Document:

<PAGE>
                                                                     EXHIBIT 4.1

                        NORTHERN BORDER PIPELINE COMPANY

                                     Issuer

                      6.25% Senior Notes due 2007, Series A

                      6.25% Senior Notes due 2007, Series B

                                    INDENTURE

                           Dated as of April 29, 2002

                          BANK ONE TRUST COMPANY, N.A.

                                     Trustee

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

<PAGE>

                            CROSS-REFERENCE TABLE(1)

<Table>
<Caption>
TRUST INDENTURE                                                                                           INDENTURE
ACT SECTION                                                                                                 SECTION

<S>    <C>                                                                                              <C>
310    (a)(1)..................................................................................................7.09
       (a)(2)..................................................................................................7.09
       (a)(3)..................................................................................................N.A.
       (a)(4)..................................................................................................N.A.
       (a)(5)............................................................................................7.08; 7.09
       (b)...............................................................................................7.08; 7.09
       (c).....................................................................................................N.A.
311    (a).....................................................................................................7.13
       (b).....................................................................................................7.13
       (c).....................................................................................................N.A.
312    (a).....................................................................................................2.05
       (b)....................................................................................................10.03
       (c)....................................................................................................10.03
313    (a).....................................................................................................7.15
       (b)(2)..................................................................................................7.15
       (c)..............................................................................................7.15, 10.02
       (d).....................................................................................................7.15
314    (a).....................................................................................................4.03
       (a)(4).................................................................................................10.04
       (c)(1)..................................................................................................N.A.
       (c)(2)..................................................................................................N.A.
       (c)(3)..................................................................................................N.A.
       (e)....................................................................................................10.05
       (f).....................................................................................................N.A.
315    (a).....................................................................................................7.01
       (b).....................................................................................................7.02
       (c).....................................................................................................7.01
       (d).....................................................................................................7.01
       (e).....................................................................................................6.14
316    (a)(last sentence)......................................................................................2.09
       (a)(1)(A)...............................................................................................6.12
       (a)(1)(B)...............................................................................................6.13
       (a)(2)..................................................................................................N.A.
       (b).....................................................................................................6.08
       (c).....................................................................................................2.12
317    (a)(1)..................................................................................................6.04
       (a)(2)..................................................................................................6.04
       (b).....................................................................................................2.04
318    (a)....................................................................................................10.01
       (b)....................................................................................................10.01
       (c)....................................................................................................10.01
</Table>

N.A. means not applicable.

----------

(1)  This Cross-Reference Table is not part of this Indenture.

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                               Page
                                                                                                               ----

<S>                    <C>                                                                                     <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE..............................................................1

SECTION 1.01           Definitions................................................................................1
SECTION 1.02           Incorporation by Reference of Trust Indenture Act..........................................9
SECTION 1.03           Rules of Construction......................................................................9

ARTICLE II THE NOTES.............................................................................................10

SECTION 2.01           Form and Dating...........................................................................10
SECTION 2.02           Execution and Authentication..............................................................10
SECTION 2.03           Registrar and Paying Agent................................................................11
SECTION 2.04           Paying Agent to Hold Money in Trust.......................................................11
SECTION 2.05           Holder Lists..............................................................................11
SECTION 2.06           Transfer and Exchange.....................................................................12
SECTION 2.07           Replacement Notes.........................................................................21
SECTION 2.08           Outstanding Notes.........................................................................22
SECTION 2.09           Treasury Notes............................................................................22
SECTION 2.10           Temporary Notes...........................................................................22
SECTION 2.11           Cancellation..............................................................................22
SECTION 2.12           Defaulted Interest........................................................................23
SECTION 2.13           CUSIP Numbers.............................................................................23

ARTICLE III REDEMPTION AND PREPAYMENT............................................................................23

SECTION 3.01           Notices to Trustee........................................................................23
SECTION 3.02           Selection of Notes to be Redeemed.........................................................23
SECTION 3.03           Notice of Redemption......................................................................23
SECTION 3.04           Effect of Notice of Redemption............................................................24
SECTION 3.05           Deposit of Redemption Price...............................................................24
SECTION 3.06           Notes Redeemed in Part....................................................................25
SECTION 3.07           Mandatory Redemption......................................................................25

ARTICLE IV COVENANTS.............................................................................................25

SECTION 4.01           Payment of Notes..........................................................................25
SECTION 4.02           Maintenance of Office or Agency...........................................................25
SECTION 4.03           Reports...................................................................................26
SECTION 4.04           Statement by Officers as to Default.......................................................26
SECTION 4.05           Existence.................................................................................26
SECTION 4.06           Limitations on Liens......................................................................27
SECTION 4.07           Restriction of Sale-Leaseback Transactions................................................27
SECTION 4.08           Waiver of Certain Covenants...............................................................27
SECTION 4.09           Payments for Consent......................................................................28
SECTION 4.10           Money for Note Payments to Be Held in Trust...............................................28

ARTICLE V SUCCESSORS.............................................................................................29

SECTION 5.01           Company May Consolidate, Etc., Only on Certain Terms......................................29
SECTION 5.02           Successor Substituted.....................................................................29
</Table>

                                       i
<PAGE>

<Table>
<S>                    <C>                                                                                     <C>
ARTICLE VI DEFAULTS AND REMEDIES.................................................................................30

SECTION 6.01           Events of Default.........................................................................30
SECTION 6.02           Acceleration of Maturity; Rescission and Annulment........................................30
SECTION 6.03           Collection of Indebtedness and Suits for Enforcement by Trustee...........................31
SECTION 6.04           Trustee May File Proofs of Claim..........................................................32
SECTION 6.05           Trustee May Enforce Claims Without Possession of Notes....................................32
SECTION 6.06           Application of Money Collected............................................................32
SECTION 6.07           Limitation on Suits.......................................................................33
SECTION 6.08           Unconditional Right of Holders to Receive Principal, Premium and Interest.................33
SECTION 6.09           Restoration of Rights and Remedies........................................................33
SECTION 6.10           Rights and Remedies Cumulative............................................................33
SECTION 6.11           Delay or Omission Not Waiver..............................................................34
SECTION 6.12           Control by Holders........................................................................34
SECTION 6.13           Waiver of Past Defaults...................................................................34
SECTION 6.14           Undertaking for Costs.....................................................................34
SECTION 6.15           Waiver of Usury, Stay or Extension Laws...................................................34

ARTICLE VII TRUSTEE..............................................................................................35

SECTION 7.01           Certain Duties and Responsibilities.......................................................35
SECTION 7.02           Notice of Defaults........................................................................36
SECTION 7.03           Certain Rights of Trustee.................................................................36
SECTION 7.04           Not Responsible for Recitals or Issuance of Notes.........................................37
SECTION 7.05           May Hold Notes............................................................................37
SECTION 7.06           Money Held in Trust.......................................................................37
SECTION 7.07           Compensation and Reimbursement............................................................37
SECTION 7.08           Disqualification; Conflicting Interests...................................................38
SECTION 7.09           Corporate Trustee Required; Eligibility...................................................38
SECTION 7.10           Resignation and Removal; Appointment of Successor.........................................38
SECTION 7.11           Acceptance of Appointment by Successor....................................................39
SECTION 7.12           Merger, Conversion, Consolidation or Succession to Business...............................40
SECTION 7.13           Preferential Collection of Claims Against Company.........................................40
SECTION 7.14           Appointment of Authenticating Agent.......................................................40
SECTION 7.15           Reports by Trustee to Holders of the Notes................................................41

ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE............................................................41

SECTION 8.01           Option to Effect Legal Defeasance or Covenant Defeasance..................................41
SECTION 8.02           Legal Defeasance and Discharge............................................................41
SECTION 8.03           Covenant Defeasance.......................................................................42
SECTION 8.04           Conditions to Legal or Covenant Defeasance................................................42
SECTION 8.05           Deposited Money and Government Securities to be Held in Trust; Other
                       Miscellaneous Provisions..................................................................43
SECTION 8.06           Repayment to Company......................................................................44
SECTION 8.07           Reinstatement.............................................................................44
SECTION 8.08           Satisfaction and Discharge................................................................44

ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER......................................................................45

SECTION 9.01           Without Consent of Holders of Notes.......................................................45
SECTION 9.02           With Consent of Holders of Notes..........................................................46
SECTION 9.03           Compliance with Trust Indenture Act.......................................................47
</Table>

                                       ii
<PAGE>

<Table>
<S>                    <C>                                                                                     <C>
SECTION 9.04           Revocation and Effect of Consents.........................................................47
SECTION 9.05           Notation on or Exchange of Notes..........................................................47
SECTION 9.06           Trustee to Sign Amendments, Etc...........................................................47

ARTICLE X MISCELLANEOUS..........................................................................................48

SECTION 10.01          Trust Indenture Act Controls..............................................................48
SECTION 10.02          Notices...................................................................................48
SECTION 10.03          Communication by Holders of Notes with Other Holders of Notes.............................49
SECTION 10.04          Certificate and Opinion as to Conditions Precedent........................................49
SECTION 10.05          Statements Required in Certificate or Opinion.............................................49
SECTION 10.06          Rules by Trustee and Agents...............................................................50
SECTION 10.07          No Personal Liability of Directors, Officers, Employees and Stockholders..................50
SECTION 10.08          Governing Law.............................................................................50
SECTION 10.09          No Adverse Interpretation of Other Agreements.............................................50
SECTION 10.10          Successors................................................................................50
SECTION 10.11          Severability..............................................................................50
SECTION 10.12          Counterpart Originals.....................................................................50
SECTION 10.13          Table of Contents, Headings, Etc..........................................................50
SECTION 10.14          Acts of Holders; Record Dates.............................................................50

ARTICLE XI MEETINGS OF HOLDERS OF NOTES..........................................................................51

SECTION 11.01          Purposes for Which Meetings May Be Called.................................................51
SECTION 11.02          Call, Notice and Place of Meetings........................................................52
SECTION 11.03          Persons Entitled to Vote at Meetings......................................................52
SECTION 11.04          Quorum; Action............................................................................52
SECTION 11.05          Determination of Voting Rights; Conduct and Adjournment of Meetings.......................53
SECTION 11.06          Counting Votes and Recording Action of Meetings...........................................53
</Table>

EXHIBITS

EXHIBIT A         Form of Note                       A-1
EXHIBIT B         Form of Certificate of Transfer    B-1
EXHIBIT C         Form of Certificate of Exchange    C-1

                                      iii
<PAGE>

     INDENTURE dated as of April 29, 2002 between Northern Border Pipeline
Company, a Texas general partnership (the "Company"), and Bank One Trust
Company, N.A., as trustee (the "Trustee").

     The Company and the Trustee agree as follows for the benefit of each other
and for the equal and ratable benefit of the Holders of the 6.25% Senior Notes
due 2007, Series A (the "Initial Notes") and the 6.25% Senior Notes due 2007,
Series B, issued in the Exchange Offer (the "Exchange Notes" and, together with
the Initial Notes, the "Notes"):

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01 Definitions.

     "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" when used with respect to 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.

     "Agent" means any Registrar, Paying Agent or co-registrar.

     "Applicable Procedures" means, with respect to any transfer or exchange of
or for beneficial interests in any Global Note, the rules and procedures of the
Depositary and Clearstream that apply to such transfer or exchange.

     "Attributable Indebtedness" means with respect to a Sale-Leaseback
Transaction involving pipeline assets, as of the time of determination, either
(i) the lesser of (A) the fair market value of such pipeline assets (as
determined in good faith by the Company's Management Committee); or (B) the
present value of the total Net Amount of Rent required to be paid under the
lease involved in such Sale-Leaseback Transaction during the remaining term
thereof (including any renewal term exercisable at the lessee's option or period
for which the lease has been extended), discounted at the rate of interest set
forth or implicit in the terms of such lease or, if not practicable to determine
such rate, the weighted average interest rate per annum borne by the Notes,
compounded semiannually; or (ii) if the obligation with respect to the
Sale-Leaseback Transaction constitutes an obligation that is required to be
classified and accounted for as a Capital Lease Obligation for financial
reporting purposes in accordance with GAAP, the amount equal to the capitalized
amount of such obligation required to be paid by the lessee determined in
accordance with GAAP and included in the financial statements of the lessee.

     "Authenticating Agent" means any person authorized by the Trustee pursuant
to Section 7.14 hereof to authenticate the Notes.

     "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 the place in connection with which the term is used or in
the financial community of such place. Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or different newspapers in the same city meeting the foregoing
requirements and in each case on any day that is a Business Day in the place of
publication.

     "Bankruptcy Code" means Title 11, U.S. Code, as amended, or any similar
federal or state law for the relief of debtors.

<PAGE>

     "Business Day" means any day other than a Legal Holiday.

     "Capital Lease Obligation" means, at the time any determination thereof is
to be made, the amount of the liability in respect of a capital lease that would
at such time be required to be capitalized on a balance sheet in accordance with
GAAP.

     "Capital Interests" means any and all shares, interests, participations,
rights or other equivalents (however designated) of capital stock, including,
without limitation, with respect to partnerships, partnership interests (whether
general or limited), with respect to limited liability companies, member
interests and any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of
assets of, such partnership.

     "Clearstream" means Clearstream Banking Luxembourg, the international
clearing and settlement organization.

     "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by a member of the Management Committee, an
Officer of the Operator or a person duly authorized by any of them, and
delivered to the Trustee.

     "Corporate Trust Office of the Trustee" shall be at the address of the
Trustee specified in Section 11.02 hereof or such other address as to which the
Trustee may give notice to the Company.

     "Consolidated Net Tangible Assets" means, at any date of determination, the
aggregate amount of total assets included in the Company's most recent quarterly
or annual consolidated balance sheet prepared in accordance with GAAP less
applicable reserves reflected in such balance sheet, after deducting the
following amounts: (i) all current liabilities reflected in such balance sheet
(excluding any current maturities of long-term debt or any current liabilities
that by their terms are extendable or renewable at the option of the obligor to
a time more than 12 months after the time as of which the amount is being
computed); and (ii) all goodwill, trade names, trademarks, patents, unamortized
debt discount and expenses and other like intangibles reflected in such balance
sheet.

     "Custodian" means any receiver, trustee, assignee, liquidator, sequester or
similar official under the Bankruptcy Code.

     "Default" means any event that is or with the passage of time or the giving
of notice (or both) would be an Event of Default.

     "Definitive Note" means a certificated Note registered in the name of the
Holder thereof and issued in accordance with Section 2.06 hereof, substantially
in the form of Exhibit A-1 hereto except that such Note shall not bear the
Global Note Legend and shall not have the "Schedule of Exchanges of Interests in
the Global Note" attached thereto.

     "Depositary" means, with respect to the Notes issuable or issued in whole
or in part in global form, the Person specified in Section 2.03 hereof as the
Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

     "Euroclear" means Morgan Guaranty Trust Company of New York, Brussels
office, as operator of the Euroclear system.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Exchange Notes" means notes registered under the Securities Act that are
issued under Section 2.06(f) hereof in exchange for the Notes pursuant to the
Exchange Offer.

                                       2
<PAGE>

     "Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.

     "Exchange Offer Registration Statement" has the meaning set forth in the
Registration Rights Agreement.

     "Exempted Indebtedness" means Indebtedness of which the Company or any of
its Subsidiaries is an obligor or guarantor, or that has been assumed by the
Company or any of its Subsidiaries, which Indebtedness is secured by a Lien
(other than a Permitted Lien), or any Attributable Indebtedness of the Company
or any of its Subsidiaries, provided that the sum of the aggregate principal
amount of all such Indebtedness then outstanding (other than the Notes) so
secured by a Lien (other than a Permitted Lien) and the amount of all the
outstanding Attributable Indebtedness, in each case not otherwise permitted by
Section 4.07(b) or Section 4.07(c), does not at the time such Indebtedness or
Attributable Indebtedness is incurred exceed 10% of the Consolidated Net
Tangible Assets of the Company and its Subsidiaries.

     "Funded Debt" means all Indebtedness maturing one year or more from the
date of the incurrence, creation, assumption or guarantee thereof, all
Indebtedness directly or indirectly renewable or extendable, at the option of
the debtor, by its terms or by the terms of any instrument or agreement relating
thereto, to a date one year or more from the date of the incurrence, creation,
assumption or guarantee thereof, and all Indebtedness under a revolving credit
or similar agreement obligating the lender or lenders to extend credit over a
period of one year or more.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants, the statements and pronouncements of
the Financial Accounting Standards Board and such other statements by such other
entities as have been approved by a significant segment of the accounting
profession, which are applicable at the date of determination.

     "General Partners" means Northern Border Intermediate Limited Partnership
and TC PipeLines Intermediate Limited Partnership.

     "Global Note Legend" means the legend set forth in Section 2.06(g)(ii)
hereof, which is required to be placed on all Global Notes issued under this
Indenture.

     "Global Notes" means a permanent global Note substantially in the form of
Exhibit A attached hereto that bears the Global Note Legend and that has the
"Schedule of Exchanges of Interests in the Global Note" attached thereto, and
that is deposited with or on behalf of and registered in the name of the
Depositary, or its nominee.

     "Government Contract Lien" means any Lien in favor of the United States of
America or any State thereof, territory or possession thereof (or the District
of Columbia), or any department, agency, instrumentality or political
subdivision of the United States of America or any state, territory or
possession thereof (or the District of Columbia) to secure partial, progress,
advance or other payments pursuant to any contract or statute or to secure any
Indebtedness incurred for the purpose of financing all or any part of the
purchase price or the cost of constructing, developing or improving the property
subject to such Liens.

     "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America for the payment of which guarantees
or obligations the full faith and credit of the United States is pledged.

     "guarantee" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including, without limitation, letters of credit and
reimbursement agreements in respect thereof or pledging assets to secure), of
all or any part of any Indebtedness.

                                       3
<PAGE>

     "Holder" means a Person in whose name a Note is registered.

     "Indebtedness" means any Obligation created or assumed by any person for
the repayment of borrowed money and any guarantee thereof.

     "Indenture" means this Indenture, as amended or supplemented from time to
time.

     "Indirect Participant" means a Person who holds a beneficial interest in a
Global Note through a Participant.

     "Initial Purchasers" means Salomon Smith Barney Inc., Banc One Capital
Markets, Inc., BMO Nesbitt Burns Corp. and SunTrust Capital Markets, Inc.

     "Institutional Accredited Investor" means an institution that is an
"accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) of the
Securities Act.

     "Initial Notes" has the meaning set forth in the preamble to this
Indenture.

     "Interest Payment Date" May 1 and November 1.

     "Issue Date" means the date on which the Notes are first authenticated and
delivered under the Indenture.

     "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue
for the intervening period.

     "Letter of Transmittal" means the letter of transmittal to be prepared by
the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

     "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law
(including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in any asset and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction).

     "Liquidated Damages" means all additional interest then owing pursuant to
Section 5 of the Registration Rights Agreement.

     "Management Committee" means the management committee that oversees
management of the Company.

     "Net Amount of Rent" as to any lease for any period means the aggregate
amount of rent payable by the lessee with respect to such period after excluding
amounts, whether or not designated as rent or additional rent, required to be
paid on account of or contingent upon maintenance and repairs, insurance, taxes,
assessments, water rates and similar charges. In the case of any lease that is
terminable by the lessee upon the payment of a penalty, such net amount shall be
the lesser of (i) the net amount determined assuming termination of the lease on
the first date such lease may be terminated (in which case such net amount shall
also include the amount of such penalty, but no rent shall be considered as
payable under such lease subsequent to the first date upon which it may be so
terminated) or (ii) such net amount assuming no such termination.

                                       4
<PAGE>

     "Note Custodian" means the Trustee, as custodian with respect to the Notes
in global form, or any successor entity thereto.

     "Notes" has the meaning assigned to it in the preamble to this Indenture.

     "Obligations" means any principal, premium (if any), Liquidated Damages (if
any), interest (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company or its
Subsidiaries whether or not a claim for post-filing interest is allowed in such
proceeding), penalties, fees, charges, expenses, indemnifications, reimbursement
obligations, damages (including Liquidated Damages, if any), guarantees and
other liabilities or amounts payable under the documentation governing any
Indebtedness or in respect thereof.

     "Officer" means, with respect to any Person, the Chairman of the Board, the
Chief Executive Officer, the President, the Chief Operating Officer, the Chief
Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the
Secretary or any Vice-President of such Person and with respect to the Company
any of the President, Vice President, Finance, or any vice president of the
Operator, acting singly.

     "Officers' Certificate" means a certificate signed on behalf of the Company
by two Officers of the Operator, one of whom must be the principal executive
officer, the principal financial officer, the treasurer or the principal
accounting officer of the Operator, that meets the requirements of Section 10.05
hereof.

     "Operator" means Northern Plains Natural Gas Company, a subsidiary of Enron
Corp., or any successor operator of the Company.

     "Opinion of Counsel" means an opinion from legal counsel who is reasonably
acceptable to the Trustee, that meets the requirements of Section 10.05 hereof.
The counsel may be an employee of or counsel to the Company or the Operator or
any Subsidiary of the Company.

     "Participant" means, with respect to DTC, a Person who has an account with
DTC.

     "Partnership Agreement" means the Northern Border Pipeline Company General
Partnership Agreement effective as of March 9, 1978, as amended.

     "Permitted Liens" means, with respect to any Person:

          (i) with respect to the Notes issued under this Indenture, Liens
     existing on or provided for under the terms of agreements existing on the
     date the Notes are issued;

          (ii) Liens on property, shares of stock, Indebtedness or other assets
     of any Person (which is not a Subsidiary) existing at the time such Person
     is merged into or consolidated with or into the Company or any of its
     Subsidiaries; provided that such Liens are not incurred in anticipation of
     such Person becoming a Subsidiary; or Liens existing at the time of a sale,
     lease or other disposition of properties of a Person as an entirety or
     substantially as an entirety to the Company or any of its Subsidiaries;

          (iii) Liens on property, shares of stock, Indebtedness or other assets
     existing at the time of acquisition thereof by the Company or any of its
     Subsidiaries, or Liens thereon to secure the payment of all or any part of
     the purchase price thereof;

          (iv) Liens on property, shares of stock, Indebtedness, or other assets
     to secure any Indebtedness incurred prior to, at the time of or within 24
     months after, the latest of the acquisition thereof and, in the case of
     property, the completion of construction, the completion of development or
     improvements or the commencement of commercial operation of such property
     for the purpose of financing all or

                                       5
<PAGE>

     part of the purchase price thereof, such construction or the making of such
     developments or improvements;

          (v) Liens securing Indebtedness owed to the Company or any of its
     Subsidiaries;

          (vi) Liens on property to secure all or part of the cost of acquiring,
     constructing, altering, improving, developing or repairing any property or
     asset, or improvements used in connection with that property or Liens
     incurred by the Company or any of its Subsidiaries to provide funds for any
     such activities;

          (vii) Government Contract Liens;

          (viii) Liens on any property to secure bonds for the construction,
     installation or financing of pollution control or abatement facilities or
     other forms of industrial revenue bond financing, or indebtedness issued or
     guaranteed by the United States, any state or any department, agency or
     instrumentality thereof;

          (ix) Liens contemplated by Section 7.07 hereof;

          (x) Liens deemed to exist by reason of negative pledges in respect of
     Indebtedness; and

          (xi) Liens to secure any refinancing, refunding, extension, renewal or
     replacement (or successive refinancings, refundings, extensions, renewals
     or replacements), as a whole or in part, of any Indebtedness secured by any
     Lien referred to in clauses (i) through (x) above; provided, however, that
     such Lien(s) shall not extend to or cover any property of the Company or
     any of its Subsidiaries, as the case may be, other than the property
     specified in clauses (i) through (x) above to which the Lien securing such
     refinanced, refunded, extended, renewed or replaced Indebtedness applied
     and improvements thereto or proceeds therefrom.

     "Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, limited liability company,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity.

     "Place of Payment", when used with respect to the Notes, means, unless
otherwise specifically provided in notice given pursuant to Section 4.02 hereof,
the office or agency of the Company in the City of New York and such other place
or places where, the principal of and any premium, if any, interest and
Liquidated Damages, if any, on the Notes are payable.

     "Principal Property" means any natural gas pipeline located in the United
States, except any such property that in the opinion of the Operator (or, in the
case of any such property with a fair market value (as determined in good faith
by the Operator subject to the authority granted by the Management Committee to
the Operator) greater than $1,000,000, in the opinion of the Management
Committee) is not of material importance to the total business conducted by the
Company and its consolidated Subsidiaries, taken as a whole. "Principal
Property" shall not include natural gas or petroleum products in any pipeline or
storage field.

     "Private Placement Legend" means the legend set forth in Section 2.06(g)(i)
hereof to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

     "Proceeding" means any voluntary or involuntary insolvency, bankruptcy,
receivership, custodianship, liquidation, dissolution, reorganization,
assignment for the benefit of creditors, appointment of a custodian, receiver,
trustee or other officer with similar powers or any other proceeding for the
liquidation, dissolution or other winding up of a Person (including, without
limitation, any such proceeding under Bankruptcy Code).

                                       6
<PAGE>

     "Property" means any right or interest of the Company or any of its
Subsidiaries in or to property of any kind whatsoever, whether real, personal or
mixed and whether tangible or intangible, excluding any such property consisting
of inventories, furniture, fixtures and equipment (including data processing
equipment),vehicles and equipment used on, or useful with, vehicles, and any
such property that, in the opinion of the Operator (or, in the case of any such
property with a fair market value (as determined in good faith by the Operator
subject to the authority granted by the Management Committee to the Operator)
greater than $1,000,000, in the opinion of the Management Committee), is not of
material importance to the total business conducted by the Company and its
consolidated Subsidiaries, taken as a whole.

     "QIB" means a "qualified institutional buyer" as defined in Rule 144A of
the rules and regulations promulgated by the SEC under the Securities Act.

     "Redemption Date" means the date on which the Notes are to be redeemed
pursuant to Article III hereof.

     "Registration Rights Agreement" means the Registration Rights Agreement,
dated as of April 29, 2002, by and among the Company and the Initial Purchasers,
as such agreement may be amended, modified or supplemented from time to time.

     "Regulation S" means Regulation S promulgated under the Securities Act.

     "Regulation S Global Note" means a Regulation S Temporary Global Note or
Regulation S Permanent Global Note, as appropriate.

     "Regulation S Permanent Global Note" means a permanent global note in the
form of Exhibit A hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.

     "Regulation S Temporary Global Note" means a temporary global note in the
form of Exhibit A hereto bearing the Private Placement Legend and deposited with
or on behalf of and registered in the name of the Depositary or its nominee,
issued in a denomination equal to the outstanding principal amount of the Notes
initially sold in reliance on Rule 903 of Regulation S.

     "Responsible Officer," when used with respect to the Trustee, means any
officer, including, without limitation, any vice president, assistant vice
president, assistant treasurer or secretary within the Corporate Trust
Administration of the Trustee (or any successor group of the Trustee) 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 particular corporate trust matter, any other officer or employee to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

     "Restricted Definitive Note" means a Definitive Note bearing the Private
Placement Legend.

     "Restricted Global Note" means the Global Note substantially in the form of
Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend
and deposited with and registered in the name of the Depositary or its nominee.

     "Restricted Period" means the 40-day distribution compliance period as set
forth in Regulation S.

     "Rule 144" means Rule 144 of the rules and regulations promulgated under
the Securities Act.

     "Rule 144A" means Rule 144A of the rules and regulations promulgated under
the Securities Act.

                                       7
<PAGE>

     "Rule 903" or "Rule 904" means Rule 903 or Rule 904 of the rules and
regulations promulgated under the Securities Act.

     "Sale-Leaseback Transaction" means any arrangement with any Person pursuant
to which the Company or any of its Subsidiaries leases any Principal Property
that has been or is to be sold or transferred by the Company or its Subsidiaries
to such Person, other than (i) any such transaction involving a lease for a term
(including renewals or extensions exercisable by the Company or any of its
Subsidiaries) of not more than two years, (ii) any such transaction between the
Company and any of its Subsidiaries or between any Subsidiaries of the Company,
or (iii) any such transaction executed by the time of, or within 12 months after
the latest of, the acquisition, the completion of construction, development or
improvement, or the commencement of commercial operation of the Company's
pipeline system assets subject to such leasing transaction.

