST BY COMPANY. The Company agrees to
indemnify the Trust against all loss, liability, claim, damage and expense
whatsoever as due from the Trust under Section 6(a) hereunder.

         (c) INDEMNIFICATION OF TRUST, COMPANY, DIRECTORS AND OFFICERS. Each
Underwriter severally agrees to indemnify and hold harmless the Company and the
Trust, the Company's directors, each of the Company's officers and the Trustees
of the Trust who signed the Registration Statement, and each person, if any, who
controls the Company and the Trust within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act against any and all loss, liability, claim,
damage and expense described in the indemnity contained in subsection (a) of
this Section, as incurred, but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in the Registration
Statement (or any amendment thereto), or any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto) in reliance upon and in
conformity with written information furnished to the Company by such Underwriter
through Morgan Stanley & Co. Incorporated expressly for use in the Registration
Statement (or any amendment thereto) or such preliminary prospectus or the
Prospectus (or any amendment or supplement thereto).

         (d) ACTIONS AGAINST PARTIES; NOTIFICATION. Each indemnified party shall
give notice as promptly as reasonably practicable to each indemnifying party of
any action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this indemnity
agreement. In the case of parties indemnified

                                       21
<PAGE>

pursuant to Section 6(a) above, counsel to the indemnified parties shall be
selected by Morgan Stanley & Co. Incorporated, and, in the case of parties
indemnified pursuant to Section 6(c) above, counsel to the indemnified parties
shall be selected by the Company. An indemnifying party may participate at its
own expense in the defense of any such action; PROVIDED, HOWEVER, that counsel
to the indemnifying party shall not (except with the consent of the indemnified
party) also be counsel to the indemnified party. In no event shall the
indemnifying parties be liable for fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever in respect of which indemnification or contribution could
be sought under this Section 6 or Section 7 hereof (whether or not the
indemnified parties are actual or potential parties thereto), unless such
settlement, compromise or consent (i) includes an unconditional release of each
indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

         (e) SETTLEMENT WITHOUT CONSENT IF FAILURE TO REIMBURSE. If at any time
an indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of the nature contemplated by
Section 6(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of
the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such
settlement.

         SECTION 7. CONTRIBUTION. If the indemnification provided for in Section
6 hereof is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein; then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the
Trust on the one hand and the Underwriters on the other hand from the offering
of the Preferred Securities pursuant to this Agreement or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company and the Trust on the one
hand and of the Underwriters on the other hand in connection with the statements
or omissions, which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

         The relative benefits received by the Company and the Trust on the one
hand and the Underwriters on the other hand in connection with the offering of
the Preferred Securities pursuant to this Agreement shall be deemed to be in the
same respective proportions as the total net proceeds from the offering of the
Preferred Securities pursuant to this Agreement (before deducting expenses)
received by the Company and the total underwriting commission received

                                       22
<PAGE>

by the Underwriters, in each case as set forth on the cover of the Prospectus,
bear to the aggregate initial public offering price of the Securities as set
forth on such cover.

         The relative fault of the Company and the Trust on the one hand and the
Underwriters on the other hand shall be determined by reference to, among other
things, whether any such untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Underwriters and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

         The Company, the Trust and the Underwriters agree that it would not be
just and equitable if contribution pursuant to this Section 7 were determined by
pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to above in this Section 7. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 7 shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.

         Notwithstanding the provisions of this Section 7, no Underwriter shall
be required to contribute any amount in excess of the amount by which the total
price at which the Securities underwritten by it and distributed to the public
were offered to the public exceeds the amount of any damages which such
Underwriter has otherwise been required to pay by reason of any such untrue or
alleged untrue statement or omission or alleged omission.

         No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

         For purposes of this Section 7, each person, if any, who controls an
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as such Underwriter, and
each director of the Company, each officer of the Company and the Trustees of
the Trust who signed the Registration Statement, and each person, if any, who
controls the Company or the Trust within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act shall have the same rights to contribution as
the Company. The Underwriters' respective obligations to contribute pursuant to
this Section 7 are several in proportion to the number of Initial Preferred
Securities set forth opposite their respective names in Schedule A hereto and
not joint.

                                       23
<PAGE>

         SECTION 8. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE
DELIVERY. All representations, warranties and agreements contained in this
Agreement or in certificates of officers of the Company or the Trustees of the
Trust or any of its other subsidiaries submitted pursuant hereto, shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of any Underwriter or controlling person, or by or on behalf of the
Company, and shall survive delivery of the Preferred Securities to the
Underwriters.

         SECTION 9. TERMINATION OF AGREEMENT.

         (a) TERMINATION; GENERAL. The Representatives may terminate this
Agreement, by notice to the Company and the Trust, at any time at or prior to
Closing Time or any relevant Date of Delivery (i) if there has been, since the
time of execution of this Agreement, any material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one
enterprise, whether or not arising in the ordinary course of business, or (ii)
if there has occurred any material adverse change in the financial markets in
the United States or the international financial markets, any outbreak of
hostilities or escalation thereof or other calamity or crisis or any material
adverse change or development involving a prospective material adverse change in
national or international political, financial or economic conditions, in each
case of subclauses (i) and (ii) above the effect of which is such as to make it,
in the judgment of the Representatives, impracticable to market the Preferred
Securities or to enforce contracts for the sale of the Preferred Securities, or
(iii) if trading in any securities of the Company has been suspended or
materially limited by the Commission or the New York Stock Exchange, or if
trading generally on the American Stock Exchange or the New York Stock Exchange
or in the Nasdaq National Market has been suspended or materially limited, or
minimum or maximum prices for trading have been fixed, or maximum ranges for
prices have been required, by any of said exchanges or by such system or by
order of the Commission, the National Association of Securities Dealers, Inc. or
any other governmental authority, or (iv) if a banking moratorium has been
declared by either Federal or New York authorities, or (v) if a material
disruption has occurred in commercial banking or securities settlement or
clearance services in the United States or with respect to Clearstream or
Euroclear systems in Europe.

         (b) LIABILITIES. If this Agreement is terminated pursuant to this
Section, such termination shall be without liability of any party to any other
party except as provided in Section 4 hereof, and provided further that Sections
1, 6, 7 and 8 shall survive such termination and remain in full force and
effect.

                                       24
<PAGE>

         SECTION 10. DEFAULT BY ONE OR MORE OF THE UNDERWRITERS. If one or more
of the Underwriters shall fail at Closing Time or the relevant Date of Delivery,
as the case may be, to purchase the Preferred Securities which it or they are
obligated to purchase under this Agreement (the "Defaulted Securities"), the
Representatives shall have the right, within 24 hours thereafter, to make
arrangements for one or more of the non-defaulting Underwriters, or any other
underwriters, to purchase all, but not less than all, of the Defaulted
Securities in such amounts as may be agreed upon and upon the terms herein set
forth; if, however, the Representatives shall not have completed such
arrangements within such 24-hour period, then:

         (a) if the number of Defaulted Securities does not exceed 10% of the
number of Preferred Securities to be purchased on such date, each of the
non-defaulting Underwriters shall be obligated, severally and not jointly, to
purchase the full amount thereof in the proportions that their respective
underwriting obligations hereunder bear to the underwriting obligations of all
non-defaulting Underwriters, or

         (b) if the number of Defaulted Securities exceeds 10% of the number of
Preferred Securities to be purchased on such date, this Agreement or, with
respect to any Date of Delivery which occurs after Closing Time, the obligation
of the Underwriters to purchase and of the Trust to sell the Option Preferred
Securities to be purchased and sold on such Date of Delivery shall terminate
without liability on the part of any non-defaulting Underwriter.

         No action taken pursuant to this Section shall relieve any defaulting
Underwriter from liability in respect of its default.

         In the event of any such default which does not result in a termination
of this Agreement or, in the case of a Date of Delivery which is after the
Closing Time, which does not result in a termination of the obligation of the
Underwriters to purchase and the Trust to sell the relevant Option Preferred
Securities, as the case may be, either the non-defaulting Representative or the
Company shall have the right to postpone Closing Time or the relevant Date of
Delivery, as the case may be, for a period not exceeding seven days in order to
effect any required changes in the Registration Statement or Prospectus or in
any other documents or arrangements. As used herein, the term "Underwriter"
includes any person substituted for an Underwriter under this Section.

                                       25
<PAGE>

         SECTION 11. NOTICES. All notices and other communications hereunder
shall be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication. Notices to the
Underwriters shall be directed to the Representatives at 1585 Broadway, New
York, New York 10036, attention of Debt Syndicate Desk; notices to the Trust
shall be directed to it c/o the Company at 125 S. Dakota Avenue, Sioux Falls,
South Dakota, 57104, attention of Eric R. Jacobsen, with a copy to Paul,
Hastings, Janofsky & Walker LLP at the following address through February 28,
2002: 345 California St, San Francisco, CA 94104 and at the following address
after February 28, 2002: 55 Second Street, 24th Floor, San Francisco, CA 94105,
Attn: Thomas R. Pollock and notices to the Company shall be directed to it at
125 S. Dakota Avenue, Sioux Falls, South Dakota 57104, attention of Eric R.
Jacobsen, with a copy to Paul, Hastings, Janofsky & Walker LLP, 345 California
St., San Francisco, CA 94104, Attn: Thomas R. Pollock.

         SECTION 12. PARTIES. This Agreement shall inure to the benefit of and
be binding upon the Underwriters, the Company and the Trust and their respective
successors. Nothing expressed or mentioned in this Agreement is intended or
shall be construed to give any person, firm or corporation, other than the
Underwriters, the Company and the Trust and their respective successors and the
controlling persons and officers and directors referred to in Sections 6 and 7
and their heirs and legal representatives, any legal or equitable right, remedy
or claim under or in respect of this Agreement or any provision herein
contained. This Agreement and all conditions and provisions hereof are intended
to be for the sole and exclusive benefit of the Underwriters, the Company and
the Trust and their respective successors, and said controlling persons and
officers and directors and their heirs and legal representatives, and for the
benefit of no other person, firm or corporation. No purchaser of Preferred
Securities from any Underwriter shall be deemed to be a successor by reason
merely of such purchase.

         SECTION 13. GOVERNING LAW AND TIME. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. SPECIFIED
TIMES OF DAY REFER TO NEW YORK CITY TIME.

         SECTION 14. EFFECT OF HEADINGS. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.

                                       26
<PAGE>

         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company and the Trust a counterpart
hereof, whereupon this instrument, along with all counterparts, will become a
binding agreement between the Underwriters, the Company and the Trust in
accordance with its terms.

                                    Very truly yours,

                                    NORTHWESTERN CORPORATION

                                    By:  /s/ Kipp D. Orme
                                       ----------------------------------
                                       Name:  Kipp D. Orme
                                       Title: Vice President - Finance & CFO

                                    NORTHWESTERN CAPITAL FINANCE III

                                    BY:  NORTHWESTERN CORPORATION,
                                              as Sponsor

                                    By:  /s/ Kipp D. Orme
                                        ---------------------------------
                                         Name:  Kipp D. Orme
                                         Title: Vice President - Finance & CFO

CONFIRMED AND ACCEPTED, as of the date first above written:
MORGAN STANLEY & CO. INCORPORATED
MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
                      INCORPORATED
SALOMON SMITH BARNEY INC.

By: MORGAN STANLEY & CO. INCORPORATED

By  /s/ Harold J. Hendershot III
   -----------------------------------------
         Authorized Signatory

For themselves and as Representatives of the other Underwriters named in
Schedule A hereto.

                                       27
<PAGE>

                                   SCHEDULE A
<TABLE>
<CAPTION>

                                                                                              Number of
                                                                                              Preferred
Name of U.S. Underwriter                                                                     Securities
------------------------                                                                     ----------

<S>                                                                                            <C>
Morgan Stanley & Co. Incorporated.............................................                522,500
Merrill Lynch, Pierce, Fenner & Smith Incorporated............................                522,500
Salomon Smith Barney Inc......................................................                522,500
Credit Suisse First Boston Corporation........................................                522,500
Prudential Securities Incorporated............................................                522,500
UBS Warburg LLC...............................................................                522,500
ABN AMRO Incorporated.........................................................                 80,000
CIBC World Markets Corp. .....................................................                 80,000
Bear, Stearns & Co. Inc. .....................................................                 30,000
Deutsche Banc Alex. Brown Inc. ...............................................                 30,000
First Union Securities, Inc. .................................................                 30,000
H&R Block Financial Advisors, Inc. ...........................................                 30,000
HSBC Securities (USA) Inc. ...................................................                 30,000
Legg Mason Wood Walker, Inc. .................................................                 30,000
Quick and Reilly, Inc. .......................................................                 30,000
RBC Dain Rauscher Inc. .......................................................                 30,000
Charles Schwab & Co., Inc. ...................................................                 30,000
TD Waterhouse Investor Services, Inc. ........................................                 30,000
Tucker Anthony Incorporated...................................................                 30,000
U.S. Bancorp Piper Jaffray Inc. ..............................................                 30,000
Wells Fargo Van Kasper, LLC ..................................................                 30,000
Advest Inc. ..................................................................                 15,000
Robert W. Baird & Co. Incorporated............................................                 15,000
BB&T Capital Markets, a Division of Scott & Stringfellow, Inc.................                 15,000
William Blair & Company, L.L.C. ..............................................                 15,000
Davenport & Company LLC.......................................................                 15,000
D.A. Davidson & Co. ..........................................................                 15,000
Fahnestock & Co. Inc. ........................................................                 15,000
Fifth Third Securities, Inc. .................................................                 15,000
Gibraltar Securities Co. .....................................................                 15,000
Gruntal & Co., L.L.C. ........................................................                 15,000
J.J.B. Hilliard, W.L. Lyons, Inc. ............................................                 15,000
Janney Montgomery Scott LLC...................................................                 15,000
C.L. King & Associates, Inc. .................................................                 15,000
McDonald Investments Inc., a KeyCorp Company..................................                 15,000
McGinn, Smith & Co., Inc. ....................................................                 15,000
Mesirow Financial, Inc. ......................................................                 15,000
Parker/Hunter Incorporated ...................................................                 15,000
Pershing/ a Division of Donaldson, Lufkin & Jenrette..........................                 15,000
Ryan, Beck & Co. LLC..........................................................                 15,000
Southwest Securities, Inc. ...................................................                 15,000
Stifel, Nicolaus & Company Incorporated.......................................                 15,000
Total.........................................................................              4,000,000
                                                                                    =================
</Table>

                                    Sch A-1
<PAGE>

                                   SCHEDULE B

                              List of subsidiaries

         NorthWestern Growth Corporation
         NorthWestern Capital Corporation
         NorthWestern Services Group, Inc.
         NorthWestern Energy Corporation
         NorthWestern Services Corporation
         NorthWestern Networks, Inc.
         NorthWestern Systems, Inc.
         NorCom Advanced Technologies, Inc.
         Nekota Resources, Inc.
         Grant, Inc.
         LNSI, Inc.
         Coast Energy Capital Corporation
         Cornerstone Propane GP, Inc.
         SYN INC.
         Claremont Gas Corporation
         Expanets, Inc.
         Expanets of North America LLC
         Expanets of Hawaii, Inc.
         Expanets of Indiana, Inc.
         Expanets of Indiana, LLC
         Expanets of Arizona, Inc.
         Expanets of Atlanta, Inc.
         Expanets of California, Inc.
         Expanets of Lancaster, Inc.
         Expanets of Mississippi, Inc.
         Expanets of Nebraska, Inc.
         Expanets of New York, Inc.
         Eagle, An Expanets Company, Inc.
         Expanets of Oklahoma, Inc.
         Expanets of Pacific Northwest, Inc.
         Expanets of San Antonio, Inc.
         Expanets of Tennessee, Inc.
         Blue Dot Services Inc.
         A.J. Perri, Inc.
         A.S.I. Hastings, Inc.
         Air Assurance Co.
         Air Conditioning by Luquire, Inc.
         Air Design, Inc.
         Air Specialist Heating and Air Conditioning Company, Inc.
         Anytime Plumbing, Inc.
         ATM Acquisition Corp.
         Blue Dot Plumbing Services of New Jersey, LLC

                                     Sch B-1
<PAGE>

         Blue Dot Capital Corporation
         Blue Dot Capital Partners LLC
         Blue Dot Licensing, Inc.
         Blue Dot of Florida, Inc.
         Blue Dot Properties, Inc.
         Blue Dot Services Company of Florida
         Blue Dot Services Company of Georgia
         Blue Dot Services Company of Illinois
         Blue Dot Services Company of Kansas
         Blue Dot Services Company of Michigan
         Blue Dot Services Company of Ohio
         Blue Dot Services Company of Washington
         Blue Dot Services of West Trenton (NJ), Inc.
         Brody Heating, Air Conditioning & Electrical Contractors, Inc.
         Burton Plumbing Services, Inc.
         Calvert-Jones Co., Inc.
         CECS Acquisition Corp.
         Columbus/Worthington Heating and Air Conditioning Company, Inc.
         Comfort Air Systems, Inc.
         Conditioned Air Associates, Inc.
         Controlling Systems, Inc.
         Dauenhauer & Son Plumbing and Piping Co., Inc.
         Dependable Graham Air Conditioning, Inc.
         Donahue Heating & Air Conditioning, Inc.
         Enviro-Air, Inc.
         Environmental Conditioning, Inc.
         Environmental Services of Charlotte, Inc.
         Environmental Systems and Controls, Inc.
         Environmental Techniques Corporation
         Fast Water Heater Company
         AHAC Acquisition Corp.
         Haslett Heating & Cooling, Inc.
         Hill Heating & Air Conditioning, Inc.
         Horizon Home Services, Inc.
         Huck Heating and Air Conditioning, Inc.
         Ideal Service Company, Inc.
         John's Sewer & Pipe Cleaning, Inc.
         Lindstrom Air Conditioning, Inc.
         Master Controls & Service Company, Inc.
         Metro-Tech Service Co.
         NRS Acquisition Corp.
         PAL Acquisition Corp.
         Poudre Valley Air, Inc.
         Residential Services of Indiana, Inc.
         Ridge Heating, Air Conditioning & Plumbing, Inc.
         Standard Heating & Air Conditioning Co.

                                     Sch B-2
<PAGE>

         Tri-County Associates, Inc.
         Wagner Mechanical Inc.
         WSI Acquisition Corp.
         STO Acquisition Corp.
         Steve Stone Air Conditioning, Heating & Plumbing, Inc.
         NorthWestern Energy Development, LLC
         NorthWestern Generation I, LLC
         NorthWestern Montana First Megawatts, LLC
         NorthWestern Energy Marketing, LLC
         Montana Megawatts I, LLC
         NorthWestern Capital Partners, LLC
         NorthWestern Capital Ventures, LLC
         Cornerstone Propane Partners, LP
         Cornerstone Propane, LP
         Cornerstone Sales & Service Corporation
         Cornerstone Holding Corporation
         Coast Energy Global Services, Inc.
         Propane Continental, Inc.
         Flame, Inc.
         Coast Energy Canada, Inc.
         NSJV, LLC
         TankSat Solutions, Inc.

                                     Sch B-3

<PAGE>

                                                                     Exhibit A-1

               [Paul, Hastings, Janofsky & Walker LLP Letterhead]

January 31, 2002

Morgan Stanley & Co. Incorporated,
Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Salomon Smith Barney Inc.
         as Representatives of the several Underwriters named in
         Schedule A to the Underwriting Agreement described herein,
c/o Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York  10036

Re:      NorthWestern Corporation - 8.10% Trust Preferred Securities of
         NorthWestern Capital Financing III

Ladies and Gentlemen:

We have acted as counsel to NorthWestern Corporation, a Delaware corporation
(the "COMPANY"), and NorthWestern Capital Financing III, a Delaware statutory
business trust (the "TRUST"), with respect to the preparation of, and the
consummation of the transactions contemplated by, the Underwriting Agreement
(the "UNDERWRITING AGREEMENT"), dated as of January 24, 2002, among the Company,
the Trust and Morgan Stanley & Co. Incorporated, Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Salomon Smith Barney Inc., as
Representatives of the several Underwriters named in Schedule A thereto
(collectively, the "UNDERWRITERS"), with respect to the issue and sale by the
Trust and the purchase by the Underwriters of an aggregate of 4,000,000 shares
of the Trust's 8.10% Trust Preferred Securities (liquidation amount $25 per
trust preferred security) (the "PREFERRED SECURITIES"). In connection with the
issue and sale by the Trust of the Preferred Securities, the Company has entered
into an Amended and Restated Declaration of Trust of the Trust, dated as January
31, 2002 (including Annex I and Annex II thereto, the "DECLARATION"), among the
Company, as depositor, the trustees of the Trust named therein (the "TRUSTEES")
and the holders, from time to time, of beneficial interests in the assets of the
Trust, pursuant to which the Company has agreed to purchase an aggregate of
123,712 shares of the Trust's 8.10% Trust Common Securities (liquidation amount
$25 per trust common security) (the "COMMON SECURITIES"). In connection with the
issue and sale of the Preferred Securities and the Common Securities, the
Company has entered into a Preferred Securities Guarantee Agreement, dated as of
January 31, 2002 (the "PREFERRED SECURITIES GUARANTEE AGREEMENT"), between the
Company and Wilmington Trust Company for the benefit of the holders of the
Preferred Securities, and a Common Securities Guarantee Agreement, dated as of
January 31, 2002 (the "COMMON SECURITIES GUARANTEE AGREEMENT" and, together with
the Preferred Securities

                                     A-1-1
<Page>

Guarantee Agreement, the "GUARANTEE AGREEMENTS"), for the benefit of the holders
of the Common Securities. The Company has agreed to borrow the proceeds from the
issuance and sale of the Preferred Securities and the Common Securities and in
exchange therefor to issue and sell $103,092,800 aggregate principal amount (the
amount being the aggregate stated liquidation amount of the Preferred Securities
and the Common Securities) of the Company's 8.10% Junior Subordinated Deferrable
Interest Debentures due January 15, 2032 (the "DEBENTURES"). This opinion is
rendered at the request of the Company and the Trust pursuant to Section 5(b)(i)
of the Underwriting Agreement. Except as otherwise defined herein, capitalized
terms used in this opinion letter are defined as set forth in the Underwriting
Agreement.

In rendering this opinion, we have examined originals or copies of the
following:

(a)      the Restated Certificate of Incorporation of the Company filed November
         9, 2000, certified as of a recent date by the Secretary of State of the
         State of Delaware (the "CERTIFICATE OF INCORPORATION");

(b)      the By-Laws of the Company, as amended to February 7, 2001 (the
         "BY-LAWS"), certified to be effective on the date hereof by the
         Assistant Secretary of the Company in a Secretary's Certificate, dated
         the date hereof (the "SECRETARY'S CERTIFICATE");

(c)      a certificate with respect to the good standing of the Company in the
         State of Delaware, certified as of a recent date by the Secretary of
         State of the State of Delaware;

(d)      resolutions of the Board of Directors and the Offering Committee of the
         Board of Directors of the Company authorizing the execution, delivery
         and performance of the Underwriting Agreement and all other instruments
         and agreements entered into in connection with the transactions
         contemplated thereby, certified to be effective on the date hereof by
         the Assistant Secretary of the Company in the Secretary's Certificate;

(e)      the Restated Certificate of Trust of the Trust, dated as of June 30,
         1998, as filed in the office of the Secretary of State of the State of
         Delaware on July 1, 1998, certified as of a recent date by the
         Secretary of State of the State of Delaware (the "CERTIFICATE OF
         TRUST");

(f)      the Declaration, certified to be effective on the date hereof by a
         Regular Trustee of the Trust in a Trustee's Certificate, dated the date
         hereof (the "TRUSTEE'S CERTIFICATE");

(g)      a certificate with respect to the good standing of the Trust in the
         State of Delaware, certified as of a recent date by the Secretary of
         State of the State of Delaware;

(h)      (i)      the Underwriting Agreement;

         (ii)     the Preferred Securities Guarantee Agreement and the Common
                  Securities Guarantee Agreement;

         (iii)    the Indenture, dated as of August 1, 1995 (the "BASE
                  INDENTURE"), between the Company and JPMorgan Chase Bank, as
                  successor to The Chase Manhattan Bank, N.A., as trustee (the
                  "DEBENTURE TRUSTEE"), and the Fourth Supplemental

                                     A-1-2
<Page>

                  Indenture, dated as of January 31, 2002 (the "SUPPLEMENTAL
                  INDENTURE" and, together with the Base Indenture, the
                  "INDENTURE" and, collectively with the Underwriting Agreement,
                  the Guarantee Agreements, the Preferred Securities and the
                  Common Securities, the "FINANCING AGREEMENTS"), between the
                  Company and the Debenture Trustee; and

         (iv)     the form of the Preferred Securities, the form of the Common
                  Securities and the form of the Debentures;

(i)      the Registration Statements on Form S-3 (Nos. 333-58491 and 333-82707)
         filed by the Company and the Trust with the Securities and Exchange
         Commission (the "Commission") under the 1933 Act (together, the
         "REGISTRATION STATEMENT") and the prospectus included in the
         Registration Statement, as supplemented to reflect the terms of the
         Preferred Securities and the terms of the offering of the Preferred
         Securities pursuant to the Underwriting Agreement, as filed with the
         Commission (the "Prospectus");

(j)      (i)      the Secretary's Certificate;

         (ii)     the Trustee's Certificate;

         (iii)    an Officers' Certificate of Kipp D. Orme, Vice
                  President--Finance and Chief Financial Officer of the Company
                  and Eric R. Jacobsen, Vice President, General Counsel, Chief
                  Legal Officer and Assistant Secretary of the Company, dated
                  the date hereof (the "OFFICERS' CERTIFICATE"), delivered to
                  the Underwriters on the date hereof pursuant to Section 5(f)
                  of the Underwriting Agreement;

         (iv)     a Regular Trustee's Certificate of the Regular Trustee of the
                  Trust, dated the date hereof (the "REGULAR TRUSTEE'S
                  CERTIFICATE"), delivered to the Underwriters on the date
                  hereof pursuant to Section 5(f) of the Underwriting Agreement;

         (v)      an Incumbency Certificate of the Company, dated the date
                  hereof (the "COMPANY INCUMBENCY CERTIFICATE"), delivered to
                  the Underwriters on the date hereof; and

         (iv)     an Incumbency Certificate of the Trust, dated the date hereof
                  (the "TRUST INCUMBENCY CERTIFICATE" and, collectively with the
                  Secretary's Certificate, the Trustee's Certificate, the
                  Officers' Certificate, the Regular Trustee's Certificate and
                  the Company Incumbency Certificate, the "CERTIFICATES"),
                  delivered to the Underwriters on the date hereof;

(k)      the orders of the Federal Energy Regulatory Commission (the "FERC")
         issued on June 15, 2000 in Docket Nos. ES00-35-000 and ES00-35-001 and
         on May 7, 2001 in Docket No. ES01-28-000; and

(l)      such other documents and records as we have deemed necessary for
         purposes of this opinion.

                                     A-1-3
<Page>

In rendering this opinion we have made the following assumptions, each without
any investigation or independent verification, except as otherwise noted, and
our opinion is subject to the qualifications set forth below.

Insofar as the opinions expressed in paragraphs 1, 2 and 5 below relate to the
Trust or the Trustees or matters which are governed by the Delaware Business
Trust Act, we have relied with your permission solely upon the opinion of
Richards, Layton & Finger, P.A., a copy of which is attached hereto, without any
independent investigation by us in accordance with the Legal Opinion Accord of
the American Bar Association.

We have assumed the genuineness of all signatures, the authenticity and
completeness of all documents, certificates and instruments submitted to us as
originals, the conformity with the originals of all documents, certificates and
instruments submitted to us as copies, the authenticity and completeness of such
underlying originals and the legal capacity of all individuals executing such
documents, certificates and instruments.

We have assumed that there are no oral modifications or written agreements or
understandings which limit, modify or otherwise alter the terms, provisions, and
conditions of, or relate to, the transactions contemplated by the Financing
Agreements.

As to matters of fact relevant or material to this opinion, we have relied
without independent investigation on, and assumed the accuracy and completeness
of, the Certificates and the representations and warranties of each party made
in the Financing Agreements. We have not made an investigation as to, and have
not independently verified, the facts underlying the matters covered by the
Certificates or such representations and warranties.

The phrases "to our knowledge," "known to us" and the like mean to the current
actual knowledge of the attorneys of this Firm who have actively and directly
participated in the negotiation and closing of, and who devoted substantive
attention to, the transactions contemplated by the Financing Agreements. Where
matters are stated to be "to our knowledge," "known to us" or the like, our
investigations consisted only of an inquiry of the officers of the Company and
the Trustees of the Trust, the results of which are reflected in the
Certificates, and a review of the Financing Agreements, and known to us by
virtue of our representation of the Company and the Trust with respect to the
transactions contemplated by the Financing Agreements. We have not made any
investigation of other attorneys of this Firm, of our files or as to the facts
underlying the matters covered by the Certificates or the Financing Agreements.

