Document:

<PAGE>
                                                                     EXHIBIT 4.2

                                                                  Execution Copy

                        NORTHERN BORDER PIPELINE COMPANY

                                     Issuer

                         7.50% SENIOR NOTES DUE 2021

                      7.50% SENIOR NOTES DUE 2021, Series A

                                    INDENTURE

                         Dated as of September 17, 2001

                         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.

                                       i
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                Page
                                                                                ----

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

  SECTION 1.01   Definitions.................................................    1

  SECTION 1.02   Incorporation by Reference of Trust Indenture Act..........    11

  SECTION 1.03   Rules of Construction......................................    12

ARTICLE II THE NOTES........................................................    12

  SECTION 2.01   Form and Dating............................................    12

  SECTION 2.02   Execution and Authentication...............................    13

  SECTION 2.03   Registrar and Paying Agent.................................    14

  SECTION 2.04   Paying Agent to Hold Money in Trust........................    15

  SECTION 2.05   Holder Lists...............................................    15

  SECTION 2.06   Transfer and Exchange......................................    15

  SECTION 2.07   Replacement Notes..........................................    27

  SECTION 2.08   Outstanding Notes..........................................    28

  SECTION 2.09   Treasury Notes.............................................    28

  SECTION 2.10   Temporary Notes............................................    28

  SECTION 2.11   Cancellation...............................................    28

  SECTION 2.12   Defaulted Interest.........................................    29

  SECTION 2.13   CUSIP Numbers..............................................    29

ARTICLE III REDEMPTION AND PREPAYMENT.......................................    29

  SECTION 3.01   Notices to Trustee.........................................    29

  SECTION 3.02   Selection of Notes to be Redeemed..........................    29

  SECTION 3.03   Notice of Redemption.......................................    30

  SECTION 3.04   Effect of Notice of Redemption.............................    31

  SECTION 3.05   Deposit of Redemption Price................................    31

  SECTION 3.06   Notes Redeemed in Part.....................................    31

  SECTION 3.07   Mandatory Redemption.......................................    31

ARTICLE IV COVENANTS........................................................    31

  SECTION 4.01   Payment of Notes...........................................    31

  SECTION 4.02   Maintenance of Office or Agency............................    32

  SECTION 4.03   Reports....................................................    32

  SECTION 4.04   Statement by Officers as to Default........................    33

  SECTION 4.05   Existence..................................................    33

  SECTION 4.06   Limitations on Liens.......................................    33

  SECTION 4.07   Restriction of Sale-Leaseback Transactions.................    34

  SECTION 4.08   Waiver of Certain Covenants................................    34

  SECTION 4.09   Payments for Consent.......................................    35

  SECTION 4.10   Money for Note Payments to Be Held in Trust................    35
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                                                                                <C>
ARTICLE V SUCCESSORS........................................................       36

  SECTION 5.01   Company May Consolidate, Etc., Only on Certain Terms.......       36

  SECTION 5.02   Successor Substituted......................................       37

ARTICLE VI DEFAULTS AND REMEDIES............................................       37

  SECTION 6.01   Events of Default..........................................       37

  SECTION 6.02   Acceleration of Maturity; Rescission and Annulment.........       38

  SECTION 6.03   Collection of Indebtedness and Suits for Enforcement by
                 Trustee ...................................................       39

  SECTION 6.04   Trustee May File Proofs of Claim...........................       40

  SECTION 6.05   Trustee May Enforce Claims Without Possession of Notes.....       40

  SECTION 6.06   Application of Money Collected.............................       40

  SECTION 6.07   Limitation on Suits........................................       41

  SECTION 6.08   Unconditional Right of Holders to Receive Principal, Premium
                 and Interest................................................      41

  SECTION 6.09   Restoration of Rights and Remedies.........................       41

  SECTION 6.10   Rights and Remedies Cumulative.............................       42

  SECTION 6.11   Delay or Omission Not Waiver...............................       42

  SECTION 6.12   Control by Holders.........................................       42

  SECTION 6.13   Waiver of Past Defaults....................................       43