     "SEC" means the Securities and Exchange Commission.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Shelf Registration Statement" has the meaning set forth in the
Registration Rights Agreement.

     "Stated Maturity" means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which such payment of
interest or principal was scheduled to be paid in the original documentation
governing such Indebtedness, and shall not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

     "Subsidiary" of any Person means (i) any Person of which more than 50% of
the total voting power of Capital Interests (without regard to the occurrence of
any contingency to vote in the election of directors, managers or trustees
thereof or other Persons constituting an equivalent governing body), at the time
of such determination, is owned or controlled, directly or indirectly, by such
Person or one or more of the Subsidiaries of such Person (or a combination
thereof), (ii) in the case of a partnership, any Person of which at the time of
such determination more than 50% of the partners' Capital Interests (considering
all partners' Capital Interests as a single class) is owned or controlled,
directly or indirectly, by such Person or one or more Subsidiaries of such
Person, or (iii) any other Person in which such Person or one or more of the
Subsidiaries of that Person (or a combination thereof) has the power to control
by contract or otherwise the board of directors, managers or trustees thereof or
equivalent governing body or otherwise controls such entity. Unless otherwise
provided, references in this Indenture to a Subsidiary are to a Subsidiary of
the Company.

     "TIA" or "Trust Indenture Act" means the Trust Indenture Act of 1939 as in
effect on the date on which this Indenture is qualified under the TIA.

     "Trustee" means the party named as such above until a successor replaces it
in accordance with the applicable provisions of this Indenture and thereafter
means the successor serving hereunder.

     "Unrestricted Definitive Note" means one or more Definitive Notes that do
not bear and are not required to bear the Private Placement Legend.

     "Unrestricted Global Note" means a Global Note representing a series of
Notes that do not and are not required to bear the Private Placement Legend.

     "U.S. Person" means a U.S. person as defined in Rule 902(c) under the
Securities Act.

                                       8
<PAGE>

     Other Definitions

<Table>
<Caption>
                                                             DEFINED IN
                          TERM                                 SECTION
                          ----                               ----------

<S>                                                          <C>
"Covenant Defeasance"...................................        8.03
"DTC"...................................................        2.03
"Event of Default"......................................        6.01
"Legal Defeasance"......................................        8.02
"Paying Agent"..........................................        2.03
"Registrar".............................................        2.03
</Table>

SECTION 1.02 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

     The following TIA terms used in this Indenture have the following meanings:

          "indenture securities" means the Notes;

          "indenture security holder" means a Holder of a Note;

          "indenture to be qualified" means this Indenture;

          "indenture trustee" or "institutional trustee" means the Trustee; and

          "obligor" on the Notes means the Company and any successor obligor
     upon the Notes.

All other terms used in this Indenture that are defined by the TIA, defined by
TIA reference to another statute or defined by SEC rule under the TIA have the
meanings so assigned to them.

SECTION 1.03 Rules of Construction.

     Unless the context otherwise requires:

     (a) a term has the meaning assigned to it;

     (b) an accounting term not otherwise defined has the meaning assigned to it
in accordance with GAAP;

     (c) "or" is not exclusive;

     (d) "including" means including, without limitation;

     (e) words in the singular include the plural, and in the plural include the
singular; provisions apply to successive events and transactions; and

     (f) references to sections of or rules under the Securities Act shall be
deemed to include substitute, replacement of successor sections or rules adopted
by the SEC from time to time.

                                       9
<PAGE>

                                   ARTICLE II

                                    THE NOTES

SECTION 2.01 Form and Dating.

     The Notes and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A hereto. The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage. Each Note
shall be dated the date of its authentication. The Notes shall be in
denominations of $1,000 and integral multiples thereof.

     The terms and provisions contained in the Notes shall constitute, and are
hereby expressly made, a part of this Indenture and the Company and the Trustee,
by their execution and delivery of this Indenture, expressly agree to such terms
and provisions and to be bound thereby. However, to the extent any provision of
any Note conflicts with the express provisions of this Indenture, the provisions
of this Indenture shall govern and be controlling. Notes issued in global form
shall be substantially in the form of Exhibit A attached hereto (including the
Global Note Legend and the "Schedule of Exchanges of Interests in the Global
Note" attached thereto). Notes issued in definitive form shall be substantially
in the form of Exhibit A attached hereto (but without the Global Note Legend and
without the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Each Global Note shall represent such of the outstanding Notes as
shall be specified therein and each shall provide that it shall represent the
aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges and redemptions. Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee, the
Depositary or the Note Custodian, at the direction of the Trustee, in accordance
with instructions given by the Holder thereof as required by Section 2.06
hereof.

     Notes offered and sold in reliance on Regulation S shall be issued
initially in the form of the Regulation S Temporary Global Note, which shall be
deposited on behalf of the purchasers of the Notes represented thereby with the
Trustee, at its New York office, as custodian for the Depositary, and registered
in the name of the nominee of the Depository for credit to the accounts of
designated agents holding on behalf of Euroclear or Clearstream, duly executed
by the Company and authenticated by the Trustee as hereinafter provided. The
Restricted Period shall be terminated upon the receipt by the Trustee of (i) a
written certificate from the Depositary, together with copies of certificates
from Euroclear and Clearstream certifying that they have received certification
of non-United States beneficial ownership of 100% of the aggregate principal
amount of the Regulation S Temporary Global Note (except to the extent of any
beneficial owners thereof who acquired an interest therein during the Restricted
Period pursuant to another exemption from registration under the Securities Act
and who will take delivery of a beneficial ownership interest in a 144A Global
Note bearing a Private Placement Legend, all as contemplated by Section 2.06(b)
hereof), and (ii) an Officers' Certificate from the Company certifying to the
effect that the 40-day distribution compliance period applicable to the
Regulation S Temporary Global Note has expired. Following the termination of the
Restricted Period, beneficial interests in the Regulation S Temporary Global
Note shall be exchanged for beneficial interests in one or more Regulation S
Permanent Global Notes pursuant to the Applicable Procedures. Simultaneously
with the authentication of Regulation S Permanent Global Notes, the Trustee
shall cancel the Regulation S Temporary Global Note. The aggregate principal
amount of the Regulation S Temporary Global Note and the Regulation S Permanent
Global Notes may from time to time be increased or decreased by adjustments made
on the records of the Trustee and the Depositary or its nominee, as the case may
be, in connection with transfers of interest as hereinafter provided. The
provisions of the "Operating Procedures of the Euroclear System" and "Terms and
Conditions Governing Use of Euroclear" and the "General Terms and Conditions of
Clearstream" and "Customer Handbook" of Clearstream shall be applicable to
transfers of beneficial interests in the Regulation S Temporary Global Note and
the Regulation S Permanent Global Notes that are held by members of, or
Participants in, DTC through Euroclear or Clearstream.

SECTION 2.02 Execution and Authentication.

     One Officer shall sign the Notes for the Company by manual or facsimile
signature.

                                       10
<PAGE>

     If an Officer whose signature is on a Note no longer holds that office at
the time a Note is authenticated, the Note shall nevertheless be valid. A Note
shall not be valid until authenticated by the manual signature of the Trustee.
The signature shall be conclusive evidence that the Note has been authenticated
under this Indenture.

     The Trustee shall, upon a written order of the Company signed by one
Officer, authenticate Initial Notes for original issue on the Issue Date up to
$225,000,000 aggregate principal amount of the Notes. The Initial Notes offered
and sold pursuant to Rule 144A shall be issued in the form of a single
Restricted Global Note, and the Initial Notes offered and sold pursuant to
Regulation S shall be issued in the form of a separate Regulation S Temporary
Global Note. Each series of Notes may be re-opened for issuances of additional
Notes without the consent of Holders, provided that no additional Notes may be
issued if an Event of Default has occurred and is continuing with respect to the
Notes.

     The Trustee may appoint an Authenticating Agent acceptable to the Company
to authenticate Notes. An Authenticating Agent may authenticate Notes whenever
the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An Authenticating Agent has the
same rights as an Agent to deal with (i) Holders or (ii) an Affiliate of the
Company.

SECTION 2.03 Registrar and Paying Agent.

     The Company shall maintain an office or agency within the City and State of
New York where Notes may be presented for registration of transfer or for
exchange ("Registrar") and an office or agency where Notes may be presented for
payment ("Paying Agent"). The Registrar shall keep a register of the Notes and
of their transfer and exchange. The Company may appoint one or more
co-registrars and one or more additional paying agents. The term "Registrar"
includes any co-registrar and the term "Paying Agent" includes any additional
paying agent. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company shall promptly notify the Trustee in writing
of the name and address of any Agent not a party to this Indenture. If the
Company fails to appoint or maintain another entity as Registrar or Paying
Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may
act as Paying Agent or Registrar.

     The Company initially appoints The Depository Trust Company ("DTC") to act
as Depositary with respect to the Global Notes. The Company initially appoints
the Trustee to act as the Registrar and Paying Agent and to act as Note
Custodian with respect to the Global Notes.

SECTION 2.04 Paying Agent to Hold Money in Trust.

     The Company shall require each Paying Agent other than the Trustee to agree
in writing that the Paying Agent will hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal
of, premium, if any, or Liquidated Damages, if any, or interest on the Notes,
and will notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or an
Affiliate of the Company acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the
Company, the Trustee shall serve as Paying Agent for the Notes.

SECTION 2.05 Holder Lists.

     The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all Holders and shall otherwise comply with TIA Section 312(a). If the Trustee
is not the Registrar, the Company shall provide to a Responsible Officer of the
Trustee at least

                                       11
<PAGE>

seven Business Days before each Interest Payment Date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Company shall otherwise comply with TIA Section 312(a).

SECTION 2.06 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Notes will be exchanged by
the Company for Definitive Notes if (i) the Company delivers to the Trustee
notice from the Depositary that it is unwilling or unable to continue to act as
Depositary for the Global Notes or that it is no longer a clearing agency
registered under the Exchange Act and, in either case, a successor Depositary is
not appointed by the Company within 90 days after the date of such notice from
the Depositary or (ii) the Company in its sole discretion notifies the Trustee
in writing that it elects to cause issuance of the Notes in certificated form;
provided, that in no event shall the Regulation S Temporary Note be exchanged by
the Company for Definitive Notes prior to (x) the expiration of the Restricted
Period and (y) the receipt by the Registrar of any certificates required
pursuant to Rule 903 under the Securities Act or an Opinion of Counsel to the
effect that such certificates are not required pursuant to Rule 903. If an Event
of Default occurs and is continuing, the Company shall, at the request of the
Holder thereof, exchange all or part of a Global Note for one or more Definitive
Notes in denominations of $1,000 or integral multiples thereof. Upon the
occurrence of either of the preceding events described in clause (i) or (ii) of
the immediately preceding sentence, Definitive Notes shall be issued in such
names as the Depositary shall instruct the Trustee. Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Section 2.07 hereof.
Every Note authenticated and delivered in exchange for, or in lieu of, a Global
Note or any portion thereof, pursuant to this Section 2.06(a) or Section 2.07
hereof, shall be authenticated and delivered in the form of, and shall be, a
Global Note. A Global Note may not be exchanged for another Note other than as
provided in this Section 2.06(a), however, beneficial interests in a Global Note
may be transferred and exchanged as provided in Section 2.06(b), (c) or (f)
hereof. Notwithstanding anything in this Section 2.06 to the contrary, no Notes
shall be transferred or exchanged for a period of 15 days prior to a selection
of Notes to be redeemed pursuant to Article III.

     (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The
transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also shall require compliance with the
following subparagraphs as applicable:

          (i) Transfer of Beneficial Interests in the Same Global Note.
     Beneficial interests in any Restricted Global Note may be transferred to
     Persons who take delivery in the form of a beneficial interest in the same
     Restricted Global Note in accordance with the transfer restrictions set
     forth in the Private Placement Legend; provided, however, that prior to the
     expiration of the Restricted Period transfers of beneficial interests in
     the Temporary Regulation S Global Note may not be made to a U.S. Person or
     for the account or benefit of a U.S. Person (other than an Initial
     Purchaser). Beneficial interests in any Unrestricted Global Note may be
     transferred only to Persons who take delivery thereof in the form of a
     beneficial interest in an Unrestricted Global Note. No written orders or
     instructions shall be required to be delivered to the Registrar to effect
     the transfers described in this Section 2.06(b)(i).

          (ii) All Other Transfers and Exchanges of Beneficial Interests in
     Global Notes. In connection with all transfers and exchanges of beneficial
     interests in Global Notes, the transferor of such beneficial interest must
     deliver to the Registrar (A) (1) a written order from a Participant or an

                                       12
<PAGE>

     Indirect Participant given to the Depositary in accordance with the
     Applicable Procedures directing the Depositary to credit or cause to be
     credited a beneficial interest in another Global Note in an amount equal to
     the beneficial interest to be transferred or exchanged and (2) instructions
     given in accordance with the Applicable Procedures containing information
     regarding the Participant account to be credited with such increase or (B)
     (1) a written order from a Participant or an Indirect Participant given to
     the Depositary in accordance with the Applicable Procedures directing the
     Depositary to cause to be issued a Definitive Note in an amount equal to
     the beneficial interest to be transferred or exchanged and (2) instructions
     given by the Depositary to the Registrar containing information regarding
     the Person in whose name such Definitive Note shall be registered to effect
     the transfer or exchange referred to in clause (1) of this clause (B),
     provided, that in no event shall Definitive Notes be issued upon the
     transfer or exchange of beneficial interests in the Regulation S Temporary
     Global Note prior to (x) the expiration of the Restricted Period and (y)
     the receipt by the Registrar of any certificates required pursuant to Rule
     903 under the Securities Act. Upon an Exchange Offer by the Company in
     accordance with Section 2.06(f) hereof, the requirements of this Section
     2.06(b)(ii) shall be deemed to have been satisfied upon receipt by the
     Registrar of the instructions contained in the Letter of Transmittal
     delivered by the Holder of such beneficial interests in the Restricted
     Global Notes. Upon satisfaction of all of the requirements for transfer or
     exchange of beneficial interests in Global Notes contained in this
     Indenture, the Notes and otherwise applicable under the Securities Act, the
     Trustee shall adjust the principal amount of the relevant Global Note(s)
     pursuant to Section 2.06(h) hereof.

          (iii) Transfer of Beneficial Interests in a Restricted Global Note. A
     beneficial interest in any Restricted Global Note may be transferred to a
     Person who takes delivery thereof in the form of a beneficial interest in
     the same or a different Restricted Global Note if the transfer complies
     with the requirements of clause (ii) above, if applicable, and the
     transferor delivers to the Registrar a certificate in the form of Exhibit B
     hereto.

          (iv) Transfer and Exchange of Beneficial Interests in a Restricted
     Global Note for Beneficial Interests in an Unrestricted Global Note. A
     beneficial interest in any Restricted Global Note may be exchanged by any
     holder thereof for a beneficial interest in an Unrestricted Global Note or
     transferred to a Person who takes delivery thereof in the form of a
     beneficial interest in an Unrestricted Global Note if the exchange or
     transfer complies with the requirements of clause (ii) above and:

               (A) such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement;

               (B) any such transfer is effected pursuant to the Shelf
          Registration Statement in accordance with the Registration Rights
          Agreement; or

               (C) the Registrar receives the following:

                    (1) if the holder of such beneficial interest in a
               Restricted Global Note proposes to exchange such beneficial
               interest for a beneficial interest in an Unrestricted Global
               Note, a certificate from such holder in the form of Exhibit C
               hereto, including the certifications in Item (1)(i) thereof;

                    (2) if the holder of such beneficial interest in a
               Restricted Global Note proposes to transfer such beneficial
               interest to a Person who shall take delivery thereof in the form
               of a beneficial interest in an Unrestricted Global Note, a
               certificate from such holder in the form of Exhibit B hereto,
               including the certifications in Item (4) thereof; and

                    (3) in each such case set forth in this subparagraph (C), an
               Opinion of Counsel in form reasonably acceptable to the Registrar
               to the effect that such exchange or transfer is in compliance
               with the Securities Act and that the restrictions on transfer
               contained herein and

                                       13
<PAGE>

               in the Private Placement Legend are not required in order to
               maintain compliance with the Securities Act.

     If any such transfer is effected pursuant to subparagraph (B) or (C) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an authentication order in accordance with
Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted
Global Notes in an aggregate principal amount equal to the principal amount of
beneficial interests transferred pursuant to subparagraph (B) or (C) above.

     Beneficial interests in an Unrestricted Global Note cannot be exchanged
for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note.

     (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

          (i) If any holder of a beneficial interest in a Restricted Global Note
     proposes to exchange such beneficial interest for a Restricted Definitive
     Note or to transfer such beneficial interest to a Person who takes delivery
     thereof in the form of a Restricted Definitive Note, then, upon receipt by
     the Registrar of the following documentation:

               (A) if the holder of such beneficial interest in a Restricted
          Global Note proposes to exchange such beneficial interest for a
          Restricted Definitive Note, a certificate from such holder in the form
          of Exhibit C hereto, including the certifications in Item (5) thereof;

               (B) if such beneficial interest is being transferred to a QIB in
          accordance with Rule 144A under the Securities Act, a certificate to
          the effect set forth in Exhibit B hereto, including the certifications
          in Item (1) thereof;

               (C) if such beneficial interest is being transferred pursuant to
          Rule 903 or Rule 904 under the Securities Act, a certificate to the
          effect set forth in Exhibit B hereto, including the certifications in
          Item (2) thereof;

               (D) if such beneficial interest is being transferred pursuant to
          an exemption from the registration requirements of the Securities Act
          in accordance with Rule 144 under the Securities Act, a certificate to
          the effect set forth in Exhibit B hereto, including the certifications
          in Item (3)(a) thereof;

               (E) if such beneficial interest is being transferred pursuant to
          any other exemption (including a beneficial interest being transferred
          to an Institutional Accredited Investor) from the registration
          requirements of the Securities Act, then the transferor must deliver a
          certificate in the form of Exhibit B hereto, including the
          certifications, certificates and Opinion of Counsel required by Item
          (3)(d) thereof, if applicable;

               (F) if such beneficial interest is being transferred to the
          Company or any of its Subsidiaries, a certificate to the effect set
          forth in Exhibit B hereto, including the certifications in Item (3)(b)
          thereof; or

               (G) if such beneficial interest is being transferred pursuant to
          an effective registration statement under the Securities Act, a
          certificate to the effect set forth in Exhibit B hereto, including the
          certifications in Item (3)(c) thereof,

the Trustee, upon notice of receipt of such documentation by the Registrar,
shall cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(h) hereof, and the Company shall
execute and the Trustee shall authenticate and make available for delivery to
the Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this

                                       14
<PAGE>

Section 2.06(c) shall be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest shall
instruct the Registrar through instructions from the Depositary and the
Participant or Indirect Participant. The Trustee shall make available for
delivery such Definitive Notes to the Persons in whose names such Notes are so
registered. Any Definitive Note issued in exchange for a beneficial interest in
a Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear the
Private Placement Legend and shall be subject to all restrictions on transfer
contained therein.

          (ii) Notwithstanding Sections 2.06(c)(i)(A) and (C) hereof, a
     beneficial interest in the Regulation S Temporary Global Note may not be
     (A) exchanged for a Definitive Note prior to (x) the expiration of the
     Restricted Period and (y) the receipt by the Registrar of any certificates
     required pursuant to Rule 903(c)(3)(B) under the Securities Act or (B)
     transferred to a Person who takes delivery thereof in the form of a
     Definitive Note prior to the conditions set forth in clause (A) above or
     unless the transfer is pursuant to an exemption from the registration
     requirements of the Securities Act other than Rule 903 or Rule 904.

          (iii) Notwithstanding Section 2.06(c)(i) hereof, a holder of a
     beneficial interest in a Restricted Global Note may exchange such
     beneficial interest for an Unrestricted Definitive Note or may transfer
     such beneficial interest to a Person who takes delivery thereof in the form
     of an Unrestricted Definitive Note only if:

               (A) such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement;

               (B) any such transfer is effected pursuant to the Shelf
          Registration Statement in accordance with the Registration Rights
          Agreement; or

               (C) the Registrar receives the following:

                    (1) if the holder of such beneficial interest in a
               Restricted Global Note proposes to exchange such beneficial
               interest for an Unrestricted Definitive Note, a certificate from
               such holder in the form of Exhibit C hereto, including the
               certifications in Item (2) thereof;

                    (2) if the holder of such beneficial interest in a
               Restricted Global Note proposes to transfer such beneficial
               interest to a Person who shall take delivery thereof in the form
               of an Unrestricted Definitive Note, a certificate from such
               holder in the form of Exhibit B hereto, including the
               certifications in Item (4) thereof; and

                    (3) in each such case set forth in this subparagraph (C), an
               Opinion of Counsel in form reasonably acceptable to the Company,
               to the effect that such exchange or transfer is in compliance
               with the Securities Act, that the restrictions on transfer
               contained herein and in the Private Placement Legend are not
               required in order to maintain compliance with the Securities Act,
               and such beneficial interest in a Restricted Global Note is being
               exchanged or transferred in compliance with any applicable blue
               sky securities laws of any State of the United States.

          (iv) If any holder of a beneficial interest in an Unrestricted Global
     Note proposes to exchange such beneficial interest for a Definitive Note or
     to transfer such beneficial interest to a Person who takes delivery thereof
     in the form of a Definitive Note, then, upon satisfaction of the conditions
     set forth in Section 2.06(b)(ii) hereof, the Trustee shall cause the
     aggregate principal amount of the applicable Global Note to be reduced
     accordingly pursuant to Section 2.06(h) hereof, and the Company shall
     execute and the Trustee shall authenticate and make available for delivery
     to the Person designated in the instructions a Definitive Note in the
     appropriate principal amount. Any Definitive Note issued in exchange for a
     beneficial interest pursuant to this Section 2.06(c)(iv) shall

                                       15
<PAGE>

     be registered in such name or names and in such authorized denomination or
     denominations as the holder of such beneficial interest shall instruct the
     Registrar through instructions from the Depositary and the Participant or
     Indirect Participant. The Trustee shall make available for delivery such
     Definitive Notes to the Persons in whose names such Notes are so
     registered. Any Definitive Note issued in exchange for a beneficial
     interest pursuant to this Section 2.06(c)(iv) shall not bear the Private
     Placement Legend. A beneficial interest in an Unrestricted Global Note
     cannot be exchanged for an Unrestricted Definitive Note or transferred to a
     Person who takes delivery thereof in the form of an Unrestricted Definitive
     Note.

     (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

          (i) If any Holder of a Restricted Definitive Note proposes to exchange
     such Note for a beneficial interest in a Restricted Global Note or to
     transfer such Definitive Notes to a Person who takes delivery thereof in
     the form of a beneficial interest in a Restricted Global Note, then, upon
     receipt by the Registrar of the following documentation:

               (A) if the Holder of such Restricted Definitive Note proposes to
          exchange such Note for a beneficial interest in a Restricted Global
          Note, a certificate from such Holder in the form of Exhibit C hereto,
          including the certifications in Item (6) thereof;

               (B) if such Definitive Note is being transferred to a QIB in
          accordance with Rule 144A under the Securities Act, a certificate to
          the effect set forth in Exhibit B hereto, including the certifications
          in Item (1) thereof;

               (C) if such Definitive Note is being transferred pursuant to Rule
          903 or Rule 904 under the Securities Act, a certificate to the effect
          set forth in Exhibit B hereto, including the certifications in Item
          (2) thereof;

               (D) if such Definitive Note is being transferred pursuant to an
          exemption from the registration requirements of the Securities Act in
          accordance with Rule 144 under the Securities Act, a certificate to
          the effect set forth in Exhibit B hereto, including the certifications
          in Item (3)(a) thereof;

               (E) if such Definitive Note is being transferred to an
          Institutional Accredited Investor or in reliance on any other
          exemption from the registration requirements of the Securities Act, in
          either case, other than those listed in subparagraphs (B), (C) and (D)
          above, a certificate in the form of Exhibit B hereto, including
          certifications, certificates, and any Opinion of Counsel required by
          Item (3)(d) thereof, if applicable;

               (F) if such Definitive Note is being transferred to the Company
          or any of its Subsidiaries, a certificate to the effect set forth in
          Exhibit B hereto, including the certifications in Item (3)(b) thereof;
          or

               (G) if such Definitive Note is being transferred pursuant to an
          effective registration statement under the Securities Act, a
          certificate to the effect set forth in Exhibit B hereto, including the
          certifications in Item (3)(c) thereof, the Trustee, upon notice of
          receipt of such documentation by the Registrar, shall cancel the
          Definitive Note, and increase or cause to be increased the aggregate
          principal amount of the appropriate Restricted Global Note.

          (ii) A Holder of a Restricted Definitive Note may exchange such Note
     for a beneficial interest in an Unrestricted Global Note or transfer such
     Restricted Definitive Note to a Person who takes delivery thereof in the
     form of a beneficial interest in an Unrestricted Global Note only if:

                                       16
<PAGE>

               (A) such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement;

               (B) any such transfer is effected pursuant to the Shelf
          Registration Statement in accordance with the Registration Rights
          Agreement; or

               (C) the Registrar receives the following:

                    (1) if the Holder of such Restricted Definitive Note
               proposes to exchange such Note for a beneficial interest in an
               Unrestricted Global Note, a certificate from such Holder in the
               form of Exhibit C hereto, including the certifications in Item
               (3) thereof;

                    (2) if the Holder of such Restricted Definitive Note
               proposes to transfer such Note to a Person who shall take
               delivery thereof in the form of a beneficial interest in an
               Unrestricted Global Note, a certificate from such Holder in the
               form of Exhibit B hereto, including the certifications in Item
               (4) thereof; and

                    (3) in each such case set forth in this subparagraph (C), an
               Opinion of Counsel in form reasonably acceptable to the Company
               to the effect that such exchange or transfer is in compliance
               with the Securities Act, that the restrictions on transfer
               contained herein and in the Private Placement Legend are not
               required in order to maintain compliance with the Securities Act,
               and such Restricted Definitive Note is being exchanged or
               transferred in compliance with any applicable blue sky securities
               laws of any State of the United States.

     Upon satisfaction of the conditions of any of the subparagraphs in this
Section 2.06(d)(ii), the Trustee shall cancel the Restricted Definitive Note and
increase or cause to be increased the aggregate principal amount of the
appropriate Unrestricted Global Note.

          (iii) A Holder of an Unrestricted Definitive Note may exchange such
     Note for a beneficial interest in an Unrestricted Global Note or transfer
     such Unrestricted Definitive Note to a Person who takes delivery thereof in
     the form of a beneficial interest in an Unrestricted Global Note at any
     time. Upon receipt of a request for such an exchange or transfer, the
     Trustee shall cancel the applicable Unrestricted Definitive Note and
     increase or cause to be increased the aggregate principal amount of the
     appropriate Unrestricted Global Note.

          (iv) If any such exchange or transfer from a Definitive Note to a
     beneficial interest is effected pursuant to subparagraphs (ii)(B), (ii)(C)
     or (iii) if this Section 2.06(d) at a time when an Unrestricted Global Note
     has not yet been issued, the Company shall issue and, upon receipt of an
     authentication order in accordance with Section 2.02 hereof, the Trustee
     shall authenticate one or more Unrestricted Global Notes in an aggregate
     principal amount equal to the principal amount of beneficial interests
     transferred pursuant to subparagraphs (ii)(B), (ii)(C) or (iii) of this
     Section 2.06(d).

     (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon
request by a Holder of Definitive Notes and such Holder's compliance with the
provisions of this Section 2.06(e), the Registrar shall register the transfer or
exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by his attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, pursuant to the provisions of this Section 2.06(e).

