Document:

Contribution Agreement

 Exhibit 10.32 

 CONTRIBUTION AGREEMENT 
 by and among

 ONEOK, INC. 
 NORTHERN BORDER
PARTNERS, L.P. 
 and 
 NORTHERN
BORDER INTERMEDIATE LIMITED PARTNERSHIP 
 February 14, 2006 
  

 TABLE OF CONTENTS 
  

					
	 SECTION 1. CONTRIBUTION
	  	1
	 1.1
	  	 Contribution to Northern Border
	  	1
	 1.2
	  	 Issuance of the Units
	  	2
	 1.3
	  	 The Closing
	  	2
	 1.4
	  	 GP Contribution and Dropdown To NBILP
	  	3
	 1.5
	  	 Working Capital Adjustment
	  	3
		
	 SECTION 2. REPRESENTATIONS AND WARRANTIES OF ONEOK
	  	5
	 2.1
	  	 Organization and Authority of ONEOK
	  	5
	 2.2
	  	 Organization, Authority and Qualification of the Entities
	  	6
	 2.3
	  	 Capital of Companies; Beneficial Ownership
	  	6
	 2.4
	  	 Subsidiaries
	  	7
	 2.5
	  	 Financial Statements
	  	7
	 2.6
	  	 Taxes
	  	8
	 2.7
	  	 Absence of Certain Changes
	  	9
	 2.8
	  	 Ordinary Course
	  	10
	 2.9
	  	 Intellectual Property
	  	10
	 2.10
	  	 Contracts
	  	11
	 2.11
	  	 Compliance
	  	12
	 2.12
	  	 Litigation
	  	12
	 2.13
	  	 Insurance
	  	12
	 2.14
	  	 Related Transactions
	  	13
	 2.15
	  	 Employee Benefit Matters
	  	13
	 2.16
	  	 Environmental Matters
	  	14
	 2.17
	  	 Securities Act
	  	14
	 2.18
	  	 Regulatory Matters
	  	15
	 2.19
	  	 Operating Assets
	  	15
	 2.20
	  	 Brokers’ Fees
	  	16
	 2.21
	  	 Books and Records
	  	16
	 2.22
	  	 Indebtedness
	  	16
	 2.23
	  	 Disclaimer
	  	16
		
	 SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE NBP PARTNERSHIPS
	  	17
	 3.1
	  	 Organization and Authority of the NBP Partnerships
	  	17
	 3.2
	  	 Capitalization
	  	18
	 3.3
	  	 Litigation
	  	19
	 3.4
	  	 Compliance
	  	19
	 3.5
	  	 Employee Matters
	  	19
	 3.6
	  	 Environmental Matters
	  	20
	 3.7
	  	 Absence of Certain Changes
	  	21
	 3.8
	  	 Securities Act
	  	21
	 3.9
	  	 SEC Filings
	  	21
	 3.10
	  	 Brokers’ Fees
	  	22
	 3.11
	  	 Opinion of Financial Adviser
	  	22

					
	 3.12
	  	 Registration Rights
	  	22
	 3.13
	  	 Disclaimer
	  	22
		
	 SECTION 4. COVENANTS OF ONEOK
	  	23
	 4.1
	  	 Conduct of the Entities
	  	23
	 4.2
	  	 Cash Management
	  	25
		
	 SECTION 5. COVENANTS OF THE NBP PARTNERSHIPS
	  	25
	 5.1
	  	 Books and Records
	  	25
	 5.2
	  	 Approval of Issuance of Common Units Upon Conversion Units
	  	26
		
	 SECTION 6. COVENANTS OF ONEOK AND THE NBP PARTNERSHIPS
	  	26
	 6.1
	  	 Access to Information
	  	26
	 6.2
	  	 Commercially Reasonable Efforts
	  	27
	 6.3
	  	 Regulatory and Other Authorizations; Notices and Consents
	  	27
	 6.4
	  	 Public Announcements
	  	28
	 6.5
	  	 Notices of Certain Events
	  	29
	 6.6
	  	 Entity Guarantees
	  	29
	 6.7
	  	 Intercompany Accounts
	  	29
	 6.8
	  	 Shared Contracts and Drop-Down Contracts
	  	29
	 6.9
	  	 ONEOK Marks
	  	30
	 6.10
	  	 Indebtedness for Borrowed Money
	  	31
	 6.11
	  	 Conversion Transactions
	  	31
	 6.12
	  	 Interim Financial Statements
	  	31
	 6.13
	  	 Cooperation Regarding Audits
	  	31
	 6.14
	  	 Insurance Matters
	  	32
		
	 SECTION 7. CONDITIONS TO CLOSING
	  	32
	 7.1
	  	 Conditions to the Obligations of ONEOK
	  	32
	 7.2
	  	 Conditions to the Obligations of the NBP Partnerships
	  	34
		
	 SECTION 8. TERMINATION OF AGREEMENT; RIGHTS TO PROCEED
	  	36
	 8.1
	  	 Termination
	  	36
	 8.2
	  	 Effect of Termination
	  	37
		
	 SECTION 9. INDEMNIFICATION
	  	37
	 9.1
	  	 Survival of Representations and Warranties, Etc
	  	37
	 9.2
	  	 Indemnification
	  	37
	 9.3
	  	 Threshold; Cap
	  	39
	 9.4
	  	 Exclusive Remedy; Sole Recourse
	  	40
	 9.5
	  	 No Contribution
	  	40
	 9.6
	  	 Setoff
	  	40
	 9.7
	  	 Third Party Claims
	  	40
		
	 SECTION 10. TAX MATTERS
	  	41
	 10.1
	  	 Retention of Records
	  	41
	 10.2
	  	 Cooperation
	  	41

  

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	 10.3
	  	 Transfer Taxes
	  	42
	 10.4
	  	 Tax Returns
	  	42
	 10.5
	  	 Allocation of Taxes
	  	43
	 10.6
	  	 Tax Indemnity
	  	45
	 10.7
	  	 Contests
	  	46
	 10.8
	  	 Amended Tax Returns
	  	47
	 10.9
	  	 Miscellaneous
	  	47
	 10.10
	  	 Allocation of Value among the Contributed Entities; Book Ups
	  	47
		
	 SECTION 11. MISCELLANEOUS
	  	48
	 11.1
	  	 Fees and Expenses
	  	48
	 11.2
	  	 Governing Law
	  	48
	 11.3
	  	 Notices
	  	48
	 11.4
	  	 Entire Agreement
	  	50
	 11.5
	  	 Assignability; Binding Effect
	  	50
	 11.6
	  	 Captions and Gender
	  	50
	 11.7
	  	 Execution in Counterparts
	  	50
	 11.8
	  	 Amendments
	  	50
	 11.9
	  	 Publicity and Disclosures
	  	50
	 11.10
	  	 Severability
	  	51
	 11.11
	  	 Waiver of Jury Trial
	  	51
	 11.12
	  	 Arbitration
	  	51
	 11.13
	  	 Time of the Essence
	  	51
	 11.14
	  	 Remedies Cumulative; Specific Performance
	  	51
	 11.15
	  	 Further Assurances
	  	52
	 11.16
	  	 Third Party Beneficiaries
	  	52
	 11.17
	  	 Audit Committee Authority
	  	52
	 11.18
	  	 Certain Definitions
	  	52
	 11.19
	  	 Other Defined Terms
	  	60

  

	
	 Exhibit A – Companies/Company Subsidiaries

	 Exhibit B – Form of Amendment

	 Exhibit C – ONEOK Guaranty Agreement

	 Exhibit D – Target Working Capital

	 Exhibit E – Services Agreement

  

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 CONTRIBUTION AGREEMENT 
 This CONTRIBUTION AGREEMENT (this “Agreement”) is entered into as of February 14, 2006 by and among ONEOK, Inc., an Oklahoma corporation (“ONEOK”), Northern Border Partners,
L.P., a Delaware limited partnership (“Northern Border”), and Northern Border Intermediate Limited Partnership (“NBILP”, and together with Northern Border, the “NBP Partnerships”) (each a
“Party” and together, the “Parties”). Capitalized terms used but not defined shall have the meaning given in Section 11.18. 
 W I T N E S S E T H 
 WHEREAS, ONEOK owns all of the issued and outstanding Equity Interests (the
“Shares”) of each of the Persons listed on Exhibit A hereto under the heading “Companies” (the “Companies”, and each, individually, a “Company”); 
 WHEREAS, the Companies and their Subsidiaries, all of which are listed on Exhibit A under the heading “Company Subsidiaries”, own
and operate natural gas gathering, processing, fractionating, transportation, storage, pipelines and natural gas liquids assets located in Kansas, Oklahoma and Texas (the “Business”); and 
 WHEREAS, ONEOK wishes to contribute the Shares to the NBP Partnerships and the NBP Partnerships wish to accept the contribution of the Shares,
upon the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the premises and mutual agreements and
covenants herein contained, and intending to be legally bound hereby, the Parties hereto hereby agree as follows: 
 SECTION 1. CONTRIBUTION

 1.1 Contribution to Northern Border. Immediately before Closing, ONEOK shall deliver or cause to be delivered to
Northern Plains Natural Gas Company, LLC (“Northern Plains”) and Pan Border Gas Company, LLC (“Pan Border”, and collectively, the “Contributing NBP General Partners”), good and sufficient
instruments of transfer transferring the NBP GP Shares and the NBILP GP Shares to the Contributing NBP General Partners. At the Closing, ONEOK and the Contributing NBP General Partners shall deliver or cause to be delivered to Northern Border good
and sufficient instruments of transfer transferring the NBP Shares and the NBP GP Shares, respectively, to Northern Border. Such instruments of transfer shall effectively vest in Northern Border good and marketable title to the NBP Shares and the
NBP GP Shares free and clear of all Liens other than transfer restrictions imposed by applicable securities laws. The contribution of the NBP GP Shares by the Contributing NBP General Partners will be made in order to comply with the NBP General
Partners’ obligations to maintain general partner capital accounts in accordance with Section 4.2 of the Northern Border Partnership Agreement and NBP acknowledges that the contribution of the NBP GP Shares by the Contributing NBP general
Partners is sufficient to maintain the aggregate general partner capital accounts in NBP required by Section 4.2 of the Northern Border Partnership Agreement. 

 1.2 Issuance of the Units. As consideration for the NBP Shares, Northern Border
will, at Closing, issue to ONEOK 36,494,126 units representing limited partnership interests in Northern Border with the rights and preferences contained in the form of amendment (the “Amendment”) to the Amended and Restated
Agreement of Limited Partnership of Northern Border, dated as of October 1, 1993 (the “Northern Border Partnership Agreement”), attached hereto as Exhibit B (the “Units”), which Units shall be convertible, as
set forth in the Amendment, into common units representing limited partnership interests in Northern Border (“Common Units;” and the Common Units into which the Units are convertible, the “Conversion Units”).

 1.3 The Closing. 
 (a) Subject to the provisions of Section 8, the closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Gable & Gotwals, 100 W.
5th Street, Tulsa, OK 74103, commencing at 10:00 a.m. local time on the first business day of the calendar month
immediately following the satisfaction or waiver of all conditions to the obligations of the Parties to consummate the transactions contemplated hereby (other than conditions with respect to actions the Parties shall take at the Closing itself,
including without limitation, conditions in Section 7.1(h) and 7.2(h) herein) or such other date as Northern Border and ONEOK may mutually determine (the “Closing Date”). 
 (b) At the Closing, ONEOK will deliver the following documents and deliverables to Northern Border: 
 (i) Good and sufficient instruments of transfer transferring all of the Shares to Northern Border free and clear of all Liens other than
transfer restrictions imposed by applicable securities laws; 
 (ii) An executed copy of a Services Agreement substantially in
the form attached hereto as Exhibit E (the “Services Agreement”); 
 (iii) A certificate certifying
that the transactions contemplated hereby are exempt from withholding under Code Section 1445 executed in accordance with the requirements of the Treasury regulations promulgated thereunder; 
 (iv) Resignations of the officers, directors and managers identified prior to Closing by Northern Border; 
 (v) An executed copy of a Guaranty substantially in the form attached hereto as Exhibit C (the “ONEOK Guaranty
Agreement”); 
 (vi) An executed copy of a Payment, Performance, Indemnity and Support Agreement substantially in the
form attached hereto as Schedule 1.3(b)(vi); 
 (vii) A written opinion from legal counsel to ONEOK addressed to
Northern Border substantially in the form attached hereto as Schedule 1.3(b)(vii); and 
  

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 (viii) Such other certificates, instruments of conveyance, and documents as may be
reasonably requested by Northern Border prior to the Closing Date to carry out the intent and purposes of this Agreement. 
 (c) At the Closing, Northern Border will deliver the following documents and deliverables to ONEOK: 
 (i)
Certificates (or appropriate evidence of a book entry transfer to the account designated by ONEOK) representing the Units; 
 (ii) An executed copy of the Services Agreement; 
 (iii) An Agreement and Guaranty with respect to each of the
equipment leases relating to ONEOK Bushton Processing, Inc., in a form reasonably acceptable to ONEOK and Northern Border, and such other agreements, certificates and assurances necessary in connection with the transfer of ONEOK Bushton Processing,
Inc. to Northern Border; 
 (iv) An executed copy of a Payment, Performance, Indemnity and Support Agreement substantially in
the form attached hereto as Schedule 1.3(b)(vi); 
 (v) A written opinion from legal counsel to Northern Border
addressed to ONEOK substantially in the form attached hereto as Schedule 1.3(c)(v); and 
 (vi) Such other
certificates, instruments, and documents as may be reasonably requested by ONEOK prior to the Closing Date to carry out the intent and purposes of this Agreement. 
 1.4 GP Contribution and Dropdown To NBILP. At the Closing and immediately following the contribution set forth in Section 1.1, (i) Northern Border shall deliver to NBILP good and
sufficient instruments of transfer transferring the NBP Shares and the NBP GP Shares to NBILP, and (ii) ONEOK shall cause the Contributing NBP General Partners to deliver to NBILP good and sufficient instruments of transfer transferring the
NBILP GP Shares to NBILP. Such instruments of transfer shall effectively vest in NBILP good and marketable title to the Shares free and clear of all Liens other than transfer restrictions imposed by applicable securities laws. The contribution of
the NBILP GP Shares by the Contributing NBP General Partners will be made in order to comply with the NBP General Partners’ obligations to maintain general partner capital accounts in accordance with Section 4.2 of the Amended and Restated
Agreement of Limited Partnership of NBILP, dated as of October 1, 1993 (the “NBILP Partnership Agreement”) and NBILP acknowledges that the contribution of the NBILP GP Shares by the Contributing NBP General Partners is
sufficient to maintain the aggregate general partner capital accounts in NBILP required by Section 4.2 of the NBILP Partnership Agreement. 
 1.5 Working Capital Adjustment. 
 (a) As soon as practicable, but in no event later than 60 days
following the Closing, ONEOK shall prepare and deliver to Northern Border a calculation (the “Closing Working Capital Statement”) of the Net Working Capital of the Entities, on a consolidated basis, 

  

 3 

 
as of the close of business on the last day of the month immediately preceding the Closing Date (the “Closing Working Capital”). The Closing
Working Capital Statement shall be prepared in accordance with the principles set forth in the definition of Net Working Capital. 
 (b) ONEOK shall deliver a copy of the Closing Working Capital Statement to Northern Border promptly after it has been prepared. After receipt of the Closing Working Capital Statement, Northern Border shall have 30 days to review the Closing
Working Capital Statement, together with the work papers used in the preparation thereof. ONEOK shall (i) provide Northern Border and its Representatives reasonable access during normal business hours to all relevant personnel, work papers,
trial balances and other financial information to the extent necessary or useful to complete their review of the Closing Working Capital Statement, and (ii) cooperate with Northern Border’s and its Representatives’ reasonable requests
with respect to the review of the Closing Working Capital Statement, including by providing on a timely basis all information necessary or useful in reviewing the Closing Working Capital Statement. Unless Northern Border delivers written notice to
ONEOK on or prior to the 30th day after Northern Border’s receipt of the Closing Working Capital Statement specifying in reasonable detail the amount, nature and basis of all disputed items, Northern Border shall be deemed to have accepted and
agreed to the calculation of the Closing Working Capital. If Northern Border (or one of its Representatives) notifies ONEOK of an objection to the calculation of the Closing Working Capital, ONEOK and Northern Border shall, within 20 days (or such
longer period as the Parties may agree in writing) following such notice (the “Resolution Period”), attempt to resolve their differences and any resolution by them as to any disputed amounts shall be final, binding and conclusive
(other than as a result of manifest error or fraud). 
 (c) If, at the conclusion of the Resolution Period, there are any
amounts remaining in dispute, then such amounts remaining in dispute shall be submitted to a nationally recognized public accounting firm agreed by Northern Border and ONEOK (the “Neutral Auditors”). Northern Border and ONEOK shall
execute, if requested by the Neutral Auditors, a reasonable engagement letter, including customary indemnities. The Neutral Auditors shall act as an arbitrator to determine, based solely on the provisions of this Section 1.5(c) and the
presentations by ONEOK and Northern Border, and not by independent review, only those issues still in dispute. The Neutral Auditors’ determination shall be made within 30 days of the dispute being submitted for their determination, shall be set
forth in a written statement delivered to ONEOK and Northern Border and shall be final, non-appealable and binding on the Parties hereto, absent manifest error or fraud. A judgment of a court of competent jurisdiction may be entered upon the Neutral
Auditors’ determination. The Neutral Auditors shall have exclusive jurisdiction over, and resort to the Neutral Auditors as provided in this Section 1.5(c) shall be the only recourse and remedy of the Parties against one another with
respect to, any disputes arising out of or relating to the adjustments pursuant to this Section 1.5(c). The fees, costs and expenses of the Neutral Auditors shall be borne by Northern Border, on the one hand, and by ONEOK, on the other, based
upon the percentage which the portion of the contested amount not awarded to each Party bears to the amount actually contested by such Party. For example, if Northern Border claims that the Closing Working Capital is $1,000 less than the amount
determined by ONEOK, and ONEOK contests only $500 of the amount claimed by Northern Border, and if the Neutral Auditors ultimately resolve the dispute by awarding Northern Border $300 of the $500 contested, then the costs and expenses of the Neutral
Auditors will be allocated 60% (i.e., 300 ÷ 500) to ONEOK and 40% (i.e., 200 ÷ 500) to Northern Border. The term “Final Closing  

  