We also have assumed (a) the due authorization, execution, acknowledgement as
indicated thereon and delivery of documents recited herein or delivered at the
closing (including the Financing Agreements) by each party thereto (other than
the Company and the Trust), that each party (other than the Company and the
Trust) has taken all other acts necessary for the performance of its obligations
under the Financing Agreements, and the validity, binding effect and
enforceability thereof, against each party thereto other than the Company and
the Trust, (b) that, with respect to all parties (other than the Company and the
Trust), each party is validly existing and has full power, authority and legal
right to execute and deliver the Financing Agreements to which it is a party and
to carry out the transactions contemplated thereunder, and that each is duly
qualified and in good standing in each jurisdiction where qualification is

                                     A-1-4
<Page>

required to the extent that any of the opinions expressed herein would be
affected by the failure to so qualify and (c) that each party (other than the
Company and the Trust), has complied with any order, rule, regulation or law
which may be applicable to such party with regard to any aspect of the
transactions contemplated by the Financing Agreements to the extent that any of
the opinions expressed herein would be affected by the failure to so comply.

Statements in this opinion as to the validity, binding effect and enforceability
are subject to the following qualifications (a) they are limited by applicable
bankruptcy, insolvency, reorganization, fraudulent conveyance and transfer,
moratorium or other laws now or hereafter in effect relating to or affecting the
rights or remedies of creditors generally and by general principles of equity
(whether applied in a proceeding at law or in equity) including, without
limitation, standards of materiality, good faith and reasonableness in the
interpretation and enforcement of contracts, and the application of such
principles to limit the availability of equitable remedies such as specific
performance and (b) with reference to, but without limiting in any way,
qualification (a) above, provisions indemnifying a party against liability for
its own wrongful or negligent acts or otherwise in cases where indemnification
could be considered contrary to public policy (including, without limitation,
under federal and state securities laws and regulations as interpreted by
applicable governmental authorities), provisions waiving defenses or other
rights and provisions to the effect that terms of the documents may not be
waived or modified except in writing, are or may be unenforceable in whole or in
part under applicable law; however, subject to the other qualifications stated
herein, such unenforceability will not, in our opinion, make the remedies
afforded by the Underwriting Agreement, the Guarantee Agreements, the
Declaration, the Indenture and the Debentures, taken as a whole, inadequate for
the practical realization of remedies upon a default by the Company or the
Trust.

We are members of the Bar of the State of New York and our opinions herein are
limited to the laws of the State of New York, the General Corporation Law of the
State of Delaware (based solely on our review of a standard compilation of such
law) and the federal law of the United States, and we do not express any opinion
as to the laws of any other state or jurisdiction. No opinion is expressed as to
choice of law provisions contained in the Financing Agreements. No opinion is
expressed as to the effect that the law of any other jurisdiction might have
upon the subject matter of the opinions expressed herein under conflicts of laws
principles or otherwise. We express no opinion as to any county, municipal,
city, town or village ordinance, rule or regulation. Except for the opinions in
paragraphs 8, 10, 11 and 13 hereof, we express no opinion herein with respect to
the application of or compliance with any federal or state securities or blue
sky laws or regulations (including, without limitation, any filing or notice
requirements thereunder), and for purposes of this opinion have assumed
compliance by all parties with such laws and regulations.

We express no opinion except as expressly set forth in the numbered paragraphs
below and no opinions shall be implied. We express no opinion as to
environmental laws, antitrust or unfair competition laws or the law of fiduciary
duty, or the rules and regulations promulgated thereunder. We disclaim any
obligation to update any of the opinions expressed herein for events (including
changes of law or fact) occurring after the date hereof.

Based upon and subject to the assumptions, exceptions, qualifications and
limitations set forth herein, we are of the opinion that:

                                     A-1-5
<Page>

1.       The Preferred Securities have been duly authorized by the Declaration
         and, when issued, executed, authenticated, delivered and paid for in
         accordance with the Declaration and the Underwriting Agreement, will be
         validly issued, fully paid and, subject to the qualification set forth
         below, non-assessable undivided beneficial interests in the assets of
         the Trust. Under the Declaration and the Delaware Business Trust Act,
         each holder of Preferred Securities, in such capacity, will be entitled
         to the same limitation on personal liability extended to stockholders
         of private corporations for profit organized under the General
         Corporation Law of the State of Delaware; provided, however, we express
         no opinion with respect to the liability of any holder of Preferred
         Securities who is, was or may become a named Trustee of the Trust.
         Notwithstanding the foregoing, we note that, pursuant to the
         Declaration, holders of Preferred Securities may be obligated to make
         payments or provide indemnity or security under the circumstances set
         forth therein.

2.       Under the Declaration and the Delaware Business Trust Act, the
         execution and the delivery by the Trust of the Underwriting Agreement,
         have been duly authorized by all requisite trust action on the part of
         the Trust.

3.       The Underwriting Agreement has been duly authorized, executed and
         delivered by the Company.

4.       The Guarantee Agreements have been duly authorized, executed and
         delivered by the Company and are valid and binding obligations of the
         Company, enforceable against the Company in accordance with their
         terms.

5.       The Declaration has been duly authorized, executed and delivered by the
         Company and constitutes a legal valid and binding obligation of the
         Company and each of the Trustees, and is enforceable against the
         Company and each of the Trustees in accordance with its terms.

6.       The Indenture has been duly authorized, executed and delivered by the
         Company and constitutes a valid and binding obligation of the Company,
         enforceable against the Company in accordance with its terms.

7.       The Debentures have been duly authorized and executed by the Company
         and, when the Debentures have been duly authenticated by the Debenture
         Trustee in accordance with the provisions of the Indenture and
         delivered against payment of the purchase price as described in the
         Prospectus, the Debentures will constitute valid and binding
         obligations of the Company entitled to the benefits of the Indenture
         and enforceable against the Company in accordance with their terms.

8.       The Indenture, the Preferred Securities Guarantee Agreement and the
         Declaration have each been duly qualified under the 1939 Act.

9.       The execution, delivery and performance of the Underwriting Agreement,
         the Declaration, the Indenture and the Guarantee Agreements and
         compliance by the Company with its obligations thereunder do not and
         will not, whether with or without the giving of notice or lapse of time
         or both, (a) violate or result in the violation of the Certificate of
         Incorporation or By-Laws of the Company existing on the date hereof or

                                     A-1-6
<Page>

         (b) violate or result in the violation of any applicable law, statute,
         rule, regulation, judgment, writ, order or decree known to us of either
         the federal or New York government or any government instrumentality
         thereof existing on the date hereof and having jurisdiction over the
         Company or any of its properties or assets of which we are aware (other
         than state securities or blue sky laws, as to which we express no
         opinion and other than federal securities laws, as to which we express
         no opinion in this paragraph).

10.      Based upon the oral advice of the Commission, the Registration
         Statement has been declared effective under the 1933 Act; any required
         filing of the Prospectus pursuant to Rule 424(b) has been made in the
         manner and within the time period required by Rule 424(b); and we are
         not aware, after due inquiry, of any stop order suspending the
         effectiveness of the Registration Statement and, to our knowledge, no
         proceedings for that purpose have been initiated or are pending or
         overtly threatened by the Commission.

11.      The Registration Statement, the Prospectus, and each amendment or
         supplement to the Registration Statement and the Prospectus (excluding
         the documents incorporated by reference in each of the foregoing), as
         of their respective effective or issue dates (except for the financial
         statements, notes and schedules thereto, the other financial,
         accounting and statistical data derived from the internal financial
         records of the Company included or incorporated by reference therein or
         omitted therefrom and Exhibit 25 to the Registration Statement, as to
         which it is understood we express no opinion) comply as to form in all
         material respects with the requirements of the 1933 Act and the 1933
         Act Regulations.

12.      The statements set forth in the Prospectus under the captions
         "Description of the Trust Preferred Securities," "Description of the
         Subordinated Debentures," "Description of the Preferred Securities
         Guarantee," "Description of the Trusts' Preferred Securities,"
         "Description of the Guarantees" and "Relationship Among the Preferred
         Securities, the Subordinated Debt Securities and the Guarantees," the
         information relating to the Subordinated Debt Securities (as defined in
         the Prospectus) under the caption "Description of Debt Securities"
         (other than the information described under "Description of Debt
         Securities--Option to Accelerate Maturity Date") and the information
         contained under Item 15 in the Registration Statement insofar as they
         purport to constitute a summary of matters of law, legal matters or the
         By-Laws, are correct summaries in all material respects.

13.      Neither the Company nor the Trust is, and upon the issuance and sale of
         the Preferred Securities as herein contemplated and the application of
         the net proceeds therefrom as described in the Prospectus neither will
         be, required to be registered under the Investment Company Act of 1940,
         as amended.

14.      The FERC has issued appropriate authorizations with respect to the
         issuance of the Guarantees and the Debentures in accordance with the
         Indenture, the Preferred Securities Guarantee Agreement and the Common
         Securities Guarantee Agreement; to our knowledge, after due inquiry,
         such authorizations are in full force and effect and the issuance of
         the Guarantees and the Debentures are in conformity with the terms of
         such authorizations, and no other authorization, approval or consent,
         or other action by or

                                     A-1-7
<Page>

         filing with any New York or federal governmental authority or agency
         or, to our knowledge, any New York or federal court, not already
         obtained, is legally required for the issuance and sale of the
         Securities as contemplated by the Financing Agreements, except such as
         may have been obtained under the 1933 Act, the 1934 Act, the 1939 Act
         and such as may be required under state securities or blue sky laws (as
         to which we express no opinion).

We have participated in conferences with directors, officers and other
representatives of the Company, the Trustees and other representatives of the
Trust, representatives of the independent public accountants for the Company and
the Trust, representatives of the Underwriters and representatives of counsel
for the Underwriters, at which conferences the contents of the Registration
Statement and the Prospectus and related matters were discussed. Although we
have reviewed the documents incorporated by reference in the Registration
Statement and the Prospectus, we did not participate in their preparation. In
addition, we did not undertake to determine or verify independently and,
therefore, are not passing upon and do not assume any responsibility, explicitly
or implicitly, for the accuracy, completeness or fairness of the statements
contained in the Registration Statement or the Prospectus (except to the extent
specified in paragraph 12 above). Based upon and subject to the foregoing, no
facts have come to our attention that have caused us to believe that, the
Registration Statement, on the effective date thereof, contained an untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements contained therein not
misleading or that the Prospectus, on the date thereof or on the date hereof,
contained or contains an untrue statement of a material fact or omitted or omits
to state a material fact required to be stated therein or necessary to make the
statements contained therein, in light of the circumstances under which they
were made, not misleading (it being understood that we express no view with
respect to the financial statements, notes and schedules thereto, the other
financial, accounting and statistical data derived from the internal financial
records of the Company included or incorporated by reference therein or omitted
therefrom and Exhibit 25 to the Registration Statement).

The opinions and views expressed herein are solely for the information of the
addressees in connection with the transactions contemplated by the Financing
Agreements, and may not be relied upon in any other context or by any other
person, firm or entity, or relied upon or quoted in whole or part or otherwise
referred to for any other purpose, nor is it to be delivered to, filed with, or
furnished or disclosed to any governmental agency or other person, firm or
entity without our prior express written consent.

Sincerely,

                                     A-1-8
<Page>

                                                                     Exhibit A-2

               [Paul, Hastings, Janofsky & Walker LLP Letterhead]

January 31, 2002

Morgan Stanley & Co. Incorporated,
Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Salomon Smith Barney Inc.,
         as Representatives of the several Underwriters named in
         Schedule A to the Underwriting Agreement described herein,
c/o Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York  10036

Re:      NorthWestern Corporation - 8.10% Trust Preferred Securities of
         NorthWestern Capital Financing III

Ladies and Gentlemen:

We have acted as special tax counsel to NorthWestern Corporation, a Delaware
corporation (the "COMPANY"), and NorthWestern Capital Financing II, a Delaware
statutory business trust (the "TRUST"), with respect to the preparation of, and
the consummation of the transactions contemplated by, the Underwriting Agreement
(the "UNDERWRITING AGREEMENT"), dated as of January 24, 2002, among the Company,
the Trust and Morgan Stanley & Co. Incorporated, Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Salomon Smith Barney Inc., as
Representatives of the several Underwriters named in Schedule A thereto
(collectively, the "UNDERWRITERS"), with respect to the issue and sale by the
Trust and the purchase by the Underwriters of an aggregate of 4,000,000 shares
of the Trust's 8.10% Trust Preferred Securities (liquidation amount $25 per
trust preferred security) (the "PREFERRED Securities"). In connection with the
issue and sale by the Trust of the Preferred Securities, the Company has entered
into an Amended and Restated Declaration of Trust of the Trust, dated as of
January 31, 2002 (including Annex I and Annex II thereto, the "DECLARATION"),
among the Company, as depositor, the trustees of the Trust named therein (the
"TRUSTEES") and the holders, from time to time, of beneficial interests in the
assets of the Trust, pursuant to which the Company has agreed to purchase an
aggregate of 123,712 shares of the Trust's 8.10% Trust Common Securities
(liquidation amount $25 per trust common security) (the "COMMON SECURITIES"). In
connection with the issue and sale of the Preferred Securities and the Common
Securities, the Company has entered into a Preferred Securities Guarantee
Agreement, dated as of January 31, 2002 (the "PREFERRED SECURITIES GUARANTEE
AGREEMENT"), between the Company and Wilmington Trust Company for the benefit of
the holders of the Preferred Securities, and a Common Securities Guarantee
Agreement, dated as of January 31, 2002 (the "COMMON SECURITIES GUARANTEE
AGREEMENT" and, together with the Preferred Securities Guarantee Agreement, the
"GUARANTEE AGREEMENTS"), for the benefit of the holders of the

                                     A-2-1
<Page>

Common Securities. The Company has agreed to borrow the proceeds from the
issuance and sale of the Preferred Securities and the Common Securities and in
exchange therefor to issue and sell $103,092,800 aggregate principal amount (the
amount being the aggregate stated liquidation amount of the Preferred Securities
and the Common Securities) of the Company's 8.10% Junior Subordinated Deferrable
Interest Debentures due January 15, 2032 (the "DEBENTURES"). This opinion is
rendered at the request of the Company and the Trust pursuant to Section 5(b)(i)
of the Underwriting Agreement. Except as otherwise defined herein, capitalized
terms used in this opinion letter are defined as set forth in the Underwriting
Agreement..

In rendering this opinion, we have examined originals or copies of the
following:

(a)      the Restated Certificate of Trust of the Trust, dated as of June 30,
         1998, as filed in the office of the Secretary of State of the State of
         Delaware on July 1, 1998, certified as of a recent date by the
         Secretary of State of the State of Delaware (the "CERTIFICATE OF
         TRUST");

(b)      the Declaration, certified to be effective on the date hereof by a
         Regular Trustee of the Trust in a Trustee's Certificate, dated the date
         hereof (the "TRUSTEE'S CERTIFICATE");

(c)      a certificate with respect to the good standing of the Trust in the
         State of Delaware, certified as of a recent date by the Secretary of
         State of the State of Delaware;

(d)      (i)      the Underwriting Agreement;

         (ii)     the Preferred Securities Guarantee Agreement and the Common
                  Securities Guarantee Agreement;

         (iii)    the Subordinated Debt Securities Indenture, dated as of August
                  1, 1995 (the "BASE INDENTURE"), between the Company and
                  JPMorgan Chase Bank, as successor to The Chase Manhattan Bank,
                  N.A., as trustee (the "DEBENTURE TRUSTEE"), and the Fourth
                  Supplemental Indenture, dated as of January 31, 2002 (the
                  "SUPPLEMENTAL INDENTURE" and, together with the Base
                  Indenture, the "Indenture" and, collectively with the
                  Underwriting Agreement, the Guarantee Agreements, the
                  Preferred Securities and the Common Securities, the "FINANCING
                  AGREEMENTS"), between the Company and the Debenture Trustee;
                  and

         (iv)     the form of the Preferred Securities, the form of the Common
                  Securities and the form of the Debentures;

(e)      the Registration Statements on Form S-3 (Nos. 333-58491 and 333-82707)
         filed by the Company and the Trust with the Securities and Exchange
         Commission (the "Commission") under the 1933 Act (together, the
         "REGISTRATION STATEMENT") and the prospectus included in the
         Registration Statement, as supplemented to reflect the terms of the
         Preferred Securities and the terms of the offering of the Preferred
         Securities pursuant to the Underwriting Agreement, as filed with the
         Commission (the "Prospectus"); and

(f)      such other documents and records as we have deemed necessary for
         purposes of this opinion;

                                     A-2-2
<Page>

         In our examination, we have assumed that (i) the statements concerning
the issuance of the Preferred Securities and Debentures referred to in the
Registration Statement and Prospectus are true, correct and complete, (ii) the
terms of the documents listed in the preceding paragraph will be complied with,
(iii) the factual representations made to us by the Company in its letter to us
dated as of the date hereof and delivered to us for purposes of this opinion
(the "Representation Letter") are true, correct and complete and (iv) any
factual representations made in the Registration Statements, Prospectus or the
Representation Letter "to the best knowledge of" or similarly qualified are
true, correct and complete without such qualification.

         Based solely upon the foregoing, we are of the opinion that under
current United States federal income tax law:

1.       The Debentures will be classified for United States federal income tax
         purposes as indebtedness of the Company.

2.       The Trust will be classified for United States federal income tax
         purposes as a grantor trust and not as an association subject to tax as
         a corporation.

3.       Although the discussion set forth in the Prospectus under the heading
         "Certain United States Federal Income Tax Consequences" does not
         purport to discuss all possible United States federal income tax
         consequences of the purchase, ownership, and disposition of Preferred
         Securities, such discussion constitutes, in all material respects, a
         fair and accurate summary of the United States federal income tax
         consequences of the purchase, ownership, and disposition of Preferred
         Securities under current law.

Our opinion is limited to the tax matters specifically covered hereby. Our
opinion is based upon current statutory, regulatory and judicial authority, any
of which may be changed at any time with retroactive effect. We disclaim any
undertaking to advise you of any subsequent changes of the matters stated,
represented or assumed herein or any subsequent changes in applicable law,
regulations or interpretations thereof. Without our prior written consent, this
opinion may not be furnished or quoted to, or relied upon by, any other persons
for any purpose.

Very truly yours,

                                     A-2-3
<Page>

                                                                       Exhibit B

                            [NorthWestern Letterhead]

January 31, 2002

Morgan Stanley & Co. Incorporated,
Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Salomon Smith Barney Inc.,
         as Representatives of the several Underwriters named in
         Schedule A to the Underwriting Agreement described herein,
c/o Morgan Stanley & Co. Incorporated
1585 Broadway

New York, New York 10036

Re:      NorthWestern Corporation - 8.10% Trust Preferred Securities of
         NorthWestern Capital Financing III

Ladies and Gentlemen:

I am the Vice President - Legal Administration of NorthWestern Corporation, a
Delaware corporation (the "COMPANY"). In such capacity, I have acted as counsel
to the Company and NorthWestern Capital Financing III, a Delaware statutory
business trust (the "TRUST"), with respect to the preparation of, and the
consummation of the transactions contemplated by, the Underwriting Agreement
(the "UNDERWRITING AGREEMENT"), dated as of January 24, 2002, among the Company,
the Trust and Morgan Stanley & Co. Incorporated, Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Salomon Smith Barney Inc., as
Representatives of the several Underwriters named in Schedule A thereto
(collectively, the "UNDERWRITERS"), with respect to the issue and sale by the
Trust and the purchase by the Underwriters of an aggregate of 4,000,000 shares
of the Trust's 8.10% Trust Preferred Securities (liquidation amount $25 per
trust preferred security) (the "PREFERRED SECURITIES"). In connection with the
issue and sale by the Trust of the Preferred Securities, the Company has entered
into an Amended and Restated Declaration of Trust of the Trust, dated as of
January 31, 2002 (including Annex I and Annex II thereto, the "DECLARATION"),
among the Company, as depositor, the trustees of the Trust named therein (the
"TRUSTEES") and the holders, from time to time, of beneficial interests in the
assets of the Trust, pursuant to which the Company has agreed to purchase an
aggregate of 123,712 shares of the Trust's 8.10% Trust Common Securities
(liquidation amount $25 per trust common security)(the "COMMON SECURITIES"). In
connection with the issue and sale of the Preferred Securities and the Common
Securities, the Company has entered into a Preferred Securities Guarantee
Agreement, dated as of January 31, 2002 (the "PREFERRED SECURITIES GUARANTEE
AGREEMENT"), between the Company and Wilmington Trust Company for the benefit of
the holders of the Preferred Securities, and a Common Securities Guarantee
Agreement, dated as of January 31, 2002 (the "COMMON SECURITIES GUARANTEE
AGREEMENT" and, together with the Preferred Securities Guarantee Agreement, the
"GUARANTEE

                                      B-1
<Page>

AGREEMENTS"), for the benefit of the holders of the Common Securities. The
Company has agreed to borrow the proceeds from the issue and sale of the
Preferred Securities and the Common Securities and in exchange therefor to issue
and sell $103,092,800 aggregate principal amount (the amount being the aggregate
stated liquidation amount of the Preferred Securities and the Common Securities)
of the Company's 8.10% Junior Subordinated Deferrable Interest Debentures due
January 15, 2032 (the "DEBENTURES"). This opinion is rendered at the request of
the Company and the Trust pursuant to Sections 5(b)(ii) of the Underwriting
Agreement. Except as otherwise defined herein, capitalized terms used in this
opinion letter are defined as set forth in the Underwriting Agreement.

In rendering this opinion, I have examined originals or copies of the following:

(a)      the Restated Certificate of Incorporation of the Company filed November
         9, 2000, certified as of a recent date by the Secretary of State of the
         State of Delaware (the "CERTIFICATE OF INCORPORATION");

(b)      the By-Laws of the Company, as amended to February 7, 2001 (the
         "BY-LAWS"), certified to be effective on the date hereof by the
         Assistant Secretary of the Company in a Secretary's Certificate, dated
         the date hereof (the "SECRETARY'S CERTIFICATE");

(c)      a certificate with respect to the good standing of the Company in the
         State of Delaware, certified as of a recent date by the Secretary of
         State of the State of Delaware;

(d)      resolutions of the Board of Directors and Offering Committee of the
         Board of Directors of the Company authorizing the execution, delivery
         and performance of the Underwriting Agreement and all other instruments
         and agreements entered into in connection with the transactions
         contemplated thereby, certified to be effective on the date hereof by
         the Assistant Secretary of the Company in the Secretary's Certificate;

(e)      the Restated Certificate of Trust of the Trust, dated as of June 30,
         1998, as filed in the office of the Secretary of State of the State of
         Delaware on July 1, 1998, certified as of a recent date by the
         Secretary of State of the State of Delaware (the "CERTIFICATE OF
         TRUST");

(f)      the Declaration, certified to be effective on the date hereof by a
         Regular Trustee of the Trust in a Trustee's Certificate, dated the date
         hereof (the "TRUSTEE'S CERTIFICATE");

(g)      a certificate with respect to the good standing of the Trust in the
         State of Delaware, certified as of a recent date by the Secretary of
         State of the State of Delaware;

(h)      (i)      the Underwriting Agreement;

         (ii)     the Preferred Securities Guarantee Agreement and the Common
                  Securities Guarantee Agreement;

         (iii)    the Indenture, dated as of August 1, 1995 (the "BASE
                  INDENTURE"), between the Company and JPMorgan Chase Bank, as
                  successor to The Chase Manhattan Bank, N.A., as trustee (the
                  "DEBENTURE TRUSTEE"), and the Fourth Supplemental

                                      B-2
<Page>

                  Indenture, dated as of January 31, 2002 (the "SUPPLEMENTAL
                  INDENTURE" and, together with the Base Indenture, the
                  "INDENTURE" and, collectively with the Underwriting Agreement,
                  the Guarantee Agreements, the Preferred Securities and the
                  Common Securities, the "FINANCING AGREEMENTS"), between the
                  Company and the Debenture Trustee; and

         (iv)     the form of the Preferred Securities, the form of the Common
                  Securities and the form of the Debentures;

(i)      the Registration Statements on Form S-3 (Nos. 333-58491 and 333-82707)
         filed by the Company and the Trust with the Commission under the 1933
         Act (together, the "REGISTRATION STATEMENT") and the prospectus
         included in the Registration Statement, as supplemented to reflect the
         terms of the Preferred Securities and the terms of the offering of the
         Preferred Securities pursuant to the Underwriting Agreement, as first
         filed with the SEC (the "PROSPECTUS");

(j)      (i)      the Secretary's Certificate;

         (ii)     the Trustee's Certificate;

         (iii)    an Officers' Certificate of Kipp D. Orme, Vice
                  President--Finance and Chief Financial Officer of the Company
                  and Eric R. Jacobsen, Vice President, General Counsel, Chief
                  Legal Officer and Assistant Secretary of the Company, dated
                  the date hereof (the "OFFICERS' CERTIFICATE"), delivered to
                  the Underwriters on the date hereof pursuant to Section 5(f)
                  of the Underwriting Agreement;

         (iv)     a Regular Trustee's Certificate of the Regular Trustee of the
                  Trust, dated the date hereof (the "REGULAR TRUSTEE'S
                  CERTIFICATE"), delivered to the Underwriters on the date
                  hereof pursuant to Section 5(f) of the Underwriting Agreement;

         (v)      an Incumbency Certificate of the Company, dated the date
                  hereof (the "COMPANY INCUMBENCY CERTIFICATE"), delivered to
                  the Underwriters on the date hereof; and

         (vi)     an Incumbency Certificate of the Trust, dated the date hereof
                  (the "TRUST INCUMBENCY CERTIFICATE" and, collectively with the
                  Secretary's Certificate, the Trustee's Certificate, the
                  Officers' Certificate, the Regular Trustee's Certificate and
                  the Company Incumbency Certificate, the "CERTIFICATES"),
                  delivered to the Underwriters on the date hereof;

(k)      the orders of the Federal Energy Regulatory Commission (the "FERC")
         issued on June 15, 2000 in Docket Nos. ES00-35-000 and ES00-35-001 and
         on May 7, 2001 in Docket No. ES01-28-000; and

(l)      such other documents and records as I have deemed necessary for
         purposes of this opinion.

                                      B-3
<Page>

In rendering this opinion I have made the following assumptions, each without
any investigation or independent verification, except as otherwise noted, and my
opinion is subject to the qualifications set forth below.

I have assumed the genuineness of all signatures, the authenticity and
completeness of all documents, certificates and instruments submitted to me as
originals, the conformity with the originals of all documents, certificates and
instruments submitted to me as copies, the authenticity and completeness of such
underlying originals and the legal capacity of all individuals executing such
documents, certificates and instruments.

I have assumed that there are no oral modifications or written agreements or
understandings which limit, modify or otherwise alter the terms, provisions, and
conditions of, or relate to, the transactions contemplated by the Financing
Agreements.

As to matters of fact relevant or material to this opinion, I have relied
without independent investigation on, and assumed the accuracy and completeness
of, the Certificates and the representations and warranties of each party made
in the Financing Agreements. I have not made an investigation as to, and have
not independently verified, the facts underlying the matters covered by the
Certificates or such representations and warranties.

The phrases "to my knowledge," "known to me" and the like mean to my current
actual knowledge and the current actual knowledge of members of my staff who
have actively and directly participated in the negotiation and closing of, and
who devoted substantive attention to, the transactions contemplated by the
Financing Agreements. Where matters are stated to be "to my knowledge," "known
to me" or the like, my investigations consisted only of an inquiry of the
officers of the Company and the Trustees of the Trust, the results of which are
reflected in the Certificates, and a review of the Financing Agreements, and
known to me in my capacity as Vice President - Legal Administration of the
Company and by virtue of my representation of the Company and the Trust with
respect to the transactions contemplated by the Financing Agreements. I have not
made any investigation of other employees of the Company or the Trustees of the
Trust, of the Company's or the Trust's files or as to the facts underlying the
matters covered by the Certificates or the Financing Agreements.

I am a member of the Bar of the States of South Dakota and Nebraska, and my
opinions herein are limited to the laws of those States, the General Corporation
Law of the State of Delaware (based solely on my review of a standard
compilation of such laws) and the federal law of the United States, and I do not
express any opinion as to the laws of any other state or jurisdiction. No
opinion is expressed as to the effect that the law of any other jurisdiction
might have upon the subject matter of the opinions expressed herein under
conflicts of laws principles or otherwise. I express no opinion as to any
county, municipal, city, town or village ordinance, rule or regulation. Except
for my opinion in paragraph 13 hereof, I express no opinion herein with respect
to the application of or compliance with any federal or state securities or blue
sky laws or regulations (including, without limitation, any filing or notice
requirements thereunder), and for purposes of this opinion have assumed
compliance by all parties with such laws and regulations.

                                      B-4
<Page>

I express no opinion except as expressly set forth in the numbered paragraphs
below and no opinions shall be implied. I express no opinion as to environmental
laws, antitrust or unfair competition laws or the law of fiduciary duty, or the
rules and regulations promulgated thereunder. I disclaim any obligation to
update any of the opinions expressed herein for events (including changes of law
or fact) occurring after the date hereof.

Based upon and subject to the assumptions, exceptions, qualifications and
limitations set forth herein, I am of the opinion that:

1.       The Company has been duly incorporated and is validly existing as a
         corporation in good standing under the laws of the state of Delaware.