          (i) Restricted Definitive Notes may be transferred to and registered
     in the name of Persons who take delivery thereof if the Registrar receives
     the following:

                                       17
<PAGE>

               (A) if the transfer will be made pursuant to Rule 144A under the
          Securities Act, then the transferor must deliver a certificate in the
          form of Exhibit B hereto, including the certifications in Item (1)
          thereof;

               (B) if the transfer will be made pursuant to Rule 903 or Rule 904
          under the Securities Act, a certificate to the effect set forth in
          Exhibit B hereto, including the certifications in Item (2) thereof;

               (C) if the transfer will be made pursuant to an exemption from
          the registration requirements of the Securities Act in accordance with
          Rule 144 under the Securities Act, a certificate to the effect set
          forth in Exhibit B hereto, including the certifications in Item (3)(a)
          thereof;

               (D) if the transfer will be made to an Institutional Accredited
          Investor or in reliance on any other exemption from the registration
          requirements of the Securities Act, in either case, other than those
          listed in subparagraphs (i)(A), (i)(B) and (i)(C) of this Section
          2.06(e), a certificate in the form of Exhibit B hereto, including the
          certifications, certificates and Opinion of Counsel required by Item
          (3)(d) thereof, if applicable;

               (E) if the transfer will be made to the Company or any of its
          Subsidiaries, a certificate to the effect set forth in Exhibit B
          hereto, including the certifications in Item (3)(b) thereof; or

               (F) if the transfer will be made pursuant to an effective
          registration statement under the Securities Act, a certificate to the
          effect set forth in Exhibit B hereto, including the certifications in
          Item (3)(c) thereof.

          (ii) Any Restricted Definitive Note may be exchanged by the Holder
     thereof for an Unrestricted Definitive Note or transferred to a Person or
     Persons who take delivery thereof in the form of an Unrestricted Definitive
     Note if:

               (A) such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement;

               (B) any such transfer is effected pursuant to the Shelf
          Registration Statement in accordance with the Registration Rights
          Agreement; or

               (C) the Registrar receives the following:

                    (1) if the Holder of such Restricted Definitive Note
               proposes to exchange such Note for an Unrestricted Definitive
               Note, a certificate from such Holder in the form of Exhibit C
               hereto, including the certifications in Item (4) thereof;

                    (2) if the Holder of such Restricted Definitive Note
               proposes to transfer such Note to a Person who shall take
               delivery thereof in the form of an Unrestricted Definitive Note,
               a certificate from such Holder in the form of Exhibit B hereto,
               including the certifications in Item (4) thereof; and

                    (3) in each such case set forth in this subparagraph (C), an
               Opinion of Counsel in form reasonably acceptable to the Company
               to the effect that such exchange or transfer is in compliance
               with the Securities Act, that the restrictions on transfer
               contained herein and in the Private Placement Legend are not
               required in order to maintain compliance with the Securities Act,
               and such Restricted Definitive Note is being exchanged or
               transferred in compliance with any applicable blue sky securities
               laws of any State of the United States.

          (iii) A Holder of Unrestricted Definitive Notes may transfer such
     Notes to a Person who takes delivery thereof in the form of an Unrestricted
     Definitive Note. Upon receipt of a request for such a

                                       18
<PAGE>

     transfer, the Registrar shall register the Unrestricted Definitive Notes
     pursuant to the instructions from the Holder thereof. Unrestricted
     Definitive Notes cannot be exchanged for or transferred to Persons who take
     delivery thereof in the form of a Restricted Definitive Note.

     (f) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance
with the Registration Rights Agreement, the Company shall issue and, upon
receipt of (A) an authentication order in accordance with Section 2.02 hereof
and (B) an Opinion of Counsel opining as to the enforceability of the Exchange
Notes, the Trustee shall authenticate (i) one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered and accepted for exchange in
the Exchange Offer and (ii) Unrestricted Definitive Notes in an aggregate
principal amount equal to the principal amount of the Restricted Definitive
Notes accepted for exchange in the Exchange Offer. Concurrent with the issuance
of such Notes, the Trustee shall cause the aggregate principal amount of the
applicable Restricted Global Notes to be reduced accordingly, and the Company
shall execute and the Trustee shall authenticate and make available for delivery
to the Persons designated by the Holders of Definitive Notes so accepted
Definitive Notes in the appropriate principal amount.

     (g) Legends. The following legends shall appear on the face of all Global
Notes and Definitive Notes issued under this Indenture unless specifically
stated otherwise in the applicable provisions of this Indenture.

          (i) Private Placement Legend.

               (A) Except as permitted by subparagraph (B) below, each Global
          Note and each Definitive Note (and all Notes issued in exchange
          therefor or substitution thereof) shall bear the legend in
          substantially the following form:

               "THIS NOTE (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE
          U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
          STATE SECURITIES LAWS. ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED,
          SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR
          TO, OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS, EXCEPT PURSUANT TO
          AN EFFECTIVE REGISTRATION STATEMENT OR IN ACCORDANCE WITH AN
          APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
          SECURITIES ACT (SUBJECT TO THE DELIVERY OF SUCH EVIDENCE, IF ANY,
          REQUIRED UNDER THE INDENTURE PURSUANT TO WHICH THIS NOTE IS ISSUED)
          AND IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
          UNITED STATES OR ANY OTHER JURISDICTION. BY ITS ACQUISITION HEREOF OR
          OF A BENEFICIAL INTEREST HEREIN, THE HOLDER:

               (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER"
          (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A "QIB"), (B) IT
          IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
          REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL
          "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7)
          OF REGULATION D UNDER THE SECURITIES ACT (AN "IAI")),

               (2) AGREES THAT PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE
          LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH
          NORTHERN BORDER PIPELINE COMPANY OR ANY AFFILIATE OF NORTHERN BORDER
          PIPELINE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF
          THIS NOTE) (THE "RESALE RESTRICTION TERMINATION DATE"), IT WILL NOT
          RESELL, OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO NORTHERN BORDER
          PIPELINE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) FOR SO LONG AS THIS
          NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
          ACT, TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB
          PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A
          TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN AN OFFSHORE
          TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR 904 UNDER THE

                                       19
<PAGE>

          SECURITIES ACT, (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
          144 UNDER THE SECURITIES ACT, (E) TO AN IAI, (F) IN ACCORDANCE WITH
          ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
          ACT, OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
          SECURITIES ACT, AND, IN EACH CASE, IN ACCORDANCE WITH THE APPLICABLE
          SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
          APPLICABLE JURISDICTION, AND ACCOMPANIED BY SUCH CERTIFICATIONS,
          OPINIONS OF COUNSEL AND OTHER INFORMATION AS MAY BE REQUIRED BY THE
          INDENTURE, AND

               (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE
          OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
          EFFECT OF THIS LEGEND.

               AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "U.S. PERSONS"
          AND "UNITED STATES" HAVE THE MEANINGS ASSIGNED TO THEM IN RULE 902 OF
          REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A
          PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF
          THIS NOTE IN VIOLATION OF THE FOREGOING."

               (B) Notwithstanding the foregoing, any Global Note or Definitive
          Note issued pursuant to subparagraph (b)(iv), (c)(iii), (d)(ii),
          (d)(iii), (e)(ii), (e)(iii) or (f) of this Section 2.06 (and all Notes
          issued in exchange therefor or substitution thereof) shall not bear
          the Private Placement Legend.

          (ii) Global Note Legend. Each Global Note shall bear a legend in
     substantially the following form:

          UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
     DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
     DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
     TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
     OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
     SUCCESSOR DEPOSITARY. THE DEPOSITORY TRUST COMPANY SHALL ACT AS THE
     DEPOSITARY UNTIL A SUCCESSOR SHALL BE APPOINTED BY NORTHERN BORDER PIPELINE
     COMPANY AND THE REGISTRAR. UNLESS THIS CERTIFICATE IS PRESENTED BY AN
     AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET,
     NEW YORK, NEW YORK) ("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
     TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
     THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
     AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
     SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
     DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
     TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
     CO., HAS AN INTEREST HEREIN.

          (iii) Regulation S Temporary Global Note Legend. The Regulation S
     Temporary Global Note shall bear a legend in substantially the following
     form:

          "THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND
     THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED
     NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE
     HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE
     SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON."

     (h) Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to or
retained and canceled by the Trustee in accordance with Section 2.11 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who

                                       20
<PAGE>

will take delivery thereof in the form of a beneficial interest in another
Global Note or for Definitive Notes, the principal amount of Notes represented
by such Global Note shall be reduced accordingly and an endorsement shall be
made on such Global Note, by the Trustee, the Note Custodian or the Depositary
at the direction of the Trustee, to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will
take delivery thereof in the form of a beneficial interest in another Global
Note, such other Global Note shall be increased accordingly and an endorsement
shall be made on such Global Note, by the Trustee, the Note Custodian or by the
Depositary at the direction of the Trustee, to reflect such increase.

     (i) General Provisions Relating to Transfers and Exchanges.

          (i) To permit registrations of transfers and exchanges, the Company
     shall execute and the Trustee shall authenticate Global Notes and
     Definitive Notes upon the Company's order or at the Registrar's request.

          (ii) No service charge shall be made to a Holder of a beneficial
     interest in a Global Note or to a Holder of a Definitive Note for any
     registration of transfer or exchange, but the Company may require payment
     of a sum sufficient to cover any transfer tax or similar governmental
     charge payable in connection therewith (other than any such transfer taxes
     or similar governmental charge payable upon exchange or transfer pursuant
     to Sections 2.10, 3.06 and 9.05 hereof).

          (iii) The Registrar shall not be required to register the transfer or
     exchange of any Note selected for redemption in whole or in part, except
     the unredeemed portion of any Note being redeemed in part.

          (iv) All Global Notes and Definitive Notes issued upon any
     registration of transfer or exchange of Global Notes or Definitive Notes
     shall be the valid obligations of the Company, evidencing the same debt,
     and entitled to the same benefits under this Indenture, as the Global Notes
     or Definitive Notes surrendered upon such registration of transfer or
     exchange.

          (v) The Company shall not be required (A) to issue, to register the
     transfer of or to exchange Notes during a period beginning at the opening
     of business 15 days before the day of any selection of Notes for redemption
     under Section 3.02 hereof and ending at the close of business on the day of
     selection, (B) to register the transfer of or to exchange any Note so
     selected for redemption in whole or in part, except the unredeemed portion
     of any Note being redeemed in part or (C) to register the transfer of or to
     exchange a Note between a record date and the next succeeding Interest
     Payment Date.

          (vi) Prior to due presentment for the registration of a transfer of
     any Note, the Trustee, any Agent and the Company may deem and treat the
     Person in whose name any Note is registered as the absolute owner of such
     Note for the purpose of receiving payment of principal of and interest on
     such Notes and for all other purposes, and none of the Trustee, any Agent
     or the Company shall be affected by notice to the contrary.

          (vii) The Trustee shall authenticate Global Notes and Definitive Notes
     in accordance with the provisions of Section 2.02 hereof.

          (viii) All certifications, certificates and Opinions of Counsel
     required to be submitted to the Registrar pursuant to this Section 2.06 to
     effect a transfer or exchange may be submitted by facsimile.

SECTION 2.07 Replacement Notes.

     If any mutilated Note is surrendered to the Trustee or the Company and the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Note, the Company shall issue and the Trustee,

                                       21
<PAGE>

upon the written order of the Company signed by two Officers of the Company,
shall authenticate a replacement Note of the same series if the Trustee's
requirements are met. If required by the Trustee or the Company, an indemnity
bond must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Company to protect the Company, the Trustee, any Agent and any
Authenticating Agent from any loss that any of them may suffer if a Note is
replaced. The Company may charge for its expenses in replacing a Note.

     Every replacement Note is an additional obligation of the Company and shall
be entitled to all of the benefits of this Indenture equally and proportionately
with all other Notes duly issued hereunder.

SECTION 2.08 Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section as
not outstanding. Except as set forth in Section 2.09 hereof, a Note does not
cease to be outstanding because the Company or an Affiliate of the Company holds
the Note.

     If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a bona fide purchaser. If the principal amount of any
Note is considered paid under Section 4.01 hereof, it ceases to be outstanding
and interest and Liquidated Damages, if any, on it cease to accrue.

     If the Paying Agent (other than the Company, a Subsidiary or an Affiliate
of any thereof) holds, on a Redemption Date or maturity date, money sufficient
to pay Notes payable on that date, then on and after that date such Notes shall
be deemed to be no longer outstanding and shall cease to accrue interest and
Liquidated Damages, if any.

SECTION 2.09 Treasury Notes.

     In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, the Initial Notes and
the Exchange Notes shall be treated as a single class and any Notes owned by the
Company, or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company, shall be considered as
though not outstanding, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Notes that a Responsible Officer of the Trustee actually knows are so owned
shall be so disregarded.

SECTION 2.10 Temporary Notes.

     Until Definitive Notes are ready for delivery, the Company may prepare and
the Trustee shall authenticate temporary Notes upon a written order of the
Company signed by two Officers of the Company. Temporary Notes shall be
substantially in the form of Definitive Notes but may have variations that the
Company considers appropriate for temporary Notes and as shall be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company shall prepare
and the Trustee shall authenticate Definitive Notes in exchange for temporary
Notes.

     Holders of temporary Notes shall be entitled to all of the benefits of this
Indenture.

SECTION 2.11 Cancellation.

     The Company at any time may deliver Notes to the Trustee for cancellation.
The Registrar and Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The
Trustee and no one else shall cancel all Notes surrendered for registration of

                                       22
<PAGE>

transfer, exchange, payment, replacement or cancellation and shall return such
canceled Notes to the Company upon the Company's written request. The Company
may not issue new Notes to replace Notes that it has paid or that have been
delivered to the Trustee for cancellation.

SECTION 2.12 Defaulted Interest.

     If the Company defaults in a payment of interest on the Notes, it shall pay
the defaulted interest in any lawful manner plus, to the extent lawful, interest
payable on the defaulted interest, to the Persons who are Holders on a
subsequent record date, in each case at the rate provided in the Notes. The
Company shall promptly notify the Trustee in writing of the amount of defaulted
interest proposed to be paid on each Note and the date of the proposed payment.
The Company shall fix or cause to be fixed each such record date and payment
date, provided that no such record date shall be less than 10 days prior to the
related payment date for such defaulted interest. At least 15 days before the
record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) shall mail or cause to be
mailed to Holders a notice that states the record date, the related payment date
and the amount of such interest to be paid.

SECTION 2.13 CUSIP Numbers.

     The Company in issuing the Notes may use "CUSIP" numbers (if then generally
in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee of any
change in the "CUSIP" numbers.

                                  ARTICLE III

                            REDEMPTION AND PREPAYMENT

SECTION 3.01 Notices to Trustee.

     The Company may elect to redeem Notes in whole or in part; provided,
however, that it shall furnish to the Trustee, at least 30 days but not more
than 60 days before a Redemption Date, an Officers' Certificate setting forth
(i) the Redemption Date, (ii) the principal amount of Notes to be redeemed and
(iii) the redemption price.

SECTION 3.02 Selection of Notes to be Redeemed.

     If less than all of the Notes are to be redeemed at any time, selection of
Notes for redemption shall be made by the Trustee on a pro rata basis, by lot or
in accordance with any other method the Trustee considers fair and appropriate;
provided that no Notes of $1,000 or less shall be redeemed in part. In the event
of partial redemption by lot, the particular Notes to be redeemed shall be
selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior to the Redemption Date by the Trustee from the outstanding Notes not
previously called for redemption.

     The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount thereof to be redeemed. Notes and portions of
Notes selected shall be in amounts of $1,000 or integral multiples of $1,000.
Except as provided in the preceding sentence, provisions of this Indenture that
apply to Notes called for redemption also apply to portions of Notes called for
redemption.

                                       23
<PAGE>

SECTION 3.03 Notice of Redemption.

     At least 30 days but not more than 60 days before a Redemption Date, the
Company shall mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed at its registered
address.

     The notice shall identify the Notes (including CUSIP numbers) to be
redeemed and shall state:

     (a) the Redemption Date;

     (b) the appropriate calculation of the redemption price in accordance with
the terms of the Notes but need not include the redemption price itself;

     (c) if any Note is being redeemed in part, the portion of the principal
amount of such Note to be redeemed and that, after the Redemption Date upon
surrender of such Note, a new Note or Notes in principal amount equal to the
unredeemed portion shall be issued upon cancellation of the original Note;

     (d) the name and address of the Paying Agent;

     (e) that Notes called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

     (f) that, unless the Company defaults in making such redemption payment,
interest and Liquidated Damages, if any, on Notes called for redemption cease to
accrue on and after the Redemption Date;

     (g) the paragraph of the Notes and/or Section of this Indenture pursuant to
which the Notes called for redemption are being redeemed; and

     (h) that no representation is made as to the correctness or accuracy of the
CUSIP number, if any, listed in such notice or printed on the Notes.

     At the Company's request, the Trustee shall give the notice of redemption
in the Company's name and at its expense; provided, however, that the Company
shall have delivered to the Trustee, at least 30 days prior to the Redemption
Date, an Officers' Certificate requesting that the Trustee give such notice and
setting forth the information to be stated in such notice as provided in the
preceding paragraph.

SECTION 3.04 Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.03 hereof,
Notes called for redemption become irrevocably due and payable on the Redemption
Date at the redemption price. A notice of redemption may not be conditional.

SECTION 3.05 Deposit of Redemption Price.

     No later than 10:00 a.m. New York City Time on the Redemption Date, the
Company shall deposit with the Trustee or with the Paying Agent money sufficient
to pay the redemption price (as calculated in accordance with the terms of the
Notes) of and accrued interest and Liquidated Damages, if any, on all Notes to
be redeemed on that date. The Trustee or the Paying Agent shall promptly return
to the Company any money deposited with the Trustee or the Paying Agent by the
Company in excess of the amounts necessary to pay the redemption price of, and
accrued and unpaid interest and Liquidated Damages, if any, on, all Notes to be
redeemed.

     If the Company complies with the provisions of the preceding paragraph, on
and after the Redemption Date, interest, and Liquidated Damages, if any, shall
cease to accrue on the Notes or the portions of Notes called for redemption. If
a Note is redeemed on or after an interest record date but on or prior to the
related Interest Payment Date, then any accrued and unpaid interest and
Liquidated Damages, if any, shall be paid to the Person in whose name such Note
was registered at the close of business on

                                       24
<PAGE>

such record date. If any Note called for redemption shall not be so paid upon
surrender for redemption because of the failure of the Company to comply with
the preceding paragraph, interest shall be paid on the unpaid principal, from
the Redemption Date until such principal is paid, and to the extent lawful on
any interest not paid on such unpaid principal, in each case at the rate
provided in the Notes and in Section 4.01 hereof.

SECTION 3.06 Notes Redeemed in Part.

     Upon surrender of a Note that is redeemed in part, the Company shall issue
and, upon the Company's written request, the Trustee shall authenticate for the
Holder at the expense of the Company a new Note equal in principal amount to the
unredeemed portion of the Note surrendered.

SECTION 3.07 Mandatory Redemption.

     The Company shall not be required to make mandatory redemption or sinking
fund payments with respect to the Notes.

                                   ARTICLE IV

                                    COVENANTS

SECTION 4.01 Payment of Notes.

     The Company shall pay or cause to be paid the principal of, premium, if
any, and interest and Liquidated Damages, if any, on the Notes on the dates and
in the manner provided in the Notes. Principal, premium, if any, interest and
Liquidated Damages, if any, shall be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as of
10:00 a.m. New York City Time on the due date money deposited by the Company in
immediately available funds and designated for and sufficient to pay all
principal, premium, if any, interest and Liquidated Damages, if any, then due.
The Company shall pay all Liquidated Damages, if any, in the same manner on the
dates and in the amounts set forth in the Registration Rights Agreement.

     The Company shall pay interest (including post-petition interest in any
proceeding under the Bankruptcy Code) on overdue principal at the rate borne on
the Notes to the extent lawful; it shall pay interest (including post-petition
interest in any proceeding under the Bankruptcy Code) on overdue installments of
interest and Liquidated Damages, if any, (without regard to any applicable grace
period) at the same rate to the extent lawful.

SECTION 4.02 Maintenance of Office or Agency.

     The Company shall maintain in the Borough of Manhattan, the City of New
York, an office or agency (which may be an office of the Trustee or an affiliate
of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be served. The
Company shall 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 Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; 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 the Borough of Manhattan,
the City of

                                       25
<PAGE>

New York for such purposes. The Company shall 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.

     The Company hereby designates the office of the Trustee at 14 Wall Street,
8th floor, New York, New York 10005, as one such office or agency of the Company
in accordance with Section 2.03 hereof.

SECTION 4.03 Reports.

     (a) The Company, pursuant to Section 314(a) of the Trust Indenture Act,
shall:

          (i) For as long as the Company is required to file information with
     the SEC pursuant to the Exchange Act, file with the Trustee, within 15 days
     after the Company is required to file with the SEC, copies of the annual
     reports and of the information, documents and other reports which the
     Company may be required to file with the SEC pursuant to the Exchange Act;
     or if the Company is not required to file information with the SEC pursuant
     to the Exchange Act, file with the Trustee and the SEC in accordance with
     rules and regulations prescribed from time to time by the SEC any
     supplementary and periodic information, documents and reports which may be
     required pursuant to the Exchange Act, in respect of a security listed and
     registered on a national securities exchange as may be prescribed in such
     rules and regulations.

          (ii) Transmit within 30 days after the filing thereof with the
     Trustee, in the manner and to the extent provided in Section 313(c) of the
     Trust Indenture Act, such summaries of any information, documents and
     reports required to be filed by the Company pursuant to paragraph (i) of
     this Section 4.03 as may be required by rules and regulations prescribed
     from time to time by the SEC.

     (b) For so long as any Initial Notes remain outstanding, the Company shall
furnish to the Holders and to securities analysts and prospective investors,
upon their request, the information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act.

     (c) Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

SECTION 4.04 Statement by Officers as to Default.

     The Company will deliver to the Trustee, within 150 days after the end of
each fiscal year of the Company ending after the date hereof, an Officers'
Certificate, stating whether or not to the best knowledge of the signers thereof
the Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be
in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

SECTION 4.05 Existence.

     Subject to Article V, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its existence, rights
(charter and statutory) and franchises; provided, however, that the Company
shall not be required to preserve any such right or franchise if it shall
determine that the preservation thereof is no longer desirable in the conduct of
the business of the Company.

                                       26
<PAGE>

SECTION 4.06 Limitations on Liens.

     The Company will not, nor will it permit any Subsidiary of the Company to,
issue, incur, create, assume or guarantee any Indebtedness secured by a Lien
upon any Property or upon any Capital Interests or indebtedness of any
Subsidiary that owns or leases any Property (whether such Property, Capital
Interests or Indebtedness is existing or owned on the date of this Indenture or
is hereafter created or acquired), without in any such case making effective
provision whereby all of the Notes outstanding hereunder shall be secured
equally and ratably with, or prior to, such Indebtedness so long as such
Indebtedness shall be so secured. This restriction shall not apply to (1) any
Permitted Lien and (2) any Lien securing Exempted Indebtedness.

SECTION 4.07 Restriction of Sale-Leaseback Transactions.

     The Company will not, nor will it permit any Subsidiary to, engage in a
Sale-Leaseback Transaction with respect to any Principal Property unless:

     (a) the Company or such Subsidiary, as the case may be, would be entitled,
pursuant to this Indenture, to incur Indebtedness secured by a Lien on the
Principal Property to be leased pursuant to such Sale-Leaseback Transaction in a
principal amount at least equal to the Attributable Indebtedness with respect to
such Sale-Leaseback Transaction without equally and ratably securing the Notes
pursuant to Section 4.06; or

     (b) within a one-year period after the effective date of such
Sale-Leaseback Transaction, the Company or such Subsidiary applies or causes to
be applied an amount equal to not less than the Attributable Indebtedness of
such Sale-Leaseback Transaction to (i) the voluntary defeasance or the
prepayment, repayment, redemption or retirement of the Notes or other senior
Funded Debt of the Company or any Subsidiary, (ii) the acquisition,
construction, development or improvement of any Property used or useful in the
business of the Company or any of its Subsidiaries, or (iii) any combination of
applications referred to in sub-clauses (b)(i) and (b)(ii) of this Section 4.07;
or

     (c) such Sale-Leaseback Transaction occurs within 12 months after the
completion of the acquisition of the Principal Property subject thereto or the
date of the completion of construction, or development of, or substantial repair
or improvement on, or commencement of full commercial operations of, such
Principal Property, whichever is later.

     This restriction will not apply to a Sale-Leaseback Transaction that
results in Attributable Indebtedness that constitutes Exempted Indebtedness.

SECTION 4.08 Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term,
provision or condition set forth in Section 4.05, 4.06 or 4.07 with respect to
the Notes or any negative covenant with respect to the Notes contained in
resolutions of the Management Committee, Officers' Certificate or supplemental
indenture authorizing the Notes if before the time for such compliance the
Holders of at least a majority in aggregate principal amount of the Notes
(voting as one class) shall, by act of such Holders, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

     A waiver which changes or eliminates any term, provision or condition of
this Indenture which has expressly been included solely for the benefit of the
Holders, or which modifies the rights of the Holders

                                       27
<PAGE>

with respect to such term, provision or condition, shall be deemed not to affect
the rights under this Indenture of the Holders.

SECTION 4.09 Payments for Consent.

     The Company will not, and will not permit any of its Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fee or otherwise, to or for the benefit of any Holder of Notes
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Notes unless such consideration is
offered to be paid and is paid to all Holders of the Notes that consent, waive
or agree to amend in the time frame set forth in the solicitation documents
relating to such consent, waiver or agreement.

SECTION 4.10 Money for Note Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect
to the Notes, it will, on or before each due date of the principal of, premium,
if any, accrued and unpaid interest or Liquidated Damages, if any, on the Notes,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the principal of, premium, if any, accrued and unpaid
interest and Liquidated Damages, if any, 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 the Notes, it
will, on or prior to each due date of the principal of, premium, if any, accrued
and unpaid interest or Liquidated Damages, if any, on the Notes, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, 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 for the Notes other than the
Trustee 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 (i) hold all sums held by it for the payment of the
principal of, premium, if any, interest or Liquidated Damages, if any, on the
Notes 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; (ii)
give the Trustee notice of any default by the Company (or any other obligor upon
the Notes) in the making of any payment of principal of, premium, if any,
accrued and unpaid interest or Liquidated Damages, if any, on the Notes; and
(iii) during the continuance of any such default, upon the written request of
the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Notes.

     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 such 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
money.

     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, premium, if any,
accrued and unpaid interest or Liquidated Damages, if any, on any of the Notes
and remaining unclaimed for two years after such principal, premium, if any,
accrued and unpaid interest or Liquidated Damages, if any, 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 Notes 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

                                       28
<PAGE>

of the Company cause to be published once, in an Authorized Newspaper in each
Place of Payment with respect to the Notes, 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.

                                   ARTICLE V

                                   SUCCESSORS

SECTION 5.01 Company May Consolidate, Etc., Only on Certain Terms.

     Except as provided in Section 5.02, the Company shall not merge, amalgamate
or consolidate with or into any other Person (other than a merger or
amalgamation with any Subsidiary of the Company in which the Company is the
surviving entity) or sell, convey, lease, transfer or otherwise dispose of its
properties and assets as, or substantially as, an entirety to, any Person,
whether in a single transaction or series of related transactions, unless:

     (a) (A) in the case of a merger, the Company is the surviving entity, or
(B) the Person formed by such consolidation or amalgamation or into which the
Company is merged or amalgamated or the Person which acquires by sale,
conveyance, transfer or disposition, or which leases, all or substantially all
of the properties and assets of the Company (i) is an entity organized under the
laws of the United States, a state thereof or the District of Columbia, or
Canada or a province thereof and (ii) shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, the due and punctual payment of the principal of,
premium, if any, accrued and unpaid interest and Liquidated Damages, if any, on
all the Notes and the due and punctual performance or observance of every other
covenant and condition of this Indenture on the part of the Company to be
performed or observed;

     (b) immediately before and immediately after giving effect to such
transaction or series of transactions, no Default or Event of Default has
occurred and is continuing; and

     (c) the Company has delivered to the Trustee an Officers' Certificate and
an Opinion of Counsel, each stating that such merger, amalgamation,
consolidation, sale, conveyance, transfer, lease or other disposition and the
supplemental indenture required in connection with such transaction, if any,
comply with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.