 4 

 
Working Capital” shall mean the definitive Closing Working Capital agreed to (or deemed to be agreed to) by Northern Border and ONEOK in
accordance with Section 1.5(b) hereof or resulting from the determinations made by the Neutral Auditors in accordance with this Section 1.5(c) (in addition to those items theretofore agreed to by ONEOK and Northern Border). 
 (d) In the event the Final Closing Working Capital 
 (i) exceeds the Target Working Capital, Northern Border shall pay the excess in cash to ONEOK; or 
 (ii) is less than the Target Working Capital, ONEOK shall pay the difference in cash to Northern Border (the payments contemplated by this
Section 1.5(d) are referred to as the “Net Working Capital Adjustment”). 
 All payments made pursuant to this
Section 1.5 shall be made by wire transfer of immediately available funds within five (5) days of the determination of the Final Closing Working Capital to an account designated in writing by the applicable Party. 
 SECTION 2. REPRESENTATIONS AND WARRANTIES OF ONEOK 
 Except as set forth in the disclosure schedules delivered by ONEOK (the “ONEOK Disclosure Schedules”) to Northern Border on the date hereof (it being agreed that any matter disclosed in a particular Schedule of the
Disclosure Schedules delivered by ONEOK shall be deemed to have been disclosed with respect to any other Sections of this Agreement to the extent that the relevance of such matter to such other Section is readily apparent from the information
disclosed), ONEOK represents and warrants to Northern Border that the statements contained in this Section 2 are true, correct and complete as of the date of this Agreement and will be true, correct and complete as of the Closing, except in
each case to the extent that such statements are expressly made only as of a specified date, in which case ONEOK represents and warrants that such statements are true, correct and complete as of such specified date. 
 2.1 Organization and Authority of ONEOK. 
 (a) ONEOK is a corporation duly incorporated, validly existing and in good standing under the laws of Oklahoma. 
 (b) ONEOK has all requisite right, authority and power to enter into this Agreement and each Related Agreement to be executed and
delivered by ONEOK and to carry out the transactions contemplated hereby and thereby. 
 (c) The execution, delivery and
performance by ONEOK of this Agreement and each Related Agreement have been duly authorized by all necessary action of ONEOK and no other action on the part of ONEOK is required in connection therewith. 
 (d) This Agreement and each Related Agreement to be executed and delivered by ONEOK constitutes, or when executed and delivered will
constitute, valid and binding obligations of ONEOK enforceable in accordance with their respective terms, except as such 

  

 5 

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

 6 

 (b) There are no outstanding options, warrants, rights, commitments, preemptive rights or
agreements of any kind for the issuance or sale of, or outstanding securities convertible into, any additional shares of capital stock of any class or limited liability company interests, as the case may be, of any Company which would entitle the
holders thereof to an interest in or rights in respect of that Company, and there are no agreements of any kind that may obligate ONEOK or any of its Affiliates (including the Companies) to sell, issue, purchase, redeem or otherwise transfer any
Shares to any Person. There are no voting agreements, proxies or other similar agreements or understandings with respect to the Shares. 
 2.4 Subsidiaries. 
 (a) Exhibit A lists, for each Company Subsidiary, its name, type of entity,
jurisdiction of its incorporation, formation or organization and the percentage Equity Interest owned by a Company. Except as set forth in Schedule 2.4(a), the Companies own, directly or indirectly, all of the issued and outstanding Equity
Interests of each Company Subsidiary, free and clear of all Liens other than transfer restrictions imposed by applicable securities laws, and the owner beneficially and of record of each Company Subsidiary is either a Company or a Company
Subsidiary, as applicable, and all Equity Interests of each Company Subsidiary are validly issued, fully paid and nonassessable. There are no options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any
character relating to the Equity Interests of the Company Subsidiaries or that may obligate the Company Subsidiaries to issue or sell any Equity Interests of any Company Subsidiary, and there are no agreements of any kind that may obligate any
Company to sell, issue, purchase, redeem or otherwise transfer any Equity Interests in any Company Subsidiary to any Person. There are no voting agreements, proxies or other similar agreements or understandings with respect to the Equity Interests
of the Company Subsidiaries. 
 (b) Other than the Company Subsidiaries, no Entity owns any Equity Interest in any Person
except as set forth in Schedule 2.4(b). The Entities own, directly or indirectly, 50% of the outstanding Equity Interests in Fox Plant, L.L.C. and 10.1765% of the Equity Interests in Venice Energy Services Company, L.L.C., in each case free
and clear of all Liens, other than transfer restrictions imposed by applicable securities laws. 
 2.5 Financial Statements.

 (a) ONEOK has delivered to Northern Border true, correct and complete copies of a consolidated unaudited balance sheet of
the Entities (the “Balance Sheet”) as of December 31, 2005 (the “Balance Sheet Date”) and an unaudited statement of income of the Acquired Entities for the 12 months then ended (together, the “Financial
Statements”) copies of which are attached hereto as Schedule 2.5(a). The long-term Indebtedness listed in the Financial Statements under the caption “Long-term Debt, excluding current maturities” is all owed to ONEOK or its
Affiliates. 
 (b) Except (i) to the extent set forth in or reserved against in the Balance Sheet or as identified in
Schedule 2.5(b) hereto, (ii) for current liabilities (determined in accordance with GAAP) incurred in the ordinary course of business consistent with past practices since the Balance Sheet Date, and (iii) for immaterial Liabilities,
none of the Entities has any Liabilities of 

  

 7 

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

 8 

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

 9 

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

 10 

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

 11 

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

  

 12 

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

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

  

 13 

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

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

  

 14 

 
are not registered under the Securities Act or any applicable state securities law, and that such Units may not be transferred or sold except pursuant to the
registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and pursuant to state securities laws and regulations as applicable. ONEOK acknowledges that each certificate representing the Units shall bear a legend
in substantially the following form: 
 THE UNITS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR ANY STATE SECURITIES LAWS (“ACTS”). THE UNITS HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE UNITS UNDER THE ACTS OR AN OPINION OF
COUNSEL SATISFACTORY TO THE PARTNERSHIP THAT SUCH REGISTRATION IS NOT REQUIRED. 
 2.18 Regulatory Matters. No Entity is
a “public utility company,” “holding company” or “subsidiary” or “affiliate” of a holding company as such terms are defined in the Public Utility Holding Company Act of 1935 (the “1935 Act”).
Each Entity that is a “Natural Gas Company” as that term is defined in Section 2 of the Natural Gas Act (“NGA”) is in compliance, in all material respects, with all provisions of the NGA and all rules and regulations
promulgated by FERC pursuant thereto. Each such Natural Gas Company is in compliance, in all material respects, with all orders issued by FERC that pertain to material terms and conditions and material rates charged for services. No approval of
(a) the SEC under the 1935 Act or (b) FERC under the NGA or the Federal Power Act is required in connection with the execution of this Agreement by ONEOK or the transactions contemplated hereby with respect to ONEOK or the Entities. The
Form No. 2 Annual Reports filed by each Natural Gas Company with FERC for the years ended December 31, 2004 and December 31, 2003 were true, correct and complete, in all material respects, as of the dates thereof and since
December 31, 2004 no Natural Gas Company has become subject to any proceeding under Section 5 of the NGA or any general rate case proceeding commenced under Section 4 of the NGA by reason of a filing made with the FERC after
December 31, 2004. Except as set forth on Schedule 2.18, no approvals of state Governmental Authorities are required in connection with the execution of this Agreement by ONEOK or the transactions contemplated hereby with respect to
ONEOK or the Entities. 
 2.19 Operating Assets. 
 (a) Except as identified to the contrary in Schedule 2.19(a), (i) except for the Drop-Down Contracts and the Shared Contracts
and except as would not reasonably be expected to have a Material Adverse Effect, the Entities own or have the right to use the pipelines, storage facilities, gas processing facilities, fractionators, plants, equipment and related facilities and
assets (“Operating Assets”) necessary to enable them to conduct their business in the manner currently being conducted and the Entities own or have the right to use the Operating Assets that are reflected as being owned or leased by
such Entities on the Financial Statements; (ii) the Operating Assets are free and clear of Liens other than Permitted Liens; (iii) each Entity has good and indefeasible title to the real property it owns in fee, free and clear of all Liens
other than Permitted Liens; and (iv) each Entity has title to its rights-of-way and easements (A) free and clear of all Liens and claims of those claiming by, through or under ONEOK or its Affiliates 

  

 15 

 
(other than the Entities), other than Permitted Liens; and (B) sufficient to allow such Entity to conduct its business in substantially the same manner
as such business is currently being conducted. 
 (b) Except as identified to the contrary in Schedule 2.19(b), the
Operating Assets are in good operating condition and repair, ordinary wear and tear excepted, are free of material defects and are suitable for the use for which such assets are currently used. 
 2.20 Brokers’ Fees. Except for UBS Investment Bank (the fees of which shall be paid solely by ONEOK), no broker, finder, investment
banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the transactions contemplated by this Agreement based upon arrangements made by ONEOK or any of its Affiliates. 
 2.21 Books and Records. The respective books of account, minute books, stock or other equity record books and other records of each Entity,
all of which have been made available to Northern Border, are complete and correct. 
 2.22 Indebtedness. No Entity has any
Indebtedness to any Person other than Indebtedness owed to the other Entities or to ONEOK or its other Affiliates. 
 2.23
Disclaimer. 
 (a) Except as and to the extent expressly set forth in Section 2, (i) ONEOK makes no
representations or warranties, express or implied, and (ii) ONEOK expressly disclaims all Liability and responsibility for any representation, warranty, statement or information made or communicated (orally or in writing) to Northern Border or
any of its Subsidiaries, employees, agents, consultants or representatives (including, without limitation, any opinion, information, projection or advice that may have been provided to Northern Border by any officer, director, employee, agent,
consultant, representative or advisor of ONEOK or any of its Affiliates). 
 (b) WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, EXCEPT AS EXPRESSLY REPRESENTED OTHERWISE IN SECTION 2, ONEOK EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, ORAL OR WRITTEN, AS TO (I) TITLE TO ANY OF THE PROPERTIES OR OTHER ASSETS OF ANY OF THE ENTITIES,
(II) THE CONTENTS, CHARACTER OR NATURE OF ANY DESCRIPTIVE MEMORANDUM OR REPORT RELATING TO THE PROPERTIES OR OTHER ASSETS OF ANY OF THE ENTITIES, (III) ANY ESTIMATES OF THE VALUE OF THE ASSETS OR FUTURE REVENUES GENERATED BY THE PROPERTIES
OR OTHER ASSETS OF ANY OF THE ENTITIES, (IV) THE MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY, DESIGN OR MARKETABILITY OF THE PROPERTIES OR OTHER ASSETS OF ANY OF THE ENTITIES, OR (V) ANY OTHER MATERIALS OR INFORMATION THAT MAY
HAVE BEEN MADE AVAILABLE OR COMMUNICATED TO NORTHERN BORDER OR ITS AFFILIATES, OR ITS OR THEIR EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES OR ADVISORS IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY DISCUSSION OR
PRESENTATION RELATING THERETO, AND FURTHER DISCLAIMS ANY REPRESENTATION OR 

  

 16 

 
WARRANTY, EXPRESS OR IMPLIED, OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR SAMPLES OF MATERIALS OF ANY EQUIPMENT, IT BEING
EXPRESSLY UNDERSTOOD AND AGREED BY THE PARTIES HERETO THAT, EXCEPT AS EXPRESSLY REPRESENTED OTHERWISE IN SECTION 2, NORTHERN BORDER SHALL BE DEEMED TO BE OBTAINING PIPELINES, STORAGE FACILITIES, PLANTS, EQUIPMENT AND RELATED FACILITIES AND OTHER
ASSETS IN ITS PRESENT STATUS, CONDITION AND STATE OF REPAIR, “AS IS” AND “WHERE IS” WITH ALL FAULTS AND THAT NORTHERN BORDER HAS MADE OR CAUSED TO BE MADE SUCH INSPECTIONS AS IT DEEMS APPROPRIATE. 
 SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE NBP PARTNERSHIPS 
 Except as set forth in the disclosure schedules (the “NBP Partnerships Disclosure Schedules”) delivered by the NBP Partnerships to ONEOK on the date hereof (it being agreed that any matter disclosed
in a particular Schedule of the NBP Partnerships Disclosure Schedules shall be deemed to have been disclosed with respect to any other Sections of this Agreement to the extent that the relevance of such matter to such other Section is readily
apparent from the information disclosed), the NBP Partnerships represent and warrant to ONEOK that the statements contained in this Section 3 are true, correct and complete as of the date of this Agreement and will be true, correct and complete
as of the Closing, except in each case to the extent that such statements are expressly made only as of a specified date, in which case the NBP Partnerships represent and warrant that such statements are true, correct and complete as of such
specified date. 
 3.1 Organization and Authority of the NBP Partnerships. 
 (a) The NBP Partnerships are limited partnerships duly organized, validly existing and in good standing under the laws of Delaware.

 (b) The NBP Partnerships have all requisite right, authority and power to enter into this Agreement and each Related
Agreement to be executed and delivered by Northern Border and to carry out the transactions contemplated hereby. 
 (c) The
Partnership Policy Committee and the Audit Committee of Northern Border have each approved the execution, delivery and performance of this Agreement and each of the other Northern Border Transaction Agreements, and the Audit Committee has determined
that the Northern Border Transaction is fair and reasonable to Northern Border. Except as contemplated by this Agreement, the execution, delivery and performance by the NBP Partnerships of this Agreement and each of the other Northern Border
Transaction Agreements have been duly authorized by all necessary action of the NBP Partnerships and no other action on the part of the NBP Partnerships is required in connection therewith. 
 (d) This Agreement and each Related Agreement (including, without limitation, the Amendment) executed and delivered by the NBP
Partnerships constitutes, or when executed and delivered will constitute, valid and binding obligations of the NBP Partnerships 

  

 17 

 
enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency or other similar laws from time
to time in effect which affect the enforcement of creditors’ rights generally. 
 (e) The execution, delivery and
performance by the NBP Partnerships of this Agreement and each Related Agreement (including, without limitation, the Amendment) executed and delivered by the NBP Partnerships, with or without the giving of notice or the passage of time, or both, and
the issuance of the Units or the Conversion Units, as applicable: 
 (i) do not and will not conflict with or violate any
provision of the organizational documents of the NBP Partnerships; 
 (ii) do not and will not conflict with or violate any
Legal Requirements applicable to the NBP Partnerships or, except as set forth in Schedule 3.1(e)(ii) and any filings required to be made under the HSR Act, require the NBP Partnerships to obtain any approval, consent or waiver of, or make any
filing with, any Governmental Authority that has not been obtained or made, except for such violations or failures to obtain such approval, consent or waiver would not, individually or in the aggregate, have a material adverse effect on the ability
of the NBP Partnerships to perform its obligations hereunder and consummate the transactions contemplated hereby on the Closing Date; 
 (iii) except as set forth on Schedule 3.1(e)(iii), do not and will not require the consent, approval or waiver of any Person (other than any Governmental Authority), except for the approval of the issuance of
the Conversion Units by the holders of the Common Units and except for any such consents, approvals or waivers as have been obtained or the failure of which to be obtained would not, individually or in the aggregate, have a material adverse effect
on the ability of the NBP Partnerships to perform their obligations hereunder and consummate the transactions contemplated hereby on the Closing Date; 
 (iv) does not and will not breach any contract material to the business or operations of the NBP Partnerships or result in or permit the termination of any such contract; and 
 (v) except for issuance of the Conversion Units, do not require the consent or approval of the holders of Common Units. 
 (f) The Northern Border Partnership Agreement and the NBILP Partnership Agreement are in full force and effect and are binding on all the
partners thereto. After the Closing, the Amendment will be effective to amend the Northern Border Partnership Agreement in accordance with the provisions and terms of the Amendment. 
 3.2 Capitalization. 
 (a) As of the date hereof, Northern Border has 46,397,214 Common Units issued and outstanding and the partnership interests in Northern Border are as described in the Northern Border Partnership Agreement. Except as set forth on Schedule
3.2(a), there are no options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to the partnership interests of Northern Border or obliging 

  

 18 

 
Northern Border to issue or sell any partnership interests of Northern Border. NBILP has a 1.0101% general partner interest issued and outstanding. All of
the limited partner interests in NBILP are held by Northern Border. Except as set forth on Schedule 3.2(a), there are no options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character
relating to the partnership interests in NBILP or obligating NBILP to issue or sell any partnership interests of NBILP. 
 (b)
All of the Units and Conversion Units issuable to ONEOK pursuant to this Agreement, when issued, will at time of such issuance or conversion, as applicable, be duly authorized, validly issued, fully paid, and nonassessable and free of preemptive
rights, with no personal liability attaching to ownership thereof, except as such non-assessability and absence of personal liability may be affected by section 18-607 of the Delaware Revised Limited Partnership Act. At the Closing, Northern Border
will deliver to ONEOK good and valid title to the Units, and, upon conversion, to the Conversion Units, in each case, free and clear of any Liens, other than those imposed by section 18-607 of the Delaware Revised Limited Partnership Act, applicable
securities laws or the Northern Border Partnership Agreement. 
 3.3 Litigation. Except as disclosed in Schedule 3.3,
there are no Legal Proceedings pending or, to the Knowledge of the NBP Partnerships, threatened (a) that (i) seeks more than $1,000,000 in damages for which the NBP Partnerships or any of their Subsidiaries could be liable, (ii) seeks
injunctive relief against the NBP Partnerships or any of their Subsidiaries or any of their respective assets or activities or (iii) is, or seeks to be certified as, a class or similar representative action involving the NBP Partnerships or any
of their Subsidiaries or any of their respective assets, or (b) that challenges or otherwise seeks to prevent, enjoin, alter or delay the consummation of the transactions contemplated hereby. Neither of the NBP Partnerships nor any of their
Subsidiaries (nor any of their material assets) is subject to any outstanding Governmental Order. 
 3.4 Compliance. Except as
set forth on Schedule 3.4, the NBP Partnerships and their Subsidiaries are, and at all times since January 1, 2001 have been, in material compliance with all applicable Legal Requirements, except for such instances of non-compliance
that, individually or in the aggregate would not have a Northern Border Material Adverse Effect. Except as set forth on Schedule 3.4, since January 1, 2001, neither of the NBP Partnerships nor any of their Subsidiaries have received any
written notice from any Governmental Authority regarding any actual or possible material violation of or material failure to comply with any Legal Requirement that has resulted, or would reasonably be expected to result, in any material fine,
penalty or Liability. Except as set forth on Schedule 3.4, the NBP Partnerships and their Subsidiaries hold all Permits necessary for the conduct of their business as now being conducted, other than any Permits the failure of which to hold
would not, individually or in the aggregate, have a Northern Border Material Adverse Effect, and there is no suspension or cancellation of any such Permits pending or, to the Knowledge of the NBP Partnerships, threatened. 
 3.5 Employee Matters. Except for the Black Mesa Companies: 
 (a) Neither of the NBP Partnerships nor any of their Subsidiaries has at any time maintained, sponsored or been obligated to contribute to
any Employee Benefit Plan. 
  