2.       The Company has all requisite corporate power and authority to own,
         lease and operate its properties and to conduct its business as
         described in the Prospectus and to enter into and perform its
         obligations under the Underwriting Agreement, the Declaration, the
         Indenture and the Guarantee Agreements.

3.       The Company is authorized as a domesticated foreign corporation to
         transact business, and is in good standing, in the State of Nebraska
         and is duly qualified as a foreign corporation to transact business and
         is in good standing in each jurisdiction in which such qualification is
         required, whether by reason of the ownership or leasing of property or
         the conduct of business, except where the failure so to qualify or to
         be in good standing would not result in a Material Adverse Effect.

4.       The authorized, issued and outstanding capital stock of the Company is
         as set forth in the Prospectus in the column entitled "Actual" under
         the caption "Capitalization" (except for the Company's issuance of 3.68
         million shares of common stock in October 2001 and subsequent
         issuances, if any, pursuant to the Underwriting Agreement, pursuant to
         reservations, agreements or employee benefit plans referred to in the
         Prospectus or pursuant to the exercise of convertible securities or
         options referred to in the Prospectus).

5.       Each Subsidiary has been duly organized or formed and is validly
         existing as a corporation or a limited partnership, as the case may be,
         in good standing under the laws of its jurisdiction of incorporation or
         organization, has corporate or partnership power and authority to own,
         lease and operate its properties and to conduct its business as
         described in the Prospectus and is duly qualified as a foreign
         corporation or limited partnership to transact business and is in good
         standing in each jurisdiction in which such qualification is required,
         whether by reason of the ownership or leasing of property or the
         conduct of business, except where the failure so to qualify or to be in
         good standing would not result in a Material Adverse Effect.

6.       Except as otherwise disclosed in the Registration Statement, all of the
         issued and outstanding shares of capital stock or partnership
         interests, as the case may be, of each Subsidiary have been duly
         authorized and validly issued, are fully paid and non-assessable and,
         based solely on a review of the limited partnership agreement of
         CornerStone, the stock ledger of each of the other Subsidiaries and the
         Certificates, to my knowledge, all of the capital stock or limited
         partnership interests, as the case may be, of

                                      B-5
<Page>

         each Subsidiary owned by the Company, directly or through subsidiaries,
         is owned free and clear of any security interest, mortgage, pledge,
         lien, encumbrance, claim or equity. None of the outstanding shares of
         capital stock or partnership interests of any Subsidiary was issued in
         violation of the preemptive or similar rights of any security holder of
         such Subsidiary.

7.       To my knowledge, neither the Company nor any Subsidiary is in violation
         of its charter or by-laws and no default by the Company or any
         Subsidiary exists in the due performance or observance of any material
         obligation, agreement, covenant or condition contained in any contract,
         indenture, mortgage, loan agreement, note, lease or other agreement or
         instrument that is described or referred to in the Registration
         Statement or the Prospectus or filed or incorporated by reference as an
         exhibit to the Registration Statement.

8.       The execution, delivery and performance of the Underwriting Agreement,
         the Declaration of Trust, the Indenture and the Guarantee Agreements
         and the consummation of the transactions contemplated thereunder and in
         the Registration Statement (including the issuance and sale of the
         Securities and the use of the proceeds from the sale of the Securities
         as described in the Prospectus under the caption "Use Of Proceeds") and
         compliance by the Company with its obligations thereunder do not and
         will not, whether with or without the giving of notice or lapse of time
         or both, violate or constitute a breach of, or default or Repayment
         Event (as defined in Section 1(a)(xvii) of the Underwriting Agreement)
         under, or result in the creation or imposition of any lien, charge or
         encumbrance upon any property or assets of the Company or any
         Subsidiary pursuant to, any material contract, indenture, mortgage,
         deed of trust, loan or credit agreement, note, lease or any other
         agreement or instrument, known to me, to which the Company or any
         Subsidiary is a party or by which it or any of them may be bound, or to
         which any of the property or assets of the Company or any Subsidiary is
         subject (except for such violations, breaches or defaults or Repayment
         Events or liens, charges or encumbrances that would not have a Material
         Adverse Effect).

9.       The FERC has issued appropriate authorizations with respect to the
         issuance of the Guarantees and the Debentures in accordance with the
         Indenture, the Preferred Securities Guarantee Agreement and the Common
         Securities Guarantee Agreement; to my knowledge, after due inquiry,
         such authorizations are in full force and effect and the issuance of
         the Guarantees and the Debentures are in conformity with the terms of
         such authorizations; and no other authorization, approval or consent or
         other action by or filing with any South Dakota, Nebraska or federal
         governmental authority or agency or, to my knowledge, any South Dakota,
         Nebraska or federal court, not already obtained, is legally required
         for the issuance and sale of the Securities as contemplated by the
         Financing Agreements, except such as may have been obtained under the
         1933 Act, the 1934 Act, the 1939 Act and such as may be required under
         state securities or blue sky laws (as to which I express no opinion).

10.      Except as disclosed in the Registration Statement, to my knowledge,
         there is not pending or overtly threatened any action, suit,
         proceeding, inquiry or investigation, to which the Company or any

                                      B-6
<Page>

         Subsidiary is a party, or to which the property of the Company or any
         Subsidiary is subject, before or brought by any court or governmental
         agency or body, domestic or foreign, which would result in a Material
         Adverse Effect, or which would materially and adversely affect the
         ability of the Company to consummate the transactions contemplated by
         the Underwriting Agreement.

11.      To my knowledge, there are no statutes or regulations that are required
         to be described in the Prospectus that are not described as required.

12.      To my knowledge, there are no material franchises, contracts,
         indentures, mortgages, loan agreements, notes, leases or other
         instruments required to be described or referred to in the Registration
         Statement or to be filed as exhibits thereto other than those described
         or referred to therein or filed or incorporated by reference as
         exhibits thereto, and insofar as any descriptions of such material
         franchises, contracts, indentures, mortgages, loan agreements, notes,
         leases or other instruments purport to constitute a summary of the
         terms thereof, such summaries are correct in all material respects.

13.      The documents incorporated by reference in the Prospectus (except for
         the financial statements, notes and schedules thereto, the other
         financial, accounting and statistical data derived from the internal
         financial records of the Company included or incorporated by reference
         therein or omitted therefrom and Exhibit 25 to the Registration
         Statement, as to which it is understood I express no opinion), when
         they were filed with the Commission, complied as to form in all
         material respects with the requirements of the 1933 Act or the 1934
         Act, as applicable, and the rules and regulations of the Commission
         thereunder.

I have participated in conferences with directors, officers and other
representatives of the Company, the trustees and other representatives of the
Trust, representatives of the independent public accountants for the Company and
the Trust, representatives of the Underwriters and representatives of counsel
for the Underwriters, at which conferences the contents of the Registration
Statement and the Prospectus and related matters were discussed and, although I
did not undertake to determine or verify independently and, therefore, am not
passing upon and do not assume any responsibility, explicitly or implicitly, for
the accuracy, completeness or fairness of the statements contained in the
Registration Statement or the Prospectus (except to the extent specified in
paragraph 12 above), no facts have come to my attention that have caused me to
believe that, the Registration Statement on the effective date thereof,
contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements contained
therein not misleading or that the Prospectus, on the date thereof or on the
date hereof, contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact required to be stated therein or
necessary to make the statements contained therein, in light of the
circumstances under which they were made, not misleading (it being understood
that I express no view with respect to the financial statements, notes and
schedules thereto, the other financial, accounting and statistical data derived
from the internal financial records of the Company included or incorporated by
reference therein or omitted therefrom and Exhibit 25 to the Registration
Statement).

The opinions and views expressed herein are solely for the information of the
addressee in connection with the transactions contemplated by the Financing
Agreements, and is not to be relied upon in any other context or by any other
person, firm or entity, or relied upon or quoted

                                      B-7
<Page>

in whole or part and not otherwise referred to for any other purpose, nor is it
to be delivered to, filed with, or furnished or disclosed to any governmental
agency or other person, firm or entity without my prior express written consent.

Sincerely,

                                      B-8

<PAGE>

                                                                       Exhibit C

                   FORM OF OPINION OF SPECIAL DELAWARE COUNSEL
                     FOR THE TRUST TO BE DELIVERED PURSUANT
                                 TO SECTION 5(c)

         (i) The Trust has been duly formed and is validly existing in good
standing as a business trust under the Delaware Act. All filings required under
the laws of the State of Delaware with respect to the formation and valid
existence of the Trust as a business trust have been made. Under the Declaration
and the Delaware Act, the Trust has the requisite business trust power and
authority to conduct its business, all as described in the Prospectus.

         (ii) The Declaration constitutes a legal, valid and binding obligation
of the Company and each of the Trustees, and is enforceable against the Company
and each of the Trustees, in accordance with its terms, except to the extent
that enforcement thereof may be limited by (i) bankruptcy, insolvency,
moratorium, receivership, reorganization, liquidation, fraudulent conveyance or
transfer and other similar laws relating to or affecting the rights and remedies
of creditors generally, (ii) principles of equity, including applicable law
relating to fiduciary duties (regardless of whether considered and applied in a
proceeding in equity or at law), and (iii) the effect of applicable public
policy on the enforceability of provisions relating to indemnification or
contribution.

         (iii) The Preferred Securities have been duly authorized by the
Declaration and, when issued, executed, authenticated, delivered and paid for in
accordance with the Declaration and the Purchase Agreement, will be validly
issued, fully paid and, subject to the qualifications set forth in paragraph
(iv) below, non-assessable undivided beneficial interests in the assets of the
Trust and will entitle the holders of the Preferred Securities to the benefits
of the Declaration except to the extent that enforcement of the Declaration may
be limited by (i) bankruptcy, insolvency, moratorium, receivership,
reorganization, liquidation, fraudulent conveyance or transfer and other similar
laws relating to or affecting the rights and remedies of creditors generally,
(ii) principles of equity, including applicable law relating to fiduciary duties
(regardless of whether considered and applied in a proceeding in equity or at
law), and (iii) the effect of applicable public policy on the enforceability of
provisions relating to indemnification or contribution. Under the Delaware Act
and the Declaration, the issuance of the Preferred Securities is not subject to
any preemptive or other similar rights.

         (iv) Under the Declaration and the Delaware Act, each Preferred
Security Holder of the Trust, in such capacity, will be entitled to the same
limitation on personal liability extended to stockholders of private
corporations for profit organized under the General Corporation Law of the State
of Delaware; provided, however, we express no opinion with respect to the
liability of any Preferred Security Holder who is, was or may become a named
Trustee of the Trust. Notwithstanding the foregoing, we note that, pursuant to
the Declaration, Preferred Security Holders may be obligated to make payments or
provide indemnity or security under the circumstances set forth therein.

                                       C-1
<PAGE>

         (v) The Common Securities have been duly authorized for issuance by the
Declaration and, when issued, executed, authenticated, delivered and paid for in
accordance with the Declaration and the Common Securities Subscription
Agreement, will be validly issued, fully paid undivided beneficial interests in
the assets of the Trust and will entitle the holders of the Common Securities to
the benefits of the Declaration except to the extent that enforcement of the
Declaration may be limited by (i) bankruptcy, insolvency, moratorium,
receivership, reorganization, liquidation, fraudulent conveyance or transfer and
other similar laws relating to or affecting the rights and remedies of creditors
generally, (ii) principles of equity, including applicable law relating to
fiduciary duties (regardless of whether considered and applied in a proceeding
in equity or at law), and (iii) the effect of applicable public policy on the
enforceability of provisions relating to indemnification or contribution. Under
the Delaware Act and the Declaration, the issuance of the Preferred Securities
is not subject to any preemptive or other similar rights.

         (vi) Under the Declaration and the Delaware Act, the Trust has the
requisite business trust power and authority to execute and deliver the Purchase
Agreement and to perform its obligations under the Purchase Agreement and to
consummate the transactions contemplated thereby. Under the Declaration and the
Delaware Act, the execution and delivery by the Trust of the Purchase Agreement,
and the performance of its obligations thereunder, have been duly authorized by
all requisite trust action on the part of the Trust.

         (vii) We have reviewed the statements made in the Prospectus under the
captions "The Trusts" and "NorthWestern Capital Financing III" and, insofar as
they contain statements of Delaware law, such statements are fairly presented.

         (viii) No authorization, approval, consent or order of any Delaware
court or Delaware governmental authority or Delaware agency is required to be
obtained by the Trust solely as a result of the issuance and sale of the Trust
Securities.

         (ix) The issuance and sale by the Trust of the Trust Securities, the
execution, delivery and performance by the Trust of the Purchase Agreement and
the Declaration and compliance by the Trust with its obligations thereunder do
not violate (i) any provisions of the Declaration or (ii) any applicable
Delaware law or Delaware administrative regulation.

                                       C-2<Page>

                                                                     Exhibit 4.4

                     SUBORDINATED DEBT SECURITIES INDENTURE
                 BETWEEN NORTHWESTERN PUBLIC SERVICE COMPANY AND
                   THE CHASE MANHATTAN BANK (N.A.) AS TRUSTEE

<Page>

                          CROSS-REFERENCE TABLE FOR THE
                     SUBORDINATED DEBT SECURITIES INDENTURE

<Table>
<Caption>
SECTION OF
TRUST INDENTURE
ACT OF 1939, AS AMENDED                                     SECTION OF INDENTURE
-----------------------                                     --------------------
<S>                                                               <C>
SECTION 310(a)(1)    . . . . . . . . . . . . . . . . . . . . . . . . . . 607
           (a)(2)    . . . . . . . . . . . . . . . . . . . . . . . . . . 607
           (a)(3)    . . . . . . . . . . . . . . . . . . . . . . .Not Applicable
           (a)(4)    . . . . . . . . . . . . . . . . . . . . . . .Not Applicable
           (b)       . . . . . . . . . . . . . . . . . . . . . . . . . . 608
SECTION 311(a)       . . . . . . . . . . . . . . . . . . . . . . . . . . 612
           (b)       . . . . . . . . . . . . . . . . . . . . . . . . . . 612
SECTION 312(a)       . . . . . . . . . . . . . . . . . . . . . . . . . . 701
           (b)       . . . . . . . . . . . . . . . . . . . . . . . . . . 701
           (c)       . . . . . . . . . . . . . . . . . . . . . . . . . . 701
SECTION 313(a)       . . . . . . . . . . . . . . . . . . . . . . . . . . 702
           (b)       . . . . . . . . . . . . . . . . . . . . . . . . . . 702
           (c)       . . . . . . . . . . . . . . . . . . . . . . . . . . 702
           (d)       . . . . . . . . . . . . . . . . . . . . . . . . . . 702
SECTION 314(a)       . . . . . . . . . . . . . . . . . . . . . . . . . . 703
           (b)       . . . . . . . . . . . . . . . . . . . . . . .Not Applicable
           (c)(1)    . . . . . . . . . . . . . . . . . . . . . . . . . . 102
           (c)(2)    . . . . . . . . . . . . . . . . . . . . . . . . . . 102
           (c)(3)    . . . . . . . . . . . . . . . . . . . . . . .Not Applicable
           (d)       . . . . . . . . . . . . . . . . . . . . . . .Not Applicable
           (e)       . . . . . . . . . . . . . . . . . . . . . . . . . . 102
SECTION 315(a)       . . . . . . . . . . . . . . . . . . . . . . . . . 601, 602
           (b)       . . . . . . . . . . . . . . . . . . . . . . . . . . 601
           (c)       . . . . . . . . . . . . . . . . . . . . . . . . . . 602
           (d)       . . . . . . . . . . . . . . . . . . . . . . . . . . 602
           (e)       . . . . . . . . . . . . . . . . . . . . . . . . . . 514
SECTION 316(a)(1)(A) . . . . . . . . . . . . . . . . . . . . . . . . . 502, 512
           (a)(1)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . 513
           (a)(2)    . . . . . . . . . . . . . . . . . . . . . . .Not Applicable
           (b)       . . . . . . . . . . . . . . . . . . . . . . . . . . 508
           (c)       . . . . . . . . . . . . . . . . . . . . . . . . . . 104(d)
SECTION 317(a)(1)    . . . . . . . . . . . . . . . . . . . . . . . . . . 503
           (a)(2)    . . . . . . . . . . . . . . . . . . . . . . . . . . 504
           (b)       . . . . . . . . . . . . . . . . . . . . . . . . . .1003
SECTION 318(a)       . . . . . . . . . . . . . . . . . . . . . . . . . . 107
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Recitals of the Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

                                   ARTICLE ONE

                       Definitions and Other Provisions of
                               General Application

SECTION 101.   Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 1
               Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
               Additional Amounts. . . . . . . . . . . . . . . . . . . . . . . 2
               Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
               Authenticating Agent. . . . . . . . . . . . . . . . . . . . . . 2
               Authorized Newspaper. . . . . . . . . . . . . . . . . . . . . . 2
               Board of Directors. . . . . . . . . . . . . . . . . . . . . . . 2
               Board Resolution. . . . . . . . . . . . . . . . . . . . . . . . 2
               Business Day. . . . . . . . . . . . . . . . . . . . . . . . . . 2
               CEDEL S.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . 2
               Commission. . . . . . . . . . . . . . . . . . . . . . . . . . . 3
               Common Depositary . . . . . . . . . . . . . . . . . . . . . . . 3
               Common Securities . . . . . . . . . . . . . . . . . . . . . . . 3
               Common Securities Guarantee . . . . . . . . . . . . . . . . . . 3
               Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
               Company Request; Company Order. . . . . . . . . . . . . . . . . 3
               Conversion Date . . . . . . . . . . . . . . . . . . . . . . . . 3
               Conversion Event. . . . . . . . . . . . . . . . . . . . . . . . 3
               Corporate Trust Office. . . . . . . . . . . . . . . . . . . . . 3
               Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . 3
               Currency. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
               Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
               Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . 4
               Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
               Defaulted Interest. . . . . . . . . . . . . . . . . . . . . . . 4
               Dollar; $ . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
               Dollar Equivalent of the Currency Unit. . . . . . . . . . . . . 4
               Dollar Equivalent of the Foreign Currency . . . . . . . . . . . 4
               ECU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
               Election Date . . . . . . . . . . . . . . . . . . . . . . . . . 4
               Euroclear . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
               European Communities. . . . . . . . . . . . . . . . . . . . . . 4
               European Monetary System. . . . . . . . . . . . . . . . . . . . 4
               Event of Default. . . . . . . . . . . . . . . . . . . . . . . . 4
               Exchange Date . . . . . . . . . . . . . . . . . . . . . . . . . 4
               Exchange Rate Agent . . . . . . . . . . . . . . . . . . . . . . 4
               Exchange Rate Officer's Certificate . . . . . . . . . . . . . . 4
               Federal Bankruptcy Code . . . . . . . . . . . . . . . . . . . . 5
</Table>

------------

Note:     This table of contents shall not, for any purpose, be deemed to be a
          part of this Indenture.

                                       -i-

<Page>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
               Foreign Currency. . . . . . . . . . . . . . . . . . . . . . . . 5
               Government Obligations. . . . . . . . . . . . . . . . . . . . . 5
               Guarantor . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
               Holder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
               Indenture . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
               Indexed Security. . . . . . . . . . . . . . . . . . . . . . . . 5
               Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
               Interest Payment Date . . . . . . . . . . . . . . . . . . . . . 6
               Market Exchange Rate. . . . . . . . . . . . . . . . . . . . . . 6
               Maturity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
               NWPS Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
               Officers' Certificate . . . . . . . . . . . . . . . . . . . . . 6
               Opinion of Counsel. . . . . . . . . . . . . . . . . . . . . . . 6
               Original Issue Discount Security. . . . . . . . . . . . . . . . 7
               Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 7
               Paying Agent. . . . . . . . . . . . . . . . . . . . . . . . . . 8
               Person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
               Place of Payment. . . . . . . . . . . . . . . . . . . . . . . . 8
               Predecessor Security. . . . . . . . . . . . . . . . . . . . . . 8
               Preferred Securities. . . . . . . . . . . . . . . . . . . . . . 8
               Preferred Securities Guarantee. . . . . . . . . . . . . . . . . 8
               Redemption Date . . . . . . . . . . . . . . . . . . . . . . . . 8
               Redemption Price. . . . . . . . . . . . . . . . . . . . . . . . 8
               Registered Security . . . . . . . . . . . . . . . . . . . . . . 8
               Regular Record Date . . . . . . . . . . . . . . . . . . . . . . 9
               Repayment Date. . . . . . . . . . . . . . . . . . . . . . . . . 9
               Repayment Price . . . . . . . . . . . . . . . . . . . . . . . . 9
               Responsible Officer . . . . . . . . . . . . . . . . . . . . . . 9
               Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
               Security Register; Security Registrar . . . . . . . . . . . . . 9
               Special Record Date . . . . . . . . . . . . . . . . . . . . . . 9
               Stated Maturity . . . . . . . . . . . . . . . . . . . . . . . . 9
               Subsidiary. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
               Trust Indenture Act . . . . . . . . . . . . . . . . . . . . . . 9
               Trust Securities. . . . . . . . . . . . . . . . . . . . . . . .10
               Trust Securities Guarantees . . . . . . . . . . . . . . . . . .10
               Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
               United States . . . . . . . . . . . . . . . . . . . . . . . . .10
               United States Person. . . . . . . . . . . . . . . . . . . . . .10
               Valuation Date. . . . . . . . . . . . . . . . . . . . . . . . .10
               Vice President. . . . . . . . . . . . . . . . . . . . . . . . .10
               Voting Stock. . . . . . . . . . . . . . . . . . . . . . . . . .10
               Yield to Maturity . . . . . . . . . . . . . . . . . . . . . . .10
SECTION 102.   Compliance Certificates and Opinions. . . . . . . . . . . . . .10
SECTION 103.   Form of Documents Delivered to Trustee. . . . . . . . . . . . .11
SECTION 104.   Acts of Holders . . . . . . . . . . . . . . . . . . . . . . . .11
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

                                      -ii-

<Page>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
SECTION 105.   Notices, etc. to Trustee and Company. . . . . . . . . . . . . .13
SECTION 106.   Notice to Holders; Waiver . . . . . . . . . . . . . . . . . . .13
SECTION 107.   Conflict with Trust Indenture Act . . . . . . . . . . . . . . .13
SECTION 108.   Effect of Headings and Table of Contents. . . . . . . . . . . .14
SECTION 109.   Successors and Assigns. . . . . . . . . . . . . . . . . . . . .14
SECTION 110.   Separability Clause . . . . . . . . . . . . . . . . . . . . . .14
SECTION 111.   Benefits of Indenture . . . . . . . . . . . . . . . . . . . . .14
SECTION 112.   Governing Law . . . . . . . . . . . . . . . . . . . . . . . . .14
SECTION 113.   Legal Holidays. . . . . . . . . . . . . . . . . . . . . . . . .14

                                   ARTICLE TWO

                                 Security Forms

SECTION 201.   Forms Generally . . . . . . . . . . . . . . . . . . . . . . . .15
SECTION 202.   Form of Trustee's Certificate of Authentication . . . . . . . .15
SECTION 203.   Securities Issuable in Global Form. . . . . . . . . . . . . . .15

                                  ARTICLE THREE

                                 The Securities

SECTION 301.   Amount Unlimited; Issuable in Series. . . . . . . . . . . . . .16
SECTION 302.   Denominations . . . . . . . . . . . . . . . . . . . . . . . . .19
SECTION 303.   Execution, Authentication, Delivery and Dating. . . . . . . . .20
SECTION 304.   Temporary Securities. . . . . . . . . . . . . . . . . . . . . .21
SECTION 305.   Registration of Transfer and Exchange . . . . . . . . . . . . .23
SECTION 306.   Mutilated, Destroyed, Lost and Stolen Securities. . . . . . . .25
SECTION 307.   Payment of Interest; Interest Rights Preserved;
               Optional Interest Reset . . . . . . . . . . . . . . . . . . . .26
SECTION 308.   Persons Deemed Owners . . . . . . . . . . . . . . . . . . . . .28
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

                                      -iii-

<Page>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
SECTION 309.   Cancellation. . . . . . . . . . . . . . . . . . . . . . . . . .28
SECTION 310.   Computation of Interest . . . . . . . . . . . . . . . . . . . .29
SECTION 311.   Currency and Manner of Payments in Respect of
               Securities. . . . . . . . . . . . . . . . . . . . . . . . . . .29
SECTION 312.   Appointment and Resignation of Successor Exchange
               Rate Agent. . . . . . . . . . . . . . . . . . . . . . . . . . .32

                                  ARTICLE FOUR

                           Satisfaction and Discharge

SECTION 401.   Satisfaction and Discharge of Indenture . . . . . . . . . . . .33
SECTION 402.   Application of Trust Money. . . . . . . . . . . . . . . . . . .34

                                  ARTICLE FIVE

                                    Remedies

SECTION 501.   Events of Default . . . . . . . . . . . . . . . . . . . . . . .35
SECTION 502.   Acceleration of Maturity; Rescission and Annulment. . . . . . .36
SECTION 503.   Collection of Indebtedness and Suits for Enforcement
               by Trustee. . . . . . . . . . . . . . . . . . . . . . . . . . .37
SECTION 504.   Trustee May File Proofs of Claim. . . . . . . . . . . . . . . .38
SECTION 505.   Trustee May Enforce Claims Without Possession of
               Securities. . . . . . . . . . . . . . . . . . . . . . . . . . .39
SECTION 506.   Application of Money Collected. . . . . . . . . . . . . . . . .39
SECTION 507.   Limitation on Suits . . . . . . . . . . . . . . . . . . . . . .39

SECTION 508.   Unconditional Right of Holders to Receive Principal,
               Premium and Interest. . . . . . . . . . . . . . . . . . . . . .40
SECTION 509.   Restoration of Rights and Remedies. . . . . . . . . . . . . . .40
SECTION 510.   Rights and Remedies Cumulative. . . . . . . . . . . . . . . . .41
SECTION 511.   Delay or Omission Not Waiver. . . . . . . . . . . . . . . . . .41
SECTION 512.   Control by Holders. . . . . . . . . . . . . . . . . . . . . . .41
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

                                      -iv-

<Page>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
SECTION 513.   Waiver of Past Defaults . . . . . . . . . . . . . . . . . . . .41

SECTION 514.   Undertaking for Costs . . . . . . . . . . . . . . . . . . . . .42
SECTION 515.   Waiver of Stay or Extension Laws. . . . . . . . . . . . . . . .42

                                   ARTICLE SIX

                                   The Trustee

SECTION 601.   Notice of Defaults. . . . . . . . . . . . . . . . . . . . . . .42
SECTION 602.   Certain Rights of Trustee . . . . . . . . . . . . . . . . . . .43
SECTION 603.   Trustee Not Responsible for Recitals or Issuance
               of Securities . . . . . . . . . . . . . . . . . . . . . . . . .44
SECTION 604.   May Hold Securities . . . . . . . . . . . . . . . . . . . . . .44
SECTION 605.   Money Held in Trust . . . . . . . . . . . . . . . . . . . . . .44
SECTION 606.   Compensation and Reimbursement. . . . . . . . . . . . . . . . .44
SECTION 607.   Corporate Trustee Required; Eligibility . . . . . . . . . . . .45
SECTION 608.   Resignation and Removal; Appointment of Successor . . . . . . .45
SECTION 609.   Acceptance of Appointment by Successor. . . . . . . . . . . . .47
SECTION 610.   Merger, Conversion, Consolidation or Succession
               to Business . . . . . . . . . . . . . . . . . . . . . . . . . .48
SECTION 611.   Appointment of Authenticating Agent . . . . . . . . . . . . . .48
SECTION 612.   Preferential Collection of Claims Against Company . . . . . . .50

                                  ARTICLE SEVEN

                Holders' Lists and Reports by Trustee and Company

SECTION 701.   Disclosure of Names and Addresses of Holders. . . . . . . . . .50
SECTION 702.   Reports by Trustee. . . . . . . . . . . . . . . . . . . . . . .50
SECTION 703.   Reports by Company. . . . . . . . . . . . . . . . . . . . . . .50
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

                                       -v-

<Page>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
                                  ARTICLE EIGHT

              Consolidation, Merger, Conveyance, Transfer or Lease

SECTION 801.   Company May Consolidate, etc., Only on Certain
               Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
SECTION 802.   Successor Person Substituted. . . . . . . . . . . . . . . . . .52
SECTION 803.   Assignment of Rights. . . . . . . . . . . . . . . . . . . . . .52

                                  ARTICLE NINE

                             Supplemental Indentures

SECTION 901.   Supplemental Indentures Without Consent of Holders. . . . . . .52
SECTION 902.   Supplemental Indentures with Consent of Holders . . . . . . . .53
SECTION 903.   Execution of Supplemental Indentures. . . . . . . . . . . . . .54
SECTION 904.   Effect of Supplemental Indentures . . . . . . . . . . . . . . .54
SECTION 905.   Conformity with Trust Indenture Act . . . . . . . . . . . . . .55
SECTION 906.   Reference in Securities to Supplemental Indentures. . . . . . .55
SECTION 907.   Notice of Supplemental Indentures . . . . . . . . . . . . . . .55

                                   ARTICLE TEN

                                    Covenants

SECTION 1001.  Payment of Principal, Premium, if any, and Interest . . . . . .55
SECTION 1002.  Maintenance of Office or Agency . . . . . . . . . . . . . . . .55
SECTION 1003.  Money for Securities Payments to Be Held in Trust . . . . . . .56
SECTION 1004.  Statement as to Compliance. . . . . . . . . . . . . . . . . . .57
SECTION 1005.  Additional Amounts. . . . . . . . . . . . . . . . . . . . . . .57
SECTION 1006.  Payment of Taxes and Other Claims . . . . . . . . . . . . . . .58
SECTION 1007.  Maintenance of Properties . . . . . . . . . . . . . . . . . . .59
SECTION 1008.  Corporate Existence . . . . . . . . . . . . . . . . . . . . . .59
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

                                      -vi-

<Page>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
SECTION 1009.  Limitation on Dividends; Transactions with
               Affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . .59

SECTION 1010.  Covenants as to NWPS Trusts . . . . . . . . . . . . . . . . . .60

                                 ARTICLE ELEVEN

                            Redemption of Securities

SECTION 1101.  Applicability of Article. . . . . . . . . . . . . . . . . . . .60
SECTION 1102.  Election to Redeem; Notice to Trustee . . . . . . . . . . . . .60
SECTION 1103.  Selection by Trustee of Securities to Be Redeemed . . . . . . .60
SECTION 1104.  Notice of Redemption. . . . . . . . . . . . . . . . . . . . . .61
SECTION 1105.  Deposit of Redemption Price . . . . . . . . . . . . . . . . . .61
SECTION 1106.  Securities Payable on Redemption Date . . . . . . . . . . . . .62
SECTION 1107.  Securities Redeemed in Part . . . . . . . . . . . . . . . . . .62

                                 ARTICLE TWELVE

                                  Sinking Funds

SECTION 1201.  Applicability of Article. . . . . . . . . . . . . . . . . . . .62
SECTION 1202.  Satisfaction of Sinking Fund Payments with
               Securities. . . . . . . . . . . . . . . . . . . . . . . . . . .63
SECTION 1203.  Redemption of Securities for Sinking Fund . . . . . . . . . . .63

                                ARTICLE THIRTEEN

                         Repayment at Option of Holders

SECTION 1301.  Applicability of Article. . . . . . . . . . . . . . . . . . . .64
SECTION 1302.  Repayment of Securities . . . . . . . . . . . . . . . . . . . .64
SECTION 1303.  Exercise of Option. . . . . . . . . . . . . . . . . . . . . . .65
SECTION 1304.  When Securities Presented for Repayment Become Due
               and Payable . . . . . . . . . . . . . . . . . . . . . . . . . .65
SECTION 1305.  Securities Repaid in Part . . . . . . . . . . . . . . . . . . .66
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

                                      -vii-

<Page>

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>            <C>                                                          <C>
                                ARTICLE FOURTEEN

                       Defeasance and Covenant Defeasance

SECTION 1401.  Company's Option to Effect Defeasance or Covenant
               Defeasance. . . . . . . . . . . . . . . . . . . . . . . . . . .66
SECTION 1402.  Defeasance and Discharge. . . . . . . . . . . . . . . . . . . .66
SECTION 1403.  Covenant Defeasance . . . . . . . . . . . . . . . . . . . . . .66
SECTION 1404.  Conditions to Defeasance or Covenant Defeasance . . . . . . . .67
SECTION 1405.  Deposited Money and Government Obligations to Be
               Held in Trust; Other Miscellaneous Provisions . . . . . . . . .69
SECTION 1406.  Reinstatement.. . . . . . . . . . . . . . . . . . . . . . . . .69
               TESTIMONIUM . . . . . . . . . . . . . . . . . . . . . . . . . .71

SIGNATURES AND SEAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
</Table>

-----------------

Note:     This Cross-Reference Table shall not, for any purpose, be deemed to be
          a part of the Indenture.