SECTION 5.02 Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into,
any other Person or any sale, transfer, lease or other disposition of the
properties and assets of the Company as, or substantially as, an entirety in
accordance with Section 5.01, the successor Person formed by such consolidation
or into which the Company is merged or to which such sale, transfer, lease or
other disposition is made (including a required transfer of the business and
assets of the Company to Northern Border Pipeline Corporation pursuant to
Section 14 of the Partnership Agreement) 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 originally as
the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Notes.

                                       29
<PAGE>

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

SECTION 6.01 Events of Default.

     "Event of Default", wherever used herein with respect to the Notes, 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):

     (a) default in the payment of any interest or any Liquidated Damages upon
the Notes when it becomes due and payable, and continuance of such default for a
period of 30 days; or

     (b) default in the payment of the principal of (or premium, if any, on),
the Notes at their Stated Maturity; or

     (c) default in the performance, or breach, of any term, covenant or
warranty of the Company in this Indenture, and continuance of such default or
breach for a period of 90 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 the Notes then outstanding
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

     (d) the Company pursuant to or within the meaning of any the Bankruptcy
Code (i) commences a voluntary case, (ii) consents to the entry of any order for
relief against it in an involuntary case, (iii) consents to the appointment of a
Custodian of it or for all or substantially all of its property, or (iv) makes a
general assignment for the benefit of its creditors; or

     (e) a court of competent jurisdiction enters an order or decree under any
the Bankruptcy Code that (i) is for relief against the Company in an involuntary
case, (ii) appoints a Custodian of the Company or for all or substantially all
of its property, or (iii) orders the liquidation of the Company; and the order
or decree remains unstayed and in effect for 90 days; or

     (f) any default by the Company or any of its Subsidiaries in the payment,
at the final maturity date and after the expiration of any applicable grace
period, of principal of the Company's Indebtedness (other than the Notes) in an
aggregate principal amount then outstanding of $25,000,000 or more, or
acceleration of any Indebtedness (including, without limitation, any interest or
premium) of such amount, such that the Indebtedness becomes due and payable
prior to its maturity date and such acceleration is not rescinded within 60 days
after notice to the Company in accordance with this Indenture.

SECTION 6.02 Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to the Notes occurs and is continuing
(other than an Event of Default described in clause (d) or (e) of Section 6.01),
then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Notes may declare the principal amount of the Notes 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 amount) shall become immediately due and payable.
Notwithstanding the foregoing, if an Event of Default specified in clause (d) or
(e) of Section 6.01 occurs, Notes then outstanding shall be due and payable
immediately without further action or notice.

     At any time after such a declaration of acceleration with respect to the
Notes has been made and before a judgment or decree for payment of the money due
has been obtained by the Trustee as hereinafter in this Article provided, the
Holders of a majority in principal amount of the Notes then outstanding, by
written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if:

                                       30
<PAGE>

     (a) the Company has paid or deposited with the Trustee a sum sufficient to
pay:

          (i) all overdue interest on all the Notes,

          (ii) the principal of (and premium, if any, on) and Liquidated
     Damages, if any, on the Notes which have become due otherwise than by such
     declaration of acceleration and any interest thereon at the rate or rates
     prescribed therefor in the Notes,

          (iii) to the extent that payment of such interest is lawful, interest
     upon overdue interest and overdue Liquidated Damages, if any, at the rate
     or rates prescribed therefor in the Notes, and

          (iv) 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

     (b) all Events of Default with respect to the Notes, other than the
non-payment of the principal of the Notes which have become due solely by such
declaration of acceleration, have been cured or waived as provided for below.

     If an Event of Default occurs and is not subsequently cured, the Trustee
shall, in the exercise of its power, use the degree of care of a prudent man in
the conduct of his affairs. The Trustee may withhold notice to the Holders of
the Notes of any occurrence of an Event of Default, except in the payment of
principal or interest, if the Trustee considers such withholding of notice to be
in the best interests of the Holders.

     No such rescission shall affect any subsequent Default or impair any right
consequent thereon.

SECTION 6.03 Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if:

     (a) default is made in the payment of any interest or Liquidated Damages on
the Notes when such interest or Liquidated Damages becomes due and payable and
such default continues for a period of 30 days, or

     (b) default is made in the payment of the principal of, or premium, if any,
on the Notes at the Stated Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of the Notes, the whole amount then due and payable on the Notes for
principal and any premium, if any, Liquidated Damages, if any, and interest and,
to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium, Liquidated Damages and on any
overdue interest, at the rate or rates prescribed therefor in the Notes, 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.

     If the Company fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and 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 the Notes 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 the Notes, wherever situated.

                                       31
<PAGE>

     If an Event of Default with respect to the Notes occurs and is continuing,
the Trustee may in its discretion proceed to protect and enforce its rights and
the rights of the Holders of the Notes 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 6.04 Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company or any other
obligor upon the Notes, their property or their creditors, the Trustee shall be
entitled and empowered, by intervention in such proceeding or otherwise, to take
any and all actions authorized under the Trust Indenture Act in order to have
claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized 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 7.07 hereof.

     No provision of this Indenture 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 Notes 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; provided, however, that the
Trustee may, on behalf of the Holders, vote for the election of a trustee in
bankruptcy or similar official and be a member of a creditors' committee or
other similar committee.

SECTION 6.05 Trustee May Enforce Claims Without Possession of Notes.

     All rights of action and claims under this Indenture or the Notes may be
prosecuted and enforced by the Trustee without the possession of any of the
Notes 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 Notes in respect of which such judgment has been recovered.

SECTION 6.06 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, premium, if
any, accrued and unpaid interest or Liquidated Damages, if any, upon
presentation of the Notes 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 7.07;

     SECOND: To the payment of the amounts then due and unpaid for principal of,
any premium, if any, accrued and unpaid interest and Liquidated Damages, if any,
on the Notes, ratably, without preference or priority of any kind, according to
the amounts due and payable on the Notes for principal, premium, if any, accrued
and unpaid interest or Liquidated Damages, if any, respectively; and

     THIRD: The balance, if any, to the Company.

                                       32
<PAGE>

SECTION 6.07 Limitation on Suits.

     No Holder of the Notes 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

     (a) such Holder has previously given written notice to the Trustee of a
continuing Event of Default with respect to the Notes;

     (b) the Holders of not less than 25% in principal amount of the Notes then
outstanding 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;

     (c) such Holder or Holders have offered to the Trustee indemnity
satisfactory to the Trustee against the costs, expenses and liabilities to be
incurred in compliance with such request;

     (d) the Trustee for 60 days after its receipt of such notice, request and
offer of indemnity has failed to institute any such proceeding; and

     (e) no direction inconsistent with such written request has been given to
the Trustee during such 60-day period by the Holders of a majority in principal
amount of the Notes then outstanding;

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 of
such Holders, 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 of such
Holders.

SECTION 6.08 Unconditional Right of Holders to Receive Principal, Premium and
Interest.

     Notwithstanding any other provision in this Indenture, Holders shall have
the right, which is absolute and unconditional, to receive payment of the
principal of, premium, if any, and (subject to Sections 2.06 and the provisions
hereof regarding the payment of interest) interest on the Notes on the Stated
Maturity expressed in the Notes (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 6.09 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 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 6.10 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Notes herein, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders 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.

                                       33
<PAGE>

SECTION 6.11 Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder 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 6.12 Control by Holders.

     The Holders of a majority in aggregate principal amount of the Notes 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, with respect to the Notes, if such Holders offer to
the Trustee indemnity satisfactory to it; provided, however, that:

     (a) such direction shall not be in conflict with any rule of law or with
this Indenture;

     (b) the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction; and

     (c) subject to the provisions of Section 7.01, the Trustee shall have the
right to decline to follow any such direction if the Trustee in good faith shall
determine that the proceeding so directed would involve the Trustee in personal
liability.

SECTION 6.13 Waiver of Past Defaults.

     The Holders of a majority in aggregate principal amount of the Notes may on
behalf of the Holders of all the Notes waive any past default hereunder and its
consequences, except

     (a) a continuing default in the payment of the principal of, premium, if
any, or interest on the Notes, or

     (b) a default in respect of a covenant or provision hereof which cannot be
modified or amended hereunder without the consent of each Holder.

     Upon any such waiver, 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 impair any right consequent thereon.

SECTION 6.14 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 reasonable
costs, including reasonable legal fees and expenses, against any such party
litigant, in the manner and to the extent provided in the Trust Indenture Act;
provided, however, 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.

SECTION 6.15 Waiver of Usury, 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 usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or

                                       34
<PAGE>

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 VII

                                     TRUSTEE

SECTION 7.01 Certain Duties and Responsibilities.

     (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in its exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

     (b) Except during the continuance of an Event of Default:

          (i) the duties of the Trustee shall be determined solely by the
     express provisions of this Indenture and the Trustee need perform only
     those duties that are specifically set forth in this Indenture and no
     others, and no implied covenants or obligations shall be read into this
     Indenture against the Trustee; and

          (ii) in the absence of bad faith on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates or opinions furnished to
     the Trustee and conforming to the requirements of this Indenture. However,
     in the case of any such certificates or opinions which by any provision
     hereof are specifically required to be furnished to the Trustee, the
     Trustee shall be under a duty to examine the same to determine whether or
     not they conform to the requirements of this Indenture (but need not
     confirm or investigate the accuracy of mathematical calculations or other
     facts stated therein).

     (c) The Trustee may not be relieved from liabilities for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except
that:

          (i) this paragraph does not limit the effect of paragraph (b) of this
     Section;

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

          (iii) the Trustee shall not be liable with respect to any action it
     takes or omits to take in good faith in accordance with a direction
     received by it pursuant to Section 6.12 hereof.

     (d) Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b), and (c) of this Section.

     (e) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or incur any liability.

     (f) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

                                       35
<PAGE>

SECTION 7.02 Notice of Defaults.

     If a Default occurs and is continuing with respect to the Notes, the
Trustee shall, within 90 days after it occurs, transmit, in the manner and to
the extent provided in Section 313(c) of the Trust Indenture Act, notice of all
uncured or unwaived Defaults actually known to it; provided, however, that,
except in the case of a Default in payment of the principal of or interest on
the Notes, the Trustee may withhold the notice if and so long as the board of
directors, the executive committee or a trust committee of its directors and/or
its Responsible Officers in good faith determines that withholding such notice
is in the interests of Holders; provided further, however, that, in the case of
any default or breach of the character specified in Section 6.01(c) with respect
to the Notes, no such notice to Holders shall be given until at least 60 days
after the occurrence thereof.

SECTION 7.03 Certain Rights of Trustee.

Subject to the provisions of Section 7.01:

     (a) the Trustee may conclusively rely on 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 document
reasonably believed by it to be genuine and to have been signed or presented by
the proper party or parties;

     (b) any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by a Company Request or Company Order (other
than delivery of any Security to the Trustee for authentication and delivery
pursuant to Section 2.02, which shall be sufficiently evidenced as provided
therein) and any resolution of the Management Committee shall be sufficiently
evidenced by an accompanying certificate signed by an Officer;

     (c) 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;

     (d) the Trustee may consult with counsel of its selection and the 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;

     (e) 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 pursuant to this Indenture, unless such Holders shall have offered
to the Trustee security or indemnity satisfactory to it against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction;

     (f) 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;

     (g) 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;

     (h) the Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers' Certificate may be signed by any person authorized to sign an
Officers' Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded;

                                       36
<PAGE>

     (i) the Trustee shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture;

     (j) the Trustee shall not be deemed to have notice of any Default or Event
of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default is
received by the Trustee at the Corporate Trust Office of the Trustee, and such
notice references the Notes and this Indenture; and

     (k) the rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and to each agent, custodian and other Person employed to act
hereunder.

SECTION 7.04 Not Responsible for Recitals or Issuance of Notes.

     The recitals contained herein and in the Notes, except the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and the Trustee or any Authenticating Agent assumes no responsibility for their
correctness. Neither the Trustee nor any Authenticating Agent makes any
representations as to the validity or sufficiency of this Indenture or of the
Notes. The Trustee or any Authenticating Agent shall not be accountable for the
use or application by the Company of Notes or the proceeds thereof.

SECTION 7.05 May Hold Notes.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Notes and, subject to Sections 7.08
and 7.13, may otherwise deal with the Company with the same rights it would have
if it were not Trustee, Authenticating Agent, Paying Agent, Registrar or such
other agent.

SECTION 7.06 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 in writing with the Company.

SECTION 7.07 Compensation and Reimbursement.

     The Company agrees:

     (a) to pay to the Trustee from time to time such compensation as shall be
agreed in writing from time to time between the Company and the Trustee 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);

     (b) 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 willful misconduct; and

     (c) to indemnify each of the Trustee and any predecessor Trustee for, and
to hold it harmless against, any and all loss, liability, damages, claim 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 (whether asserted by the Company,

                                       37
<PAGE>

a Holder or another Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except those attributable
to its negligence or willful misconduct.

     The obligations of the Company under this Section to compensate the Trustee
and to pay or reimburse the Trustee for expenses, disbursements and advances
shall constitute additional indebtedness when such obligations have been past
due for 90 days. Such additional indebtedness shall be secured by a lien prior
to that of the Notes upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the benefit of the Holders of
particular Notes.

     Without limiting any rights available to the Trustee under applicable law,
when the Trustee incurs expenses or renders services in connection with an Event
of Default specified in Section 6.01(d) or Section 6.01(e), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for such services are intended to constitute expenses of
administration under any applicable provisions of the Bankruptcy Code.

     The provisions of this Section 7.07 shall survive the satisfaction and
discharge of this Indenture, the resignation or removal of the Trustee and the
defeasance of the Notes.

SECTION 7.08 Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture.

SECTION 7.09 Corporate Trustee Required; Eligibility.

     There shall at all times be one Trustee hereunder which shall be a Person
that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus required by the Trust Indenture Act. If such Person
publishes reports of condition at least annually, pursuant to law or to the
requirements of a supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such Person 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 7.10 Resignation and Removal; Appointment of Successor.

     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 7.11.

     The Trustee may resign at any time with respect to the Notes by giving
written notice thereof to the Company. If the instrument of acceptance by a
successor Trustee required by Section 7.11 shall not have been delivered to the
Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Notes.

     The Trustee may be removed at any time with respect to the Notes by Act of
the Holders of a majority in principal amount of the Notes then outstanding,
delivered to the Trustee and to the Company. If the instrument of acceptance by
a successor Trustee required by Section 7.11 shall not have been delivered to
the Trustee within 30 days after the giving of such notice of removal, the
Trustee being removed may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Notes.

                                       38
<PAGE>

     If at any time:

     (1) the Trustee shall fail to comply with Section 7.08 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 7.09 and shall
fail to resign after written request therefor by the Company or by any such
Holder, 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,

then, in any such case, (A) the Company may remove the Trustee, or (B) subject
to Section 6.14, 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 Notes and the appointment of a successor Trustee or Trustees.

     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 Notes, the Company shall promptly appoint a successor Trustee or Trustees
with respect to the Notes (it being understood that any such successor Trustee
may be appointed with respect to the Notes and that at any time there shall be
only one Trustee with respect to the Notes) and shall comply with the applicable
requirements of Section 7.11. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Notes shall be appointed by Act of the Holders of a majority
in principal amount of the Notes delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
7.11, become the successor Trustee with respect to the Notes and to that extent
supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Notes shall have been so appointed by the Company or
the Holders and accepted appointment in the manner required by Section 7.11, any
Holder who has been a bona fide Holder of Notes 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 Notes.

     The Company shall give notice of each resignation and each removal of the
Trustee and each appointment of a successor Trustee in the manner provided in
Section 10.02. Each notice shall include the name of the successor Trustee with
respect to the Notes and the address of its Corporate Trust Office.

SECTION 7.11 Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee with
respect to all Notes, 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.

     (b) 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 such rights, powers and trusts referred to in
paragraph (a) of this Section.

                                       39
<PAGE>

     (c) 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 7.12 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 Notes shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Notes so authenticated with the same effect as if
such successor Trustee had itself authenticated such Notes.

SECTION 7.13 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 Notes), 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).

SECTION 7.14 Appointment of Authenticating Agent.

     The Trustee (upon notice to the Company) may appoint an Authenticating
Agent or Agents which shall be authorized to act on behalf of the Trustee to
authenticate the Notes (in accordance with procedures acceptable to the Trustee)
and upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 2.06, and Notes 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. Wherever reference is made in this
Indenture to the authentication and delivery of Notes 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
Authenticating Agent 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
Authenticating Agent 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, such Authenticating Agent 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 resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency or corporate trust business of such 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 such 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

                                       40
<PAGE>

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 mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders, as their
names and addresses appear in the security register of the Trustee. 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 Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section.

     If an appointment is made pursuant to this Section, the Notes, may have
endorsed thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:

     This is one of the Notes.

                                       BANK ONE TRUST COMPANY, N.A.,
                                       As Trustee

                                       By:
                                           -------------------------------------
                                                 As Authenticating Agent

                                       By:
                                           -------------------------------------
                                                   Authorized Officer

SECTION 7.15 Reports by Trustee to Holders of the Notes.

     (a) Within 60 days after each May 15 commencing July 15, 2002, the Trustee
shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture to the extent required pursuant to the Trust Indenture Act
at the times and in the manners provided pursuant thereto.

     (b) 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 Notes
are listed, with the Commission and with the Company. The Company will promptly
notify the Trustee when the Notes are listed on any stock exchange.

                                  ARTICLE VIII

                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

SECTION 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may, at the option of its Management Committee evidenced by a
resolution set forth in an exhibit to an Officers' Certificate, at any time,
elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding
Notes upon compliance with the conditions set forth below in this Article 8.

SECTION 8.02 Legal Defeasance and Discharge.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed

                                       41
<PAGE>

to have been discharged from its obligations with respect to all outstanding
Notes on the date the conditions set forth below are satisfied (hereinafter,
"Legal Defeasance") except for (i) the rights of Holders of outstanding Notes to
receive payments in respect of the principal of, premium, if any, and interest
and Liquidated Damages, if any, on such Notes when such payments are due from
the trust referred to below, (ii) the Company's obligations with respect to the
Notes concerning issuing temporary Notes, registration of Notes, mutilated,
destroyed, lost or stolen Notes and the maintenance of an office or agency for
payment and money for security payments held in trust, (iii) the rights, powers,
trusts, duties and immunities of the Trustee, and the Company's obligations in
connection therewith (iv) rights of registration of transfer and exchange of the
Notes and the Company's optional rights, (v) the obligations of the Company
under Section 4.02, (vi) rights of registration of transfer and exchange of the
Notes and the Company's optional right of redemption, and (vii) the Legal
Defeasance provisions of this Indenture. For this purpose, Legal Defeasance
means that the Company shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes, which shall thereafter be
deemed to be "outstanding" only for the purposes of Section 8.05 hereof and the
other Sections of this Indenture referred to in clauses (a) and (b) set forth in
this sentence below, and to have satisfied all its other obligations under such
Notes and this Indenture (and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging the same), except
for the following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
solely from the trust fund described in Section 8.04 hereof, and as more fully
set forth in such Section, payments in respect of the principal of, premium, if
any, and interest and Liquidated Damages, if any, on such Notes when such
payments are due, (b) the Company's obligations with respect to such Notes under
Article II and Section 4.02 hereof, (c) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and the Company's obligations in connection
therewith and (d) this Article VIII. Subject to compliance with this Article
VIII, the Company may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03 hereof.

SECTION 8.03 Covenant Defeasance.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be released from its
obligations under the covenants contained in Sections 4.03, 4.04, 4.06, 4.07 and
Article V hereof with respect to the outstanding Notes on and after the date the
conditions set forth below are satisfied (hereinafter, "Covenant Defeasance"),
and the Notes shall thereafter be deemed not "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 (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, 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 any 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 6.01
hereof, but, except as specified above, the remainder of this Indenture and such
Notes shall be unaffected thereby. In addition, upon the Company's exercise
under Section 8.01 hereof of the option applicable to this Section 8.03 hereof,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
Sections 6.01(c) through 6.01(f) hereof shall not constitute Events of Default.

SECTION 8.04 Conditions to Legal or Covenant Defeasance.

     The following shall be the conditions to the application of either Section
8.02 or 8.03 hereof to the outstanding Notes:

     In order to exercise either Legal Defeasance or Covenant Defeasance:

                                       42
<PAGE>

     (a) the Company must irrevocably deposit with the Trustee, in trust, for
the benefit of the Holders, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient, in
the opinion of a nationally recognized firm of independent public accountants,
to pay the principal of, premium, if any, and interest and Liquidated Damages,
if any, on the outstanding Notes on the Stated Maturity or on the applicable
Redemption Date, as the case may be, and the Company must specify whether the
Notes are being defeased to maturity or to a particular Redemption Date;

     (b) in the case of an election under Section 8.02 hereof, the Company shall
have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee confirming that (A) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling or (B) since the date of this Indenture, there has been a change in the
applicable federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
outstanding Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Legal Defeasance had not occurred;

     (c) in the case of an election under Section 8.03 hereof, the Company shall
have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee confirming that the Holders of the
outstanding Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such Covenant Defeasance and will be subject to 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;

     (d) no Default or Event of Default shall have occurred and be continuing on
the date of such deposit (other than a Default or Event of Default resulting
from the borrowing of funds to be applied to such deposit) or insofar as Section
6.01(d) or 6.01(e) hereof is concerned, at any time in the period ending on the
91st day after the date of deposit;

     (e) such Legal Defeasance or Covenant Defeasance will not result in a
breach or violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

     (f) the Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that on the 91st day following the deposit, the trust funds will
not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors' rights generally;

     (g) the Company shall have delivered to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with the intent
of preferring the Holders of Notes over the other creditors of the Company with
the intent of defeating, hindering, delaying or defrauding creditors of the
Company or others; and

     (h) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for or relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

SECTION 8.05 Deposited Money and Government Securities to be Held in Trust;
Other Miscellaneous Provisions.

     Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively, for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as

                                       43
<PAGE>

Paying Agent) as the Trustee may determine, to the Holders of such Notes of all
sums due and to become due thereon in respect of principal, premium, if any, and
interest and Liquidated Damages, if any, but such money need not be segregated
from other funds except to the extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof 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 the outstanding Notes.

     Anything in this Article VIII to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.04(h) hereof), are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

SECTION 8.06 Repayment to Company.

     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, premium, if any, or
interest and Liquidated Damages, if any, on any Note and remaining unclaimed for
two years after such principal, and premium, if any, or interest and Liquidated
Damages, if any, has become due and payable shall be paid to the Company on its
request or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Note shall thereafter, as a secured 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 in each Place of Payment with respect to the Notes, 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 notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

SECTION 8.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any U.S. dollars or
non-callable Government Securities in accordance with Section 8.02 or 8.03
hereof, as the case may be, 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 the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.02 or 8.03
hereof, as the case may be; provided, however, that, if the Company makes any
payment of principal of, premium, if any, or interest and Liquidated Damages, if
any, on any Note following the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent.

SECTION 8.08 Satisfaction and Discharge. In addition to the Company's rights
under Sections 8.02 and 8.03, the Company may terminate all of its obligations
under this Indenture (subject to Section 8.07) when:

     (a) either (i) all such outstanding Notes theretofore authenticated and
delivered (other than Notes that have been destroyed, lost or stolen and that
have been replaced or paid as provided in Section 2.07 and Notes for whose
payment has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust) have been delivered to the

                                       44
<PAGE>

Trustee for cancellation, or (ii) all such Notes not theretofore delivered to
the Trustee for cancellation have become due and payable or, within one year
will become due and payable or subject to redemption under paragraph 5 of the
Notes, and the Company has irrevocably deposited or caused to be deposited with
the Trustee funds in trust in an amount sufficient to pay and discharge the
entire Indebtedness on the Notes not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest to the Stated
Maturity of the Notes;

     (b) the Company has paid all sums payable hereunder;

     (c) the Company has delivered irrevocable instructions to the Trustee to
apply the deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be;

     (d) the Holders have a valid, perfected, exclusive security interest in
such trust; and

     (e) the Company has delivered to the Trustee an Officers' Certificate and
an Opinion of Counsel, each stating that all conditions precedent specified
herein relating to the satisfaction and discharge of this Indenture have been
complied with, and that such satisfaction and discharge will not result in a
breach or violation of, or constitute a Default under, this Indenture or any
other material instrument to which the Company is a party or by which it or it's
property is bound.

                                   ARTICLE IX

                        AMENDMENT, SUPPLEMENT AND WAIVER

SECTION 9.01 Without Consent of Holders of Notes.

     Notwithstanding Section 9.02 hereof, the Company and the Trustee may amend
or supplement this Indenture or the Notes without the consent of any Holder of a
Note:

     (a) to cure any ambiguity, defect or inconsistency;

     (b) to provide for uncertificated Notes in addition to or in place of
certificated Notes or to alter the provisions of Article II hereof (including
the related definitions) in a manner that does not materially adversely affect
any Holder;

     (c) to provide for the assumption of the Company's obligations to the
Holders of the Notes in the case of a merger, consolidation or sale of assets of
the Company pursuant to Article V hereof;

     (d) to make any change that would provide any additional rights or benefits
to the Holders of the Notes or that does not adversely affect the legal rights
hereunder of any such Holder;

     (e) to provide for the issuance of additional Notes in connection with any
re-opening of the series of Notes effected in accordance with Section 2.02
hereof; or

     (f) to comply with requirements of the SEC in order to effect or maintain
the qualification of this Indenture under the TIA.

     Upon the request of the Company accompanied by a resolution of its
Management Committee authorizing the execution of any such amended or
supplemental Indenture, and upon receipt by the Trustee of the documents
described in Section 7.03 hereof, the Trustee shall join with the Company in the
execution of any amended or supplemental Indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its
own rights, duties, liabilities or immunities under this Indenture or otherwise.

                                       45
<PAGE>

SECTION 9.02 With Consent of Holders of Notes.

     Except as provided below in this Section 9.02, the Company and the Trustee
may amend or supplement this Indenture and the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding (including, without limitation, consents
obtained in connection with a tender offer or exchange offer for the Notes),
and, subject to Sections 6.08 and 6.13 hereof, any existing Default or Event of
Default (other than a Default or Event of Default in the payment of the
principal of, premium, if any, or interest and Liquidated Damages, if any, on
the Notes, except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture or the Notes may
be waived with the consent of the Holders of a majority in principal amount of
the then outstanding Notes (including consents obtained in connection with a
tender offer or exchange offer for the Notes).

     Upon the request of the Company accompanied by a resolution of its
Management Committee authorizing the execution of any such amended or
supplemental Indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid,
and upon receipt by a Responsible Officer of the Trustee of the documents
described in Section 7.03 hereof, the Trustee shall join with the Company in the
execution of such amended or supplemental Indenture unless such amended or
supplemental Indenture affects the Trustee's own rights, duties, liabilities or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such amended or
supplemental Indenture.

     It shall not be necessary for the consent of the Holders of Notes under
this Section 9.02 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

     After an amendment, supplement or waiver under this Section becomes
effective, the Company shall mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amended or supplemental
Indenture or waiver. Subject to Sections 6.08 and 6.13 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding may waive
compliance in a particular instance by the Company with any provision of this
Indenture or the Notes.

     Without the consent of Holders of at least two-thirds in principal amount
of the Notes then outstanding (including consents obtained in connection with a
tender offer or exchange offer for the Notes), an amendment, supplement or
waiver under this Section may not:

     (a) reduce the rate of or change the time for payment of Liquidated
Damages, if any, on the Notes;

     (b) impair the right to institute suit for the enforcement of any payment
of Liquidated Damages, if any, on the Notes, except as limited by Section 6.07
hereof; or

     (c) waive a continuing Default or Event of Default in the payment of
Liquidated Damages, if any, on the Notes.