  SECTION 6.14   Undertaking for Costs......................................       43

  SECTION 6.15   Waiver of Usury, Stay or Extension Laws....................       43

ARTICLE VII TRUSTEE.........................................................       43

  SECTION 7.01   Certain Duties and Responsibilities........................       43

  SECTION 7.02   Notice of Defaults.........................................       44

  SECTION 7.03   Certain Rights of Trustee..................................       45

  SECTION 7.04   Not Responsible for Recitals or Issuance of Notes..........       46

  SECTION 7.05   May Hold Notes.............................................       46

  SECTION 7.06   Money Held in Trust........................................       46

  SECTION 7.07   Compensation and Reimbursement.............................       46

  SECTION 7.08   Disqualification; Conflicting Interests....................       47

  SECTION 7.09   Corporate Trustee Required; Eligibility....................       47

  SECTION 7.10   Resignation and Removal; Appointment of Successor..........       48

  SECTION 7.11   Acceptance of Appointment by Successor.....................       49

  SECTION 7.12   Merger, Conversion, Consolidation or Succession to Business       49

  SECTION 7.13   Preferential Collection of Claims Against Company..........       50

  SECTION 7.14   Appointment of Authenticating Agent........................       50

  SECTION 7.15   Reports by Trustee to Holders of the Notes.................       51

ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE.......................       51

  SECTION 8.01   Option to Effect Legal Defeasance or Covenant Defeasance...       51

  SECTION 8.02   Legal Defeasance and Discharge.............................       52

  SECTION 8.03   Covenant Defeasance........................................       52

  SECTION 8.04   Conditions to Legal or Covenant Defeasance.................       53
</TABLE>

                                      iii
<PAGE>
<TABLE>
<S>                                                                                <C>
  SECTION 8.05   Deposited Money and Government Securities to be Held in
                 Trust; Other Miscellaneous Provisions.....................        54

  SECTION 8.06   Repayment to Company.......................................       55

  SECTION 8.07   Reinstatement..............................................       55

ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER.................................       55

  SECTION 9.01   Without Consent of Holders of Notes........................       55

  SECTION 9.02   With Consent of Holders of Notes...........................       56

  SECTION 9.03   Compliance with Trust Indenture Act........................       58

  SECTION 9.04   Revocation and Effect of Consents..........................       58

  SECTION 9.05   Notation on or Exchange of Notes...........................       58

  SECTION 9.06   Trustee to Sign Amendments, Etc............................       58

ARTICLE X MISCELLANEOUS.....................................................       59

  SECTION 10.01   Trust Indenture Act Controls..............................       59

  SECTION 10.02   Notices...................................................       59

  SECTION 10.03   Communication by Holders of Notes with Other Holders of

                  Notes.....................................................       60

  SECTION 10.04   Certificate and Opinion as to Conditions Precedent........       60

  SECTION 10.05   Statements Required in Certificate or Opinion.............       60

  SECTION 10.06   Rules by Trustee and Agents...............................       61

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

                  Stockholders..............................................       61

  SECTION 10.08   Governing Law.............................................       61

  SECTION 10.09   No Adverse Interpretation of Other Agreements.............       61

  SECTION 10.10   Successors................................................       61

  SECTION 10.11   Severability..............................................       61

  SECTION 10.12   Counterpart Originals.....................................       62

  SECTION 10.13   Table of Contents, Headings, Etc..........................       62

  SECTION 10.14   Acts of Holders; Record Dates.............................       62

ARTICLE XI MEETINGS OF HOLDERS OF NOTES.....................................       63

  SECTION 11.01   Purposes for Which Meetings May Be Called.................       63

  SECTION 11.02   Call, Notice and Place of Meetings........................       63

  SECTION 11.03   Persons Entitled to Vote at Meetings......................       64

  SECTION 11.04   Quorum; Action............................................       64

  SECTION 11.05   Determination of Voting Rights; Conduct and Adjournment

                  of Meetings...............................................       64

  SECTION 11.06   Counting Votes and Recording Action of Meetings...........       65

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
EXHIBIT D   Registration Rights Agreement...................................      E-1
</TABLE>

                                       iv
<PAGE>
      INDENTURE dated as of September 17, 2001 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 7.50% Senior Notes
due 2021 (the "Initial Notes") and the 7.50% Senior Notes due 2021, Series A,
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.