                                     -viii-

<Page>

                     SUBORDINATED DEBT SECURITIES INDENTURE
                 BETWEEN NORTHWESTERN PUBLIC SERVICE COMPANY AND
                   THE CHASE MANHATTAN BANK (N.A.) AS TRUSTEE

INDENTURE, dated as of August 1, 1995, between Northwestern Public Service
Company, a corporation duly organized and existing under the laws of the State
of Delaware (the "Company") having its principal office at 33 Third Street,
S.E., Huron, South Dakota 57350, and The Chase Manhattan Bank (N.A.), a national
banking association duly organized and existing under the laws of the United
States, as Trustee (the "Trustee").

                             RECITALS OF THE COMPANY

The Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its unsecured debentures, notes or
other evidences of indebtedness (the "Securities"), to be issued in one or more
series as in this Indenture provided. This Indenture is subject to the
provisions of the Trust Indenture Act of 1939, as amended, that are required to
be part of this Indenture and shall, to the extent applicable, be governed by
such provisions. All things necessary to make this Indenture a valid agreement
of the Company, in accordance with its terms, have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

For and in consideration of the premises and the purchase of the Securities by
the Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders of the Securities or of any series thereof,
as follows:

                                   ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101.   Definitions.

For all purposes of this Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

     (1)  the terms defined in this Article have the meanings assigned to them
          in this Article and include the plural as well as the singular;

     (2)  all other terms used herein which are defined in the Trust Indenture
          Act, either directly or by reference therein, have the meanings
          assigned to them therein, and the terms "cash transaction" and
          "self-liquidating paper", as used in TIA Section 311, shall have the
          meanings assigned to them in the rules of the Commission adopted under
          the Trust Indenture Act;

     (3)  all accounting terms not otherwise defined herein have the meanings
          assigned to them in accordance with United States generally accepted
          accounting principles, and, except as otherwise herein expressly
          provided, the term "generally accepted accounting principles" with
          respect to any computation required or permitted hereunder shall mean

<Page>

          such accounting principles as are generally accepted at the date of
          such computation; and

     (4)  the words "herein", "hereof" and "hereunder" and other words of
          similar import refer to this Indenture as a whole and not to any
          particular Article, Section or other subdivision.

Certain terms, used principally in Article Three, are defined in that Article.
"Act", when used with respect to any Holder, has the meaning specified in
Section 104.

"Additional Amounts" has the meaning specified in Section 1005.

"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" of any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

"Authenticating Agent" means any Person authorized by the Trustee pursuant to
Section 611 to act on behalf of the Trustee to authenticate Securities.
"Authorized Newspaper" means a newspaper, in the English language or in an
official language of the country of publication, customarily published on each
Business Day, whether or not published on Saturdays, Sundays or holidays, and of
general circulation in each place in connection with which the term is used or
in the financial community of each such place. Where successive publications are
required to be made in Authorized Newspapers, such publications may be made in
the same or in different newspapers in the same city meeting the foregoing
requirements and in each case on any Business Day.

"Board of Directors" means either the board of directors of the Company or any
duly authorized committee of such board.

"Board Resolution" means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification,
and delivered to the Trustee.

"Business Day", when used with respect to any Place of Payment or any other
particular location referred to in this Indenture or in the Securities, means,
unless otherwise specified with respect to any Securities pursuant to Section
301, each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in that Place of Payment or other location are
authorized or obligated by law or executive order to close.

"CEDEL S.A." means Cedel, S.A., or its successor.

                                       -2-

<Page>

"Commission" means the Securities and Exchange Commission, as from time to time
constituted, created under the Securities Exchange Act of 1934, as amended, or,
if at any time after the execution of this Indenture such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

"Common Depositary" has the meaning specified in Section 304.

"Common Securities" means undivided beneficial interests in the assets of a NWPS
Trust which rank pari passu with Preferred Securities issued by such NWPS Trust;
provided, however, that upon the occurrence of an Event of Default, the rights
of holders of Common Securities to payment in respect to distributions and
payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of Preferred Securities.

"Common Securities Guarantee" means any Guarantee that the Company enters into
that operates directly or indirectly for the benefit of holders of Common
Securities of a NWPS Trust.

"Company" means the Person named as the "Company" in the first paragraph of this
Indenture until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Company" shall mean
such successor Person.

"Company Request" or "Company Order" means a written request or order signed in
the name of the Company by its Chairman, its President, any Vice President, its
Treasurer or an Assistant Treasurer, and delivered to the Trustee.

"Conversion Date" has the meaning specified in Section 312(d).

"Conversion Event" means the cessation of use of (i) a Foreign Currency both by
the government of the country which issued such Currency and by a central bank
or other public institution of or within the international banking community for
the settlement of transactions, (ii) the ECU both within the European Monetary
System and for the settlement of transactions by public institutions of or
within the European Communities or (iii) any currency unit (or composite
currency) other than the ECU for the purposes for which it was established.

"Corporate Trust Office" means the principal corporate trust office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office on the date of execution of this Indenture is located
at 4 Chase MetroTech Center, Brooklyn, New York 11245, except that with respect
to presentation of Securities for payment or for registration of transfer or
exchange, such term shall mean the office or agency of the Trustee at which, at
any particular time, its corporate agency business shall be conducted.

"Corporation" includes corporations, associations, companies and business
trusts.

"Currency" means any currency or currencies, composite currency or currency unit
or currency units, including, without limitation, the ECU, issued by the
government of one or more countries or by any recognized confederation or
association of such governments.

                                       -3-

<Page>

"Debt" means notes, bonds, debentures or other similar evidences of indebtedness
for money borrowed.

"Declaration" means, in respect of a NWPS Trust, the amended and restated
declaration of trust of such NWPS Trust or any other governing instrument of
such NWPS Trust.

"Default" means any event which is, or after notice or passage of time or both
would be, an Event of Default.

"Defaulted Interest" has the meaning specified in Section 307.

"Dollar" or "$" means a dollar or other equivalent unit in such coin or currency
of the United States of America as at the time shall be legal tender for the
payment of public and private debts.

"Dollar Equivalent of the Currency Unit" has the meaning specified in Section
312(g).

"Dollar Equivalent of the Foreign Currency" has the meaning specified in Section
312(f).

"ECU" means the European Currency Unit as defined and revised from time to time
by the Council of the European Communities.

"Election Date" has the meaning specified in Section 312(h).

"Euroclear" means Morgan Guaranty Trust Company of New York, Brussels Office, or
its successor as operator of the Euroclear System.

"European Communities" means the European Economic Community, the European Coal
and Steel Community and the European Atomic Energy Community.

"European Monetary System" means the European Monetary System established by
the Resolution of December 5, 1978 of the Council of the European Communities.

"Event of Default" has the meaning specified in Section 501.

"Exchange Date" has the meaning specified in Section 304.

"Exchange Rate Agent" means, with respect to Securities of or within any series,
unless otherwise specified with respect to any Securities pursuant to Section
301, a New York Clearing House bank, designated pursuant to Section 301 or
Section 313.

"Exchange Rate Officer's Certificate" means a tested telex or a certificate
setting forth (i) the applicable Market Exchange Rate and (ii) the Dollar or
Foreign Currency amounts of principal (and premium, if any) and interest, if any
(on an aggregate basis and on the basis of a Security having the lowest
denomination principal amount determined in accordance with Section 302 in the
relevant Currency), payable with respect to a Security of any series on the
basis of such Market Exchange Rate, sent (in the case of a telex) or signed (in
the case of a certificate) by the Treasurer, any Vice President or any Assistant
Treasurer of the Company.

                                       -4-

<Page>

"Federal Bankruptcy Code" means the Bankruptcy Act of Title 11 of the United
States Code, as amended from time to time.

"Foreign Currency" means any Currency other than Currency of the United States.

"Government Obligations" means, unless otherwise specified with respect to any
series of Securities pursuant to Section 301, securities which are (i) direct
obligations of the government which issued the Currency in which the Securities
of a particular series are payable or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the government which
issued the Currency in which the Securities of such series are payable, the
payment of which is unconditionally guaranteed by such government, which, in
either case, are full faith and credit obligations of such government payable in
such Currency and are not callable or redeemable at the option of the issuer
thereof and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such Government Obligation or a
specific payment of interest on or principal of any such Government Obligation
held by such custodian for the account of the holder of a depository receipt;
provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository
receipt from any amount received by the custodian in respect of the Government
Obligation or the specific payment of interest or principal of the Government
Obligation evidenced by such depository receipt.

"Guarantor" means Northwestern Public Service Company, a Delaware corporation.
"Holder" means, in the case of a Registered Security, the Person in whose name a
Security is registered in the Security Register.

"Indenture" means this instrument as originally executed and as it may from time
to time be supplemented or amended by one or more indentures supplemental hereto
entered into pursuant to the applicable provisions hereof, and shall include the
terms of particular series of Securities established as contemplated by Section
301; provided, however, that, if at any time more than one Person is acting as
Trustee under this instrument, "Indenture" shall mean, with respect to any one
or more series of Securities for which such Person is Trustee, this instrument
as originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of particular series of
Securities for which such Person is Trustee established as contemplated by
Section 301, exclusive, however, of any provisions or terms which relate solely
to other series of Securities for which such Person is not Trustee, regardless
of when such terms or provisions were adopted, and exclusive of any provisions
or terms adopted by means of one or more indentures supplemental hereto executed
and delivered after such Person had become such Trustee but to which such
Person, as such Trustee, was not a party.

"Indexed Security" means a Security the terms of which provide that the
principal amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.

"Interest", when used with respect to an Original Issue Discount Security which
by its terms bears interest only after Maturity, means interest payable after
Maturity at the rate prescribed in such Original Issue Discount Security.

                                       -5-

<Page>

"Interest Payment Date", when used with respect to any Security, means the
Stated Maturity of an installment of interest on such Security.

"Market Exchange Rate" means, unless otherwise specified with respect to any
Securities pursuant to Section 301, (i) for any conversion involving a
currency unit on the one hand and Dollars or any Foreign Currency on the
other, the exchange rate between the relevant currency unit and Dollars or
such Foreign Currency calculated by the method specified pursuant to Section
301 for the Securities of the relevant series, (ii) for any conversion of
Dollars into any Foreign Currency, the noon (New York City time) buying rate
for such Foreign Currency for cable transfers quoted in New York City as
certified for customs purposes by the Federal Reserve Bank of New York and
(iii) for any conversion of one Foreign Currency into Dollars or another
Foreign Currency, the spot rate at noon local time in the relevant market at
which, in accordance with normal banking procedures, the Dollars or Foreign
Currency into which conversion is being made could be purchased with the
Foreign Currency from which conversion is being made from major banks located
in either New York City, London or any other principal market for Dollars or
such purchased Foreign Currency, in each case determined by the Exchange Rate
Agent. Unless otherwise specified with respect to any Securities pursuant to
Section 301, in the event of the unavailability of any of the exchange rates
provided for in the foregoing clauses (i), (ii) and (iii), the Exchange Rate
Agent shall use, in its sole discretion and without liability on its part,
such quotation of the Federal Reserve Bank of New York as of the most recent
available date, or quotations from one or more major banks in New York City,
London or another principal market for the Currency in question, or such
other quotations as the Exchange Rate Agent shall deem appropriate. Unless
otherwise specified by the Exchange Rate Agent, if there is more than one
market for dealing in any Currency by reason of foreign exchange regulations
or otherwise, the market to be used in respect of such Currency shall be that
upon which a non-resident issuer of securities designated in such Currency
would purchase such Currency in order to make payments in respect of such
securities.

"Maturity", when used with respect to any Security, means the date on which the
principal of such Security or an installment of principal becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, notice of redemption, notice of option to elect
repayment or otherwise.

"NWPS Trust" means each of NWPS Capital Financing I, NWPS Capital Financing II,
NWPS Capital Financing III, each a Delaware statutory business trust. "Officers'
Certificate" means a certificate signed by the Chairman, the President or a Vice
President, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary of the Company, and delivered to the Trustee.

"Opinion of Counsel" means a written opinion of counsel, who may be counsel for
the Company, including an employee of the Company.

"Original Issue Discount Security" means any Security which provides for an
amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502.

"Outstanding", when used with respect to Securities, means, as of the date of
determination, all Securities theretofore authenticated and delivered under this
Indenture except:

                                       -6-

<Page>

     (i)    Securities theretofore canceled by the Trustee or delivered to the
            Trustee for cancellation;

     (ii)   Securities, or portions thereof, for whose payment or redemption or
            repayment at the option of the Holder money in the necessary amount
            has been theretofore deposited with the Trustee or any Paying Agent
            (other than the Company) in trust or set aside and segregated in
            trust by the Company (if the Company shall act as its own Paying
            Agent) for the Holders of such Securities and any coupons
            appertaining thereto; provided that, if such Securities are to be
            redeemed, notice of such redemption has been duly given pursuant to
            this Indenture or provision therefor satisfactory to the Trustee has
            been made;

     (iii)  Securities, except to the extent provided in Sections 1402 and 1403,
            with respect to which the Company has effected defeasance and/or
            covenant defeasance as provided in Article Fourteen; and

     (iv)   Securities which have been paid pursuant to Section 306 or in
            exchange for or in lieu of which other Securities have been
            authenticated and delivered pursuant to this Indenture, other than
            any such Securities in respect of which there shall have been
            presented to the Trustee proof satisfactory to it that such
            Securities are held by a bona fide purchaser in whose hands such
            Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders for quorum purposes, and for the purpose of making the
calculations required by TIA Section 313, (i) the principal amount of an
Original Issue Discount Security that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding for such
purpose shall be equal to the amount of principal thereof that would be (or
shall have been declared to be) due and payable, at the time of such
determination, upon a declaration of acceleration of the maturity thereof
pursuant to Section 502, (ii) the principal amount of any Security denominated
in a Foreign Currency that may be counted in making such determination or
calculation and that shall be deemed Outstanding for such purpose shall be equal
to the Dollar equivalent, determined as of the date such Security is originally
issued by the Company as set forth in an Exchange Rate Officer's Certificate
delivered to the Trustee, of the principal amount (or, in the case of an
Original Issue Discount Security, the Dollar equivalent as of such date of
original issuance of the amount determined as provided in clause (i) above), of
such Security, (iii) the principal amount of any Indexed Security that may be
counted in making such determination or calculation and that shall be deemed
outstanding for such purpose shall be equal to the principal face amount of such
Indexed Security at original issuance, unless otherwise provided with respect to
such Security pursuant to Section 301, and (iv) Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in making such
calculation or in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which the Trustee knows to
be so owned shall be so disregarded. Securities so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities

                                       -7-

<Page>

and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or such other obligor.

"Paying Agent" means any Person (including the Company acting as Paying Agent)
authorized by the Company to pay the principal of (or premium, if any, on) or
interest on any Securities on behalf of the Company.

"Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

"Place of Payment" means, when used with respect to the Securities of or within
any series, the place or places where the principal of (and premium, if any, on)
and interest on such Securities are payable as specified as contemplated by
Sections 301 and 1002.

"Predecessor Security" of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security. "Preferred
Securities" means undivided beneficial interests in the assets of a NWPS Trust
which rank pari passu with Common Securities issued by such NWPS Trust;
provided, however, that upon the occurrence of an Event of Default, the rights
of holders of Common Securities to payment in respect of distributions and
payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of Preferred Securities.

"Preferred Securities Guarantee" means any Guarantee that the Guarantor may
enter into with Wilmington Trust Company, as trustee of a NWPS Trust, or other
Persons, that operate directly or indirectly for the benefit of holders of
Preferred Securities of such NWPS Capital Trust.

"Redemption Date", when used with respect to any Security to be redeemed, in
whole or in part, means the date fixed for such redemption by or pursuant to
this Indenture.

"Redemption Price", when used with respect to any Security to be redeemed, means
the price at which it is to be redeemed pursuant to this Indenture. "Registered
Security" means any Security registered in the Security Register.

"Regular Record Date" for the interest payable on any Interest Payment Date on
the Registered Securities of or within any series means the date specified for
that purpose as contemplated by Section 301.

"Repayment Date" means, when used with respect to any Security to be repaid at
the option of the Holder, the date fixed for such repayment pursuant to this
Indenture.

                                       -8-

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"Repayment Price" means, when used with respect to any Security to be repaid at
the option of the Holder, the price at which it is to be repaid pursuant to this
Indenture.

"Responsible Officer", when used with respect to the Trustee, means the chairman
or any vice-chairman of the board of directors, the chairman or any
vice-chairman of the executive committee of the board of directors, the chairman
of the trust committee, the president, or any vice president, secretary, any
assistant secretary, treasurer, any assistant treasurer, cashier, any assistant
cashier, any trust officer or assistant trust officer, the controller or any
assistant controller within the corporate trust administration division or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above-designated officers, and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of his knowledge of and familiarity with the particular
subject.

"Securities" has the meaning stated in the first recital of this Indenture and
more particularly means any Securities authenticated and delivered under this
Indenture; provided, however, that if at any time there is more than one Person
acting as Trustee under this Indenture, "Securities" with respect to the
Indenture as to which such Person is Trustee shall have the meaning stated in
the first recital of this Indenture and shall more particularly mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.

"Security Register" and "Security Registrar" have the respective meanings
specified in Section 305.

"Special Record Date" for the payment of any Defaulted Interest on the
Registered Securities of or within any series means a date fixed by the Trustee
pursuant to Section 307.

"Stated Maturity", when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such Security
as the fixed date on which the principal of such Security or such installment of
principal or interest is due and payable, as such date may be extended pursuant
to the provisions of Section 308.

"Subsidiary" means any corporation of which at the time of determination the
Company, directly and/or indirectly through one or more Subsidiaries, owns 50%
or more of the shares of Voting Stock.

"Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as in force
at the date as of which this Indenture was executed, except as provided in
Section 905.

"Trust Securities" means Common Securities and Preferred Securities. "Trust
Securities Guarantees" means the Common Securities Guarantee and the Preferred
Securities Guarantee.

"Trustee" means the Person named as the "Trustee" in the first paragraph of this
Indenture until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Trustee" shall mean or
include each Person who is then a Trustee hereunder; provided, however, that if
at any time there is more than one such Person, "Trustee" as used with respect
to the Securities of any series shall mean only the Trustee with respect to
Securities of that series.

                                       -9-

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"United States" means, unless otherwise specified with respect to any Securities
pursuant to Section 301, the United States of America (including the states and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction.

"United States person" means, unless otherwise specified with respect to any
Securities pursuant to Section 301, an individual who is a citizen or resident
of the United States, a corporation, partnership or other entity created or
organized in or under the laws of the United States or an estate or trust the
income of which is subject to United States federal income taxation regardless
of its source.

"Valuation Date" has the meaning specified in Section 312(c).

"Vice President", when used with respect to the Company or the Trustee, means
any vice president, whether or not designated by a number or a word or words
added before or after the title "vice president".

"Voting Stock" means stock of the class or classes having general voting power
under ordinary circumstances to elect at least a majority of the board of
directors, managers or trustees of a corporation (irrespective of whether or not
at the time stock of any other class or classes shall have or might have voting
power by reason of the happening of any contingency).

"Yield to Maturity" means the yield to maturity, computed at the time of
issuance of a Security (or, if applicable, at the most recent redetermination of
interest on such Security) and as set forth in such Security in accordance with
generally accepted United States bond yield computation principles.

SECTION 102. Compliance Certificates and Opinions.

Upon any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee
an Officers' Certificate stating that all conditions precedent, if any, provided
for in this Indenture (including any covenant compliance with which constitutes
a condition precedent) relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished. Every certificate or opinion with respect to compliance with a
covenant or condition provided for in this Indenture (other than pursuant to
Section 1004) shall include: (1) a statement that each individual signing such
certificate or opinion has read such covenant or condition and the definitions
herein relating thereto; (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; (3) a statement that, in the opinion of
each such individual, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not such
covenant or condition has been complied with; and (4) a statement as to whether,
in the opinion of each such individual, such covenant or condition has been
complied with.

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SECTION 103.  Form of Documents Delivered to Trustee.

In any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents. Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to the matters
upon which his certificate or opinion is based are erroneous. Any such
certificate or Opinion of Counsel may be based, insofar as it relates to factual
matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information with respect to such
factual matters is in the possession of the Company, unless such counsel knows,
or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to such matters are erroneous. Where any
Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument.

SECTION 104.  Acts of Holders.

     (a)    Any request, demand, authorization, direction, notice, consent,
            waiver or other action provided by this Indenture to be given or
            taken by Holders of the Outstanding Securities of all series or one
            or more series, as the case may be, may be embodied in and evidenced
            by one or more instruments of substantially similar tenor signed by
            such Holders in person or by agents duly appointed in writing.
            Except as herein otherwise expressly provided, such action shall
            become effective when such instrument or instruments are delivered
            to the Trustee and, where it is hereby expressly required, to the
            Company.  Such instrument or instruments (and the action embodied
            therein and evidenced thereby) are herein sometimes referred to as
            the "Act" of the Holders signing such instrument or instruments.
            Proof of execution of any such instrument or of a writing appointing
            any such agent, or of the holding by any Person of a Security, shall
            be sufficient for any purpose of this Indenture and conclusive in
            favor of the Trustee and the Company, if made in the manner provided
            in this Section.

     (b)    The fact and date of the execution by any Person of any such
            instrument or writing may be proved by the affidavit of a witness of
            such execution or by a certificate of a notary public or other
            officer authorized by law to take acknowledgments of deeds,
            certifying that the individual signing such instrument or writing
            acknowledged to him the execution thereof.  Where such execution is
            by a signer acting in a capacity other than his individual capacity,
            such certificate or affidavit shall also constitute sufficient proof
            of authority.  The fact and date of the execution of any such
            instrument or writing, or the authority of the Person executing the
            same, may also be proved in any other manner which the Trustee deems
            sufficient.

     (c)    The principal amount and serial numbers of Registered Securities
            held by any Person, and the date of holding the same, shall be
            proved by the Security Register.

                                      -11-

<Page>

     (d)    If the Company shall solicit from the Holders of Registered
            Securities any request, demand, authorization, direction, notice,
            consent, waiver or other Act, the Company may, at its option, by or
            pursuant to a Board Resolution, fix in advance a record date for the
            determination of Holders entitled to give such request, demand,
            authorization, direction, notice, consent, waiver or other Act, but
            the Company shall have no obligation to do so.  Notwithstanding TIA
            Section 316(c), such record date shall be the record date specified
            in or pursuant to such Board Resolution, which shall be a date not
            earlier than the date thirty (30) days prior to the first
            solicitation of Holders generally in connection therewith and not
            later than the date such solicitation is completed. If such a record
            date is fixed, such request, demand, authorization, direction,
            notice, consent, waiver or other Act may be given before or after
            such record date, but only the Holders of record at the close of
            business on such record date shall be deemed to be Holders for the
            purposes of determining whether Holders of the requisite proportion
            of Outstanding Securities have authorized or agreed or consented to
            such request, demand, authorization, direction, notice, consent,
            waiver or other Act, and for that purpose the Outstanding Securities
            shall be computed as of such record date; provided that no such
            authorization, agreement or consent by the Holders on such record
            date shall be deemed effective unless it shall become effective
            pursuant to the provisions of this Indenture not later than eleven
            months after the record date.

     (e)    Any request, demand, authorization, direction, notice, consent,
            waiver or other Act of the Holder of any Security shall bind every
            future Holder of the same Security and the Holder of every Security
            issued upon the registration of transfer thereof or in exchange
            therefor or in lieu thereof in respect of anything done, omitted or
            suffered to be done by the Trustee or the Company in reliance
            thereon, whether or not notation of such action is made upon such
            Security.

SECTION 105. Notices, etc. to Trustee and Company.

Any request, demand, authorization, direction, notice, consent, waiver or Act of
Holders or other documents provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with, (1) the Trustee by any Holder or by
the Company shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Trustee at its Corporate Trust
Office, Attention: Corporate Trust Administration Division, or (2) the Company
by the Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of
its principal office specified in the first paragraph of this Indenture or at
any other address previously furnished in writing to the Trustee by the Company.

SECTION 106. Notice to Holders; Waiver.

Where this Indenture provides for notice of any event to Holders of Registered
Securities by the Company or the Trustee, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each such Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders of Registered Securities is given by
mail, neither the failure to mail such notice, nor any defect in any

                                      -12-

<Page>

notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders of Registered Securities. Any notice mailed
to a Holder in the manner herein prescribed shall be conclusively deemed to have
been received by such Holder, whether or not such Holder actually receives such
notice. In case, by reason of the suspension of or irregularities in regular
mail service or by reason of any other cause, it shall be impractical to mail
notice of any event to Holders of Registered Securities when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be
deemed to be sufficient giving of such notice for every purpose hereunder. Any
request, demand, authorization, direction, notice, consent or waiver required or
permitted under this Indenture shall be in the English language, except that any
published notice may be in an official language of the country of publication.
Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

SECTION 107. Conflict with Trust Indenture Act.

If any provision hereof limits, qualifies or conflicts with a provision of the
Trust Indenture Act that is required under such Act to be a part of and govern
this Indenture, the latter provision shall control. If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act that may
be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be. SECTION
108. Effect of Headings and Table of Contents.

The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof. SECTION 109.
Successors and Assigns.