 19 

 (b) There are no liabilities owed by the NBP Partnerships or any of their Subsidiaries in
respect of current or former employees or employment related matters, other than to employees or former employees of ONEOK or its Affiliates who provide services primarily to one or more of the Entities. 
 (c) Neither of the NBP Partnerships nor any of their Subsidiaries is a party to, or bound by, any collective bargaining agreement,
Contract or other understanding with a labor union. There are no unfair labor practice or labor arbitration proceedings pending or, to the Knowledge of the NBP Partnerships, threatened in writing against the NBP Partnerships or any of their
Subsidiaries. 
 3.6 Environmental Matters. Notwithstanding any other provision in this Agreement, this Section 3.6
contains the exclusive representations of the NBP Partnerships concerning Environmental Matters. Except as set forth on Schedule 3.6: 
 (a) The NBP Partnerships and their Subsidiaries are, and at all times since January 1, 2005 have been, in material compliance, with all applicable Environmental Laws; 
 (b) There have been no releases of Hazardous Materials at, on or under any property now owned or leased (or formerly owned or leased) by
the NBP Partnerships or any of their Subsidiaries which are required by applicable Environmental Laws to be remediated by the NBP Partnerships or any of their Subsidiaries, except for any releases that have been fully remediated or that would not,
individually or in the aggregate, have a Northern Border Material Adverse Effect; 
 (c) Neither of the NBP Partnerships nor
any of their Subsidiaries has received any written request for information or written notification that it is a potentially responsible party under CERCLA or any similar state Legal Requirement with respect to any on-site or off-site location for
which liability is currently being asserted against them with respect to the activities or operations of the NBP Partnerships and their Subsidiaries and neither of the NBP Partnerships nor any of their Subsidiaries has sent or contributed waste to
any facility that is subject to a potential claim under CERCLA or any similar state Legal Requirement; 
 (d) There are no
material writs, injunctions, decrees, notices of violation, Governmental Orders or judgments outstanding, or any Legal Proceedings pending or, to the Knowledge of the NBP Partnerships, threatened, involving the NBP Partnerships or any of their
Subsidiaries relating to (i) its compliance with any Environmental Law or (ii) the release, discharge, spill, treatment, storage or disposal of Hazardous Materials into the environment at any location that could reasonably be expected to
result in the NBP Partnerships or any of their Subsidiaries incurring any material Liability under Environmental Law; 
 (e)
The NBP Partnerships and each of their Subsidiaries has obtained, currently maintains and is in material compliance with all Environmental Permits, and all such Environmental Permits are in effect and no Legal Proceeding is pending with respect to
any such Environmental Permit; and 
 (f) Except to the extent set forth in or reserved against in the consolidated financial
statements of Northern Border contained in the Northern Border SEC Documents, no 

  

 20 

 
material expenditures, capital improvements or changes in operation are, or, to the Knowledge of the NBP Partnerships, will be, necessary to achieve or
maintain compliance with any Environmental Permit or Environmental Law, or will be necessary as a condition or result of the renewal, amendment or necessary modification of any Environmental Permit. 
 3.7 Absence of Certain Changes. As of the date hereof, since September 30, 2005 (a) there has not been any Northern Border
Material Adverse Effect and (b) the business of Northern Border and its consolidated Subsidiaries has been conducted in all material respects only in the ordinary course consistent with past practice. 
 3.8 Securities Act. The NBP Partnerships are acquiring the Shares solely for the purpose of investment and not with a view to, or for offer
or sale in connection with, any distribution thereof in violation of the Securities Act or state securities laws. The NBP Partnerships acknowledge that the Shares are not registered under the Securities Act or any applicable state securities law,
and that such Shares may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and pursuant to state securities laws and regulations as applicable.

 3.9 SEC Filings. 
 (a) The NBP Partnerships have made available to ONEOK true and complete copies of all SEC Documents filed by Northern Border with the SEC since January 1, 2004 (the “Northern Border SEC
Documents”), which are all of the documents (other than preliminary material) that Northern Border was required to file with the SEC since such date. As of their respective dates, the Northern Border SEC Documents complied in all material
respects with the applicable requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations promulgated thereunder. None of the Northern Border SEC Documents, including, without limitation, any exhibits,
financial statements or schedules included therein, at the time filed contained any untrue statement of 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. The financial statements (including the related notes and schedules) of Northern Border included in the Northern Border SEC Documents comply as to form in all material respects with the
published rules and regulations of the SEC with respect thereto, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of the unaudited
statements, as permitted by the rules of the SEC) and fairly present in accordance with the applicable requirements of GAAP (subject, in the case of the unaudited statements, to normal, recurring adjustments, none of which will be material), the
consolidated financial position of Northern Border and its consolidated Subsidiaries as of their respective dates and the consolidated results of operations and the consolidated cash flows of Northern Border and its consolidated Subsidiaries for the
periods presented therein. 
 (b) Except (i) to the extent set forth in or reserved against in the consolidated financial
statements of Northern Border contained in the Northern Border SEC Documents, (ii) for current liabilities (determined in accordance with GAAP) incurred in the ordinary course of business consistent with past practices since the date of the
most recent consolidated financial statements of Northern Border contained in the Northern Border SEC Documents and (iii) except 

  

 21 

 
for immaterial Liabilities, Northern Border has no Liabilities of the type that would be required to be disclosed on a balance sheet of Northern Border (or
the notes thereto) prepared in accordance with GAAP. 
 3.10 Brokers’ Fees. Except for the fees payable to the financial
advisor referenced in Section 3.11 herein (the fees of which shall be paid solely by Northern Border), no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection
with the transactions contemplated by this Agreement based upon arrangements made by Northern Border or any of its Affiliates. 
 3.11
Opinion of Financial Adviser. Lehman Brothers Inc. has provided the Audit Committee of Northern Border (with a copy to the Partnership Policy Committee of Northern Border) with its opinion that, as of the date hereof and based upon and
subject to the matters set forth therein, the net consideration involved in the Northern Border Transaction is fair to Northern Border from a financial point of view. 
 3.12 Registration Rights. The Units and the Conversion Units, when issued, will be Partnership Securities (as such term is used in the Northern Border Partnership Agreement) and ONEOK will be entitled to
exercise all of the registration rights provided for in Section 6.14 of the Northern Border Partnership Agreement with respect to the Units and the Conversion Units. 
 3.13 Disclaimer. 
 (a) Except as and to the extent expressly set forth in
Section 3, (i) the NBP Partnerships make no representations or warranties, express or implied, and (ii) the NBP Partnerships expressly disclaim all Liability and responsibility for any representation, warranty, statement or
information made or communicated (orally or in writing) to ONEOK or any of its Affiliates, employees, agents, consultants or representatives (including, without limitation, any opinion, information, projection or advice that may have been provided
to ONEOK by any officer, director, employee, agent, consultant, representative or advisor of the NBP Partnerships or any of their Subsidiaries). 
 (b) WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS EXPRESSLY REPRESENTED OTHERWISE IN SECTION 3, THE NBP PARTNERSHIPS EXPRESSLY DISCLAIM ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, ORAL OR
WRITTEN, AS TO (I) TITLE TO ANY OF THE PROPERTIES OR OTHER ASSETS OF THE NBP PARTNERSHIPS OR ANY OF THEIR SUBSIDIARIES, (II) THE CONTENTS, CHARACTER OR NATURE OF ANY DESCRIPTIVE MEMORANDUM OR REPORT RELATING TO THE PROPERTIES OR OTHER
ASSETS OF THE NBP PARTNERSHIPS OR ANY OF THEIR SUBSIDIARIES, (III) ANY ESTIMATES OF THE VALUE OF THE ASSETS OR FUTURE REVENUES GENERATED BY THE PROPERTIES OR OTHER ASSETS OF THE NBP PARTNERSHIPS OR ANY OF THEIR SUBSIDIARIES, (IV) THE
MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY, DESIGN OR MARKETABILITY OF THE PROPERTIES OR OTHER ASSETS OF THE NBP PARTNERSHIPS OR ANY OF THEIR SUBSIDIARIES, OR (V) ANY OTHER MATERIALS OR INFORMATION THAT MAY HAVE BEEN MADE 

  

 22 

 
AVAILABLE OR COMMUNICATED TO ONEOK OR ITS AFFILIATES, OR ITS OR THEIR EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES OR ADVISORS IN CONNECTION WITH THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY DISCUSSION OR PRESENTATION RELATING THERETO, AND FURTHER DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR
SAMPLES OF MATERIALS OF ANY EQUIPMENT. 
 SECTION 4. COVENANTS OF ONEOK 
 4.1 Conduct of the Entities. Except as set forth on Schedule 4.1, during the period from the date of this Agreement until the Closing (the “Pre-Closing Period”), ONEOK
agrees that, except as otherwise contemplated by this Agreement, the ONEOK Disclosure Schedules, or as Northern Border shall otherwise consent in writing (such consent not to be unreasonably withheld, delayed or conditioned): 
 (a) Ordinary Course. ONEOK shall cause the Entities to, (i) conduct their Business in the ordinary course consistent with past
practice and (ii) use commercially reasonable efforts to (A) preserve intact their current business organization, (B) preserve the relationships of the Entities with customers, suppliers, landlords, creditors, employees and other
Persons having business dealings with the Entities, (C) preserve and maintain in force all of the insurance policies of the Entities and each of the Permits of the Entities, (D) maintain and repair all property material to the operation of
the Business in a manner consistent with past practice, (E) make the capital expenditures identified in the budget previously provided to Northern Border and (F) make payments to all employees, vendors and other trade creditors in a timely
manner consistent with past practice. 
 (b) Governing Documents. ONEOK shall cause each Entity not to amend or waive
any rights under the organizational documents of such Entity, other than amendments or waivers necessary to execute, deliver and perform the transactions contemplated by this Agreement including, without limitation, pursuant to Section 6.12.

 (c) Issuance of Securities. ONEOK shall cause each Entity not to issue, transfer, sell or dispose of, or authorize
or agree to the issuance, transfer, sale or disposition of (whether through the issuance or granting of options, rights, warrants, or otherwise), any Equity Interests of any Entity or any options, rights, warrants or other securities convertible
into or exchangeable or exercisable for any Equity Interests of any Entity or amend any of the terms of any securities or agreements relating to such Equity Interests outstanding on the date hereof. 
 (d) Reclassifications. ONEOK shall cause each Entity not to split, combine or reclassify any Equity Interests of any Entity, or
redeem, purchase or otherwise acquire or offer to acquire any such Equity Interests of any Entity. 
 (e) No
Acquisitions. ONEOK shall cause each Entity not to form any Subsidiary or acquire or agree to acquire, by merging or consolidating with, or by purchasing an equity interest in or any of the assets of, any Person; provided, however, that, subject
to Section 

  

 23 

 
4.1(h), the foregoing shall not restrict ONEOK or any Entity from purchasing assets in the ordinary course of operating the Entities. 
 (f) No Dispositions. ONEOK shall cause each Entity not to transfer, sell, lease, license, encumber or otherwise dispose of or agree
to transfer, sell, lease, license, encumber or otherwise dispose of, any of their respective assets other than (i) in the ordinary course of business consistent with past practice, (ii) pursuant to existing contractual obligations,
(iii) the imposition of Permitted Liens and (iv) the transfer of assets among the Entities. 
 (g) Material
Contracts. ONEOK shall cause each Entity not to enter into, or permit any of the material assets owned or used by Entity to become bound by or modify, amend or prematurely terminate, or waive any material right or remedy under: 
 (i) any Contract containing covenants limiting the freedom of any of the Entities, Northern Border or any of its Subsidiaries or their
assignees or successors to compete in any line of business or with any Person or in any geographic area during any period of time following the Closing; 
 (ii) any Contract for the borrowing of money or related to Indebtedness of any Entity in excess of $500,000; 
 (iii) any Contract with any officer, employee, director of any Entity or ONEOK or any of their respective Affiliates; 
 (iv) any Contract with any union, trade organization or bargaining unit representative; or 
 (v) any acquisition, divestiture, merger, joint venture or partnership agreement that is material to the Business. 
 (h) Capital Expenditures. ONEOK shall cause each Entity not to make, authorize or enter into commitments to make capital expenditures in an amount that, when added to all other capital expenditures made during the Pre-Closing Period
on behalf of any Entity, exceeds $500,000, other than any capital expenditures contemplated by the budget previously provided to Northern Border. 
 (i) Indebtedness. ONEOK shall cause each Entity not to (i) lend money to any Person (except that any Entity may make routine advances to employees in the ordinary course of business) or (ii) incur,
assume, guarantee or otherwise become liable in respect of any Indebtedness. 
 (j) Accounting. ONEOK shall cause each
Entity not to change any of its methods of accounting or accounting practices in any material respect except as may be required by any Legal Requirement or GAAP. 
 (k) Tax Elections. ONEOK shall cause each Entity not to make any Tax election, other than (A) any Tax election made consistent
with prior practice of the Entity, (B) a Tax election that would not adversely affect Northern Border or any Entity for any taxable 

  

 24 

 
period or portion thereof beginning after the Closing Date or (C) a Tax election to effect a Conversion Transaction as contemplated by
Section 6.11. 
 (l) Proceedings. ONEOK shall cause each Entity not to settle any material Legal Proceeding if, as
a result of the settlement, the Entity would be liable after the Closing for settlement payments in excess of $5,000,000 or subject to any injunctive or similar equitable relief or otherwise be subject to any ongoing obligations following the
payment of any settlement amounts. 
 (m) Regulatory Actions. ONEOK shall cause each Entity not to, other than routine
compliance filings, make any filings or submit any documents or information to FERC or any other Governmental Authority, other than routine compliance filings, without prior consultation with Northern Border. 
 (n) Agreements to Take Action. ONEOK shall cause each Entity not to agree or commit to take any of the actions described in clauses
“(b)” through “(m)” above. 
 4.2 Cash Management. Nothing contained in this Agreement shall prevent or
limit the ability of any Entity to distribute, dividend or otherwise transfer any cash to ONEOK, any other Entity or any other Affiliate of ONEOK during the Pre-Closing Period. 
 SECTION 5. COVENANTS OF THE NBP PARTNERSHIPS 
 5.1 Books and Records. 

(a) No later than ten (10) days after Closing, ONEOK will make available to the NBP Partnerships or their designee, at
ONEOK’s sole cost and expense, originals of all files, records, information and data (in all formats) owned by or primarily relating to the Entities that are in the possession or control of ONEOK or its Affiliates (together with all
ONEOK’s and its Affiliate’s contractual rights to request other such files, records, information and data from any third party). 
 (b) For a period of five (5) years from the Closing Date: 
 (i) The NBP Partnerships
shall not dispose of or destroy any of the material books and records relating to the Business for periods prior to the Closing (the “Books and Records”) without first offering to turn over possession thereof to ONEOK by written
notice from the NBP Partnerships to ONEOK at least 60 days prior to the proposed date of such disposition or destruction. Within 30 days after receipt of such notice from the NBP Partnerships, ONEOK may notify the NBP Partnerships that it wishes to
receive such Books and Records, and the NBP Partnerships shall deliver such Books and Records (to the extent such Books and Records are not subject to an attorney-client or similar privilege or other confidentiality obligation) to a designated
Representative of ONEOK upon receipt by the NBP Partnerships of a written agreement in form and substance reasonably satisfactory to the NBP Partnerships in which ONEOK agrees to maintain the confidentiality of such Books and Records. If ONEOK does
not notify the NBP Partnerships within 30 days of receipt of such notice, the NBP Partnerships may dispose of or destroy the Books and Records. 
  

 25 

 (ii) The NBP Partnerships shall, on reasonable notice and at reasonable times at Northern
Border’s principal place of business or at any location where any Books and Records are stored, allow ONEOK and its agents reasonable access to all Books and Records that are not subject to attorney-client or similar privilege or other
confidentiality obligation, to the extent such access is requested for any legitimate purpose related to ONEOK’s prior ownership of the Entities and provided that the NBP Partnerships have received a written agreement in form and substance
reasonably satisfactory to the NBP Partnerships in which ONEOK agrees to maintain the confidentiality of such Books and Records. ONEOK shall have the right, at its own expense, to make copies of any such Books and Records; provided, however, that
any such access or copying shall be had or done in such a manner so as not to unduly interfere with the normal conduct of the Business. 
 (iii) The NBP Partnerships shall make available to ONEOK upon reasonable notice to ONEOK and at reasonable times and upon written request the personnel of the NBP Partnerships to assist ONEOK in locating and obtaining
any Books and Records. 
 5.2 Approval of Issuance of Common Units Upon Conversion Units. Northern Border shall, as soon as
reasonably practicable following the Closing (but in any event prior to the one year anniversary of the Closing Date), (i) take action to call and hold a meeting of holders of the Common Units for the purposes of approving the issuance of the
Conversion Units to ONEOK upon the conversion of the Units by ONEOK and approving the amendment to the Northern Border Partnership Agreement in the manner contemplated by the Parties in the Amendment, (ii) actively solicit proxies in favor of
the proposals described in subsection 5.2(i) above, and (iii) take such other actions as may be reasonably necessary and appropriate in order to obtain all requisite approvals for the resolutions described above in this Section 5.2. 

SECTION 6. COVENANTS OF ONEOK AND THE NBP PARTNERSHIPS 
 The parties hereto agree that: 
 6.1 Access to Information. During the Pre-Closing Period

 (a) ONEOK will, and will cause each Entity to, (i) give the NBP Partnerships and their Representatives reasonable
access during normal business hours and on reasonable notice to the officers, personnel, properties, Tax Returns, books, records and work papers of and relating to any Entity, (ii) furnish to the NBP Partnerships and their Representatives such
financial and operating data and copies of such Tax Returns, books, records, work papers and other documents and information with respect to any Entity, as such Persons may reasonably request, and (iii) instruct their respective Representatives
to cooperate with the NBP Partnerships in their investigation of the Entities. The Parties agree that any information provided, or caused to be provided, by the Entities pursuant to this Section 6.1(a) shall be kept confidential and not
disclosed to any third party, except to the extent required by any Legal Requirement. ONEOK shall cooperate to ensure that the provision of access hereunder to the NBP Partnerships and their authorized Representatives shall comply in all respects
with the Federal Energy Regulatory Commission’s (“FERC”) Standards of Conduct for Transmission Providers set forth in 18 C.F.R. Part 37, et al. 
  

 26 

 (b) The NBP Partnerships will (i) give ONEOK and its Representatives reasonable
access during normal business hours and on reasonable notice to the officers, personnel, properties, Tax Returns, books, records and work papers of and relating to the NBP Partnerships and their Subsidiaries, (ii) furnish to ONEOK and its
Representatives such financial and operating data and copies of such Tax Returns, books, records, work papers and other documents and information with respect to Northern Border and its Subsidiaries, as such Persons may reasonably request, and
(iii) instruct its Representatives to cooperate with ONEOK in its investigation of the NBP Partnerships and their Subsidiaries. The Parties agree that any information provided, or caused to be provided, by the NBP Partnerships and their
Subsidiaries pursuant to this Section 6.1(b) shall be kept confidential and not disclosed to any third party, except to the extent required by any Legal Requirement. The NBP Partnerships shall cooperate to ensure that the provision of access
hereunder to ONEOK and its authorized Representatives shall comply in all respects with the FERC Standards of Conduct for Transmission Providers set forth in 18 C.F.R. Part 37, et al. 
 6.2 Commercially Reasonable Efforts. Subject to the terms and conditions of this Agreement and applicable Legal Requirements, each of the
Parties hereto shall act in good faith and use its commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the
transactions contemplated hereby as soon as practicable, including such actions or things as the other Parties may reasonably request in order to cause any of the conditions to such other Party’s or Parties’ obligation to consummate the
transactions contemplated by this Agreement to be fully satisfied. 
 6.3 Regulatory and Other Authorizations; Notices and
Consents. 
 (a) Each of the Parties shall use commercially reasonable efforts to obtain promptly all authorizations,
consents, orders and approvals of all Governmental Authorities (including by making, or causing to be made, all appropriate filings of notifications or reports) necessary for its execution and delivery of, and the performance of its obligations
pursuant to, and the consummation of the transactions contemplated by, this Agreement (such authorizations, consents, orders and approvals, “Governmental Approvals”). ONEOK and the NBP Partnerships shall, and ONEOK shall cause the
Entities to, cooperate in promptly seeking to obtain the Governmental Approvals. 
 (b) Neither ONEOK nor the NBP Partnerships
shall intentionally take any action that would be reasonably expected to delay, impair or impede the receipt of any Governmental Approvals. ONEOK and the NBP Partnerships agree to make, or to cause to be made, all appropriate filings of
notifications and reports required to obtain the Governmental Approvals promptly after the date of this Agreement and to supply promptly any additional information and documentary material that may be requested by Governmental Authorities
responsible therefor. As defined further below, the parties shall cooperate in making any such filings. ONEOK and the NBP Partnerships agree to use their commercially reasonable efforts to avoid or eliminate each and every impediment under any Legal
Requirement that may be asserted by any Governmental Authority in connection with the Governmental Approvals so as to enable the Parties to expeditiously close the transactions contemplated by this Agreement. ONEOK and the NBP Partnerships agree to
use commercially reasonable efforts to vacate or lift 

  

 27 

 
any order relating to the Governmental Approvals that would have the effect of making any of the transactions contemplated by this Agreement illegal or
otherwise prohibiting their consummation. Notwithstanding any other terms or provisions of this Agreement, in no event shall the NBP Partnerships or their Subsidiaries be deemed to have any obligation to dispose of any assets or properties
(including any assets or properties of the Entities) or to enter into any agreement with any Person in order to obtain early termination or expiration of the waiting period under the HSR Act or to obtain any other Governmental Approvals. 

(c) Each Party shall promptly notify the other parties of any communication it or any of its Affiliates receives from any Governmental
Authority relating to the matters that are the subject of this Agreement, including any filing, investigation or inquiry, and, subject to applicable Law, permit the other Parties to review in advance any proposed communication by such Party to, or
filing by such party with, any Governmental Authority. No Party shall agree to participate in any meeting with any Governmental Authority in respect of any filings, investigation or other inquiry unless it consults with the other Parties in advance
and, to the extent permitted by such Governmental Authority, affords the other Parties the reasonable opportunity to attend and participate. Each Party will coordinate and cooperate fully with the other Parties in exchanging such information and
providing such assistance as such other Parties may reasonably request in connection with the foregoing and in seeking early termination of any applicable waiting periods under the HSR Act or in connection with any other Governmental Approvals. Each
Party will provide the other Parties with copies of all correspondence, filings or communications between such Party or any of its Representatives, on the one hand, and any Governmental Authority, on the other hand, with respect to this Agreement
and the transactions contemplated by this Agreement, including with respect to the Party hereto making a filing, providing copies of all such documents to the non-filing Parties and their Representatives prior to filing (except that no Party hereto
shall be under an obligation of any kind to provide the other Parties with documents, material or other information relating to such Party’s valuation of the Business). 
 (d) The NBP Partnerships and ONEOK shall (and shall each cause their respective Affiliates to) use commercially reasonable efforts to
obtain all consents, authorizations, waivers and approvals of third parties that any of the Parties or their respective Affiliates (including the Entities) are required to obtain in order to consummate the transactions contemplated hereby.

 (e) Northern Border shall use commercially reasonable efforts to list the Common Units to be issued to ONEOK pursuant to
this Agreement on the New York Stock Exchange, prior to the Closing Date or immediately upon conversion of the Units into Conversion Units, subject to official notice of issuance. 
 (f) The Parties agree to cooperate and assist in the filing of proxy solicitation materials relating to matters contemplated hereby
requiring a vote of the holders of the outstanding Common Units of Northern Border, as promptly as practicable after the date hereof. 
 6.4
Public Announcements. During the Pre-Closing Period, the Parties shall consult with each other before issuing any press release or making any public statement with respect to the transactions contemplated hereby and, except as may be
required by applicable 

  

 28 

 
Legal Requirements or stock exchange rules and regulations, shall not issue any such press release or make any such public statement unless the text of such
statement shall first have been agreed to by the parties. 
 6.5 Notices of Certain Events. Each Party hereto shall promptly
notify the other Parties hereto (i) following the receipt of any notice of any Legal Proceeding commenced or, to the Knowledge of ONEOK, or the Knowledge of the NBP Partnerships, as applicable, threatened against it that relates to or seeks to
prohibit the consummation of the transactions contemplated hereby, (ii) upon its discovery that any of its representations or warranties in this Agreement contain any inaccuracies or that such Party has breached or otherwise failed to perform
its obligations, covenants and agreements contained herein or (iii) upon its discovery of any development that is reasonably likely to result in a failure of a condition to the Closing. 
 6.6 Entity Guarantees. 
 (a) The NBP Partnerships and ONEOK shall use commercially reasonable efforts to obtain from the respective beneficiary, in form and substance reasonably satisfactory to ONEOK, on or before the Closing, valid and binding written releases of
ONEOK and its Affiliates (other than the Entities), as applicable, from any liability or obligation, whether arising before, on or after the Closing Date, under any Entity Guarantees in effect as of the Closing. If any Entity Guarantee has not been
released as of the Closing Date, then the NBP Partnerships shall continue to use commercially reasonable efforts after the Closing to cause each such unreleased Entity Guarantee to be released promptly. Schedule 6.6 to the ONEOK Disclosure
Schedules contains a true, correct and complete list of all of the Entity Guarantees. 
 (b) Notwithstanding anything to the
contrary herein, the Parties acknowledge and agree that at any time on or after the Closing Date, any of ONEOK and its Affiliates may, in its sole discretion, take any action to terminate, obtain release of or otherwise limit its liability under any
and all outstanding Entity Guarantees. 
 (c) The NBP Partnerships shall indemnify and hold harmless ONEOK and its Affiliates
from and after the Closing Date for any and all Damages arising out of or relating to any Entity Guarantees. 
 6.7 Intercompany
Accounts. Except for amounts related to normal operational sales and cost of sales and fuel, prior to Closing ONEOK will settle all Intercompany Accounts and intercompany arrangements between any Entity, on the one hand, and ONEOK and its
Affiliates (other than an Entity), on the other hand, and the Entities will not have any Liability whatsoever with respect to such settled intercompany arrangements and Intercompany Accounts. ONEOK shall be solely liable for any contractual or other
Liabilities, express or implied, arising out of the termination, cancellation and elimination of any of the foregoing. 
 6.8 Shared
Contracts and Drop-Down Contracts. 
 (a) Schedule 6.8(a) contains a true and complete listing of all Shared
Contracts and Drop-Down Contracts. Commencing on the date hereof, (i) Northern Border and ONEOK shall use commercially reasonable efforts to cause the Shared Contracts to be replaced with separate Contracts that provide that each Entity receive
only such rights and obligations 

  

 29 

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

 (b) If the Parties are not able to effect the separation and replacement of a Shared Contract or to effect the assignment
or replacement of a Drop-Down Contract prior to the Closing, then, from the Closing until such Contract is separated and replaced (in the case of a Shared Contract), assigned or replaced (in the case of a Drop-Down Contract) or expires by its terms,
to the extent permissible under any Legal Requirement and under the terms of such Contract, ONEOK shall, and Northern Border shall cause each Entity to, (i) assume and perform the liabilities and obligations under such Contract relating to its
respective business (and shall promptly reimburse the other Party for any expenses relating thereto incurred by the other Party or its Affiliates), (ii) hold in trust for the benefit of the other Party, and shall promptly forward to the other
Party, any monies or other benefits received pursuant to such Shared Contract relating to the business of the other Party (or its Affiliates) and (iii) endeavor to institute alternative arrangements intended to put the Parties in substantially
the same economic position as if such Contract were separated and replaced (in the case of a Shared Contract) or assigned or replaced (in the case of a Drop-Down Contract). 
 6.9 ONEOK Marks. Northern Border shall obtain no right, title, interest, license or any other right whatsoever to use the word
“ONEOK” or any Trademarks containing or comprising the foregoing, or any Trademark confusingly similar thereto or dilutive thereof (collectively, the “ONEOK Marks”). Notwithstanding the preceding sentence, effective upon
the Closing Date, ONEOK, on behalf of itself and its Affiliates hereby grants to the Entities and Northern Border a nonexclusive, nontransferable, royalty-free license, without right to sublicense, to use, solely in the Entities’ businesses as
they are presently conducted, any and all of the ONEOK Marks solely to the extent appearing on existing advertising materials and property of the Companies (such as signage, vehicles, and equipment) for a period of 6 months from the Closing Date
(“License Period”); provided, however, that with respect to pipeline and gas storage signage the License Period shall be deemed to be a period of 12 months from the Closing Date. Northern Border and the Entities may use such
existing inventory, advertising materials and property during the License Period, but shall not create new inventory, advertising materials or property using the ONEOK Marks. Northern Border and the Entities shall promptly replace or remove all
ONEOK Marks on inventory, advertising materials and other assets, provided that all such use shall cease no later than the end of the License Period. As promptly as practicable and no later than 60 days after the Closing Date, Northern Border shall
change the name of any Entity that contains a reference to “ONEOK”, to a name that does not contain such 

  

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reference. The Parties agree, because damages would be an inadequate remedy, that a Party seeking to enforce this Section 6.9 shall be entitled to seek
specific performance and injunctive relief as remedies for any breach thereof in addition to other remedies available at law or in equity. 
 6.10 Indebtedness for Borrowed Money. Immediately prior to the Closing, (i) ONEOK shall repay or otherwise settle any Indebtedness due to the Entities from ONEOK or its Affiliates (other than the Entities) and
(ii) ONEOK shall cause the repayment or settlement of any Indebtedness due from the Entities to ONEOK or its Affiliates (other than the Entities), in each case, including interest and other amounts accrued thereon or due in respect thereof,
other than any Indebtedness fully reflected in the Closing Working Capital. 
 6.11 Conversion Transactions. ONEOK shall, prior
to the Closing Date, subject to having obtained any and all necessary approvals and consents from Governmental Authorities, (a) cause each of the Converting Companies to convert from corporations into an Eligible Person under the laws of the
jurisdiction in which each is organized on the date of this Agreement (the “Conversion Transactions”) (and use its best efforts, after consulting with Northern Border, to form such Eligible Person as instructed by Northern Border)
and (b) cause each of the Companies and Company Subsidiaries that is not on the date hereof treated as a partnership or an entity disregarded from its owner for United States federal income tax purposes to be so treated on or before the Closing
Date and (c) cause each such Company and Company Subsidiary described in subsections 6.11(a) or (b) above to be continuously treated as a partnership or a disregarded entity from its owner for United States federal income tax purposes from
the date it becomes so treated through the Closing Date. 
 6.12 Interim Financial Statements. From time to time after the date
hereof, ONEOK will deliver to Northern Border copies of the monthly and quarterly financial statements (which shall include a balance sheet and a statement of income) for the Entities for all periods after the Balance Sheet Date through and
including the Closing Date (collectively, the “Interim Financial Statements”). The Interim Financial Statements will be prepared on the same basis as the Financial Statements and will present fairly in all material respects the
financial position, results of operations and cash flows of the Entities as of such dates and for the periods then ended (subject to normal year-end audit adjustments consistent with prior periods). 
 6.13 Cooperation Regarding Audits. ONEOK acknowledges and understands that Northern Border may be required to obtain certain information
relating to the Entities including, but not limited to, audited or unaudited financial statements of the Entities, and disclose such information in registration statements and other documents filed with the Securities and Exchange Commission under
the federal securities laws or in disclosure documents given to investors in certain securities offerings, including in connection with the third-party financing required to satisfy Northern Border’s obligations under Section 1.2 of the
Northern Border Purchase Agreement. At Northern Border’s cost, ONEOK agrees to use commercially reasonable efforts to cooperate, and shall cause its Affiliates, accountants, counsel and other agents and representatives to cooperate, with
Northern Border in connection therewith with respect to the Entities for periods prior to the Closing, including the execution and delivery of any customary audit representation letters, consents or comfort letters and representation letters 

  

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for such periods presented to ONEOK by Northern Border and its auditors for execution in connection therewith. 
 6.14 Insurance Matters. The Parties acknowledge that the facilities owned by Venice Energy Services Co., L.L.C. (“VESCO”)
were damaged by Hurricane Katrina in 2005 and that ONEOK VESCO Holdings, L.L.C. (“VESCO Holdings”), a wholly-owned subsidiary of ONEOK, holds 10.1765% of the outstanding equity interests in VESCO. The Parties further acknowledge
that VESCO Holdings has contributed approximately $2,500,000 to VESCO as the pro rata amount that VESCO’s partnership committee required the partners in VESCO to contribute for the repair costs for such facilities. In addition to such prior
contribution, ONEOK shall pay or reimburse Northern Border for its pro rata share of any additional amounts the VESCO partnership committee requires the partners in VESCO to contribute to VESCO with respect to such hurricane damage occurring in
2005. As a result, the Parties acknowledge and agree that ONEOK shall receive and retain all proceeds of any casualty loss insurance that may relate to such facilities for the period prior to the Closing. With respect to any “business
interruption” or similar insurance coverage that may relate to the interest of ONEOK or its Affiliates in VESCO, ONEOK or its Affiliates (other than the Entities) shall retain or be paid that portion of any such insurance proceeds that may be
paid covering the period prior to Closing, and the Entities shall retain or be paid that portion of any such insurance proceeds covering the period on or after Closing. To the extent either Party receives any insurance proceeds that are payable to
the other Party as set forth in this Section 6.14, then such proceeds shall be promptly paid to such other Party. 
 SECTION 7. CONDITIONS TO
CLOSING 
 7.1 Conditions to the Obligations of ONEOK. The obligation of ONEOK to consummate this Agreement and the
transactions contemplated hereby is subject to the fulfillment, prior to or at the Closing, of the following conditions precedent unless waived by ONEOK in its sole discretion: 
 (a) Accuracy of Representations and Warranties. 
 (i) All representations and warranties made by the NBP Partnerships (other than those set forth in Section 3.9 (SEC Filings)) herein
and in any Related Agreement shall be true and correct when made and on and as of the Closing, except for representations and warranties that are made as of a specific date or time, which shall be true and correct only as of such specific date or
time, except for such failures of such representations and warranties to be true and correct (without giving effect to any limitation or qualification as to Northern Border Material Adverse Effect or “materiality” (including the word
“material”) set forth therein) as would not, individually or in the aggregate, have a material adverse effect on the ability of the NBP Partnerships to perform their obligations hereunder and consummate the transactions contemplated hereby
on the Closing Date; 
 (ii) The representations and warranties made by Northern Border in Section 3.9 (SEC Filings)
shall be true and correct in all material respects when made and on and as of the Closing, with the same force and effect as if made on and as of the Closing, except for 

  

 32 

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

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

  

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in Northern Border, the transactions contemplated by the Northern Border Purchase Agreement shall be consummated simultaneously with the Closing and the
transactions contemplated by the TransCanada Agreement shall be consummated immediately following the Closing). 
 (i)
Amendment to Credit Facility. An amendment to each of (A) the Credit Agreement dated as of September 17, 2004 by and among ONEOK, Bank of America, N.A., and the financial institutions therein named as Lenders, as amended, and
(B) the Credit Agreement dated June 27, 2005 among ONEOK, Inc., as Borrower, Citibank, N.A., as Administrative Agent, and the Lenders party thereto, as amended, shall have been executed and delivered by the parties thereto in form and
substance reasonably satisfactory to ONEOK that permits ONEOK to enter into and perform its obligations under this Agreement. 
 (j) Delivery of Deliverables. Each of the deliveries set forth in Section 1.3(c) shall have been made. 
 (k) Bushton Consents. Written consents and agreements from the trustees, owner participants, noteholders and other parties as may reasonably be necessary in connection with the transfer of ONEOK Bushton Processing, Inc.
(“OBPI”) to Northern Border, and in connection with the conversion of OBPI to a limited liability company, shall have been obtained. 
 7.2 Conditions to the Obligations of the NBP Partnerships. The obligation of the NBP Partnerships to consummate this Agreement and the transactions contemplated hereby is subject to the fulfillment, prior to or at the Closing,
of the following conditions precedent unless waived by the NBP Partnerships in writing in their sole discretion: 
 (a)
Accuracy of Representations and Warranties. All representations and warranties made by ONEOK herein and in any Related Agreement shall be true and correct when made and on and as of the Closing, except for representations and warranties that
are made as of a specific date or time, which shall be true and correct only as of such specific date or time except for such failures of such representations and warranties to be true and correct (without giving effect to any limitation or
qualification as to “materiality” (including the word “material”) or “Material Adverse Effect” set forth therein) as would not, individually or in the aggregate, have a Material Adverse Effect. 
 (b) Compliance with Covenants. ONEOK shall have performed in all material respects all obligations and agreements, and complied in
all material respects with all covenants, contained in this Agreement and any Related Agreements to be performed or complied with by it prior to or on the Closing. 
 (c) No Material Change. Since the date hereof, there shall not have occurred any event, development or circumstance with respect to
ONEOK or the Entities that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect or a material adverse effect on the ability of ONEOK to perform its obligations hereunder and consummate the
transactions contemplated hereby on the Closing Date. 
 (d) Certificate from Officers. ONEOK shall have delivered to
Northern Border a certificate of ONEOK’s Chief Financial Officer dated as of the Closing to the effect that 

  

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the statements set forth in paragraphs (a), (b) and (c) above in this Section 7.2 are true and correct. 
 (e) No Injunction. At the time of Closing there shall be no effective injunction, writ or preliminary restraining order or any
Governmental Order of any nature issued by a Governmental Authority of competent jurisdiction to the effect that the transactions contemplated by this Agreement may not be consummated as herein provided, and no proceeding or lawsuit shall have been
commenced by any Governmental Authority or other Person for the purpose of obtaining any such injunction, writ or preliminary restraining order. 
 (f) Hart-Scott-Rodino. All required filings under the HSR Act shall have been completed and all applicable time limitations under such Act shall have expired without a request for further information by the
relevant Governmental Authorities under such Act, or in the event of such a request for further information, the expiration of all applicable time limitations under the Act shall have occurred without the objection of such federal authorities.

 (g) Governmental Approvals. The KCC Consent and the OCC Consent shall have been obtained. 
 (h) Other Transactions. The transactions contemplated by the Other Transaction Agreements shall have been consummated on the
Closing Date (the transactions contemplated by the GP Purchase Agreement shall be consummated immediately prior to the Closing and ONEOK or its Affiliates shall, immediately following such consummation, own 100% of the general partner interests in
Northern Border, the transactions contemplated by the Northern Border Purchase Agreement shall be consummated simultaneously with the Closing and the transactions contemplated by the TransCanada Agreement shall be consummated immediately following
the Closing). 
 (i) Conversion Transactions. The Conversion Transactions shall have been completed in form and
substance satisfactory to Northern Border. 
 (j) Amendment of Certain Debt Agreements. Amendments to (i) that
certain Revolving Credit Agreement, dated as of May 16, 2005, by and among Northern Border, the lenders named therein and Citibank, N.A., and (ii) that certain Revolving Credit Agreement, dated as of May 16, 2005, by and among
Northern Border Pipeline Company, the lenders named therein, and Citibank N.A., (the “Northern Border Credit Agreements”) as are reasonably necessary to permit Northern Border to enter into and consummate the transactions
contemplated by the Northern Border Transaction Agreements without violating the terms of, or causing a default under, either such credit agreement (the “Northern Border Credit Agreement Amendments”), shall have been executed
and delivered by the parties thereto. 
 (k) Delivery of Deliverables. Each of the deliveries set forth in
Section 1.3(b) shall have been made. 
 (l) Waiver Under Viking Indenture. A waiver by the holders of a majority
of the principal amount of the notes outstanding under the Amended and Restated Indenture Agreement dated as of November 30, 2004 (the “Viking Indenture”) between Viking Gas Transmission Company and Wells Fargo Bank, National
Association, as Trustee as are 

  

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reasonably necessary to permit Northern Border to enter into and consummate the transactions contemplated by the Northern Border Transaction Agreements
without violation of the terms thereof or causing default thereunder shall have been obtained. 
 (m) Bushton Consents.
Written consents and agreements from the trustees, owner participants, noteholders and other parties as may reasonably be necessary in connection with the transfer of OBPI to Northern Border, and in connection with the conversion of OBPI to a
limited liability company, shall have been obtained. 
 SECTION 8. TERMINATION OF AGREEMENT; RIGHTS TO PROCEED 
 8.1 Termination. 
 (a) This Agreement may be terminated on or prior to the Closing Date only as follows: 
 (i) by mutual written
consent of the Parties to this Agreement; 
 (ii) at the election of any Party, if the Closing shall not have occurred on or
prior to June 30, 2006; provided that no Party shall be entitled to terminate this Agreement pursuant to this Section 8.1(a)(ii) if such Party’s failure to fulfill any obligation under this Agreement has been the primary cause of the
failure of the Closing to occur on or before such date; and provided further that upon the occurrence of a request for additional information being received from a Governmental Authority pursuant to the HSR Act such date shall be extended to
September 30, 2006; 
 (iii) by any Party, if a Governmental Authority shall have issued an order, decree or ruling
permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement, and such order, decree or ruling shall have become final and nonappealable, provided that the terminating Party has satisfied its
obligations under Section 6 in response to actions or requests of such Governmental Authority; 
 (iv) by ONEOK, if ONEOK
is not in material breach of its obligations under this Agreement and there has been a breach of any representation, warranty, covenant, or agreement of the NBP Partnerships contained in this Agreement such that any of the conditions set forth in
Section 7.1 would not be satisfied at or prior to the Closing, and, if such breach is of a character that it is capable of being cured, such breach has not been cured by the NBP Partnerships within 15 days after written notice thereof from
ONEOK; or 
 (v) by the NBP Partnerships, if the NBP Partnerships are not in material breach of their obligations under this
Agreement and there has been a breach of any representation, warranty, covenant, or agreement of ONEOK contained in this Agreement such that any of the conditions set forth in Section 7.2 would not be satisfied at or prior to the Closing, and,
if such breach is of a character that it is capable of being cured, such breach has not been cured by ONEOK within 15 days after written notice thereof from the NBP Partnerships. 
 (b) The termination of this Agreement shall be effectuated by the delivery of a written notice of such termination from the party
terminating this Agreement to the other party. 
  

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 8.2 Effect of Termination. All obligations of the parties hereunder shall cease upon
any termination pursuant to Section 8.1; provided, however, that (i) the provisions of this Section 8, Section 6.1 (solely with respect to confidentiality obligations) and Section 11 hereof shall survive any termination of
this Agreement, and (ii) nothing herein shall relieve any party from any Liability for any intentional breach (including any “efficient breach”) of this Agreement or a failure to comply with any of its covenants, conditions or
agreements contained herein. 
 SECTION 9. INDEMNIFICATION 
 9.1 Survival of Representations and Warranties, Etc. The representations and warranties of ONEOK and the NBP Partnerships contained in this Agreement shall survive the Closing and expire on the
second anniversary of the Closing Date; provided, however, that (i) the representations and warranties of ONEOK in Sections 2.1 (Organization and Authority of ONEOK), 2.2 (Organization, Authority and Qualification of the Entities), 2.3 (Capital
of Companies; Beneficial Ownership) and 2.4 (Subsidiaries) shall survive indefinitely, (ii) the representations and warranties of ONEOK in Section 2.16 (Environmental Matters) shall survive the Closing and expire on the fourth anniversary
of the Closing Date, (iii) the representations and warranties of ONEOK in Section 2.6 (Taxes) shall survive the Closing and expire on the 60th day following the expiration of the applicable statute of limitations relating thereto and (iv) the representations and warranties of the NBP Partnerships in Sections 3.1 (Organization and
Authority of the NBP Partnerships) and 3.2 (Capitalization) shall survive indefinitely. No Northern Border Indemnitee shall be entitled to indemnification for a breach of a representation or warranty under this Section 9 unless it shall have
given ONEOK written notice that it seeks indemnification (which notice may be, in the case of third-party Claims, notice under Section 9.7) on or before the expiration of such representation or warranty. No ONEOK Indemnitee shall be entitled to
indemnification for a breach of a representation or warranty under this Section 9 unless it shall have given the NBP Partnerships written notice that it seeks indemnification (which notice may be, in the case of third-party Claims, notice under
Section 9.7) on or before the expiration of such representation or warranty. Each notice delivered under the preceding two sentences shall include a good faith estimate of the amount claimed and a detailed description of the circumstances
surrounding the Damages in respect of which indemnification is claimed. The terms of this Agreement that by their nature are intended to survive the Closing shall survive the Closing indefinitely (or for their respective terms, if any). 

9.2 Indemnification. 
 (a) From and after the Closing, ONEOK shall hold harmless and indemnify the Northern Border Indemnitees from and against, and shall compensate and reimburse each of the Northern Border Indemnitees for, (i) any
Damages which are directly or indirectly suffered or incurred by any of the Northern Border Indemnitees or to which any of the Northern Border Indemnitees may otherwise become subject (regardless of whether or not such Damages relate to any
third-party Claim) as a result of, caused by or arising out of (including any allegations by a third party): (A) other than in connection with Section 2.16 of this Agreement (which is covered under Section 9.2(a)(ii) below), any
inaccuracy in or breach of any representation or warranty of ONEOK set forth in this Agreement (without giving effect to any limitation or qualification as to “materiality” (including the word “material” or “Material Adverse
Effect”) contained or 

  

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

 

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 9.3 Threshold; Cap. 
 (a) ONEOK shall not be required to make any indemnification payment in respect of any claim or series of substantially related claims made
pursuant to Section 9.2(a)(i)(A) or (B) or Section 9.2(a)(ii) of this Agreement, or pursuant to Section 9.2(a)(i)(A) or (B) or Section 9.2(a)(ii) of the Northern Border Purchase Agreement, unless the amount of any
Damages that have been directly or indirectly suffered or incurred by any one or more of the Northern Border Indemnitees or to which any one or more of the Northern Border Indemnitees has or have otherwise become subject with respect to such claim
(or such substantially related claims) exceeds $100,000 (the “Minimum Claim Amount”). In addition, ONEOK shall not be required to make any indemnification payment pursuant to Section 9.2(a)(i)(A) or (B) or
Section 9.2(a)(ii) of this Agreement, or pursuant to Section 9.2(a)(i)(A) or (B) or Section 9.2(a)(ii) of the Northern Border Purchase Agreement, until such time as the total amount of all individual claims exceeding the Minimum
Claim Amount (such total amount, the “Aggregate Northern Border Damages”) exceeds $45,000,000 in the aggregate (the “Indemnity Threshold”). If the total amount of such Aggregate Northern Border Damages exceeds the
Indemnity Threshold, then, subject to Section 9.3(b), the Northern Border Indemnitees shall be entitled to be indemnified against and compensated and reimbursed for all Aggregate Northern Border Damages in excess of the Indemnity Threshold. The
NBP Partnerships shall not be required to make any indemnification payment in respect of any claim (or series of substantially related claims) made pursuant to Section 9.2(b) of this Agreement or pursuant to Section 9.2(b) of the Northern
Border Purchase Agreement unless the amount of any Damages that have been directly or indirectly suffered or incurred by any one or more of the ONEOK Indemnitees or to which any one or more of the ONEOK Indemnitees has or have otherwise become
subject with respect to such claim (or such substantially related claims) exceeds the Minimum Claim Amount. In addition, the NBP Partnerships shall not be required to make any indemnification payment pursuant to Section 9.2(b) of this Agreement
or pursuant to Section 9.2(b) of the Northern Border Purchase Agreement until such time as the total amount of all individual claims exceeding the Minimum Claim Amount (such total amount, the “Aggregate ONEOK Damages”) exceeds
the Indemnity Threshold. If the total amount of such Aggregate ONEOK Damages exceeds the Indemnity Threshold, then, subject to Section 9.3(b), the Northern Border Indemnitees shall be entitled to be indemnified against and compensated and
reimbursed for all Aggregate ONEOK Damages in excess of the Indemnity Threshold. 
 (b) The maximum liability of ONEOK under
Section 9.2(a)(i)(A) or (B) and Section 9.2(a)(ii) of this Agreement and under Section 9.2(a)(i)(A) or (B) or Section 9.2(a)(ii) of the Northern Border Purchase Agreement, taken in the aggregate, shall be $360,000,000
(the “ONEOK Indemnity Cap”). The maximum liability of the NBP Partnerships under Section 9.2(b) of this Agreement and under Section 9.2(b) of the Northern Border Purchase Agreement, taken in the aggregate, shall be
$198,000,000 (the “Northern Border Indemnity Cap”). 
 (c) The limitations set forth in Section 9.3(a)
and Section 9.3(b) shall not apply to any of the matters described in Sections 1.5 (Working Capital Adjustment), 2.1 (Organization and Authority of ONEOK), 2.2 (Organization, Authority and Qualification of the Entities), 2.3 (Capital of
Companies; Beneficial Ownership), 2.4 (Subsidiaries), 3.1 (Organization and Authority of Northern Border) and 3.2 (Capitalization). 
  

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 9.4 Exclusive Remedy; Sole Recourse. With the exception of claims based upon fraud
or intentional misrepresentation, from and after the Closing, the indemnification provisions set forth in this Section 9 and the Tax indemnification provisions set forth in Section 10.6 shall be the sole and exclusive remedy of both the
Northern Border Indemnitees and the ONEOK Indemnitees for Damages under this Agreement (it being understood that nothing in this Section 9.4 or elsewhere in this Agreement shall affect the Parties’ rights to specific performance or other
equitable remedies with respect to the covenants referred to in this Agreement to be performed after the Closing). 
 9.5 No
Contribution. ONEOK shall not have and shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against any Entity in connection with any indemnification
obligation or any other Liability to which it may become subject under or in connection with this Agreement. 
 9.6
Setoff. Notwithstanding anything herein to the contrary, Damages shall be calculated net of any insurance or indemnification proceeds and Tax Benefits actually received by an Indemnitee or its Affiliates in connection with the
facts giving rise to the right of indemnification (net of any fees, costs or expenses incurred in enforcing such Indemnitee’s rights to recover such insurance proceeds). 
 9.7 Third Party Claims. 
 (a) Upon receipt by any Person seeking to be indemnified pursuant to Section 9.2 (the “Indemnitee”) of notice of any third-party claim, (each a “Claim”) against it which has or
is expected to give rise to a claim for Damages, the Indemnitee shall give prompt written notice thereof to the Person from which it seeks to be indemnified (the “Indemnitor”), indicating the nature of such Claim and the basis
therefor; provided, however, that any delay or failure by the Indemnitee to give notice to the Indemnitor shall relieve the Indemnitor of its obligations hereunder only to the extent, if at all, that it is materially prejudiced by
reason of such delay or failure. 
 (b) The Indemnitor shall have 30 days (or such shorter period as may be required by
applicable Legal Requirements) after receipt of the Indemnitee’s notice to elect, at its option, to assume the defense of, at its own expense and by its own counsel, any such Claim. If the Indemnitor desires to undertake to defend any such
Claim, it shall promptly notify the Indemnitee of its intention to do so. Notwithstanding an election by the Indemnitor to assume the defense of such Claim, (i) the Indemnitee shall have the right to employ separate counsel and to participate
in the defense of such Claim, and the Indemnitor shall bear the reasonable fees, costs and expenses of such separate counsel if (A) the Indemnitee shall have determined in good faith that an actual or potential conflict of interest makes
representation by the same counsel or the counsel selected by the Indemnitor inappropriate, (B) the Indemnitee shall have determined in good faith that the Damages in respect of such Claim may exceed the remaining balance of the applicable
Indemnity Cap, or (C) the Indemnitor shall have authorized the Indemnitee to employ separate counsel at the Indemnitor’s expense, and (ii) the Indemnitee shall have the right at any time after the Indemnitor assumes the defense of
such Claim to assume the defense of such Claim if (y) the Indemnitor subsequently determines that it does not believe the Claim is one for which the Indemnitee is entitled to indemnification, compensation or reimbursement under this 

  

 40 

 
Section 9.7 and requests that the Indemnitee assume the defense of such Claim (in which case the Indemnitee may, but shall not be obligated to, retain
the legal counsel previously retained by the Indemnitor to assist in the defense of such Claim) or (z) any Damages in respect of such Claim are reasonably likely to exceed the remaining balance of the applicable Indemnity Cap available to such
Indemnitee (in which case the Indemnitor shall bear the reasonable fees, costs and expenses of Indemnitee’s counsel, subject to the applicable Indemnity Cap, as applicable). The Indemnitee and Indemnitor and their counsel shall cooperate fully
in the compromise or defense of any Claim subject to this Section 9.7 and keep one another informed of all developments relating to any such Claims, and provide copies of all relevant correspondence and documentation relating thereto. If an
Indemnitor receiving a notice of Claim does not elect to defend such Claim within the time period referred to above, the Indemnitee shall have the right, in addition to any other right or remedy it may have hereunder, at the Indemnitor’s
expense, subject to the Indemnity Cap, as applicable, to defend such Claim. The Indemnitee’s defense of, or participation in the defense of, any such Claim shall not in any way diminish or lessen the obligations of the Indemnitor under this
Section 9.7. In no event may an Indemnitor or an Indemnitee settle or compromise any Claim without the consent of the other (which consent will not be unreasonably withheld, conditioned or delayed); provided, however, that an
Indemnitor may settle or compromise a claim without the consent of the Indemnitee so long as (i) the relief consists solely of money damages in an amount greater than the Indemnity Threshold and less than the remaining balance of the applicable
Indemnity Cap with respect to the Indemnitor and includes a provision whereby the plaintiff or claimant in the matter releases the Indemnitor and the Indemnitee from all liability with respect thereto, and (ii) such Indemnitor acknowledges the
Indemnitee is entitled to indemnification, compensation and reimbursement under this Section 9.7). If remediation is required in connection with any Claims for which the Northern Border Indemnitees are entitled to indemnification under
Section 9.2(a)(ii) above, ONEOK shall have the right to conduct, control and direct such remediation; provided, however, that any remediation activities undertaken by ONEOK shall be conducted (i) in compliance with all applicable Legal
Requirements and any health and safety plan or other reasonable plans or guidelines imposed by the NBP Partnerships on Persons entering its properties, and (ii) in a manner that minimizes any short or long-term interference with the operations
of the NBP Partnerships. ONEOK shall consult with the NBP Partnerships in its determination of the appropriate remediation standard to which remediation will be performed, and any institutional controls that ONEOK intends to employ to meet such
remediation standard. 
 SECTION 10. TAX MATTERS 
 10.1 Retention of Records. Each of Northern Border and ONEOK shall retain, and Northern Border shall cause each of the Entities to retain, all Tax Records in its possession for all open Tax
Periods ending on or before or including the Closing Date, until 6 months following the expiration of the statute of limitations (and any extensions thereof) of the respective Tax Periods. “Tax Records” means any Tax Return, Tax
Return workpapers, documentation relating to any Audit, and any other books of account or records (whether on paper, computer disk or any other medium) required or advisable to be maintained under the applicable Tax law or under any record retention
agreement with any Tax Authority. 
 10.2 Cooperation. Northern Border and ONEOK covenant and agree that subsequent to
the Closing, upon reasonable notice and during normal business hours, they and 

  

 41 

 
their Affiliates will (i) give the other Party and its Representatives information, books and records (or copies thereof) relevant to the Entities, to
the extent necessary to enable the other Party to prepare its Tax Returns (and any Tax Returns for which it has preparation or filing responsibility hereunder) or determine the amount of any refund, credit or other amount the amount of which the
requesting Party may be entitled to receive pursuant to this Agreement, and (ii) provide the other Party and its Representatives with such information, books and records (or copies thereof) as may reasonably be requested in connection with any
Tax Return, inquiry, election, Audit or other examination by any Tax Authority, or judicial or administrative proceedings relating to liability for Taxes. ONEOK and Northern Border also shall make available to each other, as reasonably requested,
and at the expense of the requesting Party, knowledgeable employees or advisors of the Party or its Affiliates of which the request is made and personnel responsible for preparing and maintaining information, books, records and documents in
connection with Tax filings, Audits, disputes or litigation. Notwithstanding the foregoing or any other provision in this Agreement, neither Northern Border nor the Entities (or any Affiliates of either) shall have the right to receive or obtain any
information relating to Taxes of ONEOK, any of its Affiliates, or any of its predecessors other than information relating solely to or otherwise affecting the calculation of Taxes of or attributable to the Entities or any of their subsidiaries.
Northern Border and ONEOK each agree, upon request, to use their reasonable efforts to obtain any certificate or other document from any Tax Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be
imposed with respect to the transactions contemplated by this Agreement. 
 10.3 Transfer Taxes. All transfer,
documentary, recording, notarial, sales, use, registration, stamp and other similar taxes, fees and expenses (including, but not limited to, all applicable stock transfer, real estate transfer or gains Taxes and including any penalties, interest and
additions to such tax) incurred in connection with this Agreement and the transactions contemplated hereby shall be borne by ONEOK. Northern Border and ONEOK shall cooperate in timely making and filing all Tax Returns as may be required to comply
with the provisions of laws relating to such Transfer Taxes. 
 10.4 Tax Returns. 
 (a) ONEOK shall prepare (or cause to be prepared) and timely file all Tax Returns required to be filed with any Tax Authority with respect
to the Entities for all Tax Periods ending on or before the Closing Date and shall pay all Taxes (in excess of any applicable accruals therefor included within the calculation of Final Closing Working Capital) due with respect to such Tax Returns.
Northern Border shall timely pay all Taxes due with respect to such Tax Returns to the extent of any applicable accruals included within the calculation of Final Closing Working Capital. ONEOK shall provide Northern Border with drafts of such Tax
Returns at least 10 days prior to the due date for filing such Tax Returns (taking into account extensions) for Northern Border’s review and comment; provided that in the case of a Tax Return which is a Consolidated Return, ONEOK shall only be
required to provide the portions of such Consolidated Return relating solely to the income, gain, loss and deduction of the Entities. The final form of any such Tax Return required to be provided to Northern Border (and the portion of any such
Consolidated Return relating solely to the Entities), pursuant to the preceding sentence, shall be subject to Northern Border’s prior written consent, which shall not be unreasonably withheld; provided that Northern Border shall not withhold
consent to the filing of any such Tax 

  

 42 

 
Return if such Tax Return (or in the case of a Consolidated Return the portion thereof relating to the Entities) is prepared in a manner consistent with
Section 10.4(c) of this Agreement and the treatment of any items that are not covered by past practice would not have an adverse effect on the Taxes of the Entities for any period beginning on or after the Closing Date or the portion of any
Straddle Period (as defined below) that is Northern Border’s responsibility. In the case of any Tax Return required to be filed by ONEOK pursuant to this Section 10.4(a) after the Closing Date, Northern Border shall arrange for the signing
of such Tax Returns or shall provide ONEOK with such powers or attorney or other authorization, in each case as may be necessary to effect such filings in accordance with applicable Tax Law. 
 (b) Northern Border shall prepare (or cause to be prepared) and timely file all Tax Returns for all Tax Periods ending after the Closing
Date, including all Tax Returns for periods which include but do not end on the Closing Date (“Straddle Periods”) (the “Northern Border Returns”). If ONEOK is responsible under Section 10.5 of this Agreement
for any Taxes due with respect to a Northern Border Return, Northern Border shall provide ONEOK with a substantially final draft of each such Tax Return at least 10 days prior to the due date for filing such Tax Returns (taking into account
extensions) for ONEOK’s review and comment and the final form for any such Northern Border Returns shall be subject to ONEOK’s prior written consent, which shall not be unreasonably withheld; provided however, that ONEOK shall not withhold
consent if such Tax Return is prepared in a manner consistent with Section 10.4(c) of this Agreement and the treatment of any items that are not covered by past practice would not have a material adverse effect on the Tax liabilities of ONEOK
or the Entities for any Pre-Closing Period. Northern Border shall timely pay all Taxes due with respect to such Returns and ONEOK shall promptly reimburse Northern Border for any such Taxes which are its responsibility pursuant to Section 10.5
of this Agreement. 
 (c) Except as otherwise agreed by the parties, any Tax Return that includes any of the Entities’
assets or activities for any Pre-Closing Period shall be prepared in accordance with ONEOK’s past Tax accounting practices used with respect to the Tax Returns in question (unless the party responsible for preparing the Tax Return determines
that the past practices are no longer permissible under the Code or other applicable Tax law), and to the extent any items are not covered by past practices (or in the event such past practices are no longer permissible under the Code or other
applicable Tax law), in accordance with reasonable Tax accounting practices selected by the party responsible for preparing the Tax Return. In the case of any Tax Return for an Entity for any Straddle Period, any income, gain, loss and deduction
shall be allocated based on a closing of the books method or such other method as may be agreed upon in writing by the parties. 
 (d) As part of the Services Agreement between ONEOK and Northern Border, ONEOK shall provide certain Tax Return filing assistance and other Tax assistance relating to the Taxes of the Entities in respect of periods ending after the Closing
Date. 
 10.5 Allocation of Taxes. 
 (a) Allocation of Straddle Period Taxes. Northern Border and ONEOK shall, to the extent permitted by applicable Tax Law and except
as otherwise provided herein, elect with the relevant Tax Authority to close the Tax Period of the Entities as of and including the 

  

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Closing Date. Subject to the preceding sentence, in the case of Taxes attributable to the Entities that are payable with respect to any Straddle Period the
portion of any such Taxes that are allocable to the portion of the Straddle Period ending on the Closing Date shall: (1) in the case of Taxes that are either (A) based upon or related to income or receipts or (B) imposed in connection
with any sale, transfer or assignment of property (real or personal, tangible or intangible) be deemed equal to the amount that would be payable if the Tax year ended on and included the Closing Date and (2) in the case of Taxes (other than
those described in clause (i)) imposed on a period basis with respect to the business or assets of the Entities or otherwise measured by the level of any item, be deemed to be the amount of such Taxes for the entire Straddle Period (or, in the case
of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding Tax Period) multiplied by a fraction the numerator of which is the number of calendar days in the portion of the Straddle Period ending on and
including the Closing Date and the denominator of which is the number of calendar days in the entire Straddle Period (the “Part-Year Fraction”). For purposes of clause (1) of the preceding sentence, any exemption, deduction,
credit or other item that is calculated on an annual basis shall be allocated to the portion of the Straddle Period ending on the Closing Date on a pro rata basis determined by multiplying the total amount of such item allocated to the Straddle
Period times the Part-Year Fraction. In the case of any Tax based upon or measured by capital (including net worth or long-term debt) or intangibles, any amount thereof required to be allocated under this Section 10.5(a) shall be computed by
reference to the level of such items on the Closing Date. ONEOK shall be responsible for and shall pay any Taxes (in excess of any applicable accruals therefor included within the calculation of Final Closing Working Capital) allocable to the
portion of the Straddle Period ending on the Closing Date and Northern Border shall be responsible for and shall pay any Taxes allocable to the portion of the Straddle Period after the Closing Date. 
 (b) Post-Closing Tax Periods. From and after the Closing Date, for the portion of any Straddle Period that begins on the day after
the Closing Date and any other Tax Period beginning after the Closing Date, without duplication of any amount otherwise payable by Northern Border pursuant to this Agreement, Northern Border shall be responsible and pay, or cause the Entities to
pay, to the appropriate Tax Authority any other Taxes due with respect to the Entities for any such period. 
 (c) Ad
Valorem Taxes. Notwithstanding the foregoing, all ad valorem taxes (other than production, severance and similar Taxes measured by the quantity of or the value of production) related to the 2006 ad valorem tax year shall be pro-rated based on
the number of days during the 2006 ad valorem tax year falling before and falling on or after the Closing Date. ONEOK will pay to Northern Border at Closing an amount equal to the portion of the 2006 ad valorem taxes allocated to it pursuant to this
paragraph (to the extent such allocated amounts exceed any applicable accruals therefor included within the calculation of Final Closing Working Capital). ONEOK shall not be liable for any ad valorem taxes for the period following the Closing.
Northern Border assumes full responsibility for filing all ad valorem renditions and tax returns in all applicable tax jurisdictions due after the Closing Date. ONEOK will, upon request from Northern Border, provide reasonably requested historical
documentation of prior year filings related to ad valorem taxes to help facilitate Northern Border’s correct filing of ad valorem renditions and tax returns. ONEOK assumes full responsibility for filing all ad valorem taxes through the Closing
Date. 
  

 44 

 10.6 Tax Indemnity. 
 (a) ONEOK’s Indemnity for Taxes for Pre-Closing Date Periods. Notwithstanding any of the provisions of Section 9, from
and after the Closing Date, without duplication of any amount otherwise payable by ONEOK pursuant to this Agreement, ONEOK shall indemnify Northern Border and its respective Affiliates against: 
 (i) all Taxes (in excess of any applicable accruals therefor included within the calculation of Final Closing Working Capital) imposed or
payable by the Entities with respect to Tax Periods ending on or before the Closing Date and the portion of any Straddle Periods ending on the Closing Date (each such period a “Pre-Closing Taxable Period”); 
 (ii) all Taxes that are imposed or payable by the Entities that are attributable to (A) any termination of the Entities under Code
Section 708 caused by the transactions contemplated herein, or (B) ONEOK or any member of an Affiliated, consolidated, combined or unitary Tax group of which the Entities are or were members prior to the Closing Date (other than any Taxes
of the Entities) that is imposed under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign law) by reason of such Entities being included in any such Affiliated, consolidated, combined or unitary Tax group;
and 
 (iii) any payments (in excess of any applicable accruals therefor included within the calculation of Final Closing
Working Capital) owed by the Entities to any third party (other than a Governmental Authority) under a tax sharing or other contractual agreement with respect to Taxes of the Entity accruing on or before the Closing Date. 
 (b) Northern Border Indemnity for Taxes for Post-Closing Tax Periods. Notwithstanding any of the provisions of Section 9, from
and after the Closing Date, without duplication of any amount otherwise payable by Northern Border pursuant to this Agreement, Northern Border shall indemnify ONEOK and its respective Affiliates against all Taxes imposed on or payable by Northern
Border or the Entities relating to any Tax Period or portion thereof that begins after the Closing Date, including the portion of the Straddle Period beginning immediately after the Closing Date and including any Taxes accruing after the Closing
Date. 
 (c) Payments. Payment by the indemnitor of any amount due under this Section 10.6 shall be made within 10
days following written notice by the indemnitee that payment of such amounts to the appropriate Tax Authority is due, such written notice to reasonably demonstrate that the indemnitee is entitled to such payment under the terms of this Agreement.

 (d) Tax Refunds. If Northern Border or any of its Affiliates (including, for this purpose, the Entities after the
Closing Date) receives a refund of Taxes of the Entities with respect to a Pre-Closing Taxable Period (including any interest thereon), or in lieu thereof a credit against Taxes, Northern Border shall pay (or cause the Entities to pay) to ONEOK the
amount of such Tax refund or credit (net of any costs or expenses incurred by Northern Border or the Entities in obtaining the Tax refund or credit). Such payment shall be made promptly following the receipt of such Tax refund or credit by Northern
Border or any of its Affiliates. In addition, if the payments made (or deemed made) by or on behalf of the Entities with respect to 

  

 45 

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

  

 46 

 
the portion of such Tax Controversy, correspondence and documents that relate solely to the Entities. 
 10.8 Amended Tax Returns. ONEOK shall not, without the prior written consent of Northern Border (which consent shall not be unreasonably
withheld, conditioned or delayed), file any amended Tax Return or claim for Tax refund filed or required to be filed hereunder to be filed by ONEOK to the extent such filing, if accepted, could be reasonably expected to have an adverse effect on the
Tax liability of Northern Border, its Affiliates or any Entity or any of the Entities for any Tax Period after the Closing; provided that no such consent shall be required for any amended return or claim for Tax refund resulting from an audit
adjustment. 
 10.9 Miscellaneous. 
 (a) Character of Payments. Any payment made by ONEOK, Northern Border, or any of their respective Subsidiaries (including the
Entities) under this Section 10 shall constitute an adjustment to the consideration contributed for the Units for all tax purposes. 
 (b) Interest on Payments. To the extent any payment obligation under this Section 10 or Article 9 is not made on a timely basis (as determined by the relevant provision of this Section 10 or the
relevant provision of Article 9), the amount due and payable shall bear interest at a floating annual rate equal to the annual prime lending rate of The Chase Manhattan Bank in effect, from time to time, from the last date such payment would be
timely under the relevant provision of this Section 10 or Article 9, as applicable, to the date of the payment of such amount. 
 (c) Survival of Tax Claims. Notwithstanding any other provision of this Agreement to the contrary, any obligations of the parties pursuant to this Section 10 shall be unconditional and absolute and shall survive until the
expiration of 6 months after the applicable statute of limitations (taking into account any applicable extensions or tollings thereof) relating to the Taxes at issue. 
 (d) Treatment of Contribution. The Parties intend that the contribution of the Shares and the receipt of the Units pursuant to this
Agreement shall be tax free transactions governed by Section 721 of the Code. Each party agrees that it shall not take any position that is inconsistent with the foregoing in any filing made by such party with the IRS or any other taxing
authority. 
 10.10 Allocation of Value among the Contributed Entities; Book Ups. 
 (a) Within one hundred twenty (120) days following the Closing Date, ONEOK will prepare, or cause to be prepared, and delivered to
Northern Border a statement of the fair market value of the interests in each of the Entities acquired pursuant to this Agreement, with the aggregate of the Entity fair market values equaling the fair market value of the consideration provided in
Section 1.2 of this Agreement. In addition, in the case of any Entities which are taxable as disregarded entities federal income tax, the statement shall also include a statement of the fair market value of the assets of each of such Entities
(such statement, together with the Entity fair market schedule, the “FMV Schedules”). The FMV Schedules as so prepared by ONEOK shall be deemed accepted by Northern Border, unless Northern Border shall send 

  

 47 

 
ONEOK a written objection thereto within thirty (30) days following the Northern Border’s receipt thereof. In the event that Northern Border
delivers a timely written objection as aforesaid and Northern Border and ONEOK are unable to resolve such objection within twenty (20) business days after Northern Border is notified of ONEOK’s objection, the matters in dispute shall be
submitted for final and binding determination to the Neutral Auditors. The FMV Schedules as proposed by ONEOK, shall be adjusted to reflect the resolution of any timely objections made thereto by Northern Border in accordance with this
Section 10.9 and the determinations of the Neutral Auditors, which determinations will be binding absent manifest error or fraud. Northern Border and ONEOK shall each pay their own expenses of preparing and analyzing the schedules and resolving
objections thereto; provided that the cost of any appraisals required to prepare the FMV Schedule shall be borne 50 percent by Northern Border and 50 percent by ONEOK. The fees and expenses of the Neutral Auditors used to resolve objections to the
schedules will be borne equally by Northern Border and ONEOK. 
 (b) ONEOK and Northern Border shall use the FMV Schedules as
determined under this Section 10.9 to calculate built in gain or loss with respect to interests in the contributed Entities for purposes of Section 704(c) of the Code and the Treasury Regulations thereunder. Each party agrees that it shall
not take any position that varies from or is inconsistent with such valuation in any filing made by such party with the IRS or any other taxing authority, except to the extent an adjustment is required by the IRS or any other taxing authority.

 (c) In connection with the contribution hereunder and the contribution of the Shares by Northern Border to NBILP, Northern
Border and NBILP shall adjust the carrying value of their assets to their respective fair market values in accordance with the provisions of Treasury Regulation 1.704-1(b)(2)(iv)(f). Such adjustments shall be supported by one or more appraisals
reasonably satisfactory to ONEOK, a copy of which appraisals shall be provided to ONEOK. In the event of any dispute with respect to the values as so determined the matters in dispute shall be submitted for final and binding determination to the
Neutral Auditors. Northern Border, NBILP and ONEOK shall each pay their own expenses of preparing and analyzing the schedules and resolving objections thereto; provided that the cost of the appraisals shall be borne solely by Northern Border and
NBILP. The fees and expenses of the Neutral Auditors used to resolve objections to the schedules will be borne equally by Northern Border and ONEOK. 
 SECTION 11. MISCELLANEOUS 
 11.1 Fees and Expenses. Each of the parties will bear its own expenses in
connection with the negotiation and the consummation of the transactions contemplated by this Agreement. 
 11.2 Governing Law.
This Agreement shall be construed under and governed by the internal laws of the State of Delaware without regard to its conflict of laws provisions. 
 11.3 Notices. All notices and other communications between the Parties shall be in writing and shall be deemed to have been duly given (i) when delivered in person or by overnight delivery service,
(ii) 3 days after posting in the United States mail having been sent registered or certified mail return receipt requested, or (iii) upon receipt when delivered by 

  

 48 

 
facsimile transmission, in each case, to the addresses set forth below (or to such other address or addresses as the Parties may designate from time to time
in writing): 
 TO ONEOK: 
 ONEOK, Inc. 
 100 W. 5th Street, Suite 1800 
 Tulsa, OK 74103 
 Attention: President 
 Facsimile:
(918) 588-7961 
 with copies to (which shall not constitute notice): 
 ONEOK, Inc. 
 100 W. 5th Street, Suite 1800 
 Tulsa, OK 74103 
 Attention: General Counsel 
 Facsimile: (918) 588-7971 
 and to: 
 Gable & Gotwals 
 100 W.
5th Street, Suite 1100 
 Tulsa, OK 74103-4217 
 Attention: Stephen W. Lake 
 Facsimile: (918) 595-4990 
 TO THE NORTHERN BORDER PARTNERSHIPS: 
 Northern Border Partners, L.P. 
 13710 FNB Parkway 
 Omaha, NE 68154-5200

 Attention: Chief Executive Officer 
 Facsimile: (402) 490-7482 
 with copies to (which shall not constitute notice): 
 Northern Border Partners, L.P. 
 13710 FNB
Parkway 
 Omaha, NE 68154-5200 
 Attention: Janet Place 
 Facsimile: (402) 492-7480 
 Locke Liddell & Sapp LLP 
 600
Travis, 3400 JPMorgan Chase Tower 
 Houston, TX 77002 
  

 49 

 Attention: Michael T. Peters 
 Facsimile: (713) 223-3717 
 and with a
copy to (prior to the Closing): 
 Baker Botts L.L.P. 
 910 Louisiana 
 Houston, Texas 77002-4995 
 Attention: R. Joel Swanson 
 Facsimile:
(713) 229-1522 
 Any notice given hereunder may be given on behalf of any party by his counsel or other authorized representatives.

 11.4 Entire Agreement. This Agreement together with the Related Agreements, including the Schedules and Exhibits referred to
herein and therein and the other writings specifically identified herein and therein (including the Confidentiality Agreement) or contemplated hereby, is complete, reflects the entire agreement of the Parties with respect to its subject matter, and
supersedes all previous written or oral negotiations, commitments and writings. No promises, representations, understandings, warranties and agreements have been made by any of the Parties hereto except as referred to herein or therein or in such
Schedules and Exhibits or in such other writings and all inducements to the making of this Agreement relied upon by any of the Parties hereto have been expressed herein or in such Schedules or Exhibits or in such other writings. 
 11.5 Assignability; Binding Effect. This Agreement may not be assigned by any Party without the prior written consent of the other parties
to this Agreement. This Agreement shall be binding upon and enforceable by, and shall inure to the benefit of, the Parties hereto and their respective successors and permitted assigns. 
 11.6 Captions and Gender. The captions in this Agreement are for convenience only and shall not affect the construction or interpretation
of any term or provision hereof. The use in this Agreement of the masculine pronoun in reference to a Party hereto shall be deemed to include the feminine or neuter, as the context may require. 
 11.7 Execution in Counterparts. For the convenience of the Parties and to facilitate execution, this Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document. 
 11.8
Amendments. This Agreement may not be amended or modified, nor may compliance with any condition or covenant set forth herein be waived, except by a writing duly and validly executed by Northern Border, NBILP and ONEOK, or in the case
of a waiver, the Party waiving compliance. 
 11.9 Publicity and Disclosures. No press releases or public disclosure, either
written or oral, of the transactions contemplated by this Agreement shall be made by a Party to this Agreement without the written consent of ONEOK, Northern Border and NBILP. 
  

 50 

 11.10 Severability. The Parties agree that, in the event that any provision of this
Agreement or the application of any such provision to any Party is held by a court of competent jurisdiction to be contrary to law, the provision in question shall be construed so as to be lawful and the remaining provisions of this Agreement shall
remain in full force and effect. 
 11.11 Waiver of Jury Trial. Each of the parties hereto hereby waives to the fullest extent
permitted by applicable law any right it may have to a trial by jury with respect to any Legal Proceeding directly or indirectly arising out of, under or in connection with this Agreement or the transactions contemplated by this Agreement.

 11.12 Arbitration. All disputes arising out of or in connection with this Agreement and the transactions contemplated hereby
and thereby, which cannot be resolved through the procedures described herein or therein shall be finally resolved solely and exclusively by means of arbitration under the then-current rules for non-administered arbitration of the International
Institute for Conflict Prevention and Resolution (“CPR Rules”) to be conducted in English in the City of Tulsa. The arbitration shall be conducted by a panel of three (3) arbitrators appointed by agreement of the Parties, or
failing such agreement, under the CPR Rules, provided that any arbitrator selected shall be a retired federal judge of a court within the jurisdiction of the United States. The arbitration will proceed in accordance with the CPR Rules. The decision
of the arbitrators shall be final, conclusive, and binding upon the Parties, and a judgment upon the award may be obtained and entered in any federal or state court of competent jurisdiction. The Parties agree that any arbitration shall be kept
confidential and any element of such arbitration (including but not limited to any pleadings, briefs or other documents submitted or exchanged, any testimony or other oral submissions, and any awards) shall not be disclosed beyond the arbitral
tribunal, the Parties, their counsel and any persons necessary to conduct the arbitration, except as may be required in recognition and enforcement proceedings, if any, or in order to satisfy disclosure obligations imposed by any applicable law. The
Parties agree to cooperate in providing each other with all discovery, including but not limited to the exchange of documents and depositions of Parties and non-Parties, reasonably related to the issues in the arbitration. If the Parties are unable
to agree on any matter relating to such discovery, any such difference shall be determined by the arbitrators. The award of the arbitrators shall be final and binding upon the Parties, and shall not be subject to any appeal or review. The Parties
agree that such award may be recognized and enforced in any court of competent jurisdiction. The Parties also agree to submit to the non-exclusive personal jurisdiction of the federal and state courts sitting in Oklahoma, for the limited purpose of
enforcing this arbitration agreement (including, where appropriate, issuing injunctive relief) or any award resulting from arbitration pursuant to this Section 11.12. The Parties agree that except in the case of fraud the arbitration proceeding
described in this Section 11.12 is the sole and exclusive manner in which the Parties may resolve disputes arising out of or in connection with this Agreement. The arbitrators have the discretion to grant the prevailing Party in any arbitration
attorneys’ fees and costs and make the non-prevailing Party responsible for all expenses of the arbitration. 
 11.13 Time of the
Essence. Time is of the essence with respect to the performance of the obligations set forth in this Agreement. 
 11.14
Remedies Cumulative; Specific Performance. The rights and remedies of the Parties hereto shall be cumulative and not alternative. The Parties hereto agree that, in the 

  

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event of any breach or threatened breach by any party to this Agreement of any covenant, obligation or other provision set forth in this Agreement for the
benefit of any other Party to this Agreement, such other Party shall be entitled (in addition to any other remedy that may be available to it and without the requirement of the posting of a bond) to (a) a decree or order of specific performance
or mandamus to enforce the observance and performance of such covenant, obligation or other provision and (b) an injunction restraining such breach or threatened breach. 
 11.15 Further Assurances. From and after the date of this Agreement, upon the request of any Party, the other Parties shall execute and
deliver such instruments, documents or other writings as may be reasonably necessary to carry out and effectuate fully the intent and purposes of this Agreement. 
 11.16 Third Party Beneficiaries. Nothing herein expressed or implied is intended to or shall be construed to confer upon or give any Person, other than the Parties hereto and their respective successors,
permitted assigns and Affiliates (including, without limitation, the Northern Border Indemnitees and the ONEOK Indemnitees), any rights or remedies under or by reason of this Agreement. 
 11.17 Audit Committee Authority. At or prior to the Closing, (a) any action, notice, consent, approval or waiver that is required to be
taken or given or may be taken or given by Northern Border pursuant to Section 1.5 (Working Capital Adjustment), Section 4.1 (Conduct of the Entities), Section 6.4 (Public Announcements), Section 7.2 (Conditions to the Obligations of
the NBP Partnerships), and Section 8.1 (Termination), and (b) any amendment of this Agreement or of any other Northern Border Transaction Agreement shall be made, taken or given by Northern Border, as the case may be, only with the
concurrence, or at the direction, of the Audit Committee of Northern Border. 
 11.18 Certain Definitions. For purposes of this
Agreement, the term: 
 “Acquired Entities” means, collectively, the Entities and the “Entities” as defined in the
Northern Border Purchase Agreement. 
 “Affiliates” means, with respect to the Person to which it refers, a Person that
directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, such subject Person. Notwithstanding the other provisions of this definition and except as otherwise expressly provided in this
Agreement, ONEOK’s Affiliates shall be deemed to exclude Northern Border and its Subsidiaries and Northern Border’s Affiliates shall be deemed to exclude ONEOK and its Subsidiaries (including the Entities). 
 “Black Mesa Companies” means Black Mesa Pipeline Operations, L.L.C., Black Mesa Holdings, Inc. and Black Mesa Pipeline, Inc. 

“Business Facility” includes any pipeline or pipeline easement or right-of-way, compressor station, hub, delivery point, receipt
point, interconnection, gas storage facility, gas processing facility, fractionator, storage field, well or other real or personal property that any Entity or any of its respective organizational predecessors currently owns, leases, manages or
operates in any manner or formerly owned, leased, managed or operated in any manner, including, without limitation, the Operating Assets. 
  

 52 

 “CERCLA” shall have the meaning ascribed to it in the definition of Environmental Laws.

 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Contract” means any written or oral note, instrument, bond, mortgage, indenture, lease, sublease, contract, subcontract, warranty,
agreement, obligation, understanding, commitment or legally binding commitment or undertaking of any nature. 
 “Consolidated
Return” means a consolidated United States Income Tax Return (within the meaning of Section 1501 of the Code and the Treasury Regulations promulgated pursuant to Section 1502 of the Code) and any other combined, joint,
consolidated or unitary Tax Return required to be filed with any Tax Authority that includes both (i) any Entity and (ii) ONEOK or any subsidiary of ONEOK that is not an Entity. 
 “Contribution Companies” means each of the Companies, other than the Intermediate Contribution Companies. 
 “Converting Companies” means each of ONEOK Bushton Processing, Inc., ONEOK Sayre Storage Company, OkTex Pipeline Company, ONEOK Field
Services Company and Mid Continent Market Center, Inc. 
 “Copyrights” shall have the meaning ascribed to it in the
definition of Intellectual Property Assets. 
 “Damages” means any loss, damage, injury, decline in value, lost opportunity,
liability (INCLUDING STRICT LIABILITY), claim, demand, settlement, judgment, award, fine, penalty, Tax, fee (including reasonable attorneys’ fees), charge, cost or expense of any nature (including costs and expenses of litigation,
administrative proceedings and investigations), whether arising in tort, contract or otherwise, but excluding any punitive damages except to the extent such punitive damages are awarded against any Indemnitees in a third-party Claim; provided,
however, notwithstanding any other provision of this Agreement to the contrary, to avoid double counting as to any matter, “Damages” shall not include any Liability to the extent that such Liability (or a reserve therefor (to the
extent of such reserve)) is fully reflected as a current liability in the calculation of Final Closing Working Capital. 
 “Drop-Down
Contracts” means all Contracts (other than Shared Contracts, intercompany loan or credit agreements that shall be terminated prior to or at the Closing, confidentiality agreements, benefit plans and employment or secondment agreements), to
which an Entity is not a party and to which ONEOK or any Affiliate of ONEOK (other than an Entity) is a party and which solely benefits one or more of the Entities. 
 “Eligible Person” means a Person treated as a “domestic eligible entity” under section 301.7701-3(a) of the Treasury regulations promulgated under the Code. 
 “Employee Benefit Plan” means (i) each “employee benefit plan,” as such term is defined in Section 3(3) of ERISA,
including any multiemployer plan (as defined in Section 3(40) of ERISA), (ii) each plan that would be an employee benefit plan if it was subject to ERISA, such 

  

 53 

 
as plans for directors, (iii) each stock bonus, stock ownership, stock option, stock purchase, stock appreciation rights, phantom stock or other stock
plan (whether qualified or nonqualified), and (iv) each bonus, deferred compensation or incentive compensation plan; provided, however, that such term shall not include (a) routine employment policies and procedures developed and applied
in the ordinary course of business and consistent with past practice, including wage, vacation, holiday, and sick or other leave policies, (b) workers compensation insurance, and (c) directors and officers liability insurance. 

“Environmental Laws” means, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(“CERCLA”), 42 U.S.C. §§ 9601 et seq., the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq.,
the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq., the Clean Air Act, 42 U.S.C. §§ 7401 et seq., and the Clean Water Act (Federal Water Pollution Control Act), 33 U.S.C. §§ 1251 et seq., the Occupational
Safety and Health Act, 29 U.S.C. §§ 651 et seq., and all rules and regulations promulgated pursuant to any of the above statutes, and any federal, state, local, municipal, foreign or other law, statute, constitution, common law,
resolution, ordinance, code, edict, decree, order, rule, regulation, permit condition, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Authority, in
each case relating to Environmental Matters. 
 “Environmental Matters” means any matters arising out of or relating to
health and safety, or pollution or protection of the environment or workplace, including, without limitation, the ambient and indoor air, surface and ground waters, land and soils, buildings, and indoor workplaces, and any of the foregoing relating
to the use, generation, transport, treatment, storage, or disposal of any Hazardous Materials. 
 “Environmental Permit”
means all Permits required to comply with any applicable Environmental Law. 
 “Entity Guarantees” means all guaranties,
letters of credit, bonds, sureties and other credit support or assurances provided by ONEOK or its Affiliates (other than the Entities) in support of any obligations of the Entities. 
 “Equity Interests” means the capital stock, limited liability company membership interest, partnership interest or similar ownership
interests of any Person. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “ERISA Affiliate” means, with respect to any Person, any other Person that is a member of a group described in Section 414(b), (c),
(m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes the first Person, or that is a member of the same “controlled group” as the first Person pursuant to Section 4001(a)(14) of ERISA. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

 

 54 

 “GAAP” means United States generally accepted accounting principles and practices as in
effect from time to time and applied consistently throughout the periods involved. 
 “Governmental Authority” means any
foreign or domestic federal, state, local, municipal, or other government or governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); or any body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative, police, or regulatory or power of any nature, in each case having jurisdiction over ONEOK, the Entities, the Business or Northern Border. 
 “Governmental Order” means any order, ruling, writ, judgment, injunction, decree, stipulation, determination or award entered by or with
any Governmental Authority. 
 “Hazardous Material” means any substance, material or waste that is regulated by any
Environmental Law as hazardous, toxic, a pollutant, contaminant, solid waste or words of similar import, including, without limitation, petroleum, petroleum derivatives and by-products, asbestos, urea formaldehyde and polychlorinated biphenyls.

 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
promulgated thereunder. 
 “Indebtedness” means all outstanding obligations for borrowed money, including
(i) indebtedness evidenced by notes, bonds, debentures or other instruments (and including all outstanding principal, prepayment premiums, if any, and accrued interest, fees and expenses related thereto), (ii) any outstanding obligations
under capital leases and purchase money obligations, (iii) any amounts owed with respect to drawn letters of credit and (iv) any outstanding guarantees of obligations of the type described in clauses (i) through (iii) above (and,
for the avoidance of doubt, excludes accounts payable). 
 “Indemnity Cap” means the ONEOK Indemnity Cap or the Northern
Border Indemnity Cap, as applicable. 
 “Intellectual Property Assets” means: (A) patents, patent applications,
inventions, discoveries, and invention disclosures (whether or not patented) (collectively, “Patents”); (B) trade names, trade dress, logos, slogans, internet domain names, registered and unregistered trademarks and service
marks and related registrations, applications for registration and renewals therefor (collectively, “Trademarks”); (C) copyrights in both published and unpublished works and all copyright registrations, applications and
renewals therefor, and all derivatives, translations, adaptations and combinations of the above (collectively, “Copyrights”); (D) know-how, trade secrets, confidential or proprietary information, data, processes and strategies,
(collectively, “Trade Secrets”); (E) other intellectual property rights and/or proprietary rights relating to any of the foregoing; (F) Software; and (G) goodwill, licenses, permits, consents, approvals, and claims of
infringement against third parties. 
 “Intercompany Accounts” shall mean all balances related to receivables, payables or
other accounts between ONEOK and its Subsidiaries (other than the Entities) on the one hand, and the Entities, on the other hand (but excluding all Indebtedness). 
  

 55 

 “IRS” means the Internal Revenue Service. 
 “Intermediate Contribution Companies” means each of ONEOK Sayre Storage Company, OkTex Pipeline Company and ONEOK Gas Gathering, L.L.C.

 “Knowledge of the NBP Partnerships” or similar words or phrases means the actual knowledge of Bill Cordes, Chris Skoog,
Jerry Peters, Mike Nelson, Pierce Norton and Fred Rimington. 
 “Knowledge of ONEOK” or similar words or phrases means the
actual knowledge of John Gibson, Pierce Norton, Sam McVay, Pete Walker, Terry Spencer, Steve Guy, Jim Haught and Curtis Dinan. 
 “Legal Proceeding” means any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigate or appellate proceeding), hearing, inquiry, audit, examination or investigation
commenced, brought, conducted or heard by or before, or otherwise involving, any court or Governmental Authority or any arbitrator or arbitration panel. 
 “Legal Requirement” means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation,
ruling, order, judgment or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Authority, including, without limitation, Tax Laws. 
 “Liabilities” means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent, matured or
unmatured or determined or determinable, including, without limitation, those arising under any Legal Requirement and those arising under any contract, agreement, arrangement, commitment or undertaking. 
 “Lien” means any claim, restriction on voting, transfer or pledge, hypothecation, option, right of first refusal, easement, preemptive
right, community property interest, mortgage, lien (including, without limitation, environmental and tax liens), charge, encumbrance, security interest or other restriction of any kind, whether imposed by Legal Requirement, agreement, understanding
or otherwise. 
 “Material Adverse Effect” means with respect to the Entities any event, change or effect that individually
or in the aggregate has or would reasonably be expected to have a material adverse effect upon the condition (financial or otherwise), business, assets, liabilities, or results of operations of the Entities, taken as a whole; excluding any adverse
change, event or effect arising from: (i) conditions generally affecting the United States economy or generally affecting one or more industries in which the Entities operate; (ii) national or international political conditions, including
terrorism or the engagement by the United States in hostilities or acts of war; (iii) financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index);
(iv) changes in GAAP which are not specific to the Entities; (v) changes in any laws, rules, regulations, orders, or other binding directives issued by any Governmental Authority generally affecting one or more industries in which the
Entities operate; (vi) the public announcement, pendency or completion of the transactions contemplated by this Agreement; or (vii) seasonal reductions in revenues and/or 

  

 56 

 
earnings of the entities in the ordinary course of business. References in this Agreement to dollar amount thresholds shall not be deemed to be a measure of
a Material Adverse Effect or materiality. 
 “NBILP GP Shares” means all of the outstanding Equity Interests in the
Intermediate Contribution Companies. 
 “NBP General Partners” means Northern Plains, Pan Border and Northwest Border.

 “NBP GP Shares” means an undivided 1% interest in the Shares of the Contribution Companies. 
 “NBP Shares” means an undivided 99% interest in the Shares of the Contribution Companies. 
 “Net Working Capital” means, at any date, the difference between the consolidated current assets of the Entities and the consolidated
current liabilities of the Entities, in each case determined in accordance with GAAP applied consistently in the manner applied in the Financial Statements, except as otherwise provided in the calculation of Target Working Capital as set forth in
Exhibit D, and except as otherwise provided in Schedule 1.5, (but for the purposes of preparing the Closing Working Capital Statement only, without regard to any income Tax assets or liabilities). 
 “Northern Border Indemnitees” means the NBP Partnerships and their respective Affiliates (including, without limitation, the Entities)
and their respective Representatives. 
 “Northern Border Material Adverse Effect” means with respect to the NBP
Partnerships any event, change or effect that individually or in the aggregate has or would reasonably be expected to have a material adverse effect upon the condition (financial or otherwise), business, assets, liabilities, or results of operations
of the NBP Partnerships, taken as a whole; excluding any adverse change, event or effect arising from: (i) conditions generally affecting the United States economy or generally affecting one or more industries in which the NBP Partnerships
operate; (ii) national or international political conditions, including terrorism or the engagement by the United States in hostilities or acts of war; (iii) financial, banking or securities markets (including any disruption thereof and
any decline in the price of any security or any market index); (iv) changes in GAAP which are not specific to Northern Border; (v) changes in any laws, rules, regulations, orders, or other binding directives issued by any Governmental
Authority generally affecting one or more industries in which the NBP Partnerships operate; (vi) the public announcement, pendency or completion of the transactions contemplated by this Agreement or (vii) seasonal reductions in revenues
and/or earnings of Northern Border in the ordinary course of business. References in this Agreement to dollar amount thresholds shall not be deemed to be a measure of a Northern Border Material Adverse Effect or materiality. 
 “Northern Border Transaction” means the transactions provided for under the terms of the Northern Border Transaction Agreements when
viewed on a collective basis. 
 “Northern Border Transaction Agreements” means this Agreement, the Northern Border Purchase
Agreement, the TransCanada Agreement, the Amendment and each agreement, 

  

 57 

 
instrument, certificate or similar document executed and delivered by Northern Border pursuant to the terms of this Agreement, the Northern Border Purchase
Agreement, the TransCanada Agreement and the Amendment. 
 “Northwest Border” means Northwest Border Pipeline Company.

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

  

 58 

 “Related Agreements” means any agreement, instrument, certificate or similar document
executed and delivered pursuant to this Agreement (including, without limitation, the Other Transaction Agreements and the Amendment). 
 “Representative” means with respect to a Person, such Person’s officers, directors, managers, partners, employees, agents, attorneys, accountants, advisors and representatives. With respect to Northern Border,
“Representative” shall include the Chairman of its Audit Committee. 
 “Securities Act” means the Securities and
Exchange Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
 “SEC” means the Securities and
Exchange Commission. 
 “SEC Documents” means all reports, schedules, forms, statements and other documents (including
exhibits and all other information incorporated therein) filed by the applicable Party with the SEC under the Securities Act or the Exchange Act. 
 “Shared Contract” means any Contract (other than Drop-Down Contracts, Intercompany Accounts, confidentiality agreements, Employee Benefit Plans, and employment or secondment agreements), to which an Entity is not a party
and to which ONEOK or any Affiliate of ONEOK (other than an Entity) is a party and which directly benefits both (i) an Entity, and (ii) ONEOK or any Affiliate of ONEOK (other than an Entity). 
 “Software” means any and all of the following, other than “shrink wrap” licenses, that are primarily used by any of the
Entities: (i) computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or object code, (ii) databases and compilations, including any and all data and collections of
data, whether machine readable or otherwise, (iii) descriptions, flow-charts and other work product used to design, plan, organize and develop any of the foregoing, screens, user interfaces, report formats, firmware, development tools,
templates, menus, buttons and icons and (iv) documentation, including user manuals and other training documentation, related to any of the foregoing. 
 “Subsidiary” means with respect to any Person, the corporations, partnerships, limited liability companies, joint ventures, associations and other entities controlled by such Person directly or
indirectly through one or more intermediaries. 
 “Target Working Capital” means the amount shown as the Target Working
Capital on Exhibit D. 
 “Tax” or “Taxes” means all taxes, charges, levies, fees, or other assessments
imposed by any federal, state, local or foreign Tax Authority, including, but not limited to, any income, gross income, gross receipts, profits, capital stock, franchise, business, withholding payroll, social security, workers’ compensation,
unemployment, disability, property, ad valorem, stamp, excise, occupation, service, sales, use, license, lease, transfer, import, export, value added, goods and services, alternative minimum, estimated or other similar tax (including any fee,
assessment, or other charge in the nature of or in lieu of any tax), and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  

 59 

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

			
	 Term
	  	Section
	 1935 Act
	  	2.18
	 Aggregate Northern Border Damages
	  	9.3(a)
	 Aggregate ONEOK Damages
	  	9.3(a)
	 Agreement
	  	Preamble
	 Amendment
	  	1.2
	 Audits
	  	2.6(e)
	 Balance Sheet
	  	2.5(a)
	 Balance Sheet Date
	  	2.5(a)
	 Books and Records
	  	5.2(b)(i)
	 Business
	  	Recitals
	 Claim
	  	9.7(a)
	 Closing
	  	1.3(a)

  

 60 

			
	 Closing Date
	  	1.3(a)
	 Closing Working Capital
	  	1.5(a)
	 Closing Working Capital Statement
	  	1.5(a)
	 Common Units
	  	1.2
	 Companies
	  	Recitals
	 Company
	  	Recitals
	 Company Subsidiary
	  	2.2
	 Contributing NBP General Partners
	  	1.1
	 Controlling Party
	  	10.7(c)
	 Conversion Transactions
	  	6.11
	 Conversion Units
	  	1.2
	 CPR Rules
	  	11.12
	 Entities
	  	2.2
	 Entity
	  	2.2
	 Entity Intellectual Property Assets
	  	2.9
	 FERC
	  	6.1(a)
	 Final Closing Working Capital
	  	1.5(c)
	 Financial Statements
	  	2.5(a)
	 FMV Schedules
	  	10.10(a)
	 Governmental Approvals
	  	6.3(a)
	 GP Purchase Agreement
	  	7.1(h)
	 Indemnitee
	  	9.7(a)
	 Indemnitor
	  	9.7(a)
	 Indemnity Threshold
	  	9.3(a)
	 Interim Financial Statements
	  	6.12
	 KCC Consent
	  	7.1(g)
	 License Period
	  	6.9
	 Material Contracts
	  	2.10(a)
	 Minimum Claim Amount
	  	9.3(a)
	 NBILP
	  	Preamble
	 NBILP Partnership Agreement
	  	1.4
	 NBP Partnerships
	  	Preamble
	 NBP Partnerships Disclosure Schedules
	  	3
	 Net Working Capital Adjustment
	  	1.5(d)(ii)
	 Neutral Auditors
	  	1.5(c)
	 NGA
	  	2.18
	 Non-Controlling Party
	  	10.7(c)
	 Northern Border
	  	Preamble
	 Northern Border Credit Agreement Amendments
	  	7.2(j)
	 Northern Border Credit Agreements
	  	7.2(j)
	 Northern Border Indemnity Cap
	  	9.3(b)
	 Northern Border Partnership Agreement
	  	1.2
	 Northern Border Purchase Agreement
	  	7.1(h)
	 Northern Border Returns
	  	10.4(b)
	 Northern Border SEC Documents
	  	3.9(a)
	 Northern Plains
	  	1.1

  

 61 

			
	 OBPI
	  	7.1(k)
	 OCC Consent
	  	7.1(g)
	 ONEOK
	  	Preamble
	 ONEOK Disclosure Schedules
	  	2
	 ONEOK Guaranty Agreement
	  	1.3(b)(ii)
	 ONEOK Indemnity Cap
	  	9.3(b)
	 ONEOK Marks
	  	6.9
	 Operating Assets
	  	2.19(a)
	 Other Transaction Agreements
	  	7.1(h)
	 Pan Border
	  	1.1
	 Parties
	  	Preamble
	 Party
	  	Preamble
	 Part-Year Fraction
	  	10.5(a)
	 Pre-Closing Period
	  	4.1
	 Pre-Closing Taxable Period
	  	10.6(a)
	 Related Party
	  	2.14
	 Resolution Period
	  	1.5(b)
	 Services Agreement
	  	1.3(b)(ii)
	 Shares
	  	Recitals
	 Straddle Periods
	  	10.4(b)
	 Tax Controversy
	  	10.7(a)
	 Tax Indemnitor
	  	10.7(a)
	 Tax Records
	  	10.1
	 TransCanada Agreement
	  	7.1(h)
	 Units
	  	1.2
	 Viking Indenture
	  	7.2(l)

  

 62 

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

			
	ONEOK, INC.
		
	 By:
	 	 /s/ David L. Kyle

	 Name:
	 	 David L. Kyle

	 Title:
	 	Chairman of the Board, President and
Chief Executive Officer

  

			
	NORTHERN BORDER PARTNERS, L.P.
		
	 By:
	 	 /s/ William R. Cordes

	 Name:
	 	 William R. Cordes

	 Title:
	 	 Chief Executive Officer

  

			
	NORTHERN BORDER INTERMEDIATE LIMITED PARTNERSHIP
		
	 By:
	 	 /s/ William R. Cordes

	 Name:
	 	 William R. Cordes

	 Title:
	 	 Chief Executive Officer

  

 63 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

 64 

 Schedule 1.3(c)(v) 
 Form of Opinions to be Delivered by Counsel 
 for the NBP Partnerships 
 Unless otherwise defined herein, all capitalized terms defined in the Contribution Agreement shall have the same meanings when used herein.

  

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

  

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

  

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

  

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

  

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

  

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

	 	7.	Assuming that ONEOK acquires “control” (within the meaning of subsections (a) and (b) of Section 8-106 of the Uniform Commercial Code of the State of
Delaware) [of the certificate or certificates representing the Units delivered to ONEOK at Closing] without notice of any adverse claim (within the meaning of Section 8-105 of the Uniform Commercial Code of the State of Delaware), upon delivery
of the certificate or certificates representing the Units to ONEOK, ONEOK will acquire its rights to the Units, free of adverse claims. 

 Assuming that ONEOK acquires “control” (within the meaning of subsections (a) and (b) of Section 8-106 of the Uniform Commercial Code of the State of Delaware) [of the certificate or
certificates representing the Conversion Units delivered to ONEOK upon conversion of the Units in accordance with the terms of the Northern Border Partnership Agreement] without notice of any adverse claim (within the meaning of Section 8-105
of the Uniform Commercial Code of the State of Delaware), upon conversion of the Units in accordance with the terms of the Northern Border Partnership Agreement and delivery of the certificate or certificates representing the Conversion Units to
ONEOK registered in the name of ONEOK, ONEOK will acquire its rights to the Conversion Units, free of adverse claim.Form of Services Agreement

 Exhibit 10.33 
 SERVICES AGREEMENT 
 This Services Agreement (“Agreement”) is made and
entered into as of the [    ]th day of
[            ], 2006 (the “Effective Date”) by and among ONEOK, Inc., an Oklahoma corporation (“ONEOK”), Northern Plains Natural Gas Company, LLC, a
Delaware limited liability company (“Northern Plains”), NBP Services, LLC, a Delaware limited liability company (“NBP Services”), Northern Border Partners, L.P., a Delaware limited partnership (the
“MLP”), and Northern Border Intermediate Limited Partnership (the “ILP”), a Delaware limited partnership. Each party is referred to herein individually as a “Party,” and collectively as the
“Parties.” Capitalized terms used herein and not otherwise defined shall have the meanings given to them in Section 10.1. 
 W I T N E S S E T H: 
 WHEREAS, the MLP and ILP previously contracted for NBP Services to provide
certain services to the MLP and the ILP in connection with the day-to-day business and affairs of the MLP and ILP pursuant to the Administrative Services Agreement; 
 WHEREAS, the Parties desire for the Administrative Services Agreement to be terminated, superseded and replaced by this Agreement and to have the services previously provided under that Administrative Services
Agreement be provided under this Agreement; 
 WHEREAS, Northern Plains, pursuant to certain Operating Agreements, is the operator of certain
interstate natural gas pipelines in which the MLP and the ILP have an ownership interest; 
 WHEREAS, the Operating Agreements each provide
that Northern Plains may delegate or cause one or more of its affiliates to fulfill its obligations under the Operating Agreements; 
 WHEREAS, certain affiliates of ONEOK own all of the outstanding general partner interests of each of the MLP and ILP and own a substantial percentage of the outstanding equity interests in the MLP; 
 WHEREAS, the Parties have determined that the operations of ONEOK and its affiliates and the Northern Border Companies can operate more efficiently and
cost effectively if certain common services are combined and shared; 
 WHEREAS, certain ONEOK Affiliates and Northern Border Companies are
regulated by various governmental entities that require a fair and reasonable method of allocation for costs incurred for such common services; and 
 WHEREAS, ONEOK (an affiliate of NBP Services and Northern Plains) desires to provide or cause the provision of certain services to the Northern Border Companies, and the Northern Border Companies desire to receive these services, in
accordance with the terms and conditions of this Agreement. 
 NOW THEREFORE, in consideration of the premises and the agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are 

 
hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows: 
 ARTICLE I 
 SERVICES TO BE PROVIDED 
 1.1 Services. On the terms and conditions set forth in this Agreement, ONEOK will provide or cause to be provided to the Northern Border Companies
at least the type and amount of services that it provides or causes to be provided to ONEOK Affiliates, including but not limited to, executive officers, legal services, human resources and employee benefits, information technology, insurance and
risk management, purchasing, inventory control, gas supply services, marketing, pipeline control, right of way management, general operations and maintenance, measurement, engineering, accounting, contract administration, SEC reporting, day-to-day
supervisory and administrative services, planning support, budgeting support, technical, treasury services, tax and internal audit services, external audit services and other services required to be provided pursuant to the partnership agreements of
the MLP and ILP, as amended from time to time, and various other services routinely and customarily provided to the ONEOK Affiliates (the “Services”). Each Northern Border Company or permitted successor or assign that receives
Services shall be referred to as a “Purchaser” and collectively as the “Purchasers”. ONEOK and the ONEOK Affiliates that provide Services under this Agreement, including Northern Plains and NBP Services, shall be
collectively referred to as the “Provider.” 
 1.2 Operating Agreement Services. The Parties acknowledge and agree
that Northern Plains will continue to perform its obligations under each of the Operating Agreements. To the extent Northern Plains requests Services from ONEOK under this Agreement in order to perform those obligations, ONEOK shall provide such
Services, and Northern Plains shall pay for such Services, under the terms and conditions set forth in this Agreement. To the extent Northern Plains receives Services under this Agreement, it will be deemed a “Purchaser” with respect to
such Services. 
 1.3 Additional Services. Any additional services requested by any Purchaser will be provided on the basis agreed
upon by the Parties in writing. Unless the context otherwise requires, the term “Services” in this Agreement shall include any such additional services agreed upon in writing by the Parties. 
 1.4 Costs. The costs for the Services provided under this Agreement will be allocated and billed monthly to the Purchasers in a manner consistent
with the method of allocation of such costs among other ONEOK Affiliates and consistent with applicable law, including the requirements of the Federal Energy Regulatory Commission (“FERC”). Direct costs will be allocated to the
Purchasers having activities that give rise to such costs to the extent that such direct basis can reasonably be determined and allocated. The remaining unallocated direct costs and all indirect costs will then be allocated on the basis of a
three-factor formula (the “Distrigas Method”), consistent with methods approved by the FERC. The Distrigas Method provides for the allocation of common costs based on the average of the percentage of “gross plant and
investment”, “operating income” and “labor expense,” as such terms are defined in FERC regulations of each company involved in the calculation. The Provider will determine an average of those three factors for each Purchaser
and for ONEOK and each ONEOK Affiliate 

  

 2 

 
that is involved in the calculation. That average will be the allocation ratio for each such entity (the “Distrigas Allocation Ratio”). The
Distrigas Allocation Ratio for each such entity will then be applied to the total amount of common costs to determine the amount of common costs that will be allocated to each such entity. The Distrigas Allocation Ratio will be recalculated
annually, or as required due to acquisitions, divestitures or other similar types of transactions or regulatory requirements. For the avoidance of doubt, the costs allocated through the Distrigas Method are based on actual costs recognized under
U.S. generally accepted accounting principles and do not include a mark-up or other element of profit. The Provider is not entitled to and will not receive any other fee or other compensation for the performance of the Services other than as set
forth in this Section 1.4. 
 ARTICLE II 
 SERVICE STANDARD 
 2.1 Standard of Care; Limited Warranty. 
 (a) The Provider represents that it will discharge its duties hereunder in good faith and with reasonable diligence and on a basis
consistent with the standards of service provided to ONEOK Affiliates. EXCEPT AS SET FORTH IN THE IMMEDIATELY PRECEDING SENTENCE, THE PROVIDER MAKES NO (AND HEREBY DISCLAIMS AND NEGATES ANY AND ALL) WARRANTIES OR REPRESENTATIONS WHATSOEVER, EXPRESS
OR IMPLIED, WITH RESPECT TO THE SERVICES. IN NO EVENT SHALL THE PROVIDER BE LIABLE TO THE NORTHERN BORDER COMPANIES OR ANY OTHER PERSON FOR ANY INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES RESULTING FROM ANY ERROR IN THE PERFORMANCE OF THE
SERVICES, REGARDLESS OF WHETHER THE PROVIDER OR OTHERS MAY BE WHOLLY, CONCURRENTLY, PARTIALLY, OR SOLELY NEGLIGENT OR OTHERWISE AT FAULT; PROVIDED HOWEVER, THAT THE PROVIDER SHALL BE LIABLE FOR ANY DAMAGES ARISING OUT OF ITS GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT. THE PRECEDING IS THE ONLY WARRANTY CONCERNING THE SERVICES AND ANY RESULTS, WORK PRODUCT OR PRODUCTS RELATED THERETO, AND IS MADE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES AND REPRESENTATIONS EXPRESSED OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, THE WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY OR NONINFRINGEMENT. THE PARTIES UNDERSTAND, ACKNOWLEDGE AND AGREE THAT THE LEVEL OF COMPENSATION THE PARTIES HAVE AGREED TO ACCEPT IS PREDICATED ON THIS
LIMITATION OF LIABILITY AND DISCLAIMER OF WARRANTIES. 
 (b) The Parties shall agree and communicate regarding (i) any changes
to the Services or (ii) service level expectations related to the Services. The Provider shall not make any changes to the Services or the manner in which they are provided without advance notice to the Purchaser. 
 2.2 Consequences of Breach or Non-Performance. The Purchasers shall promptly notify the Provider of any failure by the Provider to perform one or
more of the Services in 

  

 3 

 
accordance with the terms of this Agreement. In the event that the Provider does not cure such non-performance within thirty (30) business days of the
receipt of such notice, the Purchasers may terminate such Service(s) by delivering notice to the Provider. 
 2.3 Relationship of
Parties. The Parties hereby acknowledge and agree that, in providing the Services and otherwise in connection with this Agreement, the Provider is an independent contractor and is not, and shall not be deemed to be, an agent, employee or legal
representative of the Purchasers or otherwise as having power or authority to bind the Purchasers, unless specifically delegated to do so in order to facilitate the Services. 
 ARTICLE III 
 TERM AND TERMINATION 
 3.1 Term. This Agreement shall become effective as of the Effective Date and shall remain in effect until terminated as herein provided or until
Services are no longer being provided (the “Term”). 
 3.2 Termination of this Agreement. Except as set forth in
Section 2.2 of this Agreement, a Party may not terminate this Agreement during the Term except under the following circumstances: 
 (a) The Parties may terminate this Agreement by the execution of a written agreement signed by authorized representatives of all Parties, in which event the termination shall be effective on the date specified in such
agreement. 
 (b) If a transaction is consummated which would cause the Provider or its Affiliates (other than the Northern
Border Companies and their subsidiaries) to cease to be a general partner of the MLP or the ILP, then ONEOK or the MLP, as the case may be, shall have the right to terminate this Agreement upon the execution and delivery of a mutually agreeable
transition services agreement between the Parties. 
 3.3 Termination of the Administrative Services Agreement. Effective as of the
execution and delivery of this Agreement, the Administrative Services Agreement is hereby terminated, superseded and replaced by this Agreement; provided, however, that all amounts due or to become due under that Administrative Services Agreement
shall be paid in full and the Administrative Services Agreement shall continue in effect with respect thereto until all such amounts are paid in full. 
 ARTICLE IV 
 BILLING AND PAYMENT 
 4.1 Invoices. The Provider will send one monthly invoice to the ILP covering all of the Services provided under this Agreement. The monthly
invoice will be sent following completion of the Provider’s normal monthly financial reporting process, including completion of the Distrigas Method calculation. The ILP shall pay each invoice by wire transfer or other means of immediate
payment within fifteen (15) days of the invoice date without setoff or deduction of any kind, except as provided in Section 4.2. Any late payment by the ILP shall incur a late fee of ten percent (10%) per annum, calculated from
the due date until the date of 

  

 4 

 
payment. In the event that any invoice is based on estimated costs, the Provider shall make adjustments by increasing or decreasing the costs in the invoice
subsequent to the determination of the actual costs. 
 4.2 Disputed Amounts. In the event that a dispute arises as to the amount of
any statement or invoice or any portions thereof submitted pursuant to this Article IV, the Parties will resolve the dispute in accordance with this Section 4.2 and Section 4.3 below. Pending resolution of the dispute, the ILP may
withhold payment of the amounts on an invoice or statement to the extent such amounts are disputed in good faith, but shall pay all charges on such invoice or statement that are not so disputed. If the ILP disputes any amount on an invoice or
statement it shall promptly notify the Provider in writing of such disputed amounts and the reasons each such charge is disputed. The Provider shall provide the ILP with sufficient records relating to the disputed charge to enable the Parties to
resolve the dispute. In the event the determination is made that the ILP should have paid the disputed amount, the ILP shall pay the disputed amount, with interest on the disputed amount at a rate of ten percent (10%) per annum, calculated from
and after the original due date of such invoice until the date of payment. If the ILP paid the disputed amount, but such disputed amount is ultimately determined not to have been payable, then the Provider shall refund to the ILP the disputed
amount, with interest on the disputed amount at a rate of ten percent (10%) per annum, calculated from and after the date the Provider received the payment to the date of the refund. Payment by the ILP of a disputed amount shall not be deemed a
waiver of the right of the ILP to recoup any contested portion of any bill or statement. 
 4.3 Dispute Resolution. In the event of a
dispute under this Agreement, the Parties shall, during the fifteen (15) days after notice of such a dispute, use their commercially reasonable