      "Acquired Debt" means, with respect to any specified Person, (i)
Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Subsidiary of such specified Person including,
without limitation, Indebtedness incurred in connection with, or in
contemplation of, such other Person merging with or into or becoming a
Subsidiary of such specified Person and (ii) Indebtedness secured by a Lien
encumbering any asset acquired by such specified Person.

      "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.
<PAGE>
      "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.

      "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, societe anonyme, Luxemburg, 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;
and (ii) all goodwill, trade names, trademarks, patents, unamortized debt
discount and expenses and other like intangibles reflected in such balance
sheet.

      "Currency Hedging Obligations" means, with respect to any Person, the net
payment Obligations of such Person under agreements or arrangements designed to
protect such Person

                                       2
<PAGE>
against fluctuations in the currency exchange rates incurred or entered into in
the ordinary course of its business and not for speculative purposes.

      "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.

      "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 4.06 or 4.07, 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.

      "Fair Market Value" means, with respect to consideration received or to be
received pursuant to any transaction by any Person, the fair market value of
such consideration as determined in good faith by the Management Committee of
the Company.

      "Financial Hedging Obligations" means, with respect to any Person, the net
payment Obligations of such Person under (i) interest rate swap agreements,
interest rate cap agreements

                                       3
<PAGE>
and interest rate collar agreements and (ii) other agreements or arrangements
designed to protect such Person against fluctuations in interest rates or
currency exchange rates incurred or entered into in the ordinary course of its
business and not for speculative purposes.

      "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 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.

      "Hedging Obligations" means, with respect to any Person, collectively, the
Currency Hedging Obligations of such Person and the Financial Hedging
Obligations of such Person.

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

      "Indebtedness" means, with respect to any Person, at any date, any of the
following, without duplication: (i) any liability of such Person (A) for
borrowed money (whether or not the recourse of the lender is to the whole of the
assets of such Person or only to a portion thereof), (B) evidenced by a note,
bond, debenture or similar instrument, or (C) for the payment of money relating
to a Capital Lease Obligation or other obligation (whether issued or assumed)
relating to the deferred purchase price of property; (ii) all conditional sale
obligations and all obligations

                                       4
<PAGE>
under any title retention agreement (even if the rights and remedies of the
seller under such agreement in the event of default are limited to repossession
or sale of such property); (iii) all obligations for the reimbursement of any
obligor on any letter of credit, banker's acceptance or similar credit
translation, other than as entered into in the ordinary course of business; (iv)
all indebtedness of others secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on any asset or property (including, without limitation, leasehold
interests and any other tangible or intangible property) of such Person, whether
or not such indebtedness is assumed by such Person or is not otherwise such
Person's legal liability in full (except obligations of others secured by Liens,
which obligations are neither assumed nor guaranteed by such Person nor on which
it pays interest, existing upon real estate or rights in or relating to real
estate acquired by such Person for substation, metering station, gathering line,
transmission line, transportation line, distribution line or right of way
purposes, and any Liens reserved in leases for rent and for compliance with the
terms of the leases in the case of leasehold estates, to the extent that any
such Lien referred to in this clause (iv) does not materially impair the use of
the property), the amount of such indebtedness for the purposes of this
definition shall be limited to the lesser of the amount of such indebtedness
secured by such Lien or the fair market value of the assets or the property
securing such lien; (v) all indebtedness of others (including all interest and
dividends on any Indebtedness or preferred securities of any other Person) the
payment of which is guaranteed, directly or indirectly, by such Person or that
is otherwise its legal liability or which such Person has agreed to purchase or
repurchase or in respect of which such Person has agreed contingently to supply
or advance funds; and (vi) to the extent not otherwise included in this
definition, obligations in respect of Hedging Obligations. Indebtedness shall
not include (a) accounts payable arising in the ordinary course of business and
(b) any obligations in respect of prepayments for natural gas or oil production
or natural gas or oil imbalances.