All covenants and agreements in this Indenture by the Company shall bind its
successors and assigns, whether so expressed or not.

SECTION 110. Separability Clause.

In case any provision in this Indenture or in any Security or coupon shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.
SECTION 111. Benefits of Indenture.

Nothing in this Indenture or in the Securities, express or implied, shall give
to any Person, other than the parties hereto, any Authenticating Agent, any
Paying Agent, any Securities Registrar and their successors hereunder and the
Holders of Securities, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

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SECTION 112. Governing Law.

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK. THIS INDENTURE IS SUBJECT TO
THE PROVISIONS OF THE TRUST INDENTURE ACT OF 1939, AS AMENDED, THAT ARE REQUIRED
TO BE PART OF THIS INDENTURE AND SHALL, TO THE EXTENT APPLICABLE, BE GOVERNED BY
SUCH PROVISIONS.

SECTION 113. Legal Holidays.

In any case where any Interest Payment Date, Redemption Date or Stated Maturity
or Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of any Security
other than a provision in the Securities of any series which specifically states
that such provision shall apply in lieu of this Section) payment of interest or
principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date
or Redemption Date, or at the Stated Maturity or Maturity; provided that no
interest shall accrue for the period from and after such Interest Payment Date,
Redemption Date, Stated Maturity or Maturity, as the case may be.

                                   ARTICLE TWO

                                 SECURITY FORMS

SECTION 201. Forms Generally.

The Registered Securities, if any, of each series shall be in substantially the
form as shall be established by or pursuant to a Board Resolution or in one or
more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities.
If the forms of Securities of any series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such
Securities. Any portion of the text of any Security may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of the
Security. The Trustee's certificate of authentication on all Securities shall be
in substantially the form set forth in this Article. The definitive Securities
shall be printed, lithographed or engraved on steel-engraved borders or may be
produced in any other manner, all as determined by the officers of the Company
executing such Securities, as evidenced by their execution of such Securities.

SECTION 202. Form of Trustee's Certificate of Authentication. Subject to Section
611, the Trustee's certificate of authentication shall be in substantially the
following form:

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<Page>

This is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.

                                   The Chase Manhattan Bank (N.A.),
                                   as Trustee

                                   By:
                                        Authorized Officer

SECTION 203. Securities Issuable in Global Form.

If Securities of or within a series are issuable in global form, as specified as
contemplated by Section 301, then, notwithstanding clause (10) of Section 301,
any such Security shall represent such of the Outstanding Securities of such
series as shall be specified therein and may provide that it shall represent the
aggregate amount of Outstanding Securities of such series from time to time
endorsed thereon and that the aggregate amount of Outstanding Securities of such
series represented thereby may from time to time be increased or decreased to
reflect exchanges. Any endorsement of a Security in global form to reflect the
amount, or any increase or decrease in the amount, of Outstanding Securities
represented thereby shall be made by the Trustee in such manner and upon
instructions given by such Person or Persons as shall be specified therein or in
the Company Order to be delivered to the Trustee pursuant to Section 303 or
Section 304. Subject to the provisions of Section 303 and, if applicable,
Section 304, the Trustee shall deliver and redeliver any Security in permanent
global form in the manner and upon instructions given by the Person or Persons
specified therein or in the applicable Company Order. If a Company Order
pursuant to Section 303 or Section 304 has been, or simultaneously is,
delivered, any instructions by the Company with respect to endorsement or
delivery or redelivery of a Security in global form shall be in writing but need
not comply with Section 102 and need not be accompanied by an Opinion of
Counsel. The provisions of the last sentence of Section 303 shall apply to any
Security represented by a Security in global form if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence
of Section 303. Notwithstanding the provisions of Section 307, unless otherwise
specified as contemplated by Section 301, payment of principal of and any
premium and interest on any Security in permanent global form shall be made to
the Person or Persons specified therein. Notwithstanding the provisions of
Section 309 and except as provided in the preceding paragraph, the Company, the
Trustee and any agent of the Company and the Trustee shall treat as the Holder
of such principal amount of Outstanding Securities represented by a permanent
global Security in the case of a permanent global Security in registered form,
the Holder of such permanent global Security in registered form.

                                  ARTICLE THREE
                                 THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

The aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in one
or more series. There shall be established in

                                      -15-

<Page>

one or more Board Resolutions or pursuant to authority granted by one or more
Board Resolutions and, subject to Section 303, set forth in, or determined in
the manner provided in, an Officers' Certificate, or established in one or more
indentures supplemental hereto, prior to the issuance of Securities of any
series, any or all of the following, as applicable (each of which (except for
the matters set forth in clauses (1), (2) and (19) below), if so provided, may
be determined from time to time by the Company with respect to unissued
Securities of the series and set forth in such Securities of the series when
issued from time to time):

     (1)    the title of the Securities of the series (which shall distinguish
            the Securities of the series from all other series of Securities);

     (2)    any limit upon the aggregate principal amount of the Securities of
            the series that may be authenticated and delivered under this
            Indenture (except for Securities authenticated and delivered upon
            registration of transfer of, or in exchange for, or in lieu of,
            other Securities of the series pursuant to Section 304, 305, 306,
            906, 1107 or 1305);

     (3)    the date or dates, or the method by which such date or dates will be
            determined or extended, on which the principal of the Securities of
            the series is payable;

     (4)    the rate or rates at which the Securities of the series shall bear
            interest, if any, or the method by which such rate or rates shall be
            determined, the date or dates from which such interest shall accrue,
            or the method by which such date or dates shall be determined, the
            Interest Payment Dates on which such interest shall be payable and
            the Regular Record Date, if any, for the interest payable on any
            Registered Security on any Interest Payment Date, or the method by
            which such date or dates shall be determined, and the basis upon
            which interest shall be calculated if other than on the basis of a
            360-day year of twelve 30-day months;

     (5)    the rights, if any, to defer payments of interest on the Securities
            by extending the interest payment periods and the duration of such
            extension;

     (6)    the security and subordination terms of the Securities of the
            series;

     (7)    the place or places, if any, other than or in addition to The City
            of New York, where the principal of (and premium, if any, on) and
            any interest on Securities of the series shall be payable, any
            Registered Securities of the series may be surrendered for
            registration of transfer, Securities of the series may be
            surrendered for exchange and, if different than the location
            specified in Section 106, the place or places where notices or
            demands to or upon the Company in respect of the Securities of the
            series and this Indenture may be served;

     (8)    the period or periods within which, the price or prices at which,
            the Currency in which, and other terms and conditions upon which
            Securities of the series may be redeemed, in whole or in part, at
            the option of the Company, if the Company is to have that option;

     (9)    the obligation, if any, of the Company to redeem, repay or purchase
            Securities of the series pursuant to any sinking fund or analogous
            provision or at the option of a Holder thereof, and the period or
            periods within which, the price or prices at which, the Currency

                                      -16-

<Page>

            in which, and other terms and conditions upon which Securities of
            the series shall be redeemed, repaid or purchased, in whole or in
            part, pursuant to such obligation;

     (10)   if other than denominations of $25 and any integral multiple
            thereof, the denomination or denominations in which any Registered
            Securities of the series shall be issuable;

     (11)   if other than the Trustee, the identity of each Security Registrar
            and/or Paying Agent;

     (12)   if other than the principal amount thereof, the portion of the
            principal amount of Securities of the series that shall be payable
            upon declaration of acceleration of the Maturity thereof pursuant to
            Section 502 or the method by which such portion shall be determined;

     (13)   if other than Dollars, the Currency in which payment of the
            principal of (and premium, if any, on) or interest, if any, on the
            Securities of the series shall be payable or in which the Securities
            of the series shall be denominated and the particular provisions
            applicable thereto in accordance with, in addition to or in lieu of
            any of the provisions of Section 312;

     (14)   whether the amount of payments of principal of (and premium, if any,
            on) or interest on the Securities of the series may be determined
            with reference to an index, formula or other method (which index,
            formula or method may be based, without limitation, on one or more
            Currencies, commodities, equity indices or other indices), and the
            manner in which such amounts shall be determined;

     (15)   whether the principal of (and premium, if any, on) and interest, if
            any, on the Securities of the series are to be payable, at the
            election of the Company or a Holder thereof, in a Currency other
            than that in which such Securities are denominated or stated to be
            payable, the period or periods within which (including the Election
            Date), and the terms and conditions upon which, such election may be
            made, and the time and manner of determining the exchange rate
            between the Currency in which such Securities are denominated or
            stated to be payable and the Currency in which such Securities are
            to be so payable, in each case in accordance with, in addition to or
            in lieu of any of the provisions of Section 312;

     (16)   the designation of the initial Exchange Rate Agent, if any;

     (17)   any provisions in modification of, in addition to or in lieu of the
            provisions of Article Fourteen that shall be applicable to the
            Securities of the series;

     (18)   provisions, if any, granting special rights to the Holders of
            Securities of the series upon the occurrence of such events as may
            be specified;

     (19)   any deletions from, modifications of or additions to the Events of
            Default or covenants of the Company with respect to Securities of
            the series, whether or not such Events of Default or covenants are
            consistent with the Events of Default or covenants set forth herein;

                                      -17-

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     (20)   whether any Securities of the series are to be issuable initially in
            temporary global form and whether any Securities of the series are
            to be issuable in permanent global form and, if so, whether
            beneficial owners of interests in any such permanent global Security
            may exchange such interests for Securities of such series and of
            like tenor of any authorized form and denomination and the
            circumstances under which any such exchanges may occur, if other
            than in the manner provided in Section 305, and if Securities of the
            series are to be issuable in global form, the identity of any
            initial depository therefor; provided, that, unless otherwise
            provided, Securities shall be issued as Registered Securities;

     (21)   the date as of which and any temporary global Security representing
            Outstanding Securities of the series shall be dated if other than
            the date of original issuance of the first Security of the series to
            be issued;

     (22)   the Person to whom any interest on any Registered Security of the
            series shall be payable, if other than the Person in whose name that
            Security (or one or more Predecessor Securities) is registered at
            the close of business on the Regular Record Date for such interest,
            and the extent to which, or the manner in which, any interest
            payable on a temporary global Security on an Interest Payment Date
            will be paid if other than in the manner provided in Section 304;

     (23)   if Securities of the series are to be issuable in definitive form
            (whether upon original issue or upon exchange of a temporary
            Security of such series) only upon receipt of certain certificates
            or other documents or satisfaction of other conditions, the form
            and/or terms of such certificates, documents or conditions;

     (24)   whether and under what circumstances the Company will pay Additional
            Amounts as contemplated by Section 1005 on the Securities of the
            series to any Holder who is not a United States person (including
            any modification to the definition of such term) in respect of any
            tax, assessment or governmental charge and, if so, whether the
            Company will have the option to redeem such Securities rather than
            pay such Additional Amounts (and the terms of any such option);

     (25)   if the Securities of the series are to be convertible into or
            exchangeable for any securities of any Person (including the
            Company), the terms and conditions upon which such Securities will
            be so convertible or exchangeable; and

     (26)   any other terms, conditions, rights and preferences (or limitations
            on such rights and preferences) relating to the series (which terms
            shall not be inconsistent with the requirements of the Trust
            Indenture Act or the provisions of this Indenture). All Securities
            of any one series shall be substantially identical except as to
            denomination and except as may otherwise be provided in or pursuant
            to such Board Resolution (subject to Section 303) and set forth in
            such Officers' Certificate or in any such indenture supplemental
            hereto. Not all Securities of any one series need be issued at the
            same time, and, unless otherwise provided, a series may be reopened
            for issuances of additional Securities of such series. If any of the
            terms of the series are established by action taken pursuant to one
            or more Board Resolutions, a copy of an appropriate record of such
            action(s) shall be certified by the Secretary or an Assistant
            Secretary of the Company and such Board

                                      -18-

<Page>

            Resolutions shall be delivered to the Trustee at or prior to the
            delivery of the Officers' Certificate setting forth the terms of the
            series.

SECTION 302. Denominations.

The Securities of each series shall be issuable in such denominations as shall
be specified as contemplated by Section 301. With respect to Securities of any
series denominated in Dollars, in the absence of any such provisions, the
Registered Securities of such series, other than Registered Securities issued in
global form (which may be of any denomination), shall be issuable in
denominations of $25 and any integral multiple thereof.

SECTION 303. Execution, Authentication, Delivery and Dating.

The Securities shall be executed on behalf of the Company by its Chairman, its
President or a Vice President, under its corporate seal reproduced thereon
attested by its Secretary or an Assistant Secretary. The signature of any of
these officers on the Securities may be the manual or facsimile signatures of
the present or any future such authorized officer and may be imprinted or
otherwise reproduced on the Securities.

Securities bearing the manual or facsimile signatures of individuals who were at
any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.

At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with such Company Order shall authenticate and deliver such Securities. If not
all the Securities of any series are to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit,
such Company Order may set forth procedures acceptable to the Trustee for the
issuance of such Securities and determining terms of particular Securities of
such series such as interest rate, maturity date, date of issuance and date from
which interest shall accrue.

In authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to TIA Sections 315(a) through 315(d)) shall
be fully protected in relying upon, an Opinion of Counsel stating:

     (a)    that the form or forms of such Securities have been established in
            conformity with the provisions of this Indenture;

     (b)    that the terms of such Securities have been established in
            conformity with the provisions of this Indenture;

     (c)    that such Securities, when completed by appropriate insertions and
            executed and delivered by the Company to the Trustee for
            authentication in accordance with this Indenture, authenticated and
            delivered by the Trustee in accordance with this Indenture and
            issued by the Company in the manner and subject to any conditions
            specified in such Opinion of

                                      -19-

<Page>

            Counsel, will constitute the legal, valid and binding obligations of
            the Company, enforceable in accordance with their terms, subject to
            applicable bankruptcy, insolvency, reorganization and other similar
            laws of general applicability relating to or affecting the
            enforcement of creditors' rights, to general equitable principles
            and to such other customary qualifications;

     (d)    that all laws and requirements in respect of the execution and
            delivery by the Company of such Securities, and of the supplemental
            indentures, if any, have been complied with and that authentication
            and delivery of such Securities and the execution and delivery of
            the supplemental indenture, if any, by the Trustee will not violate
            the terms of the Indenture;

     (e)    that the Company has the corporate power to issue such Securities,
            and has duly taken all necessary corporate action with respect to
            such issuance; and

     (f)    that the issuance of such Securities will not contravene the
            articles of incorporation or by-laws of the Company or result in any
            violation of any of the terms or provisions of any law or regulation
            or of any indenture, mortgage or other agreement known to such
            Counsel by which the Company is bound.

Notwithstanding the provisions of Section 301 and of the preceding two
paragraphs, if not all the Securities of any series are to be issued at one
time, it shall not be necessary to deliver the Officers' Certificate otherwise
required pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to the preceding two paragraphs prior to or at the
time of issuance of each Security, but such documents shall be delivered prior
to or at the time of issuance of the first Security of such series.

The Trustee shall not be required to authenticate and deliver any such
Securities if the issue of such Securities pursuant to this Indenture will
affect the Trustee's own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner which is not reasonably acceptable to
the Trustee. Each Registered Security shall be dated the date of its
authentication.

No Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate
of authentication substantially in the form provided for herein duly executed by
the Trustee by manual signature of an authorized officer, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture. Notwithstanding the foregoing, if any Security
shall have been authenticated and delivered hereunder but never issued and sold
by the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 310 together with a written statement (which
need not comply with Section 102 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the
Company, for all purposes of this Indenture such Security shall be deemed never
to have been authenticated and delivered hereunder and shall never be entitled
to the benefits of this Indenture.

SECTION 304. Temporary Securities.

Pending the preparation of definitive Securities of any series, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination,

                                      -20-

<Page>

substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form, and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities may
determine, as conclusively evidenced by their execution of such Securities. Such
temporary Securities may be in global form.

Except in the case of temporary Securities in global form (which shall be
exchanged in accordance with the provisions of the following paragraphs), if
temporary Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay. After the
preparation of definitive Securities of such series, the temporary Securities of
such series shall be exchangeable for definitive Securities of such series, upon
surrender of the temporary securities of such series at the office or agency of
the Company in a Place of Payment for that series, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities of any
series, the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor a like principal amount of definitive Securities of the
same series of authorized denominations. Until so exchanged the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series.

If temporary Securities of any series are issued in global form, any such
temporary global Security shall, unless otherwise provided therein, be delivered
to the London office of a depositary or common depositary (the "Common
Depositary"), for the benefit of Euroclear and CEDEL S.A., for credit to the
respective accounts of the beneficial owners of such Securities (or to such
other accounts as they may direct).

Without unnecessary delay but in any event not later than the date specified in,
or determined pursuant to the terms of, any such temporary global Security (the
"Exchange Date"), the Company shall deliver to the Trustee definitive
Securities, in aggregate principal amount equal to the principal amount of such
temporary global Security, executed by the Company. On or after the Exchange
Date such temporary global Security shall be surrendered by the Common
Depositary to the Trustee, as the Company's agent for such purpose, to be
exchanged, in whole or from time to time in part, for definitive Securities
without charge and the Trustee shall authenticate and deliver, in exchange for
each portion of such temporary global Security, an equal aggregate principal
amount of definitive Securities of the same series of authorized denominations
and of like tenor as the portion of such temporary global Security to be
exchanged. The definitive Securities to be delivered in exchange for any such
temporary global Security shall be in registered form or permanent global
registered form, or any combination thereof, as specified as contemplated by
Section 301, and, if any combination thereof is so specified, as requested by
the beneficial owner thereof; provided, however, that, unless otherwise
specified in such temporary global Security, upon such presentation by the
Common Depositary, such temporary global Security is accompanied by a
certificate dated the Exchange Date or a subsequent date and signed by Euroclear
as to the portion of such temporary global Security held for its account then to
be exchanged and a certificate dated the Exchange Date or a subsequent date and
signed by CEDEL S.A. as to the portion of such temporary global Security held
for its account then to be exchanged, each in such other form as may be
established pursuant to Section 301.

Unless otherwise specified in such temporary global Security, the interest of a
beneficial owner of Securities of a series in a temporary global Security shall
be exchanged for definitive Securities of the same series and of like tenor
following the Exchange Date when the account holder instructs Euroclear or CEDEL
S.A., as the case may be, to request such exchange on his behalf and delivers to
Euroclear or CEDEL S.A., as the case may be, a certificate in such form as may
be established pursuant to Section 301, dated no earlier than 15 days prior to
the Exchange Date, copies of which certificate shall be available from

                                      -21-

<Page>

the offices of Euroclear and CEDEL S.A., the Trustee, any Authenticating Agent
appointed for such series of Securities and each Paying Agent. Unless otherwise
specified in such temporary global Security, any such exchange shall be made
free of charge to the beneficial owners of such temporary global Security,
except that a Person receiving definitive Securities must bear the cost of
insurance, postage, transportation and the like in the event that such Person
does not take delivery of such definitive Securities in person at the offices of
Euroclear or CEDEL S.A.

Until exchanged in full as hereinabove provided, the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of the same series and of like tenor
authenticated and delivered hereunder, except that, unless otherwise specified
as contemplated by Section 301, interest payable on a temporary global Security
on an Interest Payment Date for Securities of such series occurring prior to the
applicable Exchange Date shall be payable to Euroclear and CEDEL S.A. on such
Interest Payment Date upon delivery by Euroclear and CEDEL S.A. to the Trustee
of a certificate or certificates in such form as may be established pursuant to
Section 301, for credit without further interest on or after such Interest
Payment Date to the respective accounts of the Persons who are the beneficial
owners of such temporary global Security on such Interest Payment Date and who
have each delivered to Euroclear or CEDEL S.A., as the case may be, a
certificate dated no earlier than 15 days prior to the Interest Payment Date
occurring prior to such Exchange Date in such form as may be established
pursuant to Section 301. Notwithstanding anything to the contrary herein
contained, the certifications made pursuant to this paragraph shall satisfy the
certification requirements of the preceding two paragraphs of this Section and
of the third paragraph of Section 303 of this Indenture and the interests of the
Persons who are the beneficial owners of the temporary global Security with
respect to which such certification was made will be exchanged for definitive
Securities of the same series and of like tenor on the Exchange Date or the date
of certification if such date occurs after the Exchange Date, without further
act or deed by such beneficial owners. Except as otherwise provided in this
paragraph, no payments or principal or interest owing with respect to a
beneficial interest in a temporary global Security will be made unless and until
such interest in such temporary global Security shall have been exchanged for an
interest in a definitive Security. Any interest so received by Euroclear and
CEDEL S.A. and not paid as herein provided shall be returned to the Trustee
immediately prior to the expiration of two years after such Interest Payment
Date in order to be repaid to the Company in accordance with Section 1003.

SECTION 305. Registration of Transfer and Exchange.

The Company shall cause to be kept at the Corporate Trust Office of the Trustee
a register for each series of Securities (the registers maintained in the
Corporate Trust Office of the Trustee and in any other office or agency of the
Company in a Place of Payment being herein sometimes collectively referred to as
the "Security Register") in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the registration of Registered
Securities and of transfers of Registered Securities. The Security Register
shall be in written form or any other form capable of being converted into
written form within a reasonable time. At all reasonable times, the Security
Register shall be open to inspection by the Trustee. The Trustee is hereby
initially appointed as security registrar (the "Security Registrar") for the
purpose of registering Registered Securities and transfers of Registered
Securities as herein provided.

Upon surrender for registration of transfer of any Registered Security of any
series at the office or agency in a Place of Payment for that series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee, one or more new Registered Securities of the
same series, of any authorized denominations and of a like aggregate principal
amount and tenor.

                                      -22-

<Page>

At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series, of any authorized
denomination and of a like aggregate principal amount, upon surrender of the
Registered Securities to be exchanged at such office or agency. Whenever any
Registered Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Registered
Securities which the Holder making the exchange is entitled to receive.

Notwithstanding the foregoing, except as otherwise specified as contemplated by
Section 301, any permanent global Security shall be exchangeable only as
provided in this paragraph. If any beneficial owner of an interest in a
permanent global Security is entitled to exchange such interest for Securities
of such series and of like tenor and principal amount of another authorized form
and denomination, as specified as contemplated by Section 301 and provided that
any applicable notice provided in the permanent global Security shall have been
given, then without unnecessary delay but in any event not later than the
earliest date on which such interest may be so exchanged, the Company shall
deliver to the Trustee definitive Securities in aggregate principal amount equal
to the principal amount of such beneficial owner's interest in such permanent
global Security, executed by the Company. On or after the earliest date on which
such interests may be so exchanged, such permanent global Security shall be
surrendered by the Common Depositary or such other depositary as shall be
specified in the Company Order with respect thereto to the Trustee, as the
Company's agent for such purpose, to be exchanged, in whole or from time to time
in part, for definitive Securities without charge, and the Trustee shall
authenticate and deliver, in exchange for each portion of such permanent global
Security, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of such
permanent global Security to be exchanged which shall be in the form of
Registered Securities; provided, however, that no such exchanges may occur
during a period beginning at the opening of business 15 days before any
selection of Securities to be redeemed and ending on the relevant Redemption
Date if the Security for which exchange is requested may be among those selected
for redemption. If a Registered Security is issued in exchange for any portion
of a permanent global Security after the close of business at the office or
agency where such exchange occurs on (i) any Regular Record Date and before the
opening of business at such office or agency on the relevant Interest Payment
Date, or (ii) any Special Record Date and before the opening of business at such
office or agency on the related proposed date for payment of Defaulted Interest,
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of such Registered Security, but will be payable on such Interest
Payment Date or proposed date of payment, as the case may be, only to the Person
to whom interest in respect of such portion of such permanent global Security is
payable in accordance with the provisions of this Indenture.

All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

Every Registered Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Security Registrar)
be duly endorsed, or be accompanied by a written instrument of transfer, in form
satisfactory to the Company and the Security Registrar, duly executed by the
Holder thereof or his attorney duly authorized in writing.

No service charge shall be made for any registration of transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge that may

                                      -23-

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be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or 1305 not
involving any transfer.

The Company shall not be required (i) to issue, register the transfer of or
exchange Securities of any series during a period beginning at the opening of
business 15 days before the day of the selection for redemption of Securities of
that series under Section 1103 or 1203 and ending at the close of business on
the date of the mailing of the relevant notice of redemption, or (ii) to
register the transfer of or exchange any Registered Security so selected for
redemption in whole or in part, except the unredeemed portion of any Security
being redeemed in part, or (iii) to issue, register the transfer of or exchange
any Security which has been surrendered for repayment at the option of the
Holder, except the portion, if any, of such Security not to be so repaid.

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated
Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding, or, in case any such mutilated Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security. If there shall be
delivered to the Company and to the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or
indemnity as may be required by them to save each of them and any agent of
either of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon Company Order the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding, or, in case any such destroyed, lost or
stolen Security has become or is about to become due and payable, the Company in
its discretion may, instead of issuing a new Security, pay such Security. Upon
the issuance of any new Security under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other government charge that may
be imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.

Every new Security of any series issued pursuant to this Section in lieu of any
destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder. The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities.

SECTION 307. Payment of Interest; Interest Rights Preserved; Optional Interest
Reset.

     (a) Unless otherwise provided as contemplated by Section 301 with respect
to any series of Securities, interest on any Registered Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name such Security (or one or more

                                      -24-

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Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest at the office or agency of the Company maintained
for such purpose pursuant to Section 1002; provided, however, that each
installment of interest on any Registered Security may at the Company's option
be paid by (i) mailing a check for such interest, payable to or upon the written
order of the Person entitled thereto pursuant to Section 309, to the address of
such Person as it appears on the Security Register or (ii) transfer to an
account maintained by the payee located in the United States.

Any interest on any Registered Security of any series which is payable, but is
not punctually paid or duly provided for, on any Interest Payment Date shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date
by virtue of having been such Holder, and such defaulted interest and, if
applicable, interest on such defaulted interest (to the extent lawful) at the
rate specified in the Securities of such series (such defaulted interest and, if
applicable, interest thereon herein collectively called "Defaulted Interest")
may be paid by the Company, at its election in each case, as provided in clause
(1) or (2) below:

            (1)    The Company may elect to make payment of any Defaulted
                   Interest to the Persons in whose names the Registered
                   Securities of such series (or their respective Predecessor
                   Securities) are registered at the close of business on a
                   Special Record Date for the payment of such Defaulted
                   Interest, which shall be fixed in the following manner. The
                   Company shall notify the Trustee in writing of the amount of
                   Defaulted Interest proposed to be paid on each Registered
                   Security of such series and the date of the proposed payment,
                   and at the same time the Company shall deposit with the
                   Trustee an amount of money in the Currency in which the
                   Securities of such series are payable (except as otherwise
                   specified pursuant to Section 301 for the Securities of such
                   series and except, if applicable, as provided in Sections
                   312(b), 312(d) and 312(e)) equal to the aggregate amount
                   proposed to be paid in respect of such Defaulted Interest or
                   shall make arrangements satisfactory to the Trustee for such
                   deposit on or prior to the date of the proposed payment, such
                   money when deposited to be held in trust for the benefit of
                   the Persons entitled to such Defaulted Interest as in this
                   clause provided. Thereupon the Trustee shall fix a Special
                   Record Date for the payment of such Defaulted Interest which
                   shall be not more than 15 days and not less than 10 days
                   prior to the date of the proposed payment and not less than
                   10 days after the receipt by the Trustee of the notice of the
                   proposed payment. The Trustee shall promptly notify the
                   Company of such Special Record Date and, in the name and at
                   the expense of the Company, shall cause notice of the
                   proposed payment of such Defaulted Interest and the Special
                   Record Date therefor to be given in the manner provided in
                   Section 106, not less than 10 days prior to such Special
                   Record Date. Notice of the proposed payment of such Defaulted
                   Interest and the Special Record Date therefor having been so
                   given, such Defaulted Interest shall be paid to the Persons
                   in whose name the Registered Securities of such series (or
                   their respective Predecessor Securities) are registered at
                   the close of business on such Special Record Date and shall
                   no longer be payable pursuant to the following clause (2).

            (2)    The Company may make payment of any Defaulted Interest on the
                   Registered Securities of any series in any other lawful
                   manner not inconsistent with the requirements of any
                   securities exchange on which such Securities may be listed,

                                      -25-

<Page>

                   and upon such notice as may be required by such exchange, if,
                   after notice given by the Company to the Trustee of the
                   proposed payment pursuant to this clause, such manner of
                   payment shall be deemed practicable by the Trustee.

     (b)    The provisions of this Section 307(b) may be made applicable to any
            series of Securities pursuant to Section 301 (with such
            modifications, additions or substitutions as may be specified
            pursuant to such Section 301). The interest rate (or the spread or
            spread multiplier used to calculate such interest rate, if
            applicable) on any Security of such series may be reset by the
            Company on the date or dates specified on the face of such Security
            (each an "Optional Reset Date"). The Company may exercise such
            option with respect to such Security by notifying the Trustee of
            such exercise at least 50 but not more than 60 days prior to an
            Optional Reset Date for such Note.  Not later than 40 days prior to
            each Optional Reset Date, the Trustee shall transmit, in the manner
            provided for in Section 106, to the Holder of any such Security a
            notice (the "Reset Notice") indicating whether the Company has
            elected to reset the interest rate (or the spread or spread
            multiplier used to calculate such interest rate, if applicable), and
            if so (i) such new interest rate (or such new spread or spread
            multiplier, if applicable) and (ii) the provisions, if any, for
            redemption during the period from such Optional Reset Date to the
            next Optional Reset Date or if there is no such next Optional Reset
            Date, to the Stated Maturity Date of such Security (each such period
            a "Subsequent Interest Period"), including the date or dates on
            which or the period or periods during which and the price or prices
            at which such redemption may occur during the Subsequent Interest
            Period.