     However, without the consent of each Holder affected, an amendment,
supplement or waiver may not (with respect to any Notes held by a nonconsenting
Holder):

     (a) reduce the principal amount of Notes whose Holders must consent to an
amendment, supplement or waiver of any provision of this Indenture or the Notes;

                                       46
<PAGE>

     (b) reduce the principal of or change the fixed maturity of any Note or
alter or waive in any manner that adversely affects the rights of any Holder of
Notes any of the provisions with respect to the redemption of the Notes;

     (c) reduce the rate of or change the time for payment of interest,
including default interest, on any Note;

     (d) waive a Default or Event of Default in the payment of principal of or
premium, if any, or interest on the Notes (except a rescission of acceleration
of the Notes by the Holders of at least a majority in aggregate principal amount
of the then outstanding Notes and a waiver of the payment default that resulted
from such acceleration);

     (e) make any Note payable in money other than that stated in the Notes;

     (f) make any change that adversely affects the rights of any Holder of
Notes in the provisions of this Indenture relating to waivers of past Defaults
or make any change to the rights of Holders of Notes to receive payments of
principal of or interest on the Notes;

     (g) waive a redemption payment with respect to any Note;

     (h) impair the right to institute suit for the enforcement of any payment
of principal of, or premium, if any, or interest on the Notes, except as limited
by Section 6.07 hereof; or

     (i) make any change in Section 6.08 or 6.13 hereof or in the foregoing
amendment and waiver provisions.

SECTION 9.03 Compliance with Trust Indenture Act.

     Every amendment or supplement to this Indenture or the Notes shall be set
forth in a amended or supplemental Indenture that complies with the TIA as then
in effect.

SECTION 9.04 Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it
by a Holder of a Note is a continuing consent by the Holder of a Note and every
subsequent Holder of a Note or portion of a Note that evidences the same debt as
the consenting Holder's Note, even if notation of the consent is not made on any
Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

SECTION 9.05 Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company, in
exchange for all Notes, may issue and the Trustee shall authenticate new Notes
that reflect the amendment, supplement or waiver.

     Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

SECTION 9.06 Trustee to Sign Amendments, Etc.

     The Trustee shall sign any amended or supplemental Indenture authorized
pursuant to this Article IX if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of

                                       47
<PAGE>

the Trustee. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties,
liabilities or immunities under this Indenture or otherwise. The Company may not
sign an amendment or supplemental Indenture until the Management Committee
approves it. In executing any amended or supplemental indenture, the Trustee
shall be entitled to receive and (subject to Section 7.01 hereof) shall be fully
protected in relying upon, an Officers' Certificate and an Opinion of Counsel
stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture.

                                   ARTICLE X

                                  MISCELLANEOUS

SECTION 10.01 Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA Section 318(c), the imposed duties shall control.

SECTION 10.02 Notices.

     Any notice or communication by the Company or the Trustee to the others is
duly given if in writing and delivered in Person or mailed by first class mail
(registered or certified, return receipt requested), telecopier or overnight air
courier guaranteeing next day delivery, to the others' address:

     If to the Company:

                 Northern Border Pipeline Company
                 1111 South 103rd Street
                 Omaha, Nebraska 68124-1000
                 Telecopier No.: (402) 398-7871
                 Attention: Director of Finance

     If to the Trustee:

                 Bank One Trust Company, N.A.
                 153 West 51st Street, Suite IL1-4015
                 New York, New York 10019

     or

                 Bank One Trust Company, N.A.
                 1 Banc One Plaza, Suite IL1-0126
                 Chicago, Illinois 60670-0126
                 Telecopier No.: (312) 407-1708
                 Attention: Corporate Trust Services Division

     The Company or the Trustee, by notice to the others may designate
additional or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back; when receipt acknowledged, if
telecopied; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery.

                                       48
<PAGE>

     Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA Section 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

     If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it.

     If the Company mails a notice or communication to Holders, it shall mail a
copy to the Trustee and each Agent at the same time.

SECTION 10.03 Communication by Holders of Notes with Other Holders of Notes.

     Holders may communicate pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA Section
312(c).

SECTION 10.04 Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

     (a) an Officers' Certificate in form and substance reasonably satisfactory
to the Trustee (which shall include the statements set forth in Section 10.05
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

     (b) an Opinion of Counsel in form and substance reasonably satisfactory to
the Trustee (which shall include the statements set forth in Section 10.05
hereof) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been satisfied.

SECTION 10.05 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

     (a) a statement that the Person making such certificate or opinion has read
such covenant or condition;

     (b) 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;

     (c) a statement that, in the opinion of such Person, he or she 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
satisfied; and

     (d) a statement as to whether or not, in the opinion of such Person, such
condition or covenant has been satisfied.

                                       49
<PAGE>

SECTION 10.06 Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

SECTION 10.07 No Personal Liability of Directors, Officers, Employees and
Stockholders.

     None of the members of the Management Committee, the General Partners, the
Operator or the General Partners' or Operator's directors, officers, employees,
partners, incorporators or stockholders, if any, shall have any liability for
any of the Company's obligations under the Notes or the Indenture (or any
supplement thereto) or the registration rights agreement or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Notes by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the Notes. Such
waiver may not be effective to waive liabilities under the federal securities
laws and it is the view of the SEC that such a waiver is against public policy.

SECTION 10.08 Governing Law.

     THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
INDENTURE AND THE NOTES.

SECTION 10.09 No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

SECTION 10.10 Successors.

     All agreements of the Company in this Indenture and the Notes shall bind
its successors. All agreements of the Trustee in this Indenture shall bind its
successors.

SECTION 10.11 Severability.

     In case any provision in this Indenture or in the Notes 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 10.12 Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.

SECTION 10.13 Table of Contents, Headings, Etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and shall in no way
modify or restrict any of the terms or provisions hereof.

SECTION 10.14 Acts of Holders; Record Dates.

     Any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Indenture to be given or taken by
Holders may be embodied in and evidenced by (a) one or more instruments of
substantially similar tenor signed (either physically or by means of a facsimile
or an electronic transmission, provided that such electronic transmission is
transmitted through the facilities of a Depositary) by such Holders in person or
by agent duly appointed in writing; (b) the record of the

                                       50
<PAGE>

Holders voting in favor thereof at any meeting of Holders duly called and held
in accordance with the provisions of Article XI, or (c) a combination of such
instruments and record. Except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments or record are
delivered (either physically or by means of a facsimile or an electronic
transmission, provided that such electronic transmission is transmitted through
the facilities of a Depositary) to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments or record (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments or of the
Holders reflected by such record. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 315 of the Trust Indenture Act)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

     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 his
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.

     The ownership, principal amount and serial numbers of Notes held by any
Person, and the date of commencement of such Person's holding the same, shall be
proved by the security register of the Trustee.

     Any request, demand, authorization, direction, notice, consent, waiver or
other action of the Holder of any Note shall bind every future Holder of the
same Note and the Holder of every Note 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 Note.

     Without limiting the foregoing, a Holder entitled hereunder to give or take
any action hereunder with regard to any particular Note may do so with regard to
all or any part of the principal amount of such Note or by one or more duly
appointed agents each of which may do so pursuant to such appointment with
regard to all or any different part of such principal amount.

     The Company may set any day as the record date for the purpose of
determining the Holders entitled to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided or
permitted by this Indenture to be given or taken by Holders, but the Company
shall have no obligation to do so. With regard to any record date set pursuant
to this paragraph, the Holders of Notes on such record date (or their duly
appointed agents), and only such Persons, shall be entitled to give or take the
relevant action, whether or not such Holders remain Holders after such record
date.

     The record of any meeting of Holders shall be proved as provided in Section
11.06.

                                   ARTICLE XI

                          MEETINGS OF HOLDERS OF NOTES

SECTION 11.01 Purposes for Which Meetings May Be Called.

     A meeting of Holders may be called at any time and from time to time
pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other act provided by this
Indenture to be made, given or taken by Holders.

                                       51
<PAGE>

SECTION 11.02 Call, Notice and Place of Meetings.

     (a) The Trustee may at any time call a meeting of Holders for any purpose
specified in Section 11.01, to be held at such time and at such place in the
Borough of Manhattan, The City of New York as the Trustee shall determine.
Notice of every meeting of Holders, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting,
shall be given, in the manner provided in Section 10.02, not less than 21 nor
more than 180 days prior to the date fixed for the meeting.

     (b) In case at any time the Company (by or pursuant to a board resolution
or Officers' Certificate) or the Holders of at least 10% in principal amount of
the Notes then outstanding have requested the Trustee to call a meeting of the
Holders for any purpose specified in Section 11.01, by written request setting
forth in reasonable detail the action proposed to be taken at the meeting, and
the Trustee shall not have mailed notice of such meeting within 21 days after
receipt of such request (whichever shall be required pursuant to Section 10.02)
or shall not thereafter proceed to cause the meeting to be held as provided
herein, then the Company or the Holders in the amount above specified, as the
case may be, may determine the time and the place in the Borough of Manhattan,
The City of New York for such meeting and may call such meeting for such
purposes by giving notice thereof as provided in Section 11.02(a) hereof.

SECTION 11.03 Persons Entitled to Vote at Meetings.

     To be entitled to vote at any meeting of Holders, a Person shall be (a) a
Holder of one or more Notes, or (b) a Person appointed by an instrument in
writing as proxy for a Holder or Holders by such Holder or Holders. The only
Persons who shall be entitled to be present or to speak at any meeting of
Holders shall be the Persons entitled to vote at such meeting and their counsel,
any representatives of the Trustee and its counsel and any representatives of
the Company and its counsel.

SECTION 11.04 Quorum; Action.

     The presence of Persons holding Notes in an aggregate principal amount
sufficient to take action upon the matter for which such meeting was called
shall constitute a quorum for a meeting of Holders. In the absence of a quorum
within 30 minutes after the time appointed for any such meeting, the meeting
shall, if convened at the request of Holders, be dissolved. In any other case,
the meeting may be adjourned for a period of not less than 10 days as determined
by the chairman of the meeting prior to the adjournment of such adjourned
meeting. Notice of the reconvening of any adjourned meeting shall be given as
provided in Section 11.02(a), except that such notice need be given only once
not less than five days prior to the date on which the meeting is scheduled to
be reconvened. Notice of the reconvening of an adjourned meeting shall state
expressly the percentage, as provided above, of the principal amount of the
Notes that shall constitute a quorum.

     A resolution presented to a meeting or adjourned meeting duly reconvened at
which a quorum is present as aforesaid may be adopted only by the affirmative
vote of the Holders of a majority in principal amount of the Notes; provided,
however, that any resolution with respect to any request, demand, authorization,
direction, notice, consent, waiver or other Act which this Indentures expressly
provides may be made, given or taken by the Holders of a specified percentage,
which is less or more than a majority in principal amount of the Notes may be
adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in principal amount of the Notes.

     Any resolution passed or decision taken at any meeting of Holders of Notes
duly held in accordance with this Section shall be binding on all the Holders,
whether or not such Holders were present or represented at the meeting.

                                       52
<PAGE>

SECTION 11.05 Determination of Voting Rights; Conduct and Adjournment of
Meetings.

     (a) Notwithstanding any other provisions of this Indenture, the Trustee may
make such reasonable regulations as it may deem advisable for any meeting of
Holders in regard to proof of the holding of Notes and of the appointment of
proxies and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate. Except as otherwise permitted or required by any such
regulations, the holding of Notes shall be proved in the manner specified in
Section 10.14 and the appointment of any proxy shall be proved in executing the
proxy witnessed or guaranteed by any trust company, bank or banker authorized by
Section 10.14 to certify to the holding of Notes. Such regulations may provide
that written instruments appointing proxies, regular on their face, may be
presumed valid and genuine without the proof specified in Section 10.14 or other
proof.

     (b) The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company, or by Holders as provided in Section 11.02(b), in which case the
Company or the Holders calling the meeting, as the case may be, shall in like
manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by vote of the Persons entitled to
vote a majority in principal amount of the Notes represented at the meeting.

     (c) At any meeting each Holder of a Note or proxy shall be entitled to one
vote for each $1,000 principal amount of Notes held or represented by him;
provided, however, that no vote shall be cast or counted at any meeting in
respect of any Note challenged as not then outstanding and ruled by the chairman
of the meeting to be not then outstanding. The chairman of the meeting shall
have no right to vote, except as a Holder of a Note or proxy.

     (d) Any meeting of Holders duly called pursuant to Section 11.02 at which a
quorum is present may be adjourned from time to time by Persons entitled to vote
a majority in principal amount of the Notes then outstanding represented at the
meeting; and the meeting may be held as so adjourned without further notice.

SECTION 11.06 Counting Votes and Recording Action of Meetings.

     The vote upon any resolution submitted to any meeting of Holders shall be
by written ballots on which shall be subscribed the signatures of the Holders or
of their representatives by proxy and the principal amounts and serial numbers
of the Notes held or represented by them. The permanent chairman of the meeting
shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in triplicate of all
votes cast at the meeting. A record of the proceedings of each meeting of
Holders shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 11.02 and, if
applicable, Section 11.04. Such record shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and a copy of
same shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                           (Signatures Page(s) Follow)

                                       53
<PAGE>

                                   SIGNATURES

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of the date first written above.

                                       Issuer:

                                       NORTHERN BORDER PIPELINE COMPANY

                                       By: NORTHERN PLAINS NATURAL
                                           GAS COMPANY, Operator

                                       By: /s/ Jerry L. Peters
                                           -------------------------------------
                                       Name: Jerry L. Peters
                                       Title: Vice President, Finance and
                                              Treasurer

                                       Trustee:

                                       BANK ONE TRUST COMPANY, N.A.

                                       By: /s/ Sharon McGrath
                                           -------------------------------------
                                       Name: Sharon McGrath
                                             -----------------------------------
                                       Title: Vice President
                                              ----------------------------------

                                       54
<PAGE>

                                                                       EXHIBIT A

                                 (FACE OF NOTE)

                                                         CUSIP: [              ]
                                                                 --------------

                   6.25% SENIOR NOTES DUE 2007, SERIES [A][B]

No.                                                            $
    ------------                                                ----------------

                        NORTHERN BORDER PIPELINE COMPANY

promises to pay to

or registered assigns,

the principal sum of                                       DOLLARS AND NO CENTS
                     -------------------------------------

on May 1, 2007.

Interest Payment Dates: May 1 and November 1

Record Dates: April 15 and October 15

                                       NORTHERN BORDER PIPELINE COMPANY

                                       By: NORTHERN PLAINS NATURAL GAS COMPANY,
                                           Operator

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

This is one of the
Notes referred to in the
within-mentioned Indenture:

                                       BANK ONE TRUST COMPANY, N.A.,
                                       as Trustee

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

Dated:                 ,
       ----------------  -----

                                 (BACK OF NOTE)

                      6.25% SENIOR NOTES DUE 2007, SERIES A

[UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. THE DEPOSITORY

                                   Exhibit A-1

<PAGE>

TRUST COMPANY SHALL ACT AS THE DEPOSITARY UNTIL A SUCCESSOR SHALL BE APPOINTED
BY NORTHERN BORDER PIPELINE COMPANY AND THE REGISTRAR. UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.](1)

[THIS NOTE (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED, OR
OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
OR IN ACCORDANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT (SUBJECT TO THE DELIVERY OF SUCH EVIDENCE, IF ANY,
REQUIRED UNDER THE INDENTURE PURSUANT TO WHICH THIS NOTE IS ISSUED) AND IN
ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR
ANY OTHER JURISDICTION. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST
HEREIN, THE HOLDER:

          (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS
          DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A "QIB"), (B) IT IS
          ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
          REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL
          "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7)
          OF REGULATION D UNDER THE SECURITIES ACT (AN "IAI")),

          (2) AGREES THAT, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER
          OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH NORTHERN
          BORDER PIPELINE COMPANY OR ANY AFFILIATE OF NORTHERN BORDER PIPELINE
          COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE),
          IT WILL NOT RESELL, OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO
          NORTHERN BORDER PIPELINE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) FOR
          SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
          UNDER THE SECURITIES ACT, TO A PERSON WHOM THE SELLER REASONABLY
          BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
          A QIB IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN
          AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR 904
          UNDER THE SECURITIES ACT, (D) IN A TRANSACTION MEETING THE
          REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (E) TO AN IAI, (F)
          IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
          REQUIREMENTS OF THE SECURITIES ACT, OR (G) PURSUANT TO AN EFFECTIVE
          REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND, IN EACH CASE, IN
          ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
          UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND ACCOMPANIED BY
          SUCH CERTIFICATIONS, OPINIONS OF COUNSEL AND OTHER INFORMATION AS MAY
          BE REQUIRED BY THE INDENTURE, AND

          (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN
          INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
          THIS LEGEND.

----------

(1)  This should be included only if the Note is a Global Note.

                                   Exhibit A-2
<PAGE>

          AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "U.S. PERSONS" AND
          "UNITED STATES" HAVE THE MEANINGS ASSIGNED TO THEM IN RULE 902 OF
          REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A
          PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF
          THIS NOTE IN VIOLATION OF THE FOREGOING.](2)

     Capitalized terms used herein shall have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated.

     1. Interest. Northern Border Pipeline Company, a Texas general partnership
(the "Company"), promises to pay interest on the principal amount of this Note
at 6.25% per annum, from April 29, 2002 until maturity [and shall pay the
Liquidated Damages, if any, payable pursuant to Section 5 of the Registration
Rights Agreement referred to below].(3) The Company will pay interest [and
Liquidated Damages, if any,]3 semiannually in arrears on May 1 and November 1 of
each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each an "Interest Payment Date"). Interest on the Notes will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further, that the first Interest Payment Date shall be
November 1, 2002. The Company shall pay interest (including post-petition
interest in any proceeding under the Bankruptcy Code) on overdue principal and
premium, if any, from time to time on demand at the rate borne on the Notes; it
shall pay interest (including post-petition interest in any proceeding under the
Bankruptcy Code) on overdue installments of interest [and Liquidated Damages, if
any,](3) (without regard to any applicable grace periods) from time to time on
demand at the same rate to the extent lawful. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

     2. Method of Payment. The Company will pay interest on the Notes (except
defaulted interest) [and Liquidated Damages, if any,]3 to the Persons who are
registered Holders of Notes at the close of business on the April 15 or October
15 next preceding the Interest Payment Date, even if such Notes are canceled
after such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted interest.
The Notes will be payable as to principal of, premium, if any, and interest [and
Liquidated Damages, if any,](3) at the office or agency of the Company
maintained for such purpose within the City and State of New York, or, at the
option of the Company, payment of interest [and Liquidated Damages, if any,]3
may be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately
available funds will be required with respect to principal of, premium, if any,
and interest [and Liquidated Damages, if any,](3) on, all Global Notes and all
other Notes the Holders of which shall have provided wire transfer instructions
to the Company or the Paying Agent. Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

     3. Paying Agent and Registrar. Initially, Bank One Trust Company, N.A., the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company
may change any Paying Agent or Registrar without notice to any Holder. The
Company may act in any such capacity.

     4. Indenture. The Company issued the Notes under an Indenture dated as of
April 29, 2002 (the "Indenture") between the Company and the Trustee. The terms
of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended ("TIA").
The Notes are subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of such terms. To the extent any provision
of this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling. The Notes are
obligations of the Company limited to $225,000,000 in aggregate

----------

(2)  This bracketed provision applies only to Notes that have not been exchanged
     for Exchanged Notes in the Exchange Offer, and it should be removed upon
     the exchange of such Notes for Exchange Notes in the Exchange Offer or upon
     the transfer of such Notes that have been sold pursuant to the terms of the
     Shelf Registration contemplated by the Registration Rights Agreement.

(3)  This bracketed provision applies only to Notes that have not been exchanged
     for Exchanged Notes in the Exchange Offer, and it should be removed upon
     the exchange of such Notes for Exchange Notes in the Exchange Offer or upon
     the transfer of such Notes that have been sold pursuant to the terms of the
     Shelf Registration contemplated by the Registration Rights Agreement.

                                   Exhibit A-3
<PAGE>

principal amount, subject to the right of the Company to re-open the offering of
the Notes in accordance with Section 2.02 of the Indenture.

     5. Optional Redemption. The Notes will be subject to redemption at any time
at the option of the Company, in whole or in part, at a redemption price equal
to the principal amount of the Notes to be redeemed, plus any accrued and unpaid
interest [and Liquidated Damages, if any,](3) thereon to the applicable
Redemption Date plus the "make-whole premium" as defined below.

     The "make-whole premium" or "premium" with respect to any Note to be
redeemed shall be equal to the excess, if any, of: (a) the sum of the present
values, calculated as of the Redemption Date, of (i) each interest payment that,
but for such redemption, would have been payable on the Note or portion thereof
being redeemed on each Interest Payment Date occurring after the Redemption Date
(excluding any accrued and unpaid interest for the period prior to the
Redemption Date); and (ii) the principal amount that, but for such redemption,
would have been payable at the final maturity of the Note being redeemed; over
(b) the principal amount of the Note being redeemed.

     The present values of interest and principal payments referred to in clause
(a) of the immediately preceding paragraph will be determined in accordance with
generally accepted principles of financial analysis. These present values will
be calculated by discounting the amount of each payment of interest or principal
from the date that each such payment would have been payable, but for the
redemption, to the Redemption Date on a semiannual basis at a discount rate
equal to the comparable treasury yield (as defined below) plus 30 basis points.
The make-whole premium will be calculated by an independent investment banking
institution of national standing appointed by the Company. If the Company fails
to appoint an independent investment banker not less than 45 days prior to the
Redemption Date, or if such independent investment banker is unwilling or unable
to make the calculation, the calculation will be made by Salomon Smith Barney
Inc.. If is Salomon Smith Barney Inc. unwilling or unable to make the
calculation, the Company will appoint an independent investment banking
institution of national standing to make the calculation.

     For purposes of determining the make-whole premium, comparable treasury
yield means a rate of interest per annum equal to the weekly average yield to
maturity of United States Treasury Securities that have a constant maturity that
corresponds to the remaining term to maturity of the Notes, calculated to the
nearest 1/12th of a year. The comparable treasury yield will be determined as of
the third business day immediately preceding the applicable Redemption Date.

     The weekly average yields of United States Treasury Securities will be
determined by reference to the most recent statistical release published by the
Federal Reserve Bank of New York and designated "H.15(519) Selected Interest
Rates" or any successor release. If the H.15 statistical release sets forth a
weekly average yield for United States Treasury Securities having a constant
maturity that is the same as the remaining term calculated as set forth above,
then the comparable treasury yield will be equal to such weekly average yield.
In all other cases, the comparable treasury yield will be calculated by
interpolation on a straight-line basis, between the weekly average yields on the
United States Treasury Securities that have a constant maturity closest to and
greater than the remaining term and the United States Treasury Securities that
have a constant maturity closest to and less than the remaining term (in each
case as set forth in the H.15 statistical release or any successor release). Any
weekly average yields calculated by interpolation will be rounded to the nearest
1/100th of 1%, with any figure of 1/200th of 1% or above being rounded upward.
If weekly average yields for United States Treasury Securities are not available
in the H.15 statistical release or otherwise, then the comparable treasury yield
will be calculated by interpolation of comparable rates selected by an
independent investment banking institution of national standing selected in the
manner described in the second preceding paragraph.

     6. Mandatory Redemption. The Company shall not be required to make
mandatory redemption payments with respect to the Notes.

     7. Notice of Redemption. Notice of redemption will be mailed at least 30
days but not more than 60 days before the Redemption Date to each Holder whose
Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the Redemption Date, interest [and Liquidated Damages, if any,](3) cease
to accrue on Notes or portions thereof called for redemption.

     8. Denominations, Transfer, Exchange. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as

                                   Exhibit A-4
<PAGE>

provided in the Indenture. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and the Company may require a Holder to pay any taxes and fees required by law
or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, it need not
exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and
the corresponding Interest Payment Date.

     9. Persons Deemed Owners. The registered Holder of a Note may be treated as
its owner for all purposes.

     10. Amendment, Supplement and Waiver. Subject to certain exceptions, the
Indenture or the Notes may be amended or supplemented with the consent of the
Holders of at least a majority in principal amount of the then outstanding
Notes, and any existing default or compliance with any provision of the
Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes. Without the consent
of any Holder of a Note, the Indenture or the Notes may be amended or
supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company's obligations to Holders of the Notes
in case of a merger or consolidation, to re-open any series of the Notes to
issue additional Notes or to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely affect
the legal rights under the Indenture of any such Holder, or to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA.

     11. Defaults and Remedies. Events of Default include: (a) default in the
payment of any interest [or Liquidated Damages, if any,]3 upon the Notes when it
becomes due and payable, and continuance of such default for a period of 30
days; or (b) default in the payment of the principal of (or premium, if any, on)
the Notes at their Stated Maturity; or (c) default in the performance, or
breach, of any term, covenant or warranty of the Company in this Indenture, and
continuance of such default or breach for a period of 90 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 the Notes then outstanding a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a "Notice of
Default" under the Indenture; or (d) the Company pursuant to or within the
meaning of the Bankruptcy Code (i) commences a voluntary case, (ii) consents to
the entry of any order for relief against it in an involuntary case, (iii)
consents to the appointment of a Custodian of it or for all or substantially all
of its property, or (iv) makes a general assignment for the benefit of its
creditors; or (e) a court of competent jurisdiction enters an order or decree
under the Bankruptcy Code that (i) is for relief against the Company in an
involuntary case, (ii) appoints a Custodian of the Company or for all or
substantially all of its property, or (iii) orders the liquidation of the
Company; and the order or decree remains unstayed and in effect for 90 days; or
(f) any default by the Company or any of its Subsidiaries in the payment, at the
final maturity date and after the expiration of any applicable grace period, of
principal of, premium, if any, or interest on indebtedness for money borrowed in
the principal amount then outstanding of $25,000,000 or more, or acceleration of
any indebtedness of such amount, such that such indebtedness becomes due and
payable prior to its maturity date and such acceleration is not rescinded within
60 days after notice to the Company. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable
immediately. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events (as described in clauses (d) and (e) above) of
bankruptcy or insolvency, all outstanding Notes will become due and payable
without further action or notice. Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. Subject to certain limitations,
Holders of a majority in principal amount of the then outstanding Notes may
direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of
Default (except a Default or Event of Default relating to the payment of
principal or interest) if it determines that withholding notice is in their
interest. The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of the Holders of all of
the Notes waive any existing Default or Event of Default and its consequences
under the Indenture except a continuing Default or Event of Default in the
payment of interest on, or the principal of, the Notes. The Company is required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

     12. Trustee Dealings with Company. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company or its Affiliates, and may otherwise deal with the Company or
its Affiliates, as if it were not the Trustee.

                                   Exhibit A-5
<PAGE>

     13. No Recourse Against Others. None of the Company's management committee
members, the Company's general partners, the Operator or the Company's general
partners and Operator's, directors, officers, employees, incorporators or
stockholders, if any, shall have any liability for any obligations of the
Company under the Notes or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder by
accepting a Note waives and releases all such liability. the waiver and release
are part of the consideration for the issuance of the Notes.

     14. Authentication. This Note shall not be valid until authenticated by the
manual signature of a Responsible Officer of the Trustee or an Authenticating
Agent.

     15. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN joint tenants with right of survivorship and
not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to
Minors Act).

     16. Additional Rights of Holders of Restricted Global Notes and Restricted
Definitive Notes. In addition to the rights provided to Holders of Notes under
the Indenture, Holders of Restricted Global Notes and Restricted Definitive
Notes shall have all the rights set forth in and shall be bound by the
provisions of the Registration Rights Agreement, dated as of April 29, 2002,
among the Company and the parties named on the signature pages thereof (the
"Registration Rights Agreement").