      "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 Banc of America Securities LLC, Banc One
Capital Markets, Inc. and BMO Nesbitt Burns Corp.

      "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" October 1 and April 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

                                       5
<PAGE>
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.

      "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.

      "Offering" means the offering of the Initial Notes by the Company.

      "Offering Memorandum" means the Offering Memorandum of the Company dated
September 10, 2001 with respect to the Offering.

                                       6
<PAGE>
      "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 to secure all or part of the purchase price
      thereof;

            iv. Liens on property, shares of stock, indebtedness for borrowed
      money, 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
      part of the purchase price thereof, such construction or the making of
      such developments or improvements;

                                       7
<PAGE>
            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 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.

      "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).

                                       8
<PAGE>
      "Property" means any right or interest of the Company or any of its
Subsidiaries in and to property of any kind whatsoever, whether real, personal
or mixed and whether tangible or intangible.

      "Purchase Agreement" means the Purchase Agreement dated September 10, 2001
among the Company and the Initial Purchasers (as defined therein.)

      "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 September 17, 2001, by and among the Company and the other parties
named on the signature pages thereof, a copy of which is attached hereto as
Exhibit D, 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.

                                       9
<PAGE>
      "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.

      "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 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
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, and (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.

      "Significant Subsidiary" means any Subsidiary that would be a "significant
subsidiary" as defined in Article 1, Rule 1 - 02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such Regulation is in effect on the date of
this Indenture.

      "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.

      "Subordinated Indebtedness" means any Indebtedness of the Company which is
subordinated in right of payment to the Notes.

      "Subsidiary" of any Person means (i) any Person of which at the time of
such determination more than 50% of the total voting power of Capital Interests
entitled (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) 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

                                       10
<PAGE>
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.

      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;

                                       11
<PAGE>
      "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:

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

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

      (3)   "or" is not exclusive;

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

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

      (6)   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.

                                   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

                                       12
<PAGE>
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.

      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

                                       13
<PAGE>
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
$250,000,000 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.

                                       14
<PAGE>
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 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 $1000 or
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.

                                       15
<PAGE>
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
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 (1) above,
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

                                       16
<PAGE>
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)(a) 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 (D),
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 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

                                       17
<PAGE>
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

                                       18
<PAGE>
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 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

                                       19
<PAGE>
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 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),

                                       20
<PAGE>
(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:

                      (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
(D), 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.

                                       21
<PAGE>
                      (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)(D) 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)(D) 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:

                          (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)

                                       22
<PAGE>
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 (D), 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 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.

                                       23
<PAGE>
                  (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, 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

                                       24
<PAGE>
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
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

                                       25
<PAGE>
      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 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

                                       26
<PAGE>
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, 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.

                                       27
<PAGE>
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 1    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
transfer, exchange, payment, replacement or cancellation and shall return such
canceled Notes to the Company upon the Company's written request. The Company

                                       28
<PAGE>
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 in compliance with the
requirements of the principal national securities exchange, if any, on which the
Notes are listed or, if the Notes are not so listed, 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

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<PAGE>
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.

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 redemption price as computed in accordance with
the terms of the Notes;

                  (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

                                       30
<PAGE>
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 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.

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<PAGE>
         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 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,

                                       32
<PAGE>
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.

SECTION 4.06      Limitations on Liens.

         The Company will not, nor will it permit any Subsidiary of the Company
to, issue, create, assume or guarantee any Indebtedness of the character
specified in clause (i)(A) of the definition of the term "Indebtedness" secured
by a Lien upon any Property or upon any Capital Interests or

                                       33
<PAGE>
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 Property unless:

                  (a)       the Company or such Subsidiary, as the case may be,
would be entitled to incur Indebtedness of the character specified in clause
(i)(A) of the definition of the term "Indebtedness" secured by a Lien on the
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 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 repayment, redemption or retirement of the Notes or other Indebtedness of
the Company or any Subsidiary of the character specified in clause (i)(A) of the
definition of the terms "Indebtedness" that matures more than one year after the
creation of such Indebtedness, (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.