Notwithstanding the foregoing, not later than 20 days prior to the Optional
Reset Date, the Company may, at its option, revoke the interest rate (or the
spread or spread multiplier used to calculate such interest rate, if applicable)
provided for in the Reset Notice and establish an interest rate (or a spread or
spread multiplier used to calculate such interest rate, if applicable) that is
higher than the interest rate (or the spread or spread multiplier, if
applicable) provided for in the Reset Notice, for the Subsequent Interest Period
by causing the Trustee to transmit, in the manner provided for in Section 106,
notice of such higher interest rate (or such higher spread or spread multiplier,
if applicable) to the Holder of such Security. Such notice shall be irrevocable.
All Securities with respect to which the interest rate (or the spread or spread
multiplier used to calculate such interest rate, if applicable) is reset on an
Optional Reset Date, and with respect to which the Holders of such Securities
have not tendered such Securities for repayment (or have validly revoked any
such tender) pursuant to the next succeeding paragraph, will bear such higher
interest rate (or such higher spread or spread multiplier, if applicable).

The Holder of any such Security will have the option to elect repayment by the
Company of the principal of such Security on each Optional Reset Date at a price
equal to the principal amount thereof plus interest accrued to such Optional
Reset Date. In order to obtain repayment on an Optional Reset Date, the Holder
must follow the procedures set forth in Article Thirteen for repayment at the
Option of Holders except that the period for delivery or notification to the
Trustee shall be at least 25 but not more than 35 days prior to such Optional
Reset Date and except that, if the Holder has tendered any Security for
repayment pursuant to the Reset Notice, the Holder may, by written notice to the
Trustee, revoke such tender or repayment until the close of business on the
tenth day before such Optional Reset Date.

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SECTION 308. Persons Deemed Owners.

Prior to due presentment of a Registered Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Registered Security is registered as the owner of
such Registered Security for the purpose of receiving payment of principal of
(and premium, if any, on) and (subject to Sections 305 and 307) interest on such
Security and for all other purposes whatsoever, whether or not such Security be
overdue, and none of the Company, the Trustee or any agent of the Company or the
Trustee shall be affected by notice to the contrary.

None of the Company, the Trustee, any Paying Agent or the Security Registrar
will have any responsibility or liability for any aspect of the records relating
to or payments made on account of beneficial ownership interests of a Security
in global form or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.

Notwithstanding the foregoing, with respect to any global Security, nothing
herein shall prevent the Company, the Trustee, or any agent of the Company or
the Trustee, from giving effect to any written certification, proxy or other
authorization furnished by any depositary, as a Holder, with respect to such
global Security or impair, as between such depositary and owners of beneficial
interests in such global Security, the operation of customary practices
governing the exercise of the rights of such depositary (or its nominee) as
Holder of such global Security.

SECTION 309. Cancellation.

All Securities surrendered for payment, redemption, repayment at the option of
the Holder, registration of transfer or exchange or for credit against any
current or future sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee. All Securities so delivered to
the Trustee shall be promptly canceled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly canceled by the Trustee. If the Company shall so
acquire any of the Securities, however, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Securities
unless and until the same are surrendered to the Trustee for cancellation. No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section, except as expressly permitted by this
Indenture. All canceled Securities held by the Trustee shall be disposed of by
the Trustee in accordance with its customary procedures and certification of
their disposal delivered to the Company unless by Company Order the Company
shall direct that canceled Securities be returned to it.

SECTION 310. Computation of Interest.

Except as otherwise specified as contemplated by Section 301 with respect to any
Securities, interest, if any, on the Securities of each series shall be computed
on the basis of a 360-day year of twelve 30-day months.

SECTION 311. Currency and Manner of Payments in Respect of Securities.

     (a)    With respect to Registered Securities of any series not permitting
            the election provided for in paragraph (b) below or the Holders of
            which have not made the election provided for

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            in paragraph (b) below, payment of the principal of (and premium, if
            any, on) and interest, if any, on any Registered Security of such
            series will be made in the Currency in which such Registered
            Security is payable. The provisions of this Section 311 may be
            modified or superseded with respect to any Securities pursuant to
            Section 301.

     (b)    It may be provided pursuant to Section 301 with respect to
            Registered Securities of any series that Holders shall have the
            option, subject to paragraphs (d) and (e) below, to receive payments
            of principal of (and premium, if any, on) or interest, if any, on
            such Registered Securities in any of the Currencies which may be
            designated for such election by delivering to the Trustee a written
            election with signature guarantees and in the applicable form
            established pursuant to Section 301, not later than the close of
            business on the Election Date immediately preceding the applicable
            payment date.  If a Holder so elects to receive such payments in any
            such Currency, such election will remain in effect for such Holder
            or any transferee of such Holder until changed by such Holder or
            such transferee by written notice to the Trustee (but any such
            change must be made not later than the close of business on the
            Election Date immediately preceding the next payment date to be
            effective for the payment to be made on such payment date and no
            such change of election may be made with respect to payments to be
            made on any Registered Security of such series with respect to which
            an Event of Default has occurred or with respect to which the
            Company has deposited funds pursuant to Article Four or Fourteen or
            with respect to which a notice of redemption has been given by the
            Company or a notice of option to elect repayment has been sent by
            such Holder or such transferee).  Any Holder of any such Registered
            Security who shall not have delivered any such election to the
            Trustee not later than the close of business on the applicable
            Election Date will be paid the amount due on the applicable payment
            date in the relevant Currency as provided in Section 311(a).  The
            Trustee shall notify the Exchange Rate Agent as soon as practicable
            after the Election Date of the aggregate principal amount of
            Registered Securities for which Holders have made such written
            election.

     (c)    Unless otherwise specified pursuant to Section 301, if the election
            referred to in paragraph (b) above has been provided for pursuant to
            Section 301, then, unless otherwise specified pursuant to Section
            301, not later than the fourth Business Day after the Election Date
            for each payment date for Registered Securities of any series, the
            Exchange Rate Agent will deliver to the Company a written notice
            specifying, in the Currency in which Registered Securities of such
            series are payable, the respective aggregate amounts of principal of
            (and premium, if any, on) and interest, if any, on the Registered
            Securities to be paid on such payment date, specifying the amounts
            in such Currency so payable in respect of the Registered Securities
            as to which the Holders of Registered Securities of such series
            shall have elected to be paid in another Currency as provided in
            paragraph (b) above. If the election referred to in paragraph (b)
            above has been provided for pursuant to Section 301 and if at least
            one Holder has made such election, then, unless otherwise specified
            pursuant to Section 301, on the second Business Day preceding such
            payment date the Company will deliver to the Trustee for such series
            of Registered Securities an Exchange Rate Officer's Certificate in
            respect of the Dollar or Foreign Currency payments to be made on
            such payment date.  Unless otherwise specified pursuant to Section
            301, the Dollar or Foreign Currency amount receivable by Holders of
            Registered Securities who have elected payment in a Currency as
            provided in paragraph (b) above shall be determined by the
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            Company on the basis of the applicable Market Exchange Rate in
            effect on the third Business Day (the "Valuation Date") immediately
            preceding each payment date and such determination shall be
            conclusive and binding for all purposes, absent manifest error.

     (d)    If a Conversion Event occurs with respect to a Foreign Currency in
            which any of the Securities are denominated or payable other than
            pursuant to an election provided for pursuant to paragraph (b)
            above, then with respect to each date for the payment of principal
            of (and premium, if any, on) and interest, if any, on the applicable
            Securities denominated or payable in such Foreign Currency occurring
            after the last date on which such Foreign Currency was used (the
            "Conversion Date"), the Dollar shall be the Currency of payment for
            use on each such payment date.  Unless otherwise specified pursuant
            to Section 301, the Dollar amount to be paid by the Company to the
            Trustee and by the Trustee or any Paying Agent to the Holders of
            such Securities with respect to such payment date shall be, in the
            case of a Foreign Currency other than a currency unit, the Dollar
            Equivalent of the Foreign Currency or, in the case of a currency
            unit, the Dollar Equivalent of the Currency Unit, in each case as
            determined by the Exchange Rate Agent in the manner provided in
            paragraph (f) or (g) below.

     (e)    Unless otherwise specified pursuant to Section 301, if the Holder of
            a Registered Security denominated in any Currency shall have elected
            to be paid in another Currency as provided in paragraph (b) above,
            and a Conversion Event occurs with respect to such elected Currency,
            such Holder shall receive payment in the Currency in which payment
            would have been made in the absence of such election; and if a
            Conversion Event occurs with respect to the Currency in which
            payment would have been made in the absence of such election, such
            Holder shall receive payment in Dollars as provided in paragraph (d)
            above.

     (f)    The "Dollar Equivalent of the Foreign Currency" shall be determined
            by the Exchange Rate Agent and shall be obtained for each subsequent
            payment date by converting the specified Foreign Currency into
            Dollars at the Market Exchange Rate on the Conversion Date.

     (g)    The "Dollar Equivalent of the Currency Unit" shall be determined by
            the Exchange Rate Agent and subject to the provisions of paragraph
            (h) below shall be the sum of each amount obtained by converting the
            Specified Amount of each Component Currency into Dollars at the
            Market Exchange Rate for such Component Currency on the Valuation
            Date with respect to each payment.

     (h)    For purposes of this Section 311 the following terms shall have the
            following meanings:

            A "Component Currency" shall mean any Currency which, on the
            Conversion Date, was a component currency of the relevant currency
            unit, including, but not limited to, the ECU. A "Specified Amount"
            of a Component Currency shall mean the number of units of such
            Component Currency or fractions thereof which were represented in
            the relevant currency unit, including, but not limited to, the ECU,
            on the Conversion Date. If after the Conversion Date the official
            unit of any Component Currency is altered by way of combination or
            subdivision, the Specified Amount of such Component Currency shall
            be

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            divided or multiplied in the same proportion. If after the
            Conversion Date two or more Component Currencies are consolidated
            into a single currency, the respective Specified Amounts of such
            Component Currencies shall be replaced by an amount in such single
            Currency equal to the sum of the respective Specified Amounts of
            such consolidated Component Currencies expressed in such single
            Currency, and such amount shall thereafter be a Specified Amount and
            such single Currency shall thereafter be a Component Currency. If
            after the Conversion Date any Component Currency shall be divided
            into two or more currencies, the Specified Amount of such Component
            Currency shall be replaced by amounts of such two or more
            currencies, having an aggregate Dollar Equivalent value at the
            Market Exchange Rate on the date of such replacement equal to the
            Dollar Equivalent value of the Specified Amount of such former
            Component Currency at the Market Exchange Rate immediately before
            such division and such amounts shall thereafter be Specified Amounts
            and such currencies shall thereafter be Component Currencies. If,
            after the Conversion Date of the relevant currency unit, including,
            but not limited to, the ECU, a Conversion Event (other than any
            event referred to above in this definition of "Specified Amount")
            occurs with respect to any Component Currency of such currency unit
            and is continuing on the applicable Valuation Date, the Specified
            Amount of such Component Currency shall, for purposes of calculating
            the Dollar Equivalent of the Currency Unit, be converted into
            Dollars at the Market Exchange Rate in effect on the Conversion Date
            of such Component Currency.

            "Election Date" shall mean the date for any series of Registered
            Securities as specified pursuant to clause (13) of Section 301 by
            which the written election referred to in paragraph (b) above may be
            made.

All decisions and determinations of the Exchange Rate Agent regarding the Dollar
Equivalent of the Foreign Currency, the Dollar Equivalent of the Currency Unit,
the Market Exchange Rate and changes in the Specified Amounts as specified above
shall be in its sole discretion and shall, in the absence of manifest error, be
conclusive for all purposes and irrevocably binding upon the Company, the
Trustee and all Holders of such Securities denominated or payable in the
relevant Currency. The Exchange Rate Agent shall promptly give written notice to
the Company and the Trustee of any such decision or determination.

In the event that the Company determines in good faith that a Conversion Event
has occurred with respect to a Foreign Currency, the Company will immediately
give written notice thereof to the Trustee and to the Exchange Rate Agent (and
the Trustee will promptly thereafter give notice in the manner provided for in
Section 106 to the affected Holders) specifying the Conversion Date. In the
event the Company so determines that a Conversion Event has occurred with
respect to the ECU or any other currency unit in which Securities are
denominated or payable, the Company will immediately give written notice thereof
to the Trustee and to the Exchange Rate Agent (and the Trustee will promptly
thereafter give notice in the manner provided for in Section 106 to the affected
Holders) specifying the Conversion Date and the Specified Amount of each
Component Currency on the Conversion Date. In the event the Company determines
in good faith that any subsequent change in any Component Currency as set forth
in the definition of Specified Amount above has occurred, the Company will
similarly give written notice to the Trustee and the Exchange Rate Agent.

The Trustee shall be fully justified and protected in relying and acting upon
information received by it from the Company and the Exchange Rate Agent and
shall not otherwise have any duty or obligation to

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<Page>

determine the accuracy or validity of such information independent of the
Company or the Exchange Rate Agent.

SECTION 312. Appointment and Resignation of Successor Exchange Rate Agent.

     (a)    Unless otherwise specified pursuant to Section 301, if and so long
            as the Securities of any series (i) are denominated in a Currency
            other than Dollars or (ii) may be payable in a Currency other than
            Dollars, or so long as it is required under any other provision of
            this Indenture, then the Company will maintain with respect to each
            such series of Securities, or as so required, at least one Exchange
            Rate Agent. The Company will cause the Exchange Rate Agent to make
            the necessary foreign exchange determinations at the time and in the
            manner specified pursuant to Section 301 for the purpose of
            determining the applicable rate of exchange and, if applicable, for
            the purpose of converting the issued Currency into the applicable
            payment Currency for the payment of principal (and premium, if any)
            and interest, if any, pursuant to Section 311.

     (b)    No resignation of the Exchange Rate Agent and no appointment of a
            successor Exchange Rate Agent pursuant to this Section shall become
            effective until the acceptance of appointment by the successor
            Exchange Rate Agent as evidenced by a written instrument delivered
            to the Company and the Trustee.

     (c)    If the Exchange Rate Agent shall resign, be removed or become
            incapable of acting, or if a vacancy shall occur in the office of
            the Exchange Rate Agent for any cause with respect to the Securities
            of one or more series, the Company, by or pursuant to a Board
            Resolution, shall promptly appoint a successor Exchange Rate Agent
            or Exchange Rate Agents with respect to the Securities of that or
            those series (it being understood that any such successor Exchange
            Rate Agent may be appointed with respect to the Securities of one or
            more or all of such series and that, unless otherwise specified
            pursuant to Section 301, at any time there shall only be one
            Exchange Rate Agent with respect to the Securities of any particular
            series that are originally issued by the Company on the same date
            and that are initially denominated and/or payable in the same
            Currency).

                                  ARTICLE FOUR
                           SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

This Indenture shall upon Company Request cease to be of further effect with
respect to any series of Securities specified in such Company Request (except as
to any surviving rights of registration of transfer or exchange of Securities of
such series herein expressly provided for and the obligation of the Company to
pay any Additional Amounts as contemplated by Section 1005) and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture as to such series when

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<Page>

     (1)    either

            (A)    all Securities of such series theretofore authenticated and
                   delivered (other than (i) Securities which have been
                   destroyed, lost or stolen and which have been replaced or
                   paid as provided in Section 306, and (ii) Securities of such
                   series for whose payment money has theretofore been deposited
                   in trust with the Trustee or any Paying Agent or segregated
                   and held in trust by the Company and thereafter repaid to the
                   Company, as provided in Section 1003) have been delivered to
                   the Trustee for cancellation; or

            (B)    all Securities of such series not theretofore delivered to
                   the Trustee for cancellation

                   (i)    have become due and payable, or

                   (ii)   will become due and payable at their Stated Maturity
                          within one year, or

                   (iii)  if redeemable at the option of the Company, are to be
                          called for redemption within one year under
                          arrangements satisfactory to the Trustee for the
                          giving of notice of redemption by the Trustee in the
                          name, and at the expense, of the Company, and the
                          Company,

                   in the case of (i), (ii) or (iii) above, has irrevocably
                   deposited or caused to be deposited with the Trustee as trust
                   funds in trust for such purpose an amount in the Currency in
                   which the Securities of such series are payable, sufficient
                   to pay and discharge the entire indebtedness on such
                   Securities not theretofore delivered to the Trustee for
                   cancellation, for principal (and premium, if any) and
                   interest to the date of such deposit (in the case of
                   Securities which have become due and payable) or to the
                   Stated Maturity or Redemption Date, as the case may be;

     (2)    the Company has paid or caused to be paid all other sums payable
            hereunder by the Company; and

     (3)    the Company has delivered to the Trustee an Officers' Certificate
            and an Opinion of Counsel, each stating that all conditions
            precedent herein provided for relating to the satisfaction and
            discharge of this Indenture as to such series have been complied
            with.

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 606, the obligations of
the Trustee to any Authenticating Agent under Section 611 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.

SECTION 402. Application of Trust Money.

Subject to the provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 shall be held in trust and
applied by it, in accordance with the provisions of the Securities, and this
Indenture, to the payment either directly or through any Paying Agent (including
the

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Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal (and premium, if any) and interest
for whose payment such money has been deposited with the Trustee; but such money
need not be segregated from other funds except to the extent required by law.

                                  ARTICLE FIVE
                                    REMEDIES

SECTION 501. Events of Default.

"Event of Default", wherever used herein with respect to Securities of any
series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

     (1)    default in the payment of any interest on any Security of that
            series when such interest becomes due and payable, and continuance
            of such default for a period of 30 days; provided, that, if
            Securities are issued to a NWPS Trust or a trustee of such trust in
            connection with the issuance of Trust Securities by such trust, such
            thirty (30) day period will be replaced by a ten (10) day period;
            and provided, further, that a valid extension of the interest
            payment period by the Company in accordance with the terms of any
            indenture supplemental hereto shall not constitute a default in the
            payment of interest for this purpose; or

     (2)    default in the payment of the principal of (or premium, if any, on)
            any Security of that series at its Maturity; provided, however, that
            a valid extension of the maturity of such Securities in accordance
            with the terms of any indenture supplemental hereto shall not
            constitute a default in the payment of principal or premium, if any;
            or

     (3)    default in the deposit of any sinking fund payment, when and as due
            by the terms of the Securities of that series and Article 12; or

     (4)    default in the performance, or breach, of any covenant or agreement
            of the Company in this Indenture which affects or is applicable to
            the Securities of that series (other than a default in the
            performance, or breach of a covenant or agreement which is
            specifically dealt with elsewhere in this Section or which has
            expressly been included in this Indenture solely for the benefit of
            one or more series of Securities other than that series), and
            continuance of such default or breach for a period of 60 days after
            there has been given, by registered or certified mail, to the
            Company by the Trustee or to the Company and the Trustee by the
            Holders of at least 25% in principal amount of all Outstanding
            Securities of that series a written notice specifying such default
            or breach and requiring it to be remedied and stating that such
            notice is a "Notice of Default" hereunder; or

     (5)    the entry of a decree or order by a court having jurisdiction in the
            premises adjudging the Company a bankrupt or insolvent, or approving
            as properly filed a petition seeking reorganization, arrangement,
            adjustment or composition of or in respect of the Company under the
            Federal Bankruptcy Code or any other applicable federal or state
            law, or

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<Page>

            appointing a receiver, liquidator, assignee, trustee, sequestrator
            (or other similar official) of the Company or of any substantial
            part of its property, or ordering the winding up or liquidation of
            its affairs, and the continuance of any such decree or order
            unstayed and in effect for a period of 90 consecutive days; or

     (6)    in the event Securities are issued and sold to a NWPS Trust or a
            trustee of such trust in connection with the issuance of Trust
            Securities by such NWPS Trust, such NWPS Trust shall have
            voluntarily or involuntarily dissolved, wound-up its business or
            otherwise terminated its existence except in connection with (i) the
            distribution of Securities to holders of Trust Securities in
            liquidation or redemption of their interests in such NWPS Trust,
            (ii) the redemption of all of the outstanding Trust Securities of
            such NWPS Trust or (iii) certain mergers, consolidations or
            amalgamations, each as permitted by the Declaration of such NWPS
            Trust.

     (7)    the institution by the Company of proceedings to be adjudicated a
            bankrupt or insolvent, or the consent by it to the institution of
            bankruptcy or insolvency proceedings against it, or the filing by it
            of a petition or answer or consent seeking reorganization or relief
            under the Federal Bankruptcy Code or any other applicable federal or
            state law, or the consent by it to the filing of any such petition
            or to the appointment of a receiver, liquidator, assignee, trustee,
            sequestrator (or other similar official) of the Company or of any
            substantial part of its property, or the making by it of an
            assignment for the benefit of creditors, or the admission by it in
            writing of its inability to pay its debts generally as they become
            due; or

     (8)    any other Event of Default provided with respect to Securities of
            that series.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default described in clause (1), (2), (3), (4) or (7) of Section
501 with respect to Securities of any series at the time Outstanding occurs and
is continuing, then in every such case the Trustee or the Holders of not less
than 25% in principal amount of the Outstanding Securities of that series may
declare the principal amount (or, if the Securities of that series are Original
Issue Discount Securities or Indexed Securities, such portion of the principal
amount as may be specified in the terms of that series) of all of the Securities
of that series to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by Holders), and upon any such declaration
such principal amount (or specified portion thereof) shall become immediately
due and payable. If an Event of Default specified in Section 501(5) or 501(6)
occurs and is continuing, then the principal amount of all the Securities shall
ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Holder.

At any time after a declaration of acceleration with respect to Securities of
any series (or of all series, as the case may be) has been made and before a
judgment or decree for payment of the money due has been obtained by the Trustee
as hereinafter provided in this Article, the Holders of a majority in principal
amount of the Outstanding Securities of that series (or of all series, as the
case may be), by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if:

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<Page>

     (1)    the Company has paid or deposited with the Trustee a sum sufficient
            to pay in the Currency in which the Securities of such series are
            payable (except as otherwise specified pursuant to Section 301 for
            the Securities of such series and except, if applicable, as provided
            in Sections 312(b), 312(d) and 312(e)),

            (A)    all overdue interest on all Outstanding Securities of that
                   series (or of all series, as the case may be),

            (B)    all unpaid principal of (and premium, if any, on) any
                   Outstanding Securities of that series (or of all series, as
                   the case may be) which has become due otherwise than by such
                   declaration of acceleration, and interest on such unpaid
                   principal at the rate or rates prescribed therefor in such
                   Securities,

            (C)    interest on overdue interest at the rate or rates prescribed
                   therefor in such Securities, and

            (D)    all sums paid or advanced by the Trustee hereunder and the
                   reasonable compensation, expenses, disbursements and advances
                   of the Trustee, its agents and counsel; and

     (2)    all Events of Default with respect to Securities of that series (or
            of all series, as the case may be), other than the non-payment of
            amounts of principal of (or premium, if any, on) or interest on
            Securities of that series (or of all series, as the case may be)
            which have become due solely by such declaration of acceleration,
            have been cured or waived as provided in Section 513.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants that if:

     (1)    default is made in the payment of any installment of interest on any
            Security when such interest becomes due and payable and such default
            continues for a period of 30 days or 10 days in the case of
            Securities issued to a NWPS Trust or a trustee of such trust, or

     (2)    default is made in the payment of the principal of (or premium, if
            any, on) any Security at the Maturity thereof,

then the Company will, upon demand of the Trustee, pay to the Trustee for the
benefit of the Holders of such Securities, the whole amount then due and payable
on such Securities for principal (and premium, if any) and interest, and
interest on any overdue principal (and premium, if any) and on any overdue
interest, at the rate or rates prescribed therefor in such Securities, and, in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

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If the Company fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon such Securities, wherever
situated.

If an Event of Default with respect to Securities of any series (or of all
series, as the case may be) occurs and is continuing, the Trustee may in its
discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series (or of all series, as the case may be) by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy. SECTION 504.
Trustee May File Proofs of Claim.

In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal, premium, if any, or interest)
shall be entitled and empowered, by intervention in such proceeding or
otherwise,

     (i)    to file and prove a claim for the whole amount of principal (and
            premium, if any), or such portion of the principal amount of any
            series of Original Issue Discount Securities or Indexed Securities
            as may be specified in the terms of such series, and interest owing
            and unpaid in respect of the Securities and to file such other
            papers or documents as may be necessary or advisable in order to
            have the claims of the Trustee (including any claim for the
            reasonable compensation, expenses, disbursements and advances of the
            Trustee, its agents and counsel) and of the Holders allowed in such
            judicial proceeding, and

     (ii)   to collect and receive any moneys or other property payable or
            deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 606.

Nothing herein contained shall be deemed to authorize the Trustee to authorize
or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

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SECTION 505. Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been
recovered.

SECTION 506. Application of Money Collected.

Any money collected by the Trustee pursuant to this Article shall be applied in
the following order, at the date or dates fixed by the Trustee and, in case of
the distribution of such money on account of principal (or premium, if any) or
interest, upon presentation of the Securities, and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

     First:        To the payment of all amounts due the Trustee under Section
                   606;

     Second:       To the payment of the amounts then due and unpaid for
                   principal of (and premium, if any, on) and interest on the
                   Securities in respect of which or for the benefit of which
                   such money has been collected, ratably, without preference or
                   priority of any kind, according to the amounts due and
                   payable on such Securities for principal (and premium, if
                   any) and interest, respectively; and

     Third:        The balance, if any, to the Company or any other Person or
                   Persons entitled thereto.

SECTION 507. Limitation on Suits.

No Holder of any Security of any series shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless

     (1)    such Holder has previously given written notice to the Trustee of a
            continuing Event of Default with respect to the Securities of that
            series;

     (2)    the Holders of not less than 25% in principal amount of the
            Outstanding Securities of that series in the case of any Event of
            Default described in clause (1), (2), (3), (4) or (7) of Section
            501, or, in the case of any Event of Default described in clause (5)
            or (6) of Section 501, the Holders of not less than 25% in principal
            amount of all Outstanding Securities, shall have made written
            request to the Trustee to institute proceedings in respect of such
            Event of Default in its own name as Trustee hereunder;

     (3)    such Holder or Holders have offered to the Trustee reasonable
            indemnity against the costs, expenses and liabilities to be incurred
            in compliance with such request;

     (4)    the Trustee for 60 days after its receipt of such notice, request
            and offer of indemnity has failed to institute any such proceeding;
            and

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     (5)    no direction inconsistent with such written request has been given
            to the Trustee during such 60-day period by the Holders of a
            majority or more in principal amount of the Outstanding Securities
            of that series in the case of any Event of Default described in
            clause (1), (2), (3), (4) or (7) of Section 501, or, in the case of
            any Event of Default described in clause (5) or (6) of Section 501,
            by the Holders of a majority or more in principal amount of all
            Outstanding Securities;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other
Holders of Securities of the same series, in the case of any Event of Default
described in clause (1), (2), (3), (4) or (7) of Section 501, or of Holders of
all Securities in the case of any Event of Default described in clause (5) or
(6) of Section 501, or to obtain or to seek to obtain priority or preference
over any other of such Holders or to enforce any right under this Indenture,
except in the manner herein provided and for the equal and ratable benefit of
all Holders of Securities of the same series, in the case of any Event of
Default described in clause (1), (2), (3), (4) or (7) of Section 501, or of
Holders of all Securities in the case of any Event of Default described in
clause (5) or (6) of Section 501.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and
Interest.

Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive
payment, as provided herein (including, if applicable, Article Fourteen) and in
such Security, of the principal of (and premium, if any, on) and (subject to
Section 307) interest on, such Security on the respective Stated Maturities
expressed in such Security (or, in the case of redemption, on the Redemption
Date) and to institute suit for the enforcement of any such payment, and such
rights shall not be impaired without the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

If the Trustee or any Holder has instituted any proceeding to enforce any right
or remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders of Securities shall be
restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

SECTION 510. Rights and Remedies Cumulative.

Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities in the last paragraph of Section
306, no right or remedy herein conferred upon or reserved to the Trustee or to
the Holders of Securities is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

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SECTION 511. Delay or Omission Not Waiver.

No delay or omission of the Trustee or of any Holder of any Security to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.

SECTION 512. Control by Holders.

With respect to the Securities of any series, the Holders of not less than a
majority in principal amount of the Outstanding Securities of such series shall
have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee relating to or arising under clause (1), (2), (3), (4)
or (7) of Section 501, and, with respect to all Securities, the Holders of not
less than a majority in principal amount of all Outstanding Securities shall
have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee, not relating to or arising under clause (1), (2), (3),
(4) or (7) of Section 501, provided that in each case

     (1)    such direction shall not be in conflict with any rule of law or with
            this Indenture,

     (2)    the Trustee may take any other action deemed proper by the Trustee
            which is not inconsistent with such direction, and

     (3)    the Trustee need not take any action which might involve it in
            personal liability or be unjustly prejudicial to the Holders of
            Securities of such series not consenting.