     The Company will furnish to any Holder, upon written request, a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

                          BANK ONE TRUST COMPANY, N.A.
                          153 WEST 51ST STREET, IL1-4015
                          NEW YORK, NEW YORK 10019

                          OR

                          BANK ONE TRUST COMPANY, N.A.
                          1 BANC ONE PLAZA, SUITE IL1-0126
                          CHICAGO, ILLINOIS 60670-0126
                          TELECOPIER NO.: (312) 407-1708
                          ATTENTION: CORPORATE TRUST SERVICES DIVISION

                                   Exhibit A-6
<PAGE>

                                 ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note to

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------

to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

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

Date:
      --------------------------------------------------------------------------

Your Signature:
                ----------------------------------------------------------------
                  (Sign exactly as your name appears on the face of this Note)

                                   Exhibit A-7
<PAGE>

                               SIGNATURE GUARANTEE

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

                                   Exhibit A-8
<PAGE>

            SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE(4)

The following exchanges of a part of this Global Note for an interest in another
Global Note or for a Definitive Note, or exchanges of a part of another Global
Note or Definitive Note for an interest in this Global Note, have been made:

<Table>
<Caption>
                                                                      Principal Amount of
                                                                       this Global Note         Signature of
                       Amount of decrease      Amount of increase       following such      authorized signatory
                       in Principal Amount     in Principal Amount      decrease (or        of Trustee or Note
Date of Exchange       of this Global Note     of this Global Note        increase)              Custodian
<S>                    <C>                     <C>                    <C>                   <C>

</Table>

----------

(4)  This should be included only if the Note is a Global Note.

                                   Exhibit A-9
<PAGE>

                                                                       EXHIBIT B
                         FORM OF CERTIFICATE OF TRANSFER

Northern Border Pipeline Company
c/o Northern Plains Natural Gas Company
1111 South 103rd Street
Omaha, Nebraska 68124-1000
Telecopier No.: (402) 398-7780
Attention: Director of Finance

Bank One Trust Company, N.A.
as Trustee and Registrar
1 Bank One Plaza, Suite IL1-0126
Chicago, Illinois 60670-0126
Telecopier No.: (312) 407-1708
Attention: Corporate Trust Services Division

Re: 6.25% Senior Notes due 2007, Series A

Reference is hereby made to the Indenture, dated as of April 29, 2002 (the
"Indenture"), between Northern Border Pipeline Company, as issuer (the
"Company"), and Bank One Trust Company, N.A., as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

The undersigned (the "Transferor") owns and proposes to transfer the Note[s] or
beneficial interest in such Note[s] specified in Annex A hereto, in the
principal amount of $__________ (the "Transfer"), to _______________ (the
"Transferee"), as further specified in Annex A hereto. In connection with the
Transfer, the Transferor hereby certifies to the Company and the Trustee that:

                             [CHECK ALL THAT APPLY]

     (1) [ ] CHECK IF THE TRANSFER IS PURSUANT TO RULE 144A. The Transfer is
     being effected pursuant to and in accordance with Rule 144A under the
     United States Securities Act of 1933, as amended (the "Securities Act"),
     and, accordingly, the Transferor hereby further certifies that the
     beneficial interest or Note[s] is being transferred to a Person that the
     Transferor reasonably believed and believes is purchasing the beneficial
     interest or Note[s] for its own account, or for one or more accounts with
     respect to which such Person exercises sole investment discretion, and such
     Person and each such account is a "qualified institutional buyer" within
     the meaning of Rule 144A in a transaction meeting the requirements of Rule
     144A and such Transfer is in compliance with any applicable blue sky
     securities laws of any state of the United States. Upon consummation of the
     proposed Transfer in accordance with the terms of the Indenture, the
     transferred beneficial interest or Note[s] will be subject to the
     restrictions on transfer enumerated in the Private Placement Legend printed
     on the appropriate Global Note and/or Definitive Note and in the Indenture
     and the Securities Act.

     (2) [ ] Check if the Transfer is pursuant to Regulation S. The Transfer is
     being effected pursuant to and in accordance with Rule 903 or Rule 904
     under the Securities Act and, accordingly, the Transferor hereby further
     certifies that (i) the Transfer is not being made to a person in the United
     States and (x) at the time the buy order was originated, the Transferee was
     outside the United States or such Transferor and any Person acting on its
     behalf reasonably believed and believes that the Transferee was outside the
     United States or (y) the transaction was executed in, on or through the
     facilities of a designated offshore securities market and neither such
     Transferor nor any Person acting on its behalf knows that the transaction
     was prearranged with a buyer in the United States, (ii) no directed selling
     efforts have been made in contravention of the requirements of Rule 903(b)
     or Rule 904(b) of Regulation S under the Securities Act, (iii) the
     transaction is not part of a plan or scheme to evade the registration
     requirements of the Securities Act, and (iv) the transfer is not being made
     to a U.S. Person or for the account or benefit of a U.S. Person (other than
     an Initial Purchaser). Upon consummation of the proposed Transfer in
     accordance with the terms of the Indenture, the transferred beneficial
     interest or Note[s] will be subject to the restrictions on transfer
     enumerated in the Private Placement Legend printed on the appropriate
     Global Note and/or the Definitive Note and in the Indenture and the
     Securities Act.

                                   Exhibit B-1
<PAGE>

     (3) [ ] Check and complete if Transferee will take delivery of a beneficial
     interest in a Restricted Global Note or of a Restricted Definitive Note
     pursuant to any provision of the Securities Act other than Rule 144A or
     Regulation S. The Transfer is being effected in compliance with the
     transfer restrictions applicable to beneficial interests in Restricted
     Global Notes and Restricted Definitive Notes and pursuant to and in
     accordance with the Securities Act and any applicable blue sky securities
     laws of any state of the United States, and accordingly the Transferor
     hereby further certifies that (check one):

          (a) [ ] such Transfer is being effected pursuant to and in accordance
          with Rule 144 under the Securities Act;

                                       or

          (b) [ ] such Transfer is being effected to the Company or a subsidiary
          thereof;

                                       or

          (c) [ ] such Transfer is being effected pursuant to an effective
          registration statement under the Securities Act and in compliance with
          the prospectus delivery requirements of the Securities Act;

                                       or

          (d) [ ] such Transfer is being effected pursuant to an exemption under
          the Securities Act other than Rule 144A, Rule 144 or Rule 904 to a
          Person who is an Institutional Accredited Investor and the Transferor
          further certifies that the transfer complies with the transfer
          restrictions applicable to the Restricted Global Notes or the
          Restricted Definitive Notes bearing the legend set forth in Section
          2.06(g) of the Indenture and the requirements of the exemption
          claimed, which certification is supported by (i) if such transfer is
          in respect of a principal amount of Notes at the time of transfer of
          $250,000 or more, a certificate executed by the Transferee containing
          certain representations and agreements relating to the Transfer (the
          form of which can be obtained from the Trustee), or (ii) if such
          Transfer is in respect of a principal amount of Notes at the time of
          Transfer of less than $250,000, (A) the certificate referenced in
          clause (i) above and (B) an Opinion of Counsel provided by the
          Transferor or the Transferee (a copy of which the Transferor has
          attached to this certification), to the effect that (1) such Transfer
          is in compliance with the Securities Act and (2) such Transfer
          complies with any applicable blue sky securities laws of any state of
          the United States;

     (4) [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
     AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

          (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is
          being effected pursuant to and in accordance with Rule 144 under the
          Securities Act and in compliance with the transfer restrictions
          contained in the Indenture and any applicable blue sky securities laws
          of any state of the United States and (ii) the restrictions on
          transfer contained in the Indenture and the Private Placement Legend
          are not required in order to maintain compliance with the Securities
          Act. Upon consummation of the proposed Transfer in accordance with the
          terms of the Indenture, the transferred beneficial interest or Note[s]
          will no longer be subject to the restrictions on transfer enumerated
          in the Private Placement Legend printed on the Restricted Global
          Notes, on Restricted Definitive Notes and in the Indenture.

          (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The
          Transfer is being effected pursuant to and in accordance with Rule 903
          or Rule 904 under the Securities Act and in compliance with the
          transfer restrictions contained in the Indenture and any applicable
          blue sky securities laws of any state of the United States, and (ii)
          the restrictions on transfer contained in the Indenture and the
          Private Placement Legend are not required in order to maintain
          compliance with the Securities Act. Upon consummation of the proposed
          Transfer in accordance with the terms of the Indenture, the
          transferred beneficial interest or Note[s] will no longer be subject
          to the restrictions on transfer enumerated in the Private Placement
          Legend printed on the Restricted Global Notes, on Restricted
          Definitive Notes and in the Indenture.

                                   Exhibit B-2
<PAGE>

          (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The
          Transfer is being effected pursuant to and in compliance with an
          exemption from the registration requirements of the Securities Act
          other than Rule 144, Rule 903 or Rule 904 and in compliance with the
          transfer restrictions contained in the Indenture and any applicable
          blue sky securities laws of any state of the United States, and (ii)
          the restrictions on transfer contained in the Indenture and the
          Private Placement Legend are not required in order to maintain
          compliance with the Securities Act. Upon consummation of the proposed
          Transfer in accordance with the terms of the Indenture, the
          transferred beneficial interest or Note[s] will not be subject to the
          restrictions on transfer enumerated in the Private Placement Legend
          printed on the Restricted Global Notes or Restricted Definitive Notes
          and in the Indenture.

     This certificate and the statements contained herein are made for the
benefit of the Company and the Trustee.

                                       -----------------------------------------
                                       [Insert Name of Transferor]

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

Dated:
       --------------------

                                   Exhibit B-3
<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

The Transferor owns and proposes to transfer the following: [CHECK ONE]

     [ ] a beneficial interest in the Global Note

     [ ] a Restricted Definitive Note.

After the Transfer the Transferee will hold: [CHECK ONE]

     [ ] a beneficial interest in the:

     [ ] Restricted Global Note; or

     [ ] Unrestricted Global Note; or

     [ ] a Restricted Definitive Note; or

     [ ] an Unrestricted Definitive Note,

in accordance with the terms of the Indenture.

                                   Exhibit B-4
<PAGE>

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Northern Border Pipeline Company
c/o Northern Plains Natural Gas Company
1111 South 103rd Street
Omaha, Nebraska 68124-1000
Telecopier No.: (402) 398-7780
Attention: Director of Finance

Bank One Trust Company, N.A.
as Trustee and Registrar
1 Bank One Plaza, Suite IL1-0126
Chicago, Illinois 60670-0126
Telecopier No.: (312) 407-1708
Attention: Corporate Trust Services Division

Re: 6.25% Senior Notes due 2007

Reference is hereby made to the Indenture, dated as of April 29, 2002 (the
"Indenture"), between Northern Border Pipeline Company, as issuer (the
"Company"), and Bank One Trust Company, N.A., as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

The undersigned (the "Owner") owns and proposes to exchange the Note[s] or
beneficial interest in such Note[s] specified herein, in the principal amount of
$__________ (the "Exchange"). In connection with the Exchange, the Owner hereby
certifies to the Company and the Trustee that:

EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED
GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN AN
UNRESTRICTED GLOBAL NOTE

     (1) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
     GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In
     connection with the Exchange of the Owner's beneficial interest in a
     Restricted Global Note for a beneficial interest in an Unrestricted Global
     Note in an equal principal amount, the Owner hereby certifies (i) the
     beneficial interest is being acquired for the Owner's own account without
     transfer, (ii) such Exchange has been effected in compliance with the
     transfer restrictions applicable to the Global Notes and pursuant to and in
     accordance with the United States Securities Act of 1933, as amended (the
     "Securities Act"), (iii) the restrictions on transfer contained in the
     Indenture and the Private Placement Legend are not required in order to
     maintain compliance with the Securities Act, and (iv) the beneficial
     interest in an Unrestricted Global Note is being acquired in compliance
     with any applicable blue sky securities laws of any state of the United
     States.

     (2) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
     GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the
     Exchange of the Owner's beneficial interest in a Restricted Global Note for
     an Unrestricted Definitive Note in an equal principal amount, the Owner
     hereby certifies (i) the Unrestricted Definitive Note is being acquired for
     the Owner's own account without transfer, (ii) such Exchange has been
     effected in compliance with the transfer restrictions applicable to the
     Restricted Global Notes and pursuant to and in accordance with the
     Securities Act, (iii) the restrictions on transfer contained in the
     Indenture and the Private Placement Legend are not required in order to
     maintain compliance with the Securities Act, and (iv) the Unrestricted
     Definitive Note is being acquired in compliance with any applicable blue
     sky securities laws of any state of the United States.

     (3) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
     INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the Owner's
     Exchange of a Restricted Definitive Note for a beneficial interest in an
     Unrestricted Global Note in an equal principal amount, the Owner hereby
     certifies (i) the beneficial interest is being acquired for the Owner's own
     account without transfer, (ii) such Exchange has been effected in
     compliance with the transfer restrictions applicable to Restricted
     Definitive Notes and pursuant to and in accordance with the Securities Act,
     (iii) the restrictions on transfer contained in the Indenture and the
     Private Placement Legend are not required in order to maintain compliance
     with the

                                   Exhibit C-1
<PAGE>

     Securities Act, and (iv) the beneficial interest is being acquired in
     compliance with any applicable blue sky securities laws of any state of the
     United States.

     (4) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
     UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
     Restricted Definitive Note for an Unrestricted Definitive Note in an equal
     principal amount, the Owner hereby certifies (i) the Unrestricted
     Definitive Note is being acquired for the Owner's own account without
     transfer, (ii) such Exchange has been effected in compliance with the
     transfer restrictions applicable to Restricted Definitive Notes and
     pursuant to and in accordance with the Securities Act, (iii) the
     restrictions on transfer contained in the Indenture and the Private
     Placement Legend are not required in order to maintain compliance with the
     Securities Act, and (iv) the Unrestricted Definitive Note is being acquired
     in compliance with any applicable blue sky securities laws of any state of
     the United States.

EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED
GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES

     (5) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
     GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the Exchange
     of the Owner's beneficial interest in a Restricted Global Note for a
     Restricted Definitive Note with an equal principal amount, the Owner hereby
     certifies that the Restricted Definitive Note is being acquired for the
     Owner's own account without transfer. Upon consummation of the proposed
     Exchange in accordance with the terms of the Indenture, the Restricted
     Definitive Note issued will continue to be subject to the restrictions on
     transfer enumerated in the Private Placement Legend printed on the
     Restricted Definitive Note and in the Indenture and the Securities Act.

     (6) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
     INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange of
     the Owner's Restricted Definitive Note for a beneficial interest in a
     Restricted Global Note with an equal principal amount, the Owner hereby
     certifies (i) the beneficial interest is being acquired for the Owner's own
     account without transfer and (ii) such Exchange has been effected in
     compliance with the transfer restrictions applicable to the Restricted
     Global Notes and pursuant to and in accordance with the Securities Act, and
     in compliance with any applicable blue sky securities laws of any state of
     the United States. Upon consummation of the proposed Exchange in accordance
     with the terms of the Indenture, the beneficial interest issued will be
     subject to the restrictions on transfer enumerated in the Private Placement
     Legend printed on the relevant Restricted Global Note and in the Indenture
     and the Securities Act.

     This certificate and the statements contained herein are made for the
benefit of the Company and the Trustee.

                                       [Insert Name of Owner]

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

Dated:
       --------------

                                   Exhibit C-2<PAGE>
                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into as of April 29, 2002, by and among NORTHERN BORDER PIPELINE
COMPANY, a Texas general partnership (the "Company") and SALOMON SMITH BARNEY,
INC., in its capacity as initial purchaser and as representative of each of the
other initial purchasers named in Schedule A hereto (collectively, the "Initial
Purchasers").

          This Agreement is made pursuant to the Purchase Agreement dated April
23, 2002, by and among the Company and the Initial Purchasers (the "Purchase
Agreement"), which provides for the sale by the Company to the Initial
Purchasers of $225,000,000 aggregate principal amount of the Company's 6.25%
Senior Notes due 2007 (the "Senior Notes"). In order to induce the Initial
Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to the Initial Purchasers' obligations thereunder, the Company has
agreed to provide to the Initial Purchasers and their respective direct and
indirect transferees and assigns the registration rights set forth in this
Agreement.

          The parties hereby agree as follows:

SECTION 1. DEFINITIONS

          As used in this Agreement, the following capitalized terms shall have
the following meanings:

          Advice: As defined in Section 6(d) hereof.

          Affiliate: With respect to 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" when used with respect to 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.

          Authorized Officer: Any of the President, the Vice President, Finance
or any vice president of the Operator, acting singly.

          Blue Sky Application: As defined in Section 8(a).

          Broker-Dealer: Any broker or dealer registered under the Exchange Act.

          Broker-Dealer Transfer Restricted Securities: New Senior Notes that
are acquired by a Broker-Dealer in the Exchange Offer in exchange for Senior
Notes that such Broker-Dealer acquired for its own account as a result of
market-making activities or other trading activities (other than Senior Notes
acquired directly from the Company or any of its Affiliates).

<PAGE>

          Business Day: Any day except a Saturday, Sunday or other day in the
City of New York, or in the city of the corporate trust office of the Trustee,
on which banks are authorized to close.

          Closing Date: The date of this Agreement.

          Commission: The Securities and Exchange Commission.

          Company: As defined in the preamble to this Agreement and also
includes the Company's successors.

          Company Indemnitees: As defined in Section 8(b).

          Consummate: The Exchange Offer shall be deemed "consummated" for
purposes of this Agreement upon the occurrence of (i) the filing and
effectiveness under the Securities Act of the Exchange Offer Registration
Statement relating to the New Senior Notes to be issued in the Exchange Offer,
(ii) the maintenance of such Exchange Offer Registration Statement continuously
effective and the keeping of the Exchange Offer open for a period not less than
the minimum period required pursuant to Section 3(b) hereof, and (iii) the
delivery by the Company to the Trustee under the Indenture of New Senior Notes
in the same aggregate principal amount as the aggregate principal amount of
Senior Notes that were tendered by Holders thereof pursuant to the Exchange
Offer.

          Consummation Target Date: As defined in Section 3(b) hereof.

          Damages Payment Date: With respect to the Transfer Restricted
Securities, each Interest Payment Date until the earlier of (i) the date on
which Liquidated Damages are no longer payable and (ii) maturity of the Notes.

          Depositary: The Depository Trust Company, or any other depositary
appointed by the Company, including any agent thereof; provided, however, that
any such depositary must at all times have an address in the Borough of
Manhattan, in The City of New York.

          Definitive Notes: As defined in the Indenture.

          Effectiveness Target Date: As defined in Section 5 hereof.

          Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

          Exchange Offer: The registration by the Company under the Securities
Act of the New Senior Notes pursuant to an Exchange Offer Registration Statement
pursuant to which the Company offers the Holders of all outstanding Transfer
Restricted Securities the opportunity to exchange all such outstanding Transfer
Restricted Securities held by such Holders for New Senior Notes in an aggregate
principal amount equal to the aggregate principal amount of the Transfer
Restricted Securities tendered in such exchange offer by such Holders.

                                      -2-
<PAGE>

          Exchange Offer Registration Statement: An Exchange Offer registration
statement on Form S-4 (or, if applicable, on another appropriate form), covering
the issuance of New Senior Notes in exchange for Senior Notes and all amendments
and supplements to such Registration Statement, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated
by reference therein.

          Exempt Resales: The transactions in which the Initial Purchasers
propose to sell the Senior Notes (a) to certain "qualified institutional
buyers," as such term is defined in Rule 144A under the Securities Act, (b) to
certain institutional "accredited investors" as such term is defined in Rule
501(a)(1),(2),(3) or (7) of Regulation D under the Securities Act and (c)
outside the United States to certain persons in reliance on Regulation S under
the Securities Act.

          Final Memorandum: As defined in the Purchase Agreement.

          General Partners: Northern Border Intermediate Limited Partnership and
TC PipeLines Intermediate Limited Partnership.

          Global Note Holder: A "Holder" as defined in the Indenture.

          Holder: As defined in Section 2(b) hereof.

          Indenture: The Indenture, dated as of April 29, 2002 between the
Company and Bank One Trust Company, N.A., as trustee (the "Trustee"), pursuant
to which the Notes are to be issued, as such Indenture is amended or
supplemented from time to time in accordance with the terms thereof.

          Initial Purchasers: As defined in the preamble hereto.

          Interest Payment Date: As defined in the Indenture and the Notes.

          Liquidated Damages: As defined in Section 5 hereof.

          NASD: National Association of Securities Dealers, Inc.

          Notes: The Senior Notes and the New Senior Notes.

          New Senior Notes: The Company's 6.25% Senior Notes due 2007 having
terms identical to the Senior Notes except that (i) interest thereon shall
accrue from the last date on which interest was paid on the Senior Notes or, if
no such interest has been paid, from the Closing Date; (ii) the transfer
restrictions thereon shall be eliminated; and (iii) provisions relating to
Liquidated Damages shall be eliminated in exchange for Senior Notes pursuant to
the Exchange Offer and that will be issued under the Indenture (i) in the
Exchange Offer; (ii) upon request of any Holder of Senior Notes covered by a
Shelf Registration Statement, in exchange for such Senior Notes; and (iii) upon
request of any Holder of Senior Notes in connection with a distribution of such
Senior Notes to the public pursuant to Rule 144 (or any similar provision then
in force, but not Rule 144A) under the Securities Act.

          Operator: Northern Plains Natural Gas Company, a Delaware corporation.

                                      -3-
<PAGE>

          Person: An individual, partnership, corporation, limited liability
company, joint venture, association, joint-stock company, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.

          Prospectus: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.

          Record Holder: With respect to any Damages Payment Date relating to
Notes, each Person who is a Holder of Notes on the record date with respect to
the Interest Payment Date on which such Damages Payment Date shall occur.

          Registration Default: As defined in Section 5 hereof.

          Registration Statement: Any registration statement of the Company
relating to (a) an offering of New Senior Notes pursuant to an Exchange Offer or
(b) the registration for resale of Transfer Restricted Securities pursuant to a
Shelf Registration Statement, in each case (i) which is filed pursuant to the
provisions of this Agreement, and (ii) including the Prospectus included
therein, all amendments and supplements thereto (including post-effective
amendments) and all exhibits and material incorporated by reference therein.

          Restricted Broker-Dealer: Any Broker-Dealer that holds Broker-Dealer
Transfer Restricted Securities.

          Securities Act: The Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder.

          Shelf Filing Deadline: As defined in Section 4 hereof.

          Shelf Registration Statement: As defined in Section 4 hereof.

          TIA: The Trust Indenture Act of 1939, as amended, as in effect on the
date of the Indenture.

          Transfer Restricted Securities: Each Senior Note, until the earliest
to occur of (a) the date on which such Senior Note is exchanged in the Exchange
Offer and entitled to be resold to the public by the Holder thereof without
complying with the prospectus delivery requirements of the Securities Act, (b)
the date on which such Senior Note has been effectively registered under the
Securities Act and disposed of in accordance with a Shelf Registration
Statement, (c) the date on which such Senior Note is distributed to the public
pursuant to Rule 144 or is saleable pursuant to Rule 144(k) under the Securities
Act and (d) the date on which such Senior Note or New Senior Note, as the case
may be, is distributed by a Broker-Dealer pursuant to the "Plan of Distribution"
contemplated by the Exchange Offer Registration Statement (including delivery of
the Prospectus contained therein).

          Underwritten Registration or Underwritten Offering: A registration in
which securities of the Company are sold to an underwriter for reoffering to the
public.

                                      -4-
<PAGE>

SECTION 2. SECURITIES SUBJECT TO THIS AGREEMENT

          (a) Transfer Restricted Securities. The securities entitled to the
benefits of this Agreement are the Transfer Restricted Securities.

          (b) Holders of Transfer Restricted Securities. A Person is deemed to
be a holder of Transfer Restricted Securities (each, a "Holder") whenever such
Person owns Transfer Restricted Securities.

SECTION 3. REGISTERED EXCHANGE OFFER

          (a) Unless the Exchange Offer shall not be permissible under
applicable law or Commission policy (after the procedures set forth in Section
6(a) below have been complied with), the Company shall (i) cause to be filed
with the Commission as soon as practicable after the Closing Date, but in no
event later than 120 days after the Closing Date, the Exchange Offer
Registration Statement under the Securities Act relating to the New Senior Notes
and the Exchange Offer, (ii) use its reasonable best efforts to cause such
Exchange Offer Registration Statement to become effective at the earliest
possible time, but in no event later than 180 days after the Closing Date, (iii)
in connection with the foregoing, (A) file all pre-effective amendments to such
Exchange Offer Registration Statement as may be necessary in order to cause such
Exchange Offer Registration Statement to become effective, (B) if applicable,
file a post-effective amendment to such Exchange Offer Registration Statement
pursuant to Rule 430A under the Securities Act and (C) cause all necessary
filings, if any, in connection with the registration and qualification of the
New Senior Notes to be made under the Blue Sky laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offer and (iv) upon the
effectiveness of such Exchange Offer Registration Statement, commence and
Consummate the Exchange Offer. The Exchange Offer Registration Statement shall
be on the appropriate form permitting registration of the New Senior Notes to be
offered in exchange for the Transfer Restricted Securities and to permit sales
of Broker-Dealer Transfer Restricted Securities by Broker-Dealers as
contemplated by Section 3(c) below.

          (b) The Company shall use its reasonable best efforts to cause the
Exchange Offer Registration Statement to be effective continuously for a period
of 30 days from the date on which the Exchange Offer Registration Statement is
declared effective and shall keep the Exchange Offer open for a period of not
less than the minimum period required under applicable federal and state
securities laws to Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 20 Business Days. The Company shall cause
the Exchange Offer to comply with all applicable federal and state securities
laws. No securities other than the Notes shall be included in the Exchange Offer
Registration Statement. The Company shall use its reasonable best efforts to
cause the Exchange Offer to be Consummated on the earliest practicable date
after the Exchange Offer Registration Statement has become effective, but in no
event later than 210 days after the Closing Date (the "Consummation Target
Date").

          (c) The Company shall include a "Plan of Distribution" section in the
Prospectus contained in the Exchange Offer Registration Statement and indicate
that any Restricted Broker-Dealer who holds Senior Notes that are Transfer
Restricted Securities and that

                                      -5-
<PAGE>

were acquired for the account of such Broker-Dealer as a result of market-making
activities or other trading activities (other than Transfer Restricted
Securities acquired directly from the Company or one of its Affiliates) may
exchange such Senior Notes pursuant to the Exchange Offer; however, such
Broker-Dealer may be deemed to be an "underwriter" within the meaning of the
Securities Act and must, therefore, deliver a prospectus meeting the
requirements of the Securities Act in connection with its initial sale of the
New Senior Notes received by such Broker-Dealer in the Exchange Offer, which
prospectus delivery requirement may be satisfied by the delivery by such
Broker-Dealer of the Prospectus contained in the Exchange Offer Registration
Statement. Such "Plan of Distribution" section shall also contain all other
information with respect to such resales of Broker-Dealer Transfer Restricted
Securities that the Commission may require in order to permit such sales
pursuant thereto but such "Plan of Distribution" shall not name any such
Broker-Dealer or disclose the amount of Notes held by any such Broker-Dealer
except to the extent required by the Commission as a result of a change in
policy after the date of this Agreement.

          The Company shall use its reasonable best efforts to keep the Exchange
Offer Registration Statement continuously effective, supplemented and amended as
required by the provisions of Section 6(c) below to the extent necessary to
ensure that it is available for resales of Broker-Dealer Transfer Restricted
Securities acquired by Restricted Broker-Dealers and to ensure that it conforms
with the requirements of this Agreement, the Securities Act and the policies,
rules and regulations of the Commission as announced from time to time, for a
period of 120 days from the date on which the Exchange Offer Registration
Statement is declared effective or, if shorter, until all Broker-Dealer Transfer
Restricted Securities have been sold thereunder.

          The Company shall provide sufficient copies of the latest version of
such Prospectus to such Restricted Broker-Dealers promptly upon request at any
time during such 120 day period in order to facilitate such sales.