         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

                                       34
<PAGE>
rights of the Holders 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

                                       35
<PAGE>
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 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 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, 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,

                                       36
<PAGE>
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.

                                   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

                                       37
<PAGE>
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, 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 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:

                  (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

                                       38
<PAGE>
                           (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.

         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.

         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

                                       39
<PAGE>
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,

                                       40
<PAGE>
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.

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.

                                       41
<PAGE>
         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.

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; 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.

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<PAGE>
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 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:

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<PAGE>
                           (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.

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,

                                       44
<PAGE>
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;

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<PAGE>
                  (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;

                  (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:

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<PAGE>
                  (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, 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

                                       47
<PAGE>
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.

         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

                                       48
<PAGE>
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.

                  (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

                                       49
<PAGE>
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

                                       50
<PAGE>
Company. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, the Trustee may appoint a
successor Authenticating Agent which shall be acceptable to the Company and
shall 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.

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<PAGE>
         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 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

                                       52
<PAGE>
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(g) 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:

                  (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

                                       53
<PAGE>
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 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.

                                       54
<PAGE>
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.

                                   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;

                                       55
<PAGE>
                  (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.

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.

                                       56
<PAGE>
         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;

                  (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;

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<PAGE>
                  (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 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

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<PAGE>
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

                                       59
<PAGE>
acknowledged, if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier guaranteeing next day delivery.

         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;

                                       60
<PAGE>
                  (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.

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 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.

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<PAGE>
         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 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.

                                       62
<PAGE>
         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.

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

                                       63
<PAGE>
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.

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

                                       64
<PAGE>
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]

                                       65
<PAGE>
                                   SIGNATURES

         Dated as of September 17, 2001

                                            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: Assistant Vice President

                                       66
<PAGE>
                                                                       EXHIBIT A

                                 (FACE OF NOTE)

                                                                CUSIP: 664787ACZ

                      7.50% SENIOR NOTES DUE 2021, SERIES A

No. ____________                                               $________________

                        NORTHERN BORDER PIPELINE COMPANY

promises to pay to

or registered assigns,

the principal sum of  ____________________________________DOLLARS AND NO CENTS

on September 15, 2021.

Interest Payment Dates: April 1 and October 1

Record Dates: March 15 and September 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:   ______________, _____

                           Exhibit A-1
<PAGE>
                                 (BACK OF NOTE)

                      7.50% SENIOR NOTES DUE 2021, 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
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")),

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

                                  Exhibit A-2
<PAGE>
                  (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.

                  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 7.50% per annum, from September 17, 2001 until maturity [and shall
pay the Liquidated Damages, if any, payable

----------
(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.

                                  Exhibit A-3
<PAGE>
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 April 1 and October 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 April 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 March 15 or
September 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 September 17, 2001 (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

----------
(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-4
<PAGE>
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 $250,000,000 in aggregate
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 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 at a discount rate equal
to the comparable treasury yield (as defined below) plus 35 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 Banc of America
Securities L.L.C. If Banc of America Securities L.L.C. is 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

                                  Exhibit A-5
<PAGE>
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
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

                                  Exhibit A-6
<PAGE>
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

                                  Exhibit A-7
<PAGE>
Affiliates, and may otherwise deal with the Company or its Affiliates, as if it
were not the Trustee.

         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 September 17,
2001, 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-8
<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-9
<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-10
<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 in      following such      authorized signatory
                           in Principal Amount    Principal Amount of        decrease (or        of Trustee or Note
    Date of Exchange       of this Global Note      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-11
<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:      7.50% Senior Notes due 2021

Reference is hereby made to the Indenture, dated as of September 17, 2001 (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.

                                  Exhibit B-1
<PAGE>
         (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.

         (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

                                  Exhibit B-2
<PAGE>
                  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.