SECTION 513. Waiver of Past Defaults.

Subject to Section 502, the Holders of not less than a majority in principal
amount of the Outstanding Securities of any series may on behalf of the Holders
of all the Securities of such series waive any past default described in clause
(1), (2), (3), (4) or (7) of Section 501 (or, in the case of a default described
in clause (5) or (6) of Section 501, the Holders of not less than a majority in
principal amount of all Outstanding Securities may waive any such past default),
and its consequences, except a default

     (1)    in respect of the payment of the principal of (or premium, if any,
            on) or interest on any Security, or

     (2)    in respect of a covenant or provision hereof which under Article
            Nine cannot be modified or amended without the consent of the Holder
            of each Outstanding Security of such series affected.

Upon any such waiver, any such default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

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SECTION 514. Undertaking for Costs.

In any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken, suffered or omitted by it
as Trustee, a court may require any party litigant in such suit to file an
undertaking to pay the costs of such suit, and may assess costs against any such
party litigant, in the manner and to the extent provided in the Trust Indenture
Act; provided, that neither this Section nor the Trust Indenture Act shall be
deemed to authorize any court to require such an undertaking or to make such an
assessment in any suit instituted by the Company or the Trustee or in any suit
for the enforcement of the right to receive the principal of and interest on any
Security.

SECTION 515. Waiver of Stay or Extension Laws.

The Company covenants (to the extent that it may lawfully do so) that it will
not at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay or extension law wherever enacted, now or
at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                   ARTICLE SIX
                                   THE TRUSTEE

SECTION 601. Notice of Defaults.

Within 90 days after the occurrence of any Default hereunder with respect to the
Securities of any series, the Trustee shall transmit in the manner and to the
extent provided in TIA Section 313(c), notice of such default hereunder known to
the Trustee, unless such Default shall have been cured or waived; provided,
however, that, except in the case of a Default in the payment of the principal
of (or premium, if any, on) or interest on any Security of such series or in the
payment of any sinking fund installment with respect to Securities of such
series, the Trustee shall be protected in withholding such notice if and so long
as the board of directors, the executive committee or a trust committee of
directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the Holders of
Securities of such series; and provided, further, that in the case of any
Default of the character specified in Section 501(3) with respect to Securities
of such series, no such notice to Holders shall be given until at least 30 days
after the occurrence thereof.

SECTION 602. Certain Rights of Trustee.

Subject to the provisions of TIA Sections 315(a) through 315(d):

     (1)    the Trustee may rely and shall be protected in acting or refraining
            from acting upon any resolution, certificate, statement, instrument,
            opinion, report, notice, request, direction, consent, order, bond,
            debenture, note, other evidence of indebtedness or other paper or

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            document believed by it to be genuine and to have been signed or
            presented by the proper party or parties;

     (2)    any request or direction of the Company mentioned herein shall be
            sufficiently evidenced by a Company Request or Company Order and any
            resolution of the Board of Directors may be sufficiently evidenced
            by a Board Resolution;

     (3)    whenever in the administration of this Indenture the Trustee shall
            deem it desirable that a matter be proved or established prior to
            taking, suffering or omitting any action hereunder, the Trustee
            (unless other evidence be herein specifically prescribed) may, in
            the absence of bad faith on its part, rely upon an Officers'
            Certificate;

     (4)    the Trustee may consult with counsel and the written advice of such
            counsel or any Opinion of Counsel shall be full and complete
            authorization and protection in respect of any action taken,
            suffered or omitted by it hereunder in good faith and in reliance
            thereon;

     (5)    the Trustee shall be under no obligation to exercise any of the
            rights or powers vested in it by this Indenture at the request or
            direction of any of the Holders of Securities of any series pursuant
            to this Indenture, unless such Holders shall have offered to the
            Trustee reasonable security or indemnity against the costs, expenses
            and liabilities which might be incurred by it in compliance with
            such request or direction;

     (6)    the Trustee shall not be bound to make any investigation into the
            facts or matters stated in any resolution, certificate, statement,
            instrument, opinion, report, notice, request, direction, consent,
            order, bond, debenture, note, other evidence of indebtedness or
            other paper or document, but the Trustee, in its discretion, may
            make such further inquiry or investigation into such facts or
            matters as it may see fit, and, if the Trustee shall determine to
            make such further inquiry or investigation, it shall be entitled to
            examine the books, records and premises of the Company, personally
            or by agent or attorney;

     (7)    the Trustee may execute any of the trusts or powers hereunder or
            perform any duties hereunder either directly or by or through agents
            or attorneys and the Trustee shall not be responsible for any
            misconduct or negligence on the part of any agent or attorney
            appointed with due care by it hereunder; and

     (8)    the Trustee shall not be liable for any action taken, suffered or
            omitted by it in good faith and believed by it to be authorized or
            within the discretion or rights or powers conferred upon it by this
            Indenture. The Trustee shall not be required to expend or risk its
            own funds or otherwise incur any financial liability in the
            performance of any of its duties hereunder, or in the exercise of
            any of its rights or powers if it shall have reasonable grounds for
            believing that repayment of such funds or adequate indemnity against
            such risk or liability is not reasonably assured to it.

SECTION 603. Trustee Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except for the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and neither the Trustee nor any Authenticating Agent

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assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities, except that the Trustee represents that it is duly authorized to
execute and deliver this Indenture, authenticate the Securities and perform its
obligations hereunder and that the statements made by it in a Statement of
Eligibility on Form T-1 supplied to the Company are true and accurate, subject
to the qualifications set forth therein. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of Securities or the proceeds thereof.

SECTION 604. May Hold Securities.

The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar
or any other agent of the Company or of the Trustee, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
TIA Sections 310(b) and 311, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.

SECTION 605. Money Held in Trust.

Money held by the Trustee in trust hereunder need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise
agreed with the Company.

SECTION 606. Compensation and Reimbursement.

The Company agrees:

     (1)    to pay to the Trustee from time to time reasonable compensation for
            all services rendered by it hereunder (which compensation shall not
            be limited by any provision of law in regard to the compensation of
            a trustee of an express trust);

     (2)    except as otherwise expressly provided herein, to reimburse the
            Trustee upon its request for all reasonable expenses, disbursements
            and advances incurred or made by the Trustee in accordance with any
            provision of this Indenture (including the reasonable compensation
            and the expenses and disbursements of its agents and counsel),
            except any such expense, disbursement or advance as may be
            attributable to its negligence or bad faith; and

     (3)    to indemnify the Trustee for, and to hold it harmless against, any
            loss, liability or expense incurred without negligence or bad faith
            on its part, arising out of or in connection with the acceptance or
            administration of the trust or trusts hereunder, including the costs
            and expenses of defending itself against any claim or liability in
            connection with the exercise or performance of any of its powers or
            duties hereunder. The obligations of the Company under this Section
            to compensate the Trustee, to pay or reimburse the Trustee for
            expenses, disbursements and advances and to indemnify and hold
            harmless the Trustee shall constitute additional indebtedness
            hereunder and shall survive the satisfaction and discharge of this
            Indenture. As security for the performance of such obligations of
            the Company, the Trustee shall have a claim prior to the Securities
            upon all property and

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            funds held or collected by the Trustee as such, except funds held in
            trust for the payment of principal of (and premium, if any, on) or
            interest on particular Securities.

SECTION 607. Corporate Trustee Required; Eligibility.

There shall at all times be a Trustee hereunder which shall be eligible to act
as Trustee under TIA Section 310(a)(1) and shall have a combined capital and
surplus of at least $50,000,000. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of Federal,
State, territorial or District of Columbia supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified
in this Article.

SECTION 608. Resignation and Removal; Appointment of Successor.

     (a)    No resignation or removal of the Trustee and no appointment of a
            successor Trustee pursuant to this Article shall become effective
            until the acceptance of appointment by the successor Trustee in
            accordance with the applicable requirements of Section 609.

     (b)    The Trustee may resign at any time with respect to the Securities of
            one or more series by giving written notice thereof to the Company.
            If the instrument of acceptance by a successor Trustee required by
            Section 609 shall not have been delivered to the Trustee within 30
            days after the giving of such notice of resignation, the resigning
            Trustee may petition any court of competent jurisdiction for the
            appointment of a successor Trustee with respect to the Securities of
            such series.

     (c)    The Trustee may be removed at any time with respect to the
            Securities of any series by Act of the Holders of not less than a
            majority in principal amount of the Outstanding Securities of such
            series, delivered to the Trustee and to the Company.

     (d)    If at any time:

            (1)    the Trustee shall fail to comply with the provisions of TIA
                   Section 310(b) after written request therefor by the Company
                   or by any Holder who has been a bona fide Holder of a
                   Security for at least six months, or

            (2)    the Trustee shall cease to be eligible under Section 607 and
                   shall fail to resign after written request therefor by the
                   Company or by any Holder who has been a bona fide Holder of a
                   Security for at least six months, or

            (3)    the Trustee shall become incapable of acting or shall be
                   adjudged a bankrupt or insolvent or a receiver of the Trustee
                   or of its property shall be appointed or any public officer
                   shall take charge or control of the Trustee or of its
                   property or affairs for the purpose of rehabilitation,
                   conservation or liquidation,

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                   then, in any such case, (i) the Company, by a Board
                   Resolution, may remove the Trustee with respect to all
                   Securities, or (ii) subject to TIA Section 315(e), any Holder
                   who has been a bona fide Holder of a Security for at least
                   six months may, on behalf of himself and all others similarly
                   situated, petition any court of competent jurisdiction for
                   the removal of the Trustee with respect to all Securities and
                   the appointment of a successor Trustee or Trustees.

     (e)    If the Trustee shall resign, be removed or become incapable of
            acting, or if a vacancy shall occur in the office of Trustee for any
            cause, with respect to the Securities of one or more series, the
            Company, by a Board Resolution, shall promptly appoint a successor
            Trustee or Trustees with respect to the Securities of that or those
            series (it being understood that any such successor Trustee may be
            appointed with respect to the Securities of one or more or all of
            such series and that at any time there shall be only one Trustee
            with respect to the Securities of any particular series).  If,
            within one year after such resignation, removal or incapability, or
            the occurrence of such vacancy, a successor Trustee with respect to
            the Securities of any series shall be appointed by Act of the
            Holders of a majority in principal amount of the Outstanding
            Securities of such series delivered to the Company and the retiring
            Trustee, the successor Trustee so appointed shall, forthwith upon
            its acceptance of such appointment, become the successor Trustee
            with respect to the Securities of such series and to that extent
            supersede the successor Trustee appointed by the Company.  If no
            successor trustee with respect to the Securities of any series shall
            have been so appointed by the Company or the Holders and accepted
            appointment in the manner hereinafter provided, any Holder who has
            been a bona fide Holder of a Security of such series for at least
            six months may, on behalf of himself and all others similarly
            situated, petition any court of competent jurisdiction for the
            appointment of a successor Trustee with respect to the Securities of
            such series.

     (f)    The Company shall give notice of each resignation and each removal
            of the Trustee with respect to the Securities of any series and each
            appointment of a successor Trustee with respect to the Securities of
            any series to the Holders of Securities of such series in the manner
            provided for in Section 106. Each notice shall include the name of
            the successor Trustee with respect to the Securities of such series
            and the address of its Corporate Trust Office.

SECTION 609. Acceptance of Appointment by Successor.

     (a)    In case of the appointment hereunder of a successor Trustee with
            respect to all Securities, every such successor Trustee so appointed
            shall execute, acknowledge and deliver to the Company and to the
            retiring Trustee an instrument accepting such appointment, and
            thereupon the resignation or removal of the retiring Trustee shall
            become effective and such successor Trustee, without any further
            act, deed or conveyance, shall become vested with all the rights,
            powers, trusts and duties of the retiring Trustee; but, on the
            request of the Company or the successor Trustee, such retiring
            Trustee shall, upon payment of its charges, execute and deliver an
            instrument transferring to such successor Trustee all the rights,
            powers and trusts of the retiring Trustee and shall duly assign,
            transfer and deliver to such successor Trustee all property and
            money held by such retiring Trustee hereunder.

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     (b)    In case of the appointment hereunder of a successor Trustee with
            respect to the Securities of one or more (but not all) series, the
            Company, the retiring Trustee and each successor Trustee with
            respect to the Securities of one or more series shall execute and
            deliver an indenture supplemental hereto wherein each successor
            Trustee shall accept such appointment and which (1) shall contain
            such provisions as shall be necessary or desirable to transfer and
            confirm to, and to vest in, each successor Trustee all the rights,
            powers, trusts and duties of the retiring Trustee with respect to
            the Securities of that or those series to which the appointment of
            such successor Trustee relates, (2) if the retiring Trustee is not
            retiring with respect to all Securities, shall contain such
            provisions as shall be deemed necessary or desirable to confirm that
            all the rights, powers, trusts and duties of the retiring Trustee
            with respect to the Securities of that or those series as to which
            the retiring Trustee is not retiring shall continue to be vested in
            the retiring Trustee, and (3) shall add to or change any of the
            provisions of this Indenture as shall be necessary to provide for or
            facilitate the administration of the trusts hereunder by more than
            one Trustee, it being understood that nothing herein or in such
            supplemental indenture shall constitute such Trustees co-trustees of
            the same trust and that each such Trustee shall be trustee of a
            trust or trusts hereunder separate and apart from any trust or
            trusts hereunder administered by any other such Trustee; and upon
            the execution and delivery of such supplemental indenture the
            resignation or removal of the retiring Trustee shall become
            effective to the extent provided therein and each such successor
            Trustee, without any further act, deed or conveyance, shall become
            vested with all the rights, powers, trusts and duties of the
            retiring Trustee with respect to the Securities of that or those
            series to which the appointment of such successor Trustee relates;
            but, on request of the Company or any successor Trustee, such
            retiring Trustee shall duly assign, transfer and deliver to such
            successor Trustee all property and money held by such retiring
            Trustee hereunder with respect to the Securities of that or those
            series to which the appointment of such successor Trustee relates.
            Whenever there is a successor Trustee with respect to one or more
            (but less than all) series of securities issued pursuant to this
            Indenture, the terms "Indenture" and "Securities" shall have the
            meanings specified in the provisos to the respective definitions of
            those terms in Section 101 which contemplate such situation.

     (c)    Upon request of any such successor Trustee, the Company shall
            execute any and all instruments for more fully and certainly vesting
            in and confirming to such successor Trustee all rights, powers and
            trusts referred to in paragraph (a) or (b) of this Section, as the
            case may be.

     (d)    No successor Trustee shall accept its appointment unless at the time
            of such acceptance such successor Trustee shall be qualified and
            eligible under this Article.

SECTION 610. Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee

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then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities; and in case at that time any of the Securities
shall not have been authenticated, any successor Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of the
successor Trustee; and in all such cases such certificates shall have the full
force which it is anywhere in the Securities or in this Indenture provided that
the certificate of the Trustee shall have; provided, however, that the right to
adopt the certificate of authentication of any predecessor Trustee or to
authenticate Securities in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, conversion or consolidation.

SECTION 611. Appointment of Authenticating Agent.

At any time when any of the Securities remain Outstanding, the Trustee may
appoint an Authenticating Agent or Agents with respect to one or more series of
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series and the Trustee shall give written notice
of such appointment to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve, in the manner provided for in
Section 106. Securities so authenticated shall be entitled to the benefits of
this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Any such appointment shall be evidenced
by an instrument in writing signed by a Responsible Officer of the Trustee, and
a copy of such instrument shall be promptly furnished to the Company. Wherever
reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee's certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, any state thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by federal or state authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect specified in this Section.

Any corporation into which an Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating Agent.

An Authenticating Agent may resign at any time by giving written notice thereof
to the Trustee and to the Company. The Trustee may at any time terminate the
agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give written notice of
such

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appointment to all Holders of Securities of the series with respect to which
such Authenticating Agent will serve, in the manner provided for in Section 106.
Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

The Trustee agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section, and the Trustee
shall be entitled to be reimbursed for such payments, subject to the provisions
of Section 606.

If an appointment with respect to one or more series is made pursuant to this
Section, the Securities of such series may have endorsed thereon, in addition to
the Trustee's certificate of authentication, an alternate certificate of
authentication in the following form:

This is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.

                                   The Chase Manhattan Bank (N.A.),
                                   as Trustee

                                   By:
                                        Authenticating Agent
                                   By:
                                        Authorized Officer

SECTION 612. Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company (or
any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor).

                                  ARTICLE SEVEN
                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701. Disclosure of Names and Addresses of Holders.

Every Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that none of the Company or the Trustee or any agent of
either of them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with TIA
Section 312, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under TIA Section 312(b).

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SECTION 702. Reports by Trustee.

Within 60 days after May 15 of each year commencing with the first May 15 after
the first issuance of Securities pursuant to this Indenture, the Trustee shall
transmit to the Holders of Securities, in the manner and to the extent provided
in TIA Section 313(c), a brief report dated as of such May 15 if required by TIA
Section 313. A copy of each such report shall, at the time of such transmission
to Holders, be filed by the Trustee with each stock exchange upon which the
Securities are listed, with the Commission and with the Company. The Company
will notify the Trustee when the Securities are listed on any stock exchange.

SECTION 703. Reports by Company.

The Company shall:

     (1)    file with the Trustee, within 15 days after the Company is required
            to file the same with the Commission, copies of the annual reports
            and of the information, documents and other reports (or copies of
            such portions of any of the foregoing as the Commission may from
            time to time by rules and regulations prescribe) which the Company
            may be required to file with the Commission pursuant to Section 13
            or Section 15(d) of the Securities Exchange Act of 1934; or, if the
            Company is not required to file information, documents or reports
            pursuant to either of such Sections, then it shall file with the
            Trustee and the Commission, in accordance with rules and regulations
            prescribed from time to time by the Commission, such of the
            supplementary and periodic information, documents and reports which
            may be required pursuant to Section 13 of the Securities Exchange
            Act of 1934 in respect of a security listed and registered on a
            national securities exchange as may be prescribed from time to time
            in such rules and regulations;

     (2)    file with the Trustee and the Commission, in accordance with rules
            and regulations prescribed from time to time by the Commission, such
            additional information, documents and reports with respect to
            compliance by the Company with the conditions and covenants of this
            Indenture as may be required from time to time by such rules and
            regulations; and

     (3)    transmit to all Holders, in the manner and to the extent provided in
            TIA Section 313(c), within 30 days after the filing thereof with the
            Trustee, such summaries of any information, documents and reports
            required to be filed by the Company pursuant to paragraphs (1) and
            (2) of this Section as may be required by rules and regulations
            prescribed from time to time by the Commission.

                                  ARTICLE EIGHT
              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801. Company May Consolidate, etc., Only on Certain Terms. The Company
shall not consolidate with or merge into any other corporation or convey,
transfer or lease, or permit one or more of its Subsidiaries to convey, transfer
or lease, all or substantially all of the property and assets of the Company and
its Subsidiaries on a consolidated basis, to any Person, unless:

     (1)    the corporation formed by such consolidation or into which the
            Company is merged or the Person which acquires by conveyance or
            transfer, or which leases, the properties and

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            assets of the Company and its Subsidiaries on a consolidated basis
            (A) shall be a corporation, partnership or trust organized and
            validly existing under the laws of the United States of America, any
            state thereof or the District of Columbia and (B) shall expressly
            assume, by an indenture supplemental hereto, executed and delivered
            to the Trustee, in form satisfactory to the Trustee, the Company's
            obligation for the due and punctual payment of the principal of (and
            premium, if any, on) and interest on all the Securities and the
            performance and observance of every covenant of this Indenture on
            the part of the Company to be performed or observed;

     (2)    immediately after giving effect to such transaction, no Default or
            Event of Default shall have occurred and be continuing; and

     (3)    the Company or such Person shall have delivered to the Trustee an
            Officers' Certificate and an Opinion of Counsel, each stating that
            such consolidation, merger, conveyance, transfer or lease and such
            supplemental indenture comply with this Article and that all
            conditions precedent herein provided for relating to such
            transaction have been complied with.

This Section shall only apply to a merger or consolidation in which the Company
is not the surviving corporation and to conveyances, leases and transfers by the
Company as transferor or lessor.

SECTION 802. Successor Person Substituted.

Upon any consolidation by the Company with or merger by the Company into any
other corporation or any conveyance, transfer or lease of the properties and
assets of the Company and its Subsidiaries on a consolidated basis to any Person
in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein,
and in the event of any such conveyance or transfer, the Company (which term
shall for this purpose mean the Person named as the "Company" in the first
paragraph of this Indenture or any successor Person which shall theretofore
become such in the manner described in Section 801), except in the case of a
lease, shall be discharged of all obligations and covenants under this Indenture
and the Securities and may be dissolved and liquidated.

SECTION 803. Assignment of Rights.

The Company will have the right at all times to assign any of its respective
rights or obligations under this Indenture to a direct or indirect wholly-owned
Subsidiary of the Company; provided, that in the event of any such assignment,
the Company will remain liable for all of its respective obligations. Subject to
the foregoing, this Indenture will be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. This Indenture
may not otherwise be assigned by the parties hereto.

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                                  ARTICLE NINE
                             SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders. Without the
consent of any Holders, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any of the following purposes:

     (1)    to evidence the succession of another Person to the Company and the
            assumption by any such successor of the covenants of the Company
            contained herein and in the Securities; or

     (2)    to add to the covenants of the Company for the benefit of the
            Holders of all or any series of Securities (and if such covenants
            are to be for the benefit of less than all series of Securities,
            stating that such covenants are being included solely for the
            benefit of such series) or to surrender any right or power herein
            conferred upon the Company; or

     (3)    to add any additional Events of Default (and if such Events of
            Default are to be for the benefit of less than all series of
            Securities, stating that such Events of Default are being included
            solely for the benefit of such series); or

     (4)    to change or eliminate any of the provisions of this Indenture;
            provided that any such change or elimination shall become effective
            only when there is no Security Outstanding of any series created
            prior to the execution of such supplemental indenture which is
            entitled to the benefit of such provision; or

     (5)    to secure the Securities; or

     (6)    to establish the form or terms of Securities of any series as
            permitted by Sections 201 and 301; or

     (7)    to evidence and provide for the acceptance of appointment hereunder
            by a successor Trustee with respect to the Securities of one or more
            series and to add to or change any of the provisions of this
            Indenture as shall be necessary to provide for or facilitate the
            administration of the trusts hereunder by more than one Trustee,
            pursuant to the requirements of Section 609(b); or

     (8)    to close this Indenture with respect to the authentication and
            delivery of additional series of Securities, to cure any ambiguity,
            to correct or supplement any provision herein which may be
            inconsistent with any other provision herein, or to make any other
            provisions with respect to matters or questions arising under this
            Indenture; provided such action shall not adversely affect the
            interests of the Holders of Securities of any series in any material
            respect.

SECTION 902. Supplemental Indentures with Consent of Holders.

With the consent of the Holders of not less than a majority in principal amount
of all Outstanding Securities of any series, by Act of said Holders delivered to
the Company and the Trustee, the Company, when authorized by or pursuant to a
Board Resolution, and the Trustee may enter into an indenture or indentures

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supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture which affect
such series of Securities or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security of such series,

     (1)    change the Stated Maturity of the principal of, or any installment
            of interest on, any Security of such series, or reduce the principal
            amount thereof or the rate of interest thereon or any premium
            payable upon the redemption thereof, or change any obligation of the
            Company to pay Additional Amounts contemplated by Section 1005
            (except as contemplated by Section 801(1) and permitted by Section
            901(1)), or reduce the amount of the principal of an Original Issue
            Discount Security of such series that would be due and payable upon
            a declaration of acceleration of the Maturity thereof pursuant to
            Section 502 or the amount thereof provable in bankruptcy pursuant to
            Section 504, or change the redemption provisions of any Security, or
            adversely affect any right of repayment at the option of any Holder
            of any Security of such series, or change any Place of Payment
            where, or the Currency in which, any Security of such series or any
            premium or interest thereon is payable, or impair the right to
            institute suit for the enforcement of any such payment on or after
            the Stated Maturity thereof (or, in the case of redemption or
            repayment at the option of the Holder, on or after the Redemption
            Date or Repayment Date, as the case may be), or

     (2)    reduce the percentage in principal amount of the Outstanding
            Securities of such series required for any such supplemental
            indenture, for any waiver of compliance with certain provisions of
            this Indenture which affect such series or certain defaults
            applicable to such series hereunder and their consequences provided
            for in this Indenture, or

     (3)    modify any of the provisions of this Section or Section 513, except
            to increase any such percentage or to provide that certain other
            provisions of this Indenture which affect such series cannot be
            modified or waived without the consent of the Holder of each
            Outstanding Security of such series.

Any such supplemental indenture adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture, or modifying in
any manner the rights of the Holders of Securities of such series, shall not
affect the rights under this Indenture of the Holders of Securities of any other
series.

It shall not be necessary for any Act of Holders under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

SECTION 903. Execution of Supplemental Indentures.

In executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and shall
be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

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SECTION 904. Effect of Supplemental Indentures.

Upon the execution of any supplemental indenture under this Article, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

SECTION 905. Conformity with Trust Indenture Act.

Every supplemental indenture executed pursuant to this Article shall conform to
the requirements of the Trust Indenture Act as then in effect.

SECTION 906. Reference in Securities to Supplemental Indentures.

Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities of any series so modified as to conform, in the opinion of the
Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series.

SECTION 907. Notice of Supplemental Indentures.

Promptly after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of Section 902, the Company shall give
notice thereof to the Holders of each Outstanding Security affected, in the
manner provided for in Section 106, setting forth in general terms the substance
of such supplemental indenture.

                                   ARTICLE TEN
                                    COVENANTS

SECTION 1001. Payment of Principal, Premium, if any, and Interest. The Company
covenants and agrees for the benefit of the Holders of each series of Securities
that it will duly and punctually pay the principal of (and premium, if any, on)
and interest on the Securities of that series in accordance with the terms of
the Securities and this Indenture.

SECTION 1002. Maintenance of Office or Agency.

If the Securities of a series are issuable only as Registered Securities, the
Company will maintain in each Place of Payment for any series of Securities an
office or agency where Securities of that series may be presented or surrendered
for payment, where Securities of that series may be surrendered for registration
of transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served.

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The Company will give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency.

If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee.

The Company may also from time to time designate one or more other offices or
agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind any
such designation; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in accordance with the requirements set forth above for Securities of
any series for such purposes. The Company will give prompt written notice to the
Trustee of any such designation or rescission and of any change in the location
of any such other office or agency. Unless otherwise specified with respect to
any Securities as contemplated by Section 301 with respect to a series of
Securities, the Company hereby designates as a Place of Payment for each series
of Securities the office or agency of the Company in The City of New York, and
initially appoints the Trustee at its Corporate Trust Office as Paying Agent in
such city and as its agent to receive all such presentations, surrenders,
notices and demands.

Unless otherwise specified with respect to any Securities pursuant to Section
301, if and so long as the Securities of any series (i) are denominated in a
Currency other than Dollars or (ii) may be payable in a Currency other than
Dollars, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of
Securities, or as so required, at least one Exchange Rate Agent.

SECTION 1003. Money for Securities Payments to Be Held in Trust.

If the Company shall at any time act as its own Paying Agent with respect to any
series of Securities, it will, on or before each due date of the principal of
(and premium, if any, on) or interest on any of the Securities of that series,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum in the Currency in which the Securities of such series are payable (except
as otherwise specified pursuant to Section 301 for the Securities of such series
and except, if applicable, as provided in Sections 312(b), 312(d) and 312(e))
sufficient to pay the principal (and premium, if any) or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure so
to act.

Whenever the Company shall have one or more Paying Agents for any series of
Securities, it will, prior to or on each due date of the principal of (and
premium, if any, on) or interest on any Securities of that series, deposit with
a Paying Agent a sum (in the Currency described in the preceding paragraph)
sufficient to pay the principal (and premium, if any) or interest so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.

The Company will cause each Paying Agent (other than the Trustee) for any series
of Securities to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will:

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     (1)    hold all sums held by it for the payment of the principal of (and
            premium, if any, on) and interest on Securities of such series in
            trust for the benefit of the Persons entitled thereto until such
            sums shall be paid to such Persons or otherwise disposed of as
            herein provided;

     (2)    give the Trustee notice of any default by the Company (or any other
            obligor upon the Securities of such series) in the making of any
            payment of principal of (or premium, if any, on) or interest on the
            Securities of such series; and

     (3)    at any time during the continuance of any such default, upon the
            written request of the Trustee, forthwith pay to the Trustee all
            sums so held in trust by such Paying Agent.

The Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same
trusts as those upon which sums were held by the Company or such Paying Agent;
and, upon such payment by any Paying Agent to the Trustee, such Paying Agent
shall be released from all further liability with respect to such sums.