SECTION 4. SHELF REGISTRATION

          (a) Shelf Registration. If (i) the Company is not required to file an
Exchange Offer Registration Statement or to Consummate the Exchange Offer
because the Exchange Offer is not permitted by applicable law or Commission
policy (after the procedures set forth in Section 6(a) below have been complied
with) or (ii) if any Holder of Transfer Restricted Securities shall notify the
Company within twenty (20) Business Days of the Consummation of the Exchange
Offer that (A) such Holder is prohibited by applicable law or Commission policy
from participating in the Exchange Offer, or (B) such Holder may not resell the
New Senior Notes acquired by it in the Exchange Offer to the public without
delivering a prospectus and that the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales by such
Holder, or (C) such Holder is a Broker-Dealer and holds Senior Notes acquired
directly from the Company or one of its Affiliates, then the Company shall:

          (x) cause to be filed a shelf registration statement pursuant to Rule
     415 under the Securities Act, which may be an amendment to the Exchange
     Offer Registration Statement (in either event, the "Shelf Registration
     Statement") on or prior to the earliest to occur of (1) the 60th day after
     the date on which the Company receives notice from the

                                      -6-
<PAGE>

     Commission or determines that it is not required to file the Exchange Offer
     Registration Statement pursuant to clause (i) above, (2) the 60th day after
     the date on which the Company receives notice from a Holder of Transfer
     Restricted Securities as contemplated by clause (ii) above, and (3) the
     150th day after the Closing Date (such earliest date being the "Shelf
     Filing Deadline"), which Shelf Registration Statement shall provide for
     resales of all Transfer Restricted Securities the Holders of which shall
     have provided the information required pursuant to Section 4(b) hereof; and

          (y) use its reasonable best efforts to cause such Shelf Registration
     Statement to be declared effective by the Commission on or before the 60th
     day after the Shelf Filing Deadline.

          The Company shall use its reasonable best efforts to keep such Shelf
Registration Statement continuously effective, supplemented and amended as
required by and subject to the provisions of Sections 6(b) and (c) hereof to the
extent necessary to ensure that it is available for sales of Transfer Restricted
Securities by the Holders thereof entitled to the benefit of this Section 4(a),
and to ensure that it conforms with the requirements of this Agreement, the
Securities Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of two years, (plus any extensions as
provided by Section 6(c)(i)) following the date on which such Shelf Registration
Statement first becomes effective under the Securities Act or such shorter
period ending when all of the Transfer Restricted Securities available for sale
thereunder have been sold pursuant thereto or have ceased to be outstanding
(whether as a result of redemption or repurchase).

          (b) Provision by Holders of Certain Information in Connection with the
Shelf Registration Statement. No Holder of Transfer Restricted Securities may
include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 15 Business Days after receipt of a request
therefor, such information as the Company may reasonably request for use in
connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. No Holder of Transfer Restricted Securities shall
be entitled to Liquidated Damages pursuant to Section 5 hereof unless and until
such Holder shall have provided all such reasonably requested information. Each
Holder as to which any Shelf Registration Statement is being effected agrees to
furnish promptly to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such Holder
not materially misleading.

SECTION 5. LIQUIDATED DAMAGES

          If (i) any of the Registration Statements required by this Agreement
are not filed with the Commission on or prior to the date specified for such
filing in this Agreement, then additional amounts shall accrue on the principal
amount of the Transfer Restricted Securities at a rate of $2.50 per $1,000
principal amount of Transfer Restricted Securities per annum from the date such
filing was required; (ii) any of such Registration Statements have not been
declared effective by the Commission on or prior to the date specified for such
effectiveness in this Agreement (the "Effectiveness Target Date"), then
additional amounts shall accrue on the principal amount of the Transfer
Restricted Securities at a rate of $2.50 per $1,000 principal

                                      -7-
<PAGE>

amount of Transfer Restricted Securities per annum from the day following the
Effectiveness Target Date; (iii) the Exchange Offer has not been Consummated on
or prior to the Consummation Target Date, then additional amounts shall accrue
on the principal amount of the Transfer Restricted Securities at a rate of $2.50
per $1,000 principal amount of Transfer Restricted Securities per annum from the
day following the Consummation Target Date; or (iv) except as provided in
Section 6(c)(i) hereof, any Registration Statement required by this Agreement is
filed and declared effective but shall thereafter cease to be effective or fail
to be usable for its intended purpose without being succeeded within 30 days by
a post-effective amendment to such Registration Statement, the effectiveness of
another Registration Statement or the use of the Prospectus (as amended or
supplemented) is again permitted that cures such failure, then additional
amounts shall accrue on the principal amount of the Transfer Restricted
Securities at a rate of $2.50 per $1,000 principal amount of Transfer Restricted
Securities per annum from the 31st day following such Registration Statement
ceasing to be effective; or (v) prior to or on the 30th or 60th day, as the case
may be, of any Suspension Period (as defined in Section 6(c)(i), such suspension
has not been terminated or ( B) Suspension Periods exceed an aggregate of 90
days in any 360-day period, then additional amounts shall accrue on the
principal amount of the Transfer Restricted Securities per annum from and
including the day of the default under this clause (v) at a rate of $2.50 per
$1,000 principal amount of Transfer Restricted Securities per annum (each such
event referred to in clauses (i) through (iv), a "Registration Default"). The
additional amounts owing pursuant to the preceding clauses (i) through (iv)
shall be increased by $2.50 per $1,000 principal amount of Transfer Restricted
Securities per annum each 90-day period that such Registration Default
continues, provided such additional amounts do not exceed the Maximum Rate (as
defined below).

          All accrued Liquidated Damages (as defined below) shall be paid to the
Holders of Transfer Restricted Securities by the Company on each Interest
Payment Date in arrears generally in accordance with the provisions in the
Indenture regarding payment of interest. Notwithstanding anything to the
contrary set forth herein, (A) upon filing of the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement), in the case
of (i) above, (B) upon the effectiveness of the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement), in the case
of (ii) above, (C) upon Consummation of the Exchange Offer, in the case of (iii)
above, or (D) upon the filing of a post-effective amendment to the Registration
Statement or an additional Registration Statement that causes the Exchange Offer
Registration Statement (and/or, if applicable, the Shelf Registration
Statement), to again be declared effective or the Prospectus to be made usable
in the case of (iv) above, or (E) upon the cessation of the applicable
Suspension Period in the case of a Registration Default described in (v) above,
the Liquidated Damages payable with respect to the Transfer Restricted
Securities as a result of such clause Registration Default ("Liquidated
Damages"), as applicable, shall cease to accrue. Liquidated Damages on the
Senior Notes may not exceed, in the aggregate, $10.00 per annum per $1,000
principal amount of Transfer Restricted Securities (the "Maximum Rate").

          All obligations of the Company set forth in the preceding paragraph
that are outstanding with respect to any Transfer Restricted Security at the
time such security ceases to be a Transfer Restricted Security shall survive
until such time as all such obligations with respect to such security shall have
been satisfied in full.

                                      -8-
<PAGE>

SECTION 6. REGISTRATION PROCEDURES

          (a) Exchange Offer Registration Statement. In connection with the
Exchange Offer, the Company shall comply with all applicable provisions of
Section 6(c) below, shall use its reasonable best efforts to effect such
exchange to permit the sale of Broker-Dealer Transfer Restricted Securities
being sold in accordance with the intended method or methods of distribution
thereof (which shall be in a manner consistent with the terms of this
Agreement), and shall comply with all of the following provisions:

          (i) If, following the date hereof and prior to the Consummation of the
     Exchange Offer, there has been published a change in Commission policy with
     respect to exchange offers such as the Exchange Offer, such that in the
     reasonable opinion of counsel to the Company there is a substantial
     question as to whether the Exchange Offer is permitted by applicable law or
     Commission policy, the Company hereby agrees to seek a no-action letter or
     other favorable decision from the Commission staff allowing the Company to
     Consummate an Exchange Offer for such Senior Notes. The Company hereby
     agrees to pursue the issuance of such a decision to the Commission staff
     level but shall not be required to take commercially unreasonable action to
     effect a change of Commission policy. The Company hereby agrees, however,
     to take all such other actions as are reasonably requested by the
     Commission or the Commission staff or otherwise required in connection with
     the issuance of such decision, including, without limitation, to (A)
     participate in telephonic conferences with the Commission or the Commission
     staff, (B) deliver to the Commission or the Commission staff an analysis
     prepared by counsel to the Company setting forth the legal bases, if any,
     upon which such counsel has concluded that such an Exchange Offer should be
     permitted and (C) diligently pursue a resolution (which need not be
     favorable) by the Commission staff of such submission.

          (ii) As a condition to its participation in the Exchange Offer
     pursuant to the terms of this Agreement, each Holder of Transfer Restricted
     Securities shall furnish, upon the request of the Company, prior to the
     Consummation thereof, a written representation to the Company (which may be
     contained in the letter of transmittal contemplated by the Exchange Offer
     Registration Statement) to the effect that (A) it is not an Affiliate of
     the Company, (B) it is not engaged in, and does not intend to engage in,
     and has no arrangement or understanding with any Person to participate in,
     a distribution (within the meaning of the Securities Act) of the New Senior
     Notes to be issued in the Exchange Offer and (C) it is acquiring the New
     Senior Notes in its ordinary course of business. In addition, all such
     Holders of Transfer Restricted Securities shall otherwise reasonably
     cooperate in the Company's preparations for the Exchange Offer. Each Holder
     hereby acknowledges and agrees that any Broker-Dealer and any such Holder
     using the Exchange Offer to participate in a distribution of the securities
     to be acquired in the Exchange Offer (1) could not under Commission policy
     as in effect on the date of this Agreement rely on the position of the
     Commission enunciated in Morgan Stanley and Co., Inc. (available June 5,
     1991) and Exxon Capital Holdings Corporation (available May 13, 1988), as
     interpreted in the Commission's letter to Shearman & Sterling dated July 2,
     1993, and similar no-action letters (including any no-action letter
     obtained pursuant to clause (i) above), and (2) must comply with the
     registration and prospectus delivery requirements of the Securities Act in
     connection with a secondary resale

                                      -9-
<PAGE>

     transaction and that such a secondary resale transaction should be covered
     by an effective registration statement containing the selling security
     holder information required by Item 507 or 508, as applicable, of
     Regulation S-K if the resales are of New Senior Notes obtained by such
     Holder in exchange for Senior Notes acquired by such Holder directly from
     the Company or an Affiliate thereof.

          (iii) Prior to effectiveness of the Exchange Offer Registration
     Statement, the Company shall provide a supplemental letter to the
     Commission (A) stating that the Company is registering the Exchange Offer
     in reliance on the position of the Commission enunciated in Exxon Capital
     Holdings Corporation (available May 13, 1988), Morgan Stanley and Co., Inc.
     (available June 5, 1991), as interpreted in the Commission's letter to
     Shearman & Sterling dated July 2, 1993, and, if applicable, any no-action
     letter obtained pursuant to clause (i) above, (B) including a
     representation that the Company has not entered into any arrangement or
     understanding with any Person to distribute the New Senior Notes to be
     received in the Exchange Offer and that, to the best of the Company's
     information and belief, each Holder participating in the Exchange Offer is
     acquiring the New Senior Notes in its ordinary course of business and has
     no arrangement or understanding with any Person to participate in the
     distribution of the New Senior Notes received in the Exchange Offer and (C)
     any other undertaking or representation required by the Commission as set
     forth in any no-action letter obtained pursuant to clause (i) above.

          (iv) The Company shall (A) include in the Exchange Offer Registration
     Statement a "Plan of Distribution" section covering the use of the
     Prospectus included in the Exchange Offer Registration Statement by
     broker-dealers who have exchanged their Senior Notes for New Senior Notes
     for the resale of such New Senior Notes, (B) furnish to each broker-dealer
     who desires to participate in the Exchange Offer, without charge, as many
     copies of each Prospectus included in the Exchange Offer Registration
     Statement, including any preliminary Prospectus, and any amendment or
     supplement thereto, as such broker-dealer may reasonably request, (C)
     include in the Exchange Offer Registration Statement a statement that any
     broker-dealer who holds Senior Notes acquired for its own account as a
     result of market-making activities or other trading activities (a
     "Participating Broker-Dealer"), and who receives New Senior Notes for
     Senior Notes pursuant to the Exchange Offer, may be a statutory underwriter
     and must deliver a prospectus meeting the requirements of the Securities
     Act in connection with any resale of such New Senior Notes, (D) subject to
     the last paragraph of this Section 3, hereby consent to the use of the
     Prospectus forming part of the Exchange Offer Registration Statement or any
     amendment or supplement thereto, by any broker-dealer in connection with
     the sale or transfer of the New Senior Notes covered by the Prospectus or
     any amendment or supplement thereto, and (E) include in the transmittal
     letter or similar documentation to be executed by an exchange offeree in
     order to participate in the Exchange Offer the following provision:

          "The undersigned (A) is not an Affiliate of the Company, (B) is not
          engaged in, and does not intend to engage in, and has no arrangement
          or understanding with any Person to participate in, a distribution
          (within the meaning of the Securities Act) of the New Senior Notes to
          be issued in the Exchange Offer and (C) is

                                      -10-
<PAGE>

          acquiring the New Senior Notes in its ordinary course of business. In
          addition, all such Holders of Senior Notes shall otherwise reasonably
          cooperate in the Company's preparations for the Exchange Offer. Each
          Holder hereby acknowledges and agrees that any Broker-Dealer and any
          such Holder using the Exchange Offer to participate in a distribution
          of the securities to be acquired in the Exchange Offer (1) could not
          under SEC Staff policy as in effect on the date of this Agreement rely
          on the position of the SEC Staff enunciated in Morgan Stanley and Co.,
          Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation
          (available May 13, 1988), as interpreted in the SEC Staff's letter to
          Shearman & Sterling dated July 2, 1993, and similar no-action letters
          (including any no-action letter obtained pursuant to clause (i)
          above), and (2) must comply with the registration and prospectus
          delivery requirements of the Securities Act in connection with a
          secondary resale transaction and that such a secondary resale
          transaction should be covered by an effective registration statement
          containing the selling security holder information required by Item
          507 or 508, as applicable, of Regulation S-K if the resales are of New
          Senior Notes obtained by such Holder in exchange for Senior Notes
          acquired by such Holder directly from the Company or an Affiliate
          thereof."

          (b) Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company shall comply with all the provisions of
Section 6(c) below and shall use its reasonable best efforts to effect such
registration to permit the sale of the Transfer Restricted Securities being sold
in accordance with the intended method or methods of distribution thereof, and
pursuant thereto the Company will as expeditiously as possible, and in any event
within the time periods and otherwise in accordance with the provisions hereof,
prepare and file with the Commission a Registration Statement relating to the
registration on any appropriate form under the Securities Act, which form shall
be available for the sale of the Transfer Restricted Securities in accordance
with the intended method or methods of distribution thereof.

          (c) General Provisions. In connection with any Registration Statement
and any Prospectus required by this Agreement to permit the sale or resale of
Transfer Restricted Securities (including, without limitation, any Exchange
Offer Registration Statement and the related Prospectus required to permit
resales of Transfer Restricted Securities by Restricted Broker-Dealers), the
Company shall:

          (i) subject to any notice by the Company of the existence of any fact
     or circumstance described in Section 6(c)(iii)(D), use its reasonable best
     efforts to keep such Registration Statement continuously effective and
     provide all requisite financial statements for the period specified in
     Section 3 or 4 of this Agreement, as applicable, or such shorter period as
     will terminate when all Transfer Restricted Securities covered by such
     Registration Statement have been sold; upon the occurrence of any event
     that would cause any such Registration Statement or the Prospectus
     contained therein (A) to contain a material misstatement or omission or (B)
     not to be effective and usable for resale of

                                      -11-
<PAGE>

     Transfer Restricted Securities during the period required by this
     Agreement, the Company shall (1) file promptly an appropriate amendment to
     such Registration Statement, in the case of clause (A), correcting any such
     misstatement or omission, and (2) in the case of either clause (A) or (B),
     use its reasonable best efforts to cause such amendment to be declared
     effective and such Registration Statement and the related Prospectus to
     become usable for their intended purpose(s) as soon as practicable
     thereafter; notwithstanding the foregoing, the Company may suspend the
     effectiveness of the Shelf Registration Statement by written notice to the
     Holders for a period not to exceed an aggregate of 30 days in any 90-day
     period (each such period, a "Suspension Period") if:

               (x) an event occurs and is continuing as a result of which the
          Shelf Registration Statement, the Prospectus, any amendment or
          supplement thereto, or any document incorporated by reference therein
          would, in the Company's judgment, 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;
          and

               (y) the Company determined in good faith that the disclosure of
          such event at such time would be significantly detrimental to the
          Company and its subsidiaries;

     provided that, in the event the disclosure relates to a previously
     undisclosed proposed or pending material business transaction, the
     disclosure of which the Company determines in good faith would be
     reasonably likely to impede the company's ability to consummate such
     transaction, the Company may extend a Suspension Period from 30 days to 60
     days; provided, however, that Suspension Periods shall not exceed an
     aggregate of 90 days in any 360-day period. The Company shall not be
     required to specify in the written notice to the Holders the nature of the
     event giving rise to the Suspension Period.

          (ii) prepare and file with the Commission such amendments and
     post-effective amendments to the Registration Statement as may be necessary
     to keep the Registration Statement effective for the applicable period set
     forth in Section 3 or 4 hereof, as applicable, or such shorter period as
     will terminate when all Transfer Restricted Securities covered by such
     Registration Statement have been sold (provided that the Company shall not
     be required to comply with the foregoing during any Suspension Period);
     cause the Prospectus to be supplemented by any required Prospectus
     supplement, and as so supplemented to be filed pursuant to Rule 424 under
     the Securities Act, and to comply fully with the applicable provisions of
     Rules 424, 430A and 462, as applicable under the Securities Act in a timely
     manner (provided that the Company shall not be required to comply with the
     foregoing during any Suspension Period); and comply with the provisions of
     the Securities Act with respect to the disposition of all securities
     covered by such Registration Statement during the applicable period in
     accordance with the intended method or methods of distribution by the
     sellers thereof set forth in such Registration Statement or supplement to
     the Prospectus;

                                      -12-
<PAGE>

          (iii) advise the managing underwriter(s), if any, and selling Holders
     promptly and, if requested by such Persons, to confirm such advice in
     writing, (A) when the Prospectus or any Prospectus supplement or
     post-effective amendment thereto has been filed, and, with respect to any
     Registration Statement or any post-effective amendment thereto, when the
     same has become effective, (B) of any request by the Commission for
     amendments to the Registration Statement or amendments or supplements to
     the Prospectus or for additional information relating thereto, (C) of the
     issuance by the Commission of any stop order suspending the effectiveness
     of the Registration Statement under the Securities Act or of the suspension
     by any state securities commission of the qualification of the Transfer
     Restricted Securities for offering or sale in any jurisdiction, or the
     initiation of any proceeding for any of the preceding purposes, (D) of the
     existence of any fact or the happening of any event that makes any
     statement of a material fact made in the Registration Statement, the
     Prospectus, any amendment or supplement thereto, or any document
     incorporated by reference therein untrue in any material respect, or that
     requires the making of any additions to or changes in the Registration
     Statement or the Prospectus in order to make the statements therein, in
     light of the circumstances under which they were made, not misleading. If
     at any time the Commission shall issue any stop order suspending the
     effectiveness of the Registration Statement, or any state securities
     commission or other regulatory authority shall issue an order suspending
     the qualification or exemption from qualification of the Transfer
     Restricted Securities under state securities or Blue Sky laws, the Company
     shall use its reasonable best efforts to obtain the withdrawal or lifting
     of such order at the earliest practicable time;

          (iv) upon written request, furnish to the Initial Purchasers, and,
     upon written request, to each of the selling Holders and each of the
     managing underwriter(s) in connection with such sale, if any, before filing
     with the Commission, copies of any Registration Statement or any Prospectus
     included therein or any amendments or supplements to any such Registration
     Statement or Prospectus, which documents will be subject to the review of
     such selling Holders and underwriter(s) in connection with such sale, if
     any, for a period of at least five Business Days, and the Company will not
     file any such Registration Statement or Prospectus or any amendment or
     supplement to any such Registration Statement or Prospectus to which a
     selling Holder of Transfer Restricted Securities covered by such
     Registration Statement or the underwriter(s) in connection with such sale,
     if any, shall reasonably object within five Business Days after the receipt
     thereof. A selling Holder or managing underwriter in connection with such
     sale, if any, shall be deemed to have reasonably objected to such filing
     (A) if such Registration Statement, amendment, Prospectus or supplement, as
     applicable, as proposed to be filed, contains a material misstatement or
     omission or fails to comply with the applicable requirements of the
     Securities Act or (B) if any of the information furnished to the Company by
     the selling Holder or managing underwriter in connection with such sale, if
     any, and included in such Registration Statement, amendment, Prospectus or
     supplement, as applicable, as proposed to be filed is incorrect in any
     respect;

          (v) upon written request, promptly prior to the filing of any document
     that is to be incorporated by reference into a Shelf Registration Statement
     or Prospectus, provide copies of such document to the selling Holders and
     to the underwriter(s) in connection with such sale, if any, make the
     Company's representatives available for discussion of

                                      -13-
<PAGE>

     such document and other customary due diligence matters, and, with respect
     to a Shelf Registration Statement, include such information in such
     document prior to the filing thereof as such selling Holders or
     underwriters, if any, reasonably may request;

          (vi) in the case of a Shelf Registration, make available for
     inspection by representatives of the Holders of the Transfer Restricted
     Securities and any underwriters participating in any disposition pursuant
     to a Shelf Registration Statement and any counsel or accountant retained by
     such Holders or underwriters, all financial and other records, pertinent
     corporate documents and properties of the Company or the Operator, if
     applicable, reasonably requested by any such persons, and cause the
     respective officers, directors, employees, and any other agents of the
     Operator to supply all information reasonably requested by any such
     representative, underwriter, counsel or accountant in connection with a
     Registration Statement; provided that the foregoing inspection and
     information gathering shall be coordinated on behalf of the selling Holders
     under a Shelf Registration Statement by one firm of counsel, which firm
     shall be Shearman & Sterling, until another firm shall be designated in
     writing for the Company by a majority of the selling Holders whose Transfer
     Restricted Securities are included in the Shelf Registration Statement, and
     provided further, that any such records, documents, properties and such
     information that is designated in writing by the Company, in good faith, as
     confidential at the time of delivery of such records, documents, properties
     or information shall be kept confidential by any such representative,
     underwriter, counsel or accountant and shall be used only in connection
     with such Shelf Registration Statement, unless such information has become
     available (not in violation of this Agreement) to the public generally or
     through a third party without an accompanying obligation of
     confidentiality, and except that such representative, underwriter, counsel
     or accountant shall have no liability, and shall not be in breach of this
     provision, to the extent, and only to the extent that disclosure of such
     confidential information is made in connection with a court proceeding or
     otherwise required by law, and the Company shall be entitled to request
     that such representative, underwriter, counsel or accountant sign a
     confidentiality agreement to the foregoing effect. Each such person will be
     required to agree that information obtained by it as a result of such
     inspections shall be deemed confidential and shall not be used by it as the
     basis for any market transactions in the securities of the Company unless
     and until such is made generally available to the public through no fault
     or action of such person. Each selling Holder of such Transfer Restricted
     Securities will be required to further agree that it will, upon learning
     that disclosure of confidential information is required, give notice to the
     Company to allow the Company at its expense to undertake appropriate action
     to prevent disclosure of the confidential information;

          (vii) (i) in the case of an Exchange Offer, a reasonable time prior to
     the filing of any Exchange Offer Registration Statement, any Prospectus
     forming a part thereof, any amendment to an Exchange Offer Registration
     Statement or amendment or supplement to a Prospectus, provide copies of
     such document to the Initial Purchasers, and make such changes in any such
     document prior to the filing thereof as the Initial Purchasers or their
     counsel may reasonably request; (ii) in the case of a Shelf Registration, a
     reasonable time prior to filing any Shelf Registration Statement, any
     Prospectus forming a part thereof, any amendment to such Shelf Registration
     Statement or amendment or supplement to such Prospectus, provide copies of
     such document to the Holders of Transfer Restricted

                                      -14-
<PAGE>

     Securities, to the Initial Purchasers, to counsel on behalf of the Holders
     and to the underwriter or underwriters of an underwritten offering of
     Transfer Restricted Securities, if any, and make such changes in any such
     document prior to the filing thereof as counsel to the Initial Purchasers,
     the Holders or any underwriter may reasonably and timely request; and (iii)
     cause the representatives of the Company to be available for discussion of
     such document as shall be reasonably requested by the Holders of Transfer
     Restricted Securities, the Initial Purchasers on behalf of such Holders or
     any underwriter, and shall not at any time make any filing of any such
     document of which such Holders, the Initial Purchasers on behalf of such
     Holders, their counsel or any underwriter shall not have previously been
     advised and furnished a copy or to which such Holders, the Initial
     Purchasers on behalf of such Holders, their counsel or any underwriter
     shall reasonably object within five Business Days after receipt of the
     documents specified in (i) and (ii) above from the Company, it being agreed
     that any such person shall be deemed to have reasonably objected to such
     filing (A) if such Registration Statement, amendment, Prospectus or
     supplement, as applicable, as proposed to be filed, contains a material
     misstatement or omission or fails to comply with the applicable
     requirements of the Securities Act or (B) if any of the information
     furnished to the Company by the selling Holder or managing underwriter in
     connection with such sale, if any, and included in such Registration
     Statement, amendment, Prospectus or supplement, as applicable, as proposed
     to be filed is incorrect in any respect;

          (viii) if requested by any selling Holders or the managing
     underwriter(s) in connection with such sale, if any, promptly incorporate
     in any Registration Statement or Prospectus, pursuant to a supplement or
     post-effective amendment if necessary, such information as such managing
     underwriter(s), if any, reasonably may request to have included therein,
     including, without limitation, information relating to the "Plan of
     Distribution" of the Transfer Restricted Securities, information with
     respect to the principal amount of Transfer Restricted Securities being
     sold to such underwriter(s), the purchase price being paid therefor and any
     other terms of the offering of the Transfer Restricted Securities to be
     sold in such offering; and make all required filings of such Prospectus
     supplement or post-effective amendment as soon as practicable after the
     Company is notified of the matters to be incorporated in such Prospectus
     supplement or post-effective amendment;

          (ix) cause the Transfer Restricted Securities covered by the
     Registration Statement to be rated by the appropriate rating agencies, if
     so requested by the Holders of a majority in aggregate principal amount of
     Notes covered thereby or the managing underwriter(s) in connection with
     such sale, if any, unless such Transfer Restricted Securities are already
     so rated;

          (x) furnish to each selling Holder and each of the managing
     underwriter(s) in connection with such sale, if any, without charge, at
     least one copy of the Registration Statement, as first filed with the
     Commission, and of each amendment thereto, including all documents
     incorporated by reference therein and all exhibits (including exhibits
     incorporated therein by reference);

                                      -15-
<PAGE>

          (xi) deliver to each selling Holder and each of the managing
     underwriter(s), if any, without charge, as many copies of the Prospectus
     (including each preliminary Prospectus) and any amendment or supplement
     thereto as such Persons reasonably may request; subject to the terms of
     this Agreement, the Company hereby consents to the use of the Prospectus
     and any amendment or supplement thereto by each of the selling Holders and
     each of the underwriter(s), if any, in connection with the offering and the
     sale of the Transfer Restricted Securities covered by the Prospectus or any
     amendment or supplement thereto;

          (xii) enter into such agreements (including an underwriting
     agreement), and make such representations and warranties with respect to
     the business of the Company as are customarily addressed in representations
     and warranties made by issuers to underwriters in Underwritten Offerings,
     and take all such other actions in connection therewith in order to
     expedite or facilitate the disposition of the Transfer Restricted
     Securities pursuant to any Registration Statement contemplated by this
     Agreement, all to such extent as may reasonably be requested by the Initial
     Purchasers or by any Holder of Transfer Restricted Securities or managing
     underwriter in connection with any sale or resale pursuant to any
     Registration Statement contemplated by this Agreement; and whether or not
     an underwriting agreement is entered into and whether or not the
     registration is an Underwritten Registration, the Company shall:

               (A) furnish to each Initial Purchaser, each selling Holder and
          each managing underwriter, if any, in such substance and scope as they
          may reasonably request and as are customarily made by issuers to
          underwriters in primary Underwritten Offerings, upon the date of the
          Consummation of the Exchange Offer and, if applicable, the
          effectiveness of the Shelf Registration Statement:

                    (1) a certificate, dated the date of Consummation of the
               Exchange Offer or the date of effectiveness of the Shelf
               Registration Statement, as the case may be, signed on behalf of
               the Company by any Authorized Officer, confirming, as of the date
               thereof, the matters set forth in paragraph (c) of Section 6 of
               the Purchase Agreement and such other matters as such parties may
               reasonably request;

                    (2) opinions, dated the date of Consummation of the Exchange
               Offer or of effectiveness of the Shelf Registration Statement, as
               the case may be, of counsel or counsels for the Company, covering
               the matters set forth in paragraph (a) of Section 6 of the
               Purchase Agreement and such other matters as such parties may
               reasonably request, and in any event including a statement to the
               effect that such counsel for the Company has participated in
               conferences with officers of the Operator and other
               representatives of the Company, representatives of the
               independent public accountants for the Company and
               representatives of and counsel to the Initial Purchasers at which
               the contents of such Registration Statement and the related
               Prospectus were discussed and, although such counsel is not
               passing upon and does not assume any responsibility for the
               accuracy, completeness or fairness of the statements contained
               therein (except as

                                      -16-
<PAGE>

               specifically stated in such opinion), on the basis of the
               foregoing (and rely with respect to factual matters, upon
               statements of officers of the Operator), no facts have come to
               the attention of such counsel that have caused such counsel to
               believe that the applicable Registration Statement, at the time
               such Registration Statement or any post-effective amendment
               thereto became effective, and, in the case of the Exchange Offer
               Registration Statement, as of the date of Consummation, 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 therein, in light of the circumstances under which
               they were made, not misleading, or that the Prospectus contained
               in such Registration Statement as of its date and, in the case of
               the opinion dated the date of Consummation of the Exchange Offer,
               as of the date of Consummation, contained an untrue statement of
               a material fact or omitted to state a material fact necessary in
               order to make the statements therein, in light of the
               circumstances under which they were made, not misleading (it
               being understood that such counsel need make no comment as to the
               financial statements and related statistical or financial
               information and schedules included in any Registration Statement
               contemplated by this Agreement or the related Prospectus) or any
               information included therein on the basis of information
               furnished by the representatives or counsel to any Initial
               Purchaser, selling Holder or managing underwriter expressly for
               inclusion therein; and

                    (3) customary comfort letters, dated as of the date of
               Consummation of the Exchange Offer or the date of effectiveness
               of the Shelf Registration Statement, as the case may be, from the
               Company's independent accountants, in the customary form and
               covering matters of the type customarily covered in comfort
               letters by underwriters in connection with Underwritten
               Offerings, and affirming the matters set forth in the comfort
               letters delivered pursuant to Section 7(e) and (f) of the
               Purchase Agreement, without exception;

               (B) set forth in full or incorporate by reference in the
          underwriting agreement, if any, the indemnification provisions and
          procedures of Section 8 hereof with respect to all parties to be
          indemnified pursuant to said Section; and

               (C) deliver such other documents and certificates as may be
          reasonably requested by such parties to evidence compliance with
          clause (A) above and with any customary conditions contained in the
          underwriting agreement or other agreement entered into by the Company
          pursuant to this clause (xi), if any.