                  (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

                                  Exhibit B-3
<PAGE>
                  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-4
<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-5
<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:      7.50% Senior Notes due 2021

Reference is hereby made to the Indenture, dated as of September 17, 2001 (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

                                  Exhibit C-1
<PAGE>
         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 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

                                  Exhibit C-2
<PAGE>
         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-3<PAGE>
                                                                     EXHIBIT 4.3

                                                                  EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

               This Registration Rights Agreement (this "Agreement") is made and
entered into as of September 17, 2001 by and among Northern Border Pipeline
Company, a Texas general partnership (the "Company"), Banc of America Securities
LLC ("BOA"), Banc One Capital Markets, Inc. and BMO Nesbitt Burns Corp. (the
"Initial Purchasers"), who have agreed to purchase the Company's 7.50% Senior
Notes due 2021 (the "Senior Notes") pursuant to and subject to the terms and
conditions of a certain Purchase Agreement, dated September 10, 2001 (the
"Purchase Agreement") pursuant to which the Company issued and sold an aggregate
of $250,000,000 of the Senior Notes. In order to induce the Initial Purchasers
to purchase the Senior Notes, the Company has agreed to provide the registration
rights set forth in this Agreement. The execution and delivery of this Agreement
is a condition to the obligation of the Initial Purchasers to purchase the
Senior Notes pursuant to the Purchase 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).

               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.
<PAGE>
               Closing Date: The date of this Agreement.

               Commission: The Securities and Exchange Commission.

               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.

               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.

               Exchange Offer Registration Statement: The Registration Statement
relating to the Exchange Offer, including the related Prospectus.

               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.

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

                                      -2-
<PAGE>
               Global Note Holder: A "Holder" as defined in the Indenture.

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

               Indenture: The Indenture, dated as of September 17, 2001 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.

               Memorandum: As defined in the Purchase Agreement.

               NASD: National Association of Securities Dealers, Inc.

               Notes: The Senior Notes and the New Senior Notes.

               New Senior Notes: The Company's 7.50% Senior Notes due 2021,
Series A to be issued pursuant to the Indenture (i) in the Exchange Offer or
(ii) upon the request of any holder of Senior Notes covered by a Shelf
Registration Statement, in exchange for such Senior Notes.

               Operator: Northern Plains Natural Gas Company.

               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 or any other entity.

               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
the 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.

                                      -3-
<PAGE>
               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 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.

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

                                      -4-
<PAGE>
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 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

                                      -5-
<PAGE>
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 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 at least 18 months (as extended
pursuant to Section 6(c)(i)) following the date on which such Shelf Registration
Statement first becomes effective under the Securities Act

                                      -6-
<PAGE>
or such shorter period ending when all of the Transfer Restricted Securities
available for sale thereunder have been sold pursuant thereto.

               (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 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) 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 (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 generally in accordance with the provisions in the Indenture
regarding payment of interest. Notwithstanding

                                      -7-
<PAGE>
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, the Liquidated Damages
payable with respect to the Transfer Restricted Securities as a result of such
clause (i), (ii), (iii) or (iv) ("Liquidated Damages"), as applicable, shall
cease. 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.

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

                                      -8-
<PAGE>
         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 Sherman & 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.

                  (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) 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.

               (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

                                      -9-
<PAGE>
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) 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 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;

                  (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; 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; 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;

                  (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,

                                      -10-
<PAGE>
         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 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 such
         document and other customary due diligence matters, and 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 at
         reasonable times for inspection by the selling Holders, any managing
         underwriter participating in the disposition pursuant to such
         Registration Statement, if any, and any attorney or accountant retained
         by such selling Holders or any of the underwriter(s), all relevant
         financial and other records, pertinent corporate documents and
         properties of the Company and cause the officers, directors and
         employees of the Operator to supply all information

                                      -11-
<PAGE>
         reasonably requested by any such underwriter, attorney or accountant in
         connection with such Registration Statement or any post-effective
         amendment thereto subsequent to the filing thereof and prior to its
         effectiveness;

                  (vii) 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;

                  (viii) 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;

                  (ix) 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);

                  (x) 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; 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;