Except as provided in the Securities of any series, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of (and premium, if any, on) or interest on any
Security of any series, and remaining unclaimed for two years after such
principal (and premium, if any) or interest has become due and payable shall be
paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security or coupon shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in an Authorized Newspaper,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.

SECTION 1004. Statement as to Compliance.

The Company will deliver to the Trustee, within 120 days after the end of each
fiscal year, a brief certificate from the principal executive officer, principal
financial officer or principal accounting officer as to his or her knowledge of
the Company's compliance with all conditions and covenants under this Indenture.
For purposes of this Section 1004, such compliance shall be determined without
regard to any period of grace or requirement of notice under this Indenture.
SECTION 1005. Additional Amounts.

If any Securities of a series provide for the payment of additional amounts to
any Holder who is not a United States person in respect of any tax, assessment
or governmental charge ("Additional Amounts"), the Company will pay to the
Holder of any Security of such series such Additional Amounts as may be
specified as contemplated by Section 301. Whenever in this Indenture there is
mentioned, in any context, the payment of the principal (or premium, if any, on)
or interest on, or in respect of, any Security of a series or the net proceeds
received on the sale or exchange of any Security of a series, such mention shall

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be deemed to include mention of the payment of Additional Amounts provided for
by the terms of such series established pursuant to Section 301 to the extent
that, in such context, Additional Amounts are, were or would be payable in
respect thereof pursuant to such terms and express mention of the payment of
Additional Amounts (if applicable) in any provisions hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made.

Except as otherwise specified as contemplated by Section 301, if the Securities
of a series provide for the payment of Additional Amounts, at least 10 days
prior to the first Interest Payment Date with respect to that series of
Securities (or if the Securities of that series will not bear interest prior to
Maturity, the first day on which a payment or principal (and premium, if any) is
made), and at least 10 days prior to each date of payment of principal (and
premium, if any) or interest if there has been any change with respect to the
matters set forth in the below-mentioned Officers' Certificate, the Company will
furnish the Trustee and the Company's principal Paying Agent or Paying Agents,
if other than the Trustee, with an Officers' Certificate instructing the Trustee
and such Paying Agent or Paying Agents whether such payment of principal of (and
premium, if any, on) or interest on the Securities of that series shall be made
to Holders of Securities of that series who are not United States persons
without withholding for or on account of any tax, assessment or other
governmental charge described in the Securities of the series. If any such
withholding shall be required, then such Officers' Certificate shall specify by
country the amount, if any, required to be withheld on such payments to such
Holders of Securities of that series and the Company will pay to the Trustee or
such Paying Agent the Additional Amounts required by the terms of such
Securities. In the event that the Trustee or any Paying Agent, as the case may
be, shall not so receive the above-mentioned certificate, then the Trustee or
such Paying Agent shall be entitled to (i) assume that no such withholding or
deduction is required with respect to any payment of principal (and premium, if
any) or interest with respect to any Securities of a series until it shall have
received a certificate advising otherwise and (ii) to make all payments of
principal (and premium, if any) and interest with respect to the Securities of a
series without withholding or deductions until otherwise advised. The Company
covenants to indemnify the Trustee and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section.

SECTION 1006. Payment of Taxes and Other Claims.

The Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, all material taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or upon the income,
profits or property of the Company or any Subsidiary; provided, however, that
the Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount, applicability
or validity is being contested in good faith by appropriate proceedings.

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SECTION 1007. Maintenance of Properties.

The Company will cause all property necessary for the operation of the business
of the Company and its Subsidiaries as a whole to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent or restrict the sale, abandonment or other
disposition of any of such property if such action is, in the judgment of the
Company, desirable in the conduct of the business of the Company and its
Subsidiaries as a whole and not disadvantageous in any material respect to the
Holders.

SECTION 1008. Corporate Existence.

Subject to Article Eight, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and the rights (charter and statutory) and franchises of the Company and any
Subsidiary; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries as a whole.

SECTION 1009. Limitation on Dividends; Transactions with Affiliates.

     (a)    If Securities are issued to a NWPS Trust or a trustee of such trust
            in connection with the issuance of Trust Securities by such NWPS
            Trust and (i) there shall have occurred any event that would
            constitute an Event of Default or (ii) the Company shall be in
            default with respect of its payment or any other obligations under
            the Preferred Securities Guarantee or Common Securities Guarantee
            relating to such NWPS Trust, then (A) the Company shall not declare
            or pay any dividend on, make any distributions with respect to, or
            redeem, purchase, acquire or make a liquidation payment with respect
            to, any of its capital stock, and (B) the Company shall not make any
            payment of interest, principal or premium, if any, on or repay,
            repurchase or redeem any debt securities issued by the Company which
            rank pari passu with or junior to such Securities, provided that the
            foregoing restriction in paragraph (A) does not apply to any stock
            dividends paid by the Company where the dividend stock is the same
            stock as that on which the dividend is being paid.

     (b)    If Securities are issued to a NWPS Trust or a trustee of such a
            trust in connection with the issuance of Trust Securities by such
            NWPS Trust and the Company shall have given notice of its election
            to defer payments of interest on such Securities by extending the
            interest payment period as provided in the Indenture and such
            period, or any extension thereof, shall be continuing, then (A) the
            Company shall not declare or pay any dividend or, make any
            distributions with respect to, or redeem, purchase, acquire or make
            a liquidation payment with respect to, any of its capital stock, and
            (B) the Company shall not make any payment of interest, principal or
            premium, if any, on or repay, repurchase or redeem any debt
            securities issued by the Company which rank pari passu with or
            junior to such Securities, provided that the foregoing restriction
            in paragraph (A) does not apply to any stock dividends paid by the
            Company where the dividend stock is the same as that on which the
            dividend is being paid.

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SECTION 1010. Covenants as to NWPS Trusts.

In the event Securities are issued and sold to a NWPS Trust or a trustee of such
trust in connection with the issuance of Trust Securities by such NWPS Trust,
for so long as such Trust Securities remain outstanding, the Company will (i)
maintain 100% direct or indirect ownership of the Common Securities of such NWPS
Trust; provided, however, that any permitted successor of the Company under the
Indenture may succeed to the Company's ownership of the Common Securities, and
(ii) use its reasonable efforts to cause such NWPS Trust (a) to remain a
statutory business trust, except in connection with a distribution of Securities
as provided in the Declaration of such NWPS Trust, the redemption of all of the
Trust Securities and in connection with certain mergers, consolidations or
amalgamation permitted by the Declaration of such NWPS Trust, and (b) otherwise
continue to be treated as a grantor trust for United States federal income tax
purposes.

                                 ARTICLE ELEVEN
                            REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

Securities of any series which are redeemable before their Stated Maturity shall
be redeemable in accordance with the terms of such Securities and (except as
otherwise specified as contemplated by Section 301 for Securities of any series)
in accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

The election of the Company to redeem any Securities shall be evidenced by or
pursuant to a Board Resolution. In case of any redemption at the election of the
Company, the Company shall, at least 60 days prior to the Redemption Date fixed
by the Company (unless a shorter notice shall be satisfactory to the Trustee),
notify the Trustee of such Redemption Date and of the principal amount of
Securities of such series to be redeemed and shall deliver to the Trustee such
documentation and records as shall enable the Trustee to select the Securities
to be redeemed pursuant to Section 1103. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers' Certificate evidencing
compliance with such restriction.

SECTION 1103. Selection by Trustee of Securities to Be Redeemed.

If less than all the Securities of any series are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities
of such series not previously called for redemption, by such method as the
Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of portions of the principal of Securities of such
series; provided, however, that no such partial redemption shall reduce the
portion of the principal amount of a Security not redeemed to less than the
minimum authorized denomination for Securities of such series established
pursuant to Section 301.

The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption and, in the case of any Securities selected for
partial redemption, the principal amount thereof to be redeemed.

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For all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of
any Security redeemed or to be redeemed only in part, to the portion of the
principal amount of such Security which has been or is to be redeemed.

SECTION 1104. Notice of Redemption.

Except as otherwise specified as contemplated by Section 301, notice of
redemption shall be given in the manner provided for in Section 106 not less
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed.

All notices of redemption shall state:

     (1)    the Redemption Date,

     (2)    the Redemption Price,

     (3)    if less than all the Outstanding Securities of any series are to be
            redeemed, the identification (and, in the case of partial
            redemption, the principal amounts) of the particular Securities to
            be redeemed,

     (4)    that on the Redemption Date the Redemption Price (together with
            accrued interest, if any, to the Redemption Date payable as provided
            in Section 1106) will become due and payable upon each such
            Security, or the portion thereof, to be redeemed and, if applicable,
            that interest thereon will cease to accrue on and after said date,

     (5)    the place or places where such Securities are to be surrendered for
            payment of the Redemption Price, and

     (6)    that the redemption is for a sinking fund, if such is the case.
            Notice of redemption of Securities to be redeemed at the election of
            the Company shall be given by the Company or, at the Company's
            request, by the Trustee in the name and at the expense of the
            Company.

SECTION 1105. Deposit of Redemption Price.

Prior to any Redemption Date, the Company shall deposit with the Trustee or with
a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 1003) an amount of money in the
Currency in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series and except,
if applicable as provided in Sections 312(b), 312(d) and 312(e)) sufficient to
pay the Redemption Price of, and accrued interest on, all the Securities which
are to be redeemed on that date.

SECTION 1106. Securities Payable on Redemption Date.

Notice of redemption having been given as aforesaid, the Securities so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption
Price therein specified in the Currency in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 301 for

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the Securities of such series and except, if applicable as provided in Sections
312(b), 312(d) and 312(e)) (together with accrued interest, if any, to the
Redemption Date), and from and after such date (unless the Company shall default
in the payment of the Redemption Price and accrued interest) such Securities
shall, if the same were interest-bearing, cease to bear interest. Upon surrender
of any such Security for redemption in accordance with said notice, such
Security shall be paid by the Company at the Redemption Price, together with
accrued interest, if any, to the Redemption Date; provided, however, that
installments of interest on Registered Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of
business on the relevant Record Dates according to their terms and the
provisions of Section 307.

If any Security called for redemption or portion thereof shall not be so paid
upon surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) set forth in the Security.

SECTION 1107. Securities Redeemed in Part.

Any Security which is to be redeemed only in part (pursuant to the provisions of
this Article or of Article Twelve) shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by,
or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder's attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge,
a new Security or Securities of the same series, of any authorized denomination
as requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so
surrendered.

                                 ARTICLE TWELVE
                                  SINKING FUNDS

SECTION 1201. Applicability of Article.

Retirements of Securities of any series pursuant to any sinking fund shall be
made in accordance with the terms of such Securities and (except as otherwise
specified as contemplated by Section 301 for Securities of any series) in
accordance with this Article.

The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment", and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment". If provided for by the terms of Securities of any series, the
cash amount of any mandatory sinking fund payment may be subject to reduction as
provided in Section 1202. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.

SECTION 1202. Satisfaction of Sinking Fund Payments with Securities.

Subject to Section 1203, in lieu of making all or any part of any mandatory
sinking fund payment with respect to any Securities of a series in cash,
subject to the limitations set forth at Section 1001, the

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Company may at its option (1) deliver to the Trustee Outstanding Securities of a
series (other than any previously called for redemption) theretofore purchased
or otherwise acquired by the Company and/or (2) receive credit for the principal
amount of Securities of such series which have been previously delivered to the
Trustee by the Company or for Securities of such series which have been redeemed
either at the election of the Company pursuant to the terms of such Securities
or through the application of permitted optional sinking fund payments pursuant
to the terms of such Securities, in each case in satisfaction of all or any part
of any mandatory sinking fund payment with respect to the Securities of the same
series required to be made pursuant to the terms of such Securities as provided
for by the terms of such series; provided, however, that such Securities have
not been previously so credited. Such Securities shall be received and credited
for such purpose by the Trustee at the Redemption Price specified in such
Securities for redemption through operation of the sinking fund and the amount
of such mandatory sinking fund payment shall be reduced accordingly.

SECTION 1203. Redemption of Securities for Sinking Fund.

Not less than 60 days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash in the Currency in which the Securities of such
series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of such series and except, if applicable, as provided in Sections
312(b), 312(d) and 312(e)) and the portion thereof, if any, which is to be
satisfied by delivering or crediting Securities of that series pursuant to
Section 1202 (which Securities will, if not previously delivered, accompany such
certificate) and whether the Company intends to exercise its right to make a
permitted optional sinking fund payment with respect to such series. Such
certificate shall be irrevocable and upon its delivery the Company shall be
obligated to make the cash payment or payments therein referred to, if any, on
or before the next succeeding sinking fund payment date. In the case of the
failure of the Company to deliver such certificate, the sinking fund payment due
on the next succeeding sinking fund payment date for that series shall be paid
entirely in cash and shall be sufficient to redeem the principal amount of such
Securities subject to a mandatory sinking fund payment without the option to
deliver or credit Securities as provided in Section 1202 and without the right
to make any optional sinking fund payment, if any, with respect to such series.

Not more than 60 days before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 1103 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

Prior to any sinking fund payment date, the Company shall pay to the Trustee or
a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 1103) in cash a sum equal to any
interest that will accrue to the date fixed for redemption of Securities or
portions thereof to be redeemed on such sinking fund payment date pursuant to
this Section 1203.

Notwithstanding the foregoing, with respect to a sinking fund for any series of
Securities, if at any time the amount of cash to be paid into such sinking fund
on the next succeeding sinking fund payment date, together with any unused
balance of any preceding sinking fund payment or payments for such series, does
not exceed in the aggregate $100,000, the Trustee, unless requested by the
Company, shall not give the

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next succeeding notice of the redemption of Securities of such series through
the operation of the sinking fund. Any such unused balance of moneys deposited
in such sinking fund shall be added to the sinking fund payment for such series
to be made in cash on the next succeeding sinking fund payment date or, at the
request of the Company, shall be applied at any time or from time to time to the
purchase of Securities of such series, by public or private purchase, in the
open market or otherwise, at a purchase price for such Securities (excluding
accrued interest and brokerage commissions, for which the Trustee or any Paying
Agent will be reimbursed by the Company) not in excess of the principal amount
thereof.

                                ARTICLE THIRTEEN
                         REPAYMENT AT OPTION OF HOLDERS

SECTION 1301. Applicability of Article.

Repayment of Securities of any series before their Stated Maturity at the option
of Holders thereof shall be made in accordance with the terms of such Securities
and (except as otherwise specified as contemplated by Section 301 for Securities
of any series) in accordance with this Article.

SECTION 1302. Repayment of Securities.

Securities of any series subject to repayment in whole or in part at the option
of the Holders thereof will, unless otherwise provided in the terms of such
Securities, be repaid at a price equal to the principal amount thereof, together
with interest, if any, thereon accrued to the Repayment Date specified in or
pursuant to the terms of such Securities. The Company covenants that on or
before the Repayment Date it will deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 1003) an amount of money in the Currency in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series and except, if
applicable, as provided in Sections 312(b), 312(d) and 312(e)) sufficient to pay
the principal (or, if so provided by the terms of the Securities of any series,
a percentage of the principal) of, and (except if the Repayment Date shall be an
Interest Payment Date) accrued interest on, all the Securities or portions
thereof, as the case may be, to be repaid on such date.

SECTION 1303. Exercise of Option.

Securities of any series subject to repayment at the option of the Holders
thereof will contain an "Option to Elect Repayment" form on the reverse of such
Securities. To be repaid at the option of the Holder, any Security so providing
for such repayment, with the "Option to Elect Repayment" form on the reverse of
such Security duly completed by the Holder (or by the Holder's attorney duly
authorized in writing), must be received by the Company at the Place of Payment
therefor specified in the terms of such Security (or at such other place or
places or which the Company shall from time to time notify the Holders of such
Securities) not earlier than 45 days nor later than 30 days prior to the
Repayment Date. If less than the entire principal amount of such Security is to
be repaid in accordance with the terms of such Security, the principal amount of
such Security to be repaid, in increments of the minimum denomination for
Securities of such series, and the denomination or denominations of the Security
or Securities to be issued to the Holder for the portion of the principal amount
of such Security surrendered that is not to be repaid, must be specified. The
principal amount of any Security providing for repayment at the option of the
Holder thereof may not be repaid in part if, following such repayment, the
unpaid principal amount of such

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Security would be less than the minimum authorized denomination of Securities of
the series of which such Security to be repaid is a part. Except as otherwise
may be provided by the terms of any Security providing for repayment at the
option of the Holder thereof, exercise of the repayment option by the Holder
shall be irrevocable unless waived by the Company.

SECTION 1304. When Securities Presented for Repayment Become Due and Payable. If
Securities of any series providing for repayment at the option of the Holders
thereof shall have been surrendered as provided in this Article and as provided
by or pursuant to the terms of such Securities, such Securities or the portions
thereof, as the case may be, to be repaid shall become due and payable and shall
be paid by the Company on the Repayment Date therein specified, and on and after
such Repayment Date (unless the Company shall default in the payment of such
Securities on such Repayment Date) such Securities shall, if the same were
interest-bearing, cease to bear interest. Upon surrender of any such Security
for repayment in accordance with such provisions, the principal amount of such
Security so to be repaid shall be paid by the Company, together with accrued
interest, if any, to the Repayment Date; provided, however, that in the case of
Registered Securities, installments of interest, if any, whose Stated Maturity
is on or prior to the Repayment Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

If the principal amount of any Security surrendered for repayment shall not be
so repaid upon surrender thereof, such principal amount (together with interest,
if any, thereon accrued to such Repayment Date) shall, until paid, bear interest
from the Repayment Date at the rate of interest Yield to Maturity (in the case
of Original Issue Discount Securities) set forth in such Security.

SECTION 1305. Securities Repaid in Part.

Upon surrender of any Registered Security which is to be repaid in part only,
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Security, without service charge and at the expense of the
Company, a new Registered Security or Securities of the same series, of any
authorized denomination specified by the Holder, in an aggregate principal
amount equal to and in exchange for the portion of the principal of such
Security so surrendered which is not to be repaid.

                                ARTICLE FOURTEEN
                       DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1401. Company's Option to Effect Defeasance or Covenant Defeasance.
Except as otherwise specified as contemplated by Section 301 for Securities of
any series of this Section 1401, the provisions of this Article Fourteen shall
apply to each series of Securities, and the Company may, at its option, effect
(i) defeasance of the Securities of or within a series under Section 1402,
except that the Company shall not effect any such defeasance under Section 1402
in respect of any Securities of which a NWPS Trust or a trustee of such trust is
the Holder, or (ii) covenant defeasance of or within a

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series under Section 1403 in accordance with the terms of such Securities and in
accordance with this Article.

SECTION 1402. Defeasance and Discharge.

Upon the Company's exercise of the above option applicable to this Section with
respect to any Securities of or within a series, the Company shall be deemed to
have been discharged from its obligations with respect to such Outstanding
Securities on the date the conditions set forth in Section 1404 are satisfied
(hereinafter, "defeasance"). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Outstanding Securities, which shall thereafter be deemed to
be "Outstanding" only for the purposes of Section 1405 and the other Sections of
this Indenture referred to in (A) and (B) below, and to have satisfied all its
other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following
which shall survive until otherwise terminated or discharged hereunder: (A) the
rights of Holders of such Outstanding Securities to receive, solely from the
trust fund described in Section 1404 and as more fully set forth in such
Section, payments in respect of the principal of (and premium, if any, on) and
interest on such Securities (B) the Company's obligations with respect to such
Securities under Sections 304, 305, 306, 1002 and 1003 and with respect to the
payment of Additional Amounts, if any, on such Securities as contemplated by
Section 1005, (C) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (D) this Article Fourteen. Subject to compliance with this
Article Fourteen, the Company may exercise its option under this Section 1402
notwithstanding the prior exercise of its option under Section 1403 with respect
to such Securities.

SECTION 1403. Covenant Defeasance.

Upon the Company's exercise of the above option applicable to this Section with
respect to any Securities of or within a series, the Company shall be released
from its obligations under Section 803 and Sections 1006 through 1008, and, if
specified pursuant to Section 301, its obligations under any other covenant,
with respect to such Outstanding Securities on and after the date the conditions
set forth in Section 1404 are satisfied (hereinafter, "covenant defeasance"),
and such Securities shall thereafter be deemed not to be "Outstanding" for the
purposes of any direction, waiver, consent or declaration or Act of Holders (and
the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "Outstanding" for all other purposes hereunder. For this
purpose, such covenant defeasance means that, with respect to such Outstanding
Securities, the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 501(4) or otherwise,
as the case may be, but, except as specified above, the remainder of this
Indenture and such Securities shall be unaffected thereby.

SECTION 1404. Conditions to Defeasance or Covenant Defeasance. The following
shall be the conditions to application of either Section 1402 or Section 1403 to
any Outstanding Securities of or within a series:

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     (1)    The Company shall irrevocably have deposited or caused to be
            deposited with the Trustee (or another trustee satisfying the
            requirements of Section 607 who shall agree to comply with the
            provisions of this Article Fourteen applicable to it) as trust funds
            in trust for the purpose of making the following payments,
            specifically pledged as security for, and dedicated solely to, the
            benefit of the Holders of such Securities, (A) an amount (in such
            Currency in which such Securities are then specified as payable at
            Stated Maturity), or (B) Government Obligations applicable to such
            Securities (determined on the basis of the Currency in which such
            Securities are then specified as payable at Stated Maturity) which
            through the scheduled payment of principal and interest in respect
            thereof in accordance with their terms will provide, not later than
            one day before the due date of any payment of principal (including
            any premium) and interest, if any, under such Securities, money in
            an amount, or (C) a combination thereof, sufficient, in the opinion
            of a nationally recognized firm of independent public accountants
            expressed in a written certification thereof delivered to the
            Trustee, to pay and discharge, and which shall be applied by the
            Trustee (or other qualifying trustee) to pay and discharge, (i) the
            principal of (and premium, if any, on) and interest on such
            Outstanding Securities on the Stated Maturity (or Redemption Date,
            if applicable) of such principal (and premium, if any) or
            installment or interest and (ii) any mandatory sinking fund payments
            or analogous payments applicable to such Outstanding Securities on
            the day on which such payments are due and payable in accordance
            with the terms of this Indenture and of such Securities; provided
            that the Trustee shall have been irrevocably instructed to apply
            such money or the proceeds of such Government Obligations to said
            payments with respect to such Securities. Before such a deposit, the
            Company may give to the Trustee, in accordance with Section 1102
            hereof, a notice of its election to redeem all or any portion of
            such Outstanding Securities at a future date in accordance with the
            terms of the Securities of such series and Article Eleven hereof,
            which notice shall be irrevocable. Such irrevocable redemption
            notice, if given, shall be given effect in applying the foregoing.

     (2)    No Default or Event of Default with respect to such Securities shall
            have occurred and be continuing on the date of such deposit or,
            insofar as paragraphs (5) and (7) of Section 501 are concerned, at
            any time during the period ending on the 91st day after the date of
            such deposit (it being understood that this condition shall not be
            deemed satisfied until the expiration of such period).

     (3)    Such defeasance or covenant defeasance shall not result in a breach
            or violation of, or constitute a default under, this Indenture or
            any other material agreement or instrument to which the Company is a
            party or by which it is bound.

     (4)    In the case of an election under Section 1402, the Company shall
            have delivered to the Trustee an Opinion of Counsel stating that (x)
            the Company has received from, or there has been published by, the
            Internal Revenue Service a ruling, or (y) since the date of
            execution of this Indenture, there has been a change in the
            applicable United States federal income tax law, in either case to
            the effect that, and based thereon such opinion shall confirm that,
            the Holders of such Outstanding Securities will not recognize
            income, gain or loss for United States federal income tax purposes
            as a result of such defeasance and will be subject to United States
            federal income tax on the same amounts, in the same

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            manner and at the same times as would have been the case if such
            defeasance had not occurred.

     (5)    In the case of an election under Section 1403, the Company shall
            have delivered to the Trustee an Opinion of Counsel to the effect
            that the Holders of such Outstanding Securities will not recognize
            income, gain or loss for United States federal income tax purposes
            as a result of such covenant defeasance and will be subject to
            United States federal income tax on the same amounts, in the same
            manner and at the same times as would have been the case if such
            covenant defeasance had not occurred.

     (6)    Notwithstanding any other provisions of this Section, such
            defeasance or covenant defeasance shall be effected in compliance
            with any additional or substitute terms, conditions or limitations
            in connection therewith pursuant to Section 301.

     (7)    The Company shall have delivered to the Trustee an Opinion of
            Counsel to the effect that the deposit contemplated by subsection
            (1) shall not result in the Company, the Trustee or the defeasance
            trust being deemed an "investment company" under the Investment
            Company Act of 1940, as amended.

     (8)    The Company shall have delivered to the Trustee an Officers'
            Certificate and an Opinion of Counsel, each stating that all
            conditions precedent provided for relating to either the defeasance
            under Section 1402 or the covenant defeasance under Section 1403 (as
            the case may be) have been complied with.

SECTION 1405. Deposited Money and Government Obligations to Be Held in Trust;
Other Miscellaneous Provisions.

Subject to the provisions of the last paragraph of Section 1003, all money and
Government Obligations (or other property as may be provided pursuant to Section
301) (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee -- collectively for purposes of this Section 1405, the
"Trustee") pursuant to Section 1404 in respect of such Outstanding Securities
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Holders of such Securities of
all sums due and to become due thereon in respect of principal (and premium, if
any) and interest, but such money need not be segregated from other funds except
to the extent required by law.

Unless otherwise specified with respect to any Security pursuant to Section 301,
if, after a deposit referred to in Section 1404(1) has been made, (a) the Holder
of a Security in respect of which such deposit was made is entitled to, and
does, elect pursuant to Section 312(b) or the terms of such Security to receive
payment in a Currency other than that in which the deposit pursuant to Section
1404(1) has been made in respect of such Security, or (b) a Conversion Event
occurs as contemplated in Section 312(d) or 312(e) or by the terms of any
Security in respect of which the deposit pursuant to Section 1404(1) has been
made, the indebtedness represented by such Security shall be deemed to have
been, and will be, fully discharged and satisfied through the payment of the
principal of (premium, if any, on), and interest, if any, on such Security as
they become due out of the proceeds yielded by converting (from time to time as
specified below in the case of any such election) the amount or other property
deposited in respect of such Security

                                      -65-

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into the Currency in which such Security becomes payable as a result of such
election or Conversion Event based on the applicable Market Exchange Rate for
such Currency in effect on the third Business Day prior to each payment date,
except, with respect to a Conversion Event, for such Currency in effect (as
nearly as feasible) at the time of the Conversion Event.

The Company shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 1404 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of such Outstanding Securities.

Anything in this Article Fourteen to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any
money or Government Obligations (or other property and any proceeds therefrom)
held by it as provided in Section 1404 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited to effect an equivalent
defeasance or covenant defeasance, as applicable, in accordance with this
Article.

SECTION 1406. Reinstatement.

If the Trustee or any Paying Agent is unable to apply any money in accordance
with Section 1405 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and such
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 1402 or 1403, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 1405; provided, however, that if the Company makes any payment of
principal of (or premium, if any, on) or interest on any such Security following
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
held by the Trustee or Paying Agent.

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

Seal

                              NORTHWESTERN PUBLIC SERVICE COMPANY

                              By: /s/ Richard R. Hylland
                                 ----------------------------------------------
                                 Richard R. Hylland
                                 Vice President - Strategic Development

Attest: /s/ Alan D. Dietrich
       ---------------------
       Alan D. Dietrich
       Corporate Secretary

Seal

                              THE CHASE MANHATTAN BANK (N.A.)

                              By: /s/ James Heaney
                                 ----------------------------------------------
                                 Name: James Heaney
                                 Title: Vice President

Attest: /s/ Kathleen Perry
       -------------------
       Assistant Secretary

                                      -67-

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STATE OF SOUTH DAKOTA     )
                          )  SS
COUNTY OF BEADLE          )

     On the day of August 1, 1995, before me personally Richard R. Hylland came
to be known, who, being by me duly sworn, did depose and say that he is the Vice
President - Strategic Development of Northwestern Public Service Company, one of
the corporations described in and which executed the above instrument; that he
knows the corporate seal of said corporation; that the seal affixed to the said
instrument is such corporation seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that he signed his name thereto by
like authority.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal of
office this 1st day of August, 1995.

(Notarial Seal)                    /s/ Susan M. Anderson
                                   ----------------------------------------
                                       Susan M. Anderson
                                       NOTARY PUBLIC, BEADLE COUNTY, S.D.
                                       My Commission Expires June 8, 2000

STATE OF  NEW YORK        )
                          )  SS
COUNTY OF KINGS           )

     On the day of August 1, 1995, before me personally James Heaney came to be
known, who, being by me duly sworn, did depose and say that he is the Vice
President of The Chase Manhattan Bank, one of the corporations described in and
which executed the above instrument; that he knows the corporate seal of said
corporation; that the seal affixed to the said instrument is such corporation
seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal of
office this 1st day of August, 1995.

(Notarial Seal)                              /s/ Denis Kelly
                                             ----------------------------------
                                             NOTARY PUBLIC
                                             COMMISSION EXPIRES

                                      -68-

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