          The above shall be done at effectiveness of such Registration
     Statement (and if appropriate, each post-effective amendment thereto) and
     each closing under such underwriting or similar agreement, as and to the
     extent required thereunder, and, if at any time the representations and
     warranties of the Company contemplated in clause (A)(1) above cease to be
     true and correct in any material respect, the Company shall so advise

                                      -17-
<PAGE>

     the Initial Purchasers and the managing underwriter(s), if any, each
     selling Holder and each Restricted Broker-Dealer promptly and, if requested
     by such Persons, shall confirm such advice in writing. In the case of any
     Underwritten Offering, the Company shall provide written notice to the
     Holders of all Transfer Restricted Securities of such Underwritten Offering
     at least 30 days prior to the filing of a prospectus supplement for such
     Underwritten Offering. Such notice shall (x) offer each such Holder the
     right to participate in such Underwritten Offering, (y) specify a date,
     which shall be no earlier than ten Business Days following the date of such
     notice, by which such Holder must inform the Company of its intent to
     participate in such Underwritten Offering and (z) include the instructions
     such Holder must follow in order to participate in such Underwritten
     Offering;

          (xiii) prior to any public offering of Transfer Restricted Securities,
     cooperate with the selling Holders, the managing underwriter(s), if any,
     and its counsel in connection with the registration and qualification of
     the Transfer Restricted Securities under the securities or Blue Sky laws of
     such jurisdictions in the United States as the selling Holders or managing
     underwriter(s), if any, may request and use reasonable best efforts to
     enable the disposition in such jurisdictions of the Transfer Restricted
     Securities covered by the applicable Registration Statement; provided,
     however, that the Company shall not be required to register or qualify as a
     foreign entity where it is not now so qualified or to take any action that
     would subject it to the service of process in suits or to taxation, other
     than as to matters and transactions relating to the Registration Statement,
     in any jurisdiction where it is not now so subject;

          (xiv) shall issue, upon the request of any Holder of Senior Notes
     covered by any Shelf Registration Statement contemplated by this Agreement,
     New Senior Notes, having an aggregate principal amount equal to the
     aggregate principal amount of the Senior Notes surrendered to the Company
     by such Holder in exchange therefor or being sold by such Holder; such New
     Senior Notes to be registered in the name of such Holder or in the name of
     the purchaser(s) of such Notes, as the case may be; in return, the Senior
     Notes held by such Holder shall be surrendered to the Company for
     cancellation;

          (xv) cooperate with the selling Holders and the managing
     underwriter(s), if any, to facilitate the timely preparation and delivery
     of certificates representing Transfer Restricted Securities to be sold and
     not bearing any restrictive legends; and enable such Transfer Restricted
     Securities to be in such denominations and registered in such names as the
     Holders or the underwriter(s), if any, may request at least two Business
     Days prior to any sale of Transfer Restricted Securities made by such
     underwriter(s);

          (xvi) use its reasonable best efforts to cause the disposition of the
     Transfer Restricted Securities covered by the Registration Statement to be
     registered with or approved by such other governmental agencies or
     authorities as may be necessary to enable the seller or sellers thereof or
     the underwriter(s), if any, to consummate the disposition of such Transfer
     Restricted Securities, subject to the proviso contained in clause (xiii)
     above;

                                      -18-
<PAGE>

          (xvii) subject to Section 6(c)(i), if any fact or event contemplated
     by clause 6(c)(iii)(D) above shall exist or have occurred, promptly prepare
     a supplement or post-effective amendment to the Registration Statement or
     related Prospectus or any document incorporated therein by reference or
     file any other required document so that, as thereafter delivered to the
     purchasers of Transfer Restricted Securities, the Prospectus will not
     contain an untrue statement of a material fact or omit to state any
     material fact necessary to make the statements therein in the light of the
     circumstances under which they were made not misleading;

          (xviii) provide a CUSIP number for all Transfer Restricted Securities
     not later than the effective date of the Registration Statement covering
     such Transfer Restricted Securities and provide the Trustee under the
     Indenture with printed certificates for the Transfer Restricted Securities
     which are in a form eligible for deposit with The Depository Trust Company;

          (xix) cooperate and assist in any filings required to be made with the
     NASD and in the performance of any due diligence investigation by any
     underwriter (including any "qualified independent underwriter" that is
     required to be retained in accordance with the rules and regulations of the
     NASD), and use its reasonable best efforts to cause such Registration
     Statement to become effective and approved by such governmental agencies or
     authorities as may be necessary to enable the Holders selling Transfer
     Restricted Securities to consummate the disposition of such Transfer
     Restricted Securities;

          (xx) otherwise use its reasonable best efforts to comply with all
     applicable rules and regulations of the Commission, and make generally
     available to its security holders, as soon as practicable, a consolidated
     earnings statement meeting the requirements of Rule 158 (which need not be
     audited) for the twelve-month period (A) commencing at the end of any
     fiscal quarter in which Transfer Restricted Securities are sold to
     underwriters in a firm or reasonable best efforts Underwritten Offering or
     (B) if not sold to underwriters in such an offering, beginning with the
     first month of the Company's first fiscal quarter commencing after the
     effective date of the Registration Statement;

          (xxi) cause the Indenture to be qualified under the TIA not later than
     the effective date of the first Registration Statement required by this
     Agreement, and, in connection therewith, cooperate with the Trustee and the
     Holders of Notes to effect such changes to the Indenture as may be required
     for such Indenture to be so qualified in accordance with the terms of the
     TIA; and execute and use its reasonable best efforts to cause the Trustee
     to execute, all documents that may be required to effect such changes and
     all other forms and documents required to be filed with the Commission to
     enable such Indenture to be so qualified in a timely manner;

          (xxii) cause all Transfer Restricted Securities covered by the
     Registration Statement to be listed on each securities exchange, if any, on
     which similar securities issued by the Company are then listed if requested
     by the Holders of a majority in aggregate principal amount of Senior Notes
     or the managing underwriter(s), if any; and

                                      -19-
<PAGE>

          (xxiii) promptly provide or make available to the Holders of the
     Notes, all financial information and reports at the time and in the manner
     provided for in Section 4.03 of the Indenture.

          (d) Restrictions on Holders. (i) Each Holder agrees by acquisition of
a Transfer Restricted Security that, upon receipt of the notice from the Company
of the existence of any fact of the kind described in Section 6(c)(iii)(D)
hereof (a "Suspension Notice"), such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the applicable
Registration Statement until such Holder's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xvii) hereof, or
until it is advised in writing (the "Advice") by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus. If so
directed by the Company, each Holder will deliver to the Company (at the
Company's expense) all copies, other than permanent file copies then in such
Holder's possession, of the Prospectus covering such Transfer Restricted
Securities that was current at the time of receipt of such notice. In the event
the Company shall give any such notice, the time period regarding the
effectiveness of such Registration Statement set forth in Section 3 or 4 hereof,
as applicable, shall be extended by the number of days during the period from
and including the date of the giving of such notice pursuant to Section 6(c)(i)
or Section 6(c)(iii)(D) hereof to and including the date when each selling
Holder covered by such Registration Statement shall have received the copies of
the supplemented or amended Prospectus contemplated by Section 6(c)(xvii) hereof
or shall have received the Advice.

          (ii) The Company may require a Holder of Transfer Restricted
Securities to be included in a Registration Statement to furnish to the Company
such information as required by law to be disclosed by such Holder in such
Registration Statement, and the Company may exclude from such Registration
Statement the Transfer Restricted Securities of any Holder who unreasonably
fails to furnish such information within a reasonable time after receiving such
request.

SECTION 7. REGISTRATION EXPENSES

          Any and all expenses incident to performance of or compliance by the
Company with this Agreement, including without limitation: (i) all Commission,
stock exchange or NASD registration and filing fees, (ii) all fees and expenses
incurred in connection with compliance with state or other securities or blue
sky laws and compliance with the rules of the NASD (including reasonable fees
and disbursements of counsel for any underwriters or Holders in connection with
state or other securities or blue sky qualification of any of the Senior Notes),
(iii) all expenses of any Persons in preparing, printing and distributing any
Registration Statement, any Prospectus, any amendments or supplements thereto,
any underwriting agreements, securities sales agreements, certificates
representing the New Senior Notes and other documents relating to the
performance of and compliance with this Agreement, (iv) all rating agency fees,
(v) all fees and expenses incurred in connection with the listing, if any, of
any of the New Senior Notes on any securities exchange or exchanges, (vi) all
fees and disbursements relating to the qualification of the Indenture under
applicable securities laws, (vii) the fees and disbursements of counsel for the
Company and the fees and expenses of the independent public accountants of the
Company, including the expenses of any special audits or "comfort" letters

                                      -20-
<PAGE>

required by or incident to such performance and compliance, (viii) the fees and
expenses of a "qualified independent underwriter" as defined by Conduct Rule
2720 of the NASD (if required by the NASD rules) in connection with the offering
of the New Senior Notes and the reasonable fees and expenses of its counsel,
(ix) the reasonable fees and expenses of the Trustee, any registrar, any
depositary and paying agent, including their respective counsel, and any escrow
agent or custodian, (x) the reasonable fees and expenses of the Initial
Purchasers in connection with the Exchange Offer, including the reasonable fees
and expenses of counsel to the Initial Purchasers, (xi) the reasonable fees and
expenses of one counsel to the Holders (which counsel shall be selected by the
Majority Holders and which counsel may also be counsel for the Initial
Purchasers) in connection with the Shelf Registration Statement, and (xii) in
the case of an Underwritten Offering, any reasonable fees and disbursements of
the underwriters customarily required to be paid by issuers or sellers of such
securities, including the reasonable fees and expenses of counsel to the
underwriters, and the fees and expenses of any special experts retained by the
Company in connection with any Registration Statement but excluding (except as
otherwise provided herein) fees of counsel to the underwriters or the Holders
and underwriting discounts and commissions and any transfer taxes, if any,
relating to the sale or disposition of Transfer Restricted Securities by a
Holder.

SECTION 8. INDEMNIFICATION

          (a) The Company shall indemnify and hold harmless each Holder, its
directors, officers and employees and each Person, if any, who controls such
Holder within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act, from and against any and all losses, claims, damages,
liabilities, judgments and actions, joint or several, or any action in respect
thereof (including, but not limited to, any loss, claim, damage, liability,
judgment or action relating to purchases and sales of Notes), to which that
Holder, its directors, officers, employees or controlling Persons may become
subject, under the Securities Act or otherwise, insofar as such loss, claim,
damage, liability, judgment or action arises out of, or is based upon, (i) any
untrue statement or alleged untrue statement of a material fact contained (A) in
any Registration Statement, preliminary Prospectus or Prospectus or in any
amendment or supplement thereto or (B) in any Blue Sky application or other
document prepared or executed by the Company (or based upon any written
information furnished by the Company) specifically for the purpose of qualifying
any or all of the Notes under the securities laws of any state or other
jurisdiction (any such application, document or information being hereinafter
called a "Blue Sky Application") or (ii) the omission or alleged omission to
state in any Registration Statement, preliminary Prospectus or Prospectus, or in
any amendment or supplement thereto, or in any Blue Sky Application any material
fact required to be stated therein or necessary to make the statements therein
not misleading, and shall reimburse such Holder and each director, officer,
employee or controlling Person promptly upon demand for any legal or other
expenses reasonably incurred by such Holder, director, officer, employee or
controlling Person in connection with investigating or defending or preparing to
defend against any such loss, claim, damage, liability, judgment or action as
such expenses are incurred; provided, however, that the Company shall not be
liable in any such case to the extent that any such loss, claim, damage,
liability, judgment or action arises out of, or is based upon, any untrue
statement or alleged untrue statement or omission or alleged omission made in
any Registration Statement, preliminary Prospectus or Prospectus, or in any such
amendment or supplement or in any Blue Sky Application in reliance upon and in
conformity with written information furnished to the

                                      -21-
<PAGE>

Company by or on behalf of such Holder specifically for inclusion therein;
provided, further, that the Company shall not be liable to any indemnified
Holder under the indemnity agreement in this subsection (a) with respect to any
preliminary Prospectus to the extent that any such loss, claim, damage or
liability of such indemnified Holder results from the fact that such indemnified
Holder sold Transfer Restricted 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 final Prospectus in any case where such
delivery is required by the Securities Act if the Company had previously
furnished copies thereof in sufficient quantities to such indemnified Holder and
the loss, claim, damage or liability of such indemnified Holder results from an
untrue statement or omission of a material fact contained in the preliminary
Prospectus which was (i) identified to such indemnified Holder at or prior to
the earlier of the filing with the Commission or the furnishing to such
indemnified Holder of the corrected Prospectus and (ii) corrected in the final
Prospectus.

          (b) Each Holder, severally and not jointly, shall indemnify and hold
harmless the Company, the management committee of the Company, the Operator, the
employees, officers and directors of the Operator, the General Partners, the
employees, officers and directors of the General Partners, and each Person, if
any, who controls the Company within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act (collectively, the "Company
Indemnitees"), from and against any and all losses, claims, damages,
liabilities, judgments or actions, joint or several, or any action in respect
thereof, to which the Company Indemnitees may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage, liability,
judgment or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any Registration
Statement, preliminary Prospectus or Prospectus or in any amendment or
supplement thereto, or in any Blue Sky Application or (ii) the omission or
alleged omission to state in any Registration Statement, preliminary Prospectus
or Prospectus, or in any amendment or supplement thereto, or in any Blue Sky
Application any material fact required to be stated therein or necessary to make
the statements therein not misleading, but in each case only to the extent that
the untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished
to the Company by or on behalf of such Holder specifically for inclusion therein
and described in Section 8(e) with respect to the Final Memorandum, and shall
reimburse the Company Indemnitee or controlling Person for any legal or other
expenses reasonably incurred by the Company Indemnitee in connection with
investigating or defending or preparing to defend against any such loss, claim,
damage, liability, judgment or action as such expenses are incurred. The
foregoing indemnity agreement is in addition to any liability which any Holder
may otherwise have to the Company Indemnitees.

          (c) Promptly after receipt by any indemnified party under this Section
8 of notice of any claim or the commencement of any action, the indemnified
party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has
been materially prejudiced by such failure and, provided further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 8.
If any such claim or action shall be brought against an indemnified party, and
it shall

                                      -22-
<PAGE>

notify the indemnifying party thereof, the indemnifying party shall be entitled
to participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel satisfactory to the indemnified party and the payment of all fees and
expenses of such counsel shall be the responsibility of the indemnifying party.
After notice from the indemnifying party to the indemnified party of its
election to assume the defense of such claim or action, the indemnifying party
shall not be liable to the indemnified party under this Section 8 for any legal
or other expenses subsequently incurred by the indemnified party in connection
with the defense thereof other than reasonable costs of investigation, provided,
however, that the indemnified party shall have the right to employ separate
counsel to represent all indemnified parties who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the
indemnified parties against the indemnifying parties under this Section 8 if,
(i) the employment of such counsel shall have been specifically authorized in
writing by the indemnifying party, (ii) the indemnifying party shall have failed
to assume the defense of such action or employ counsel reasonably satisfactory
to the indemnified party or (iii) counsel for any of the indemnified parties
shall have reasonably concluded that there may be defenses available to the
indemnified parties that are in addition to or in conflict with those available
to the indemnifying party. In any case, the indemnifying party shall not, in
connection with any one action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the fees and expenses of more than one separate
firm of attorneys (in addition to any local counsel) of all indemnified parties,
and all such fees and expenses shall be reimbursed as they are incurred. Such
firm shall be designated in writing by Salomon Smith Barney, in the case of the
parties indemnified pursuant to Section 8(a) and by the Company, in the case of
parties indemnified pursuant to Section 8(b). No indemnifying party shall (i)
without the prior written consent of the indemnified parties (which consent
shall not be unreasonably withheld), settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with the consent of
the indemnifying party or if there be a final judgment of the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such
settlement or judgment.

          (d) If the indemnification provided for in this Section 8 shall for
any reason be unavailable or insufficient to hold harmless an indemnified party
under Section 8(a) or 8(b) in respect of any loss, claim, damage, liability,
judgment or any action in respect thereof, referred to therein, then each
indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage, liability, judgment or action in respect thereof,
(i) in such proportion as shall be appropriate to reflect the relative benefits
received by the Company, on the one hand, and the Holders, on the other, from
the offering of the Notes or (ii) if the allocation provided by clause (i) above
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, on the one hand, and the Holders, on the
other, with respect to the statements or

                                      -23-
<PAGE>

omissions which resulted in such loss, claim, damage, liability, judgment or
action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company, on the one hand,
and the Holders, on the other, with respect to such offering shall be deemed to
be in the same proportion as the total net proceeds from the offering of the
Notes purchased under the Purchase Agreement (before deducting expenses)
received by the Company as set forth in the table on the cover page of the Final
Memorandum, on the one hand, and the total net proceeds received by such Holder
upon its resale of Notes less the amount paid by such Holder for such Notes, on
the other hand, bear to the total sum of such amounts. The relative fault shall
be determined by reference to whether the 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 such Holder, the intent of the parties
and their relative knowledge, access to information and opportunity to correct
or prevent such statement or omission. The Company and the Holders agree that it
would not be just and equitable if contributions pursuant to this Section 8 were
to be determined by pro rata allocation or by any other method of allocation
which does not take into account the equitable considerations referred to
herein. The amount paid or payable by an indemnified party as a result of the
loss, claim, damage, liability, judgment or action in respect thereof, referred
to above in this Section 8 shall be deemed to include, for purposes of this
Section 8(d), any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 8(d), no Holder, and
none of its directors, officers, employees or controlling Persons, shall be
required to contribute, in the aggregate, any amount in excess of the amount by
which the total net proceeds received by such Holder upon its resale of Notes
exceeds the sum of the amount paid by such Holder for such Notes and the amount
of any damages which such Holder has otherwise paid or become liable to pay by
reason of any 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 Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation. The Holders'
obligations to contribute as provided in this Section 8(d) are several in
proportion to the respective principal amount of Notes held by each of the
Holders hereunder and not joint.

          (e) The Holders severally confirm, and the Company acknowledges, that
the information contained in the first sentence of the second to last paragraph
on the cover page of the Final Memorandum, and the table contained below the
first paragraph and the information contained in the third and ninth paragraphs
under the caption "Plan of Distribution" in the Final Memorandum are correct
and, with respect to any Shelf Registration Statement, the information included
therein, based upon information furnished by such Holder pursuant to Section
4(b), constitute the only information furnished in writing to the Company by or
on behalf of the Holders specifically for inclusion in the Final Memorandum.

                                      -24-
<PAGE>

SECTION 9. RULE 144 AND RULE 144A

          For so long as the Company is subject to the reporting requirements of
Section 13 or 15 of the Exchange Act, the Company covenants that it will file
the reports required to be filed by it under Section 13(a) or 15(d) of the
Exchange Act and the rules and regulations adopted by the Commission thereunder
in order to permit resales of Transfer Restricted Securities under Rule 144
or 144A under the Securities Act, that if it ceases to be so required to file
such reports, it will upon the request of any Holder of Transfer Restricted
Securities (i) make publicly available or cause to be made publicly available
such information as is necessary to permit sales pursuant to Rule 144 under the
Securities Act, (ii) deliver or cause to be delivered such information to a
prospective purchaser as is necessary to permit sales pursuant to Rule 144A
under the Securities Act and it will take such further action as any Holder of
Transfer Restricted Securities may reasonably request, and (iii) take such
further action that is reasonable in the circumstances, in each case, to the
extent required from time to time to enable such Holder to sell its Transfer
Restricted Securities without registration under the Securities Act within the
limitation of the exemptions provided by (x) Rule 144 under the Securities Act,
as such Rule may be amended from time to time, (y) Rule 144A under the
Securities Act, as such Rule may be amended from time to time, or (z) any
similar rules or regulations hereafter adopted by the Commission. Upon the
written request of any Holder of Transfer Restricted Securities, the Company
will deliver to such Holder a written statement as to whether it has complied
with such requirements.

SECTION 10. PARTICIPATION IN UNDERWRITTEN REGISTRATION

          No Holder may participate in any Underwritten Registration hereunder
unless such Holder (a) agrees to sell such Holder's Transfer Restricted
Securities on the basis provided in any underwriting arrangements approved by
the Persons entitled hereunder to approve such arrangements and (b) completes
and executes all reasonable questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents required under the
terms of such underwriting arrangements.

SECTION 11. SELECTION OF UNDERWRITERS

          For any Underwritten Offering, the investment banker or investment
bankers and manager or managers that will administer such offering will be
selected by the Holders of a majority in aggregate principal amount of the
Transfer Restricted Securities included in such offering; provided, that such
investment bankers and managers must be reasonably satisfactory to the Company.
Such investment bankers and managers are referred to herein as the "managing
underwriters."

SECTION 12. MISCELLANEOUS

          (a) Remedies. Each Holder, in addition to being entitled to exercise
all rights provided herein, in the Indenture, the Purchase Agreement or granted
by law, including recovery of liquidated or other damages, will be entitled to
specific performance of its rights under this Agreement. The Company agrees that
monetary damages (including the Liquidated Damages contemplated hereby) would
not be adequate compensation for any loss incurred by reason of a

                                      -25-
<PAGE>

breach by them of the provisions of this Agreement and hereby agree to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

          (b) No Inconsistent Agreements. The Company will not on or after the
date of this Agreement, enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company is not currently
bound by any agreement granting registration rights with respect to its
securities that conflicts with the registration rights set forth herein.

          (c) Adjustments Affecting the Notes. The Company will not take any
action, or permit any change to occur, with respect to the Notes that would
materially and adversely affect the ability of the Holders to Consummate any
Exchange Offer.

          (d) Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given unless the Company has obtained the
written consent of (i) in the case of Section 5 hereof and this Section 12(d),
the Holders of all outstanding Transfer Restricted Securities and (ii) in the
case of all other provisions hereof, Holders of a majority of the then
outstanding principal amount of Transfer Restricted Securities. Notwithstanding
the foregoing, a waiver or consent to departure from the provisions hereof that
relates exclusively to the rights of Holders whose securities are being tendered
pursuant to the Exchange Offer and that does not affect directly or indirectly
the rights of other Holders whose securities are not being tendered pursuant to
such Exchange Offer may be given by the Holders of a majority of the then
outstanding principal amount of Transfer Restricted Securities being tendered or
registered.

          (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air
courier guaranteeing overnight delivery:

          (i) if to a Holder, at the address set forth on the records of the
     Registrar under the Indenture, with a copy to the Registrar under the
     Indenture;

              With a copy to:

                   Salomon Smith Barney, Inc.
                   388 Greenwich Street
                   New York, New York 10013
                   Attention: Martha A. Bailey, Esq.

          (ii) if to the Initial Purchasers, to the Initial Purchasers' address
     specified in Section 12 of the Purchase Agreement.

          (iii) if to the Operator:

                   Northern Plains Natural Gas Company
                   1111 South 103rd Street
                   Omaha, Nebraska 68124-1000
                   Telecopy No.: (402) 398-7871
                   Attention: Director of Finance

                                      -26-
<PAGE>

          All such notices and communications shall be deemed to have been duly
given at the time delivered by hand, if personally delivered; five Business Days
after being deposited in the mail, postage prepaid, if mailed; when answered
back, if telexed; when receipt acknowledged, if telecopied; and on the next
Business Day, if timely delivered to an air courier guaranteeing overnight
delivery.

          Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

          (f) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties,
including without limitation and without the need for an express assignment,
subsequent Holders of Transfer Restricted Securities; provided, however, that
nothing herein shall be deemed to permit any assignment, transfer or other
disposition of Transfer Restricted Securities in violation of the terms hereof
or of the Purchase Agreement or the Indenture. If any transferee of any Holder
shall acquire Transfer Restricted Securities in any manner, whether by operation
of law or otherwise, such Transfer Restricted Securities shall be held subject
to all of the terms of this Agreement, and by owning and holding such Transfer
Restricted Securities such Person shall be conclusively deemed to have agreed to
be bound by and to perform all of the terms and provisions of this Agreement,
including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such Person shall be entitled to receive
the benefits hereof.

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

          (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

          (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK.

          (j) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable by a court of competent jurisdiction, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected
or impaired thereby.

                                      -27-
<PAGE>

          (k) Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted by the Company with respect to
the Transfer Restricted Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter.

          (l) No Personal Liability. None of the members of the Company's
management committee, the General Partners, the Operator or the General
Partners' or Operator's directors, officers, employees, partners, incorporators
or stockholders, if any, shall have any liability for any of the Company's
obligations under the notes or the indenture or hereunder or for any claim based
on, in respect of, or by reason of, such obligations or their creation.

                           [Signature Page(s) Follow]

                                      -28-
<PAGE>

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

                                       NORTHERN BORDER PIPELINE COMPANY

                                       By: NORTHERN PLAINS NATURAL GAS
                                           COMPANY, Operator

                                           By: /s/ Jerry L. Peters
                                               ---------------------------------
                                           Name: Jerry L. Peters
                                           Title: Vice President, Finance and
                                                  Treasurer

SALOMON SMITH BARNEY, INC.
BANC ONE CAPITAL MARKETS, INC.
BMO NESBITT BURNS CORP.
SUNTRUST ROBINSON
BY: SALOMON SMITH BARNEY, INC.

By: /s/ John Ciolek
    -------------------------------
Name: John Ciolek
      -----------------------------
Title: Director
       ----------------------------

                                      -29-

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