                  (xi) 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

                                      -12-
<PAGE>
         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 (g) of
                  Section 7 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 paragraphs (c) and
                  (d) of Section 7 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 specifically
                  stated in such opinion), on the basis of the foregoing, 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); and

                                      -13-
<PAGE>
                           (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 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 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;

                  (xii) 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;

                  (xiii) 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;

                  (xiv) cooperate with the selling Holders and the managing
         underwriter(s), if any, to facilitate the timely preparation and
         delivery of certificates representing Transfer

                                      -14-
<PAGE>
         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);

                  (xv) 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 (xii) above;

                  (xvi) subject to Section 6(c)(i), if any fact or event
         contemplated by clause 6(c)(iii)(D) above shall exist or have occurred,
         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;

                  (xvii) 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;

                  (xviii) 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;

                  (xix) 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;

                  (xx) 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

                                      -15-
<PAGE>
         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;

                  (xxi) cause all Transfer Restricted Securities covered by the
         Registration Statement to be listed on each securities exchange 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

                  (xxii) 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, 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)(xvi) 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)(xvi) 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

                  All expenses incident to the Company's performance of or
compliance with this Agreement will be borne by the Company, regardless of
whether a Registration Statement becomes effective, including, without
limitation: (i) all registration and filing fees and expenses

                                      -16-
<PAGE>
(including filings made by any Initial Purchaser or Holder with the NASD (and,
if applicable, the fees and expenses of any "qualified independent underwriter")
and its counsel that may be required by the rules and regulations of the NASD);
(ii) all fees and expenses of compliance with federal securities and state Blue
Sky or securities laws; (iii) all expenses of printing (including printing
certificates for the New Senior Notes to be issued in the Exchange Offer and
printing of Prospectuses); (iv) all fees and disbursements of counsel for the
Company; (v) all messenger and delivery services and telephone expenses of the
Company; and (vi) all fees and disbursements of independent certified public
accountants of the Company (including the expenses of any special audit and
comfort letters required by or incident to such performance).

                  The Company will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of any of the
Operator's officers and employees performing legal or accounting duties), the
expenses of any annual audit and the fees and expenses of any Person, including
special experts, retained by the Company.

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 Company by or on behalf of
such Holder specifically for inclusion therein.

                                      -17-
<PAGE>
                  (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 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 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

                                      -18-
<PAGE>
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 BOA, 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 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 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

                                      -19-
<PAGE>
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 Memorandum, and the table contained
below the first paragraph and the information contained in the second, fifth and
sixth paragraphs and in the last sentence of the fourth paragraph under the
caption "Plan of Distribution" in the Memorandum in the Memorandum are correct
and constitute the only information furnished in writing to the Company by or on
behalf of the Holders specifically for inclusion in the Memorandum.

SECTION 9.        RULE 144A

                  The Company hereby agrees with each Holder, for so long as any
Transfer Restricted Securities remain outstanding and during any period in which
the Company is not subject to Section 13 or 15(d) of the Exchange Act, to make
available to any Holder or beneficial owner of Transfer Restricted Securities in
connection with any sale thereof and any prospective purchaser of such Transfer
Restricted Securities from such Holder or beneficial owner, the information
required by Rule 144A(d)(4) under the Securities Act in order to permit resales
of such Transfer Restricted Securities pursuant to Rule 144A.

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

                                      -20-
<PAGE>
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
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
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 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; and

                                      -21-
<PAGE>
                           With a copy to:

                                    Banc of America Securities LLC
                                    100 North Tryon Street
                                    Charlotte, North Carolina 28255
                                    Attention: Syndicate Operations
                                    Telecopy No.: (704) 388-9212

                  (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

                  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.

                                      -22-
<PAGE>
                  (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.

                  (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]

                                      -23-
<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:VP Finance and Treasurer

BANC OF AMERICA SECURITIES LLC
BANC ONE CAPITAL MARKETS, INC.
BMO NESBITT BURNS CORP.
By:      BANC OF AMERICA SECURITIES LLC

By: /s/ Sammy Hicks
   ------------------------------------
Name:  Sammy Hicks
Title: Associate

                                      -24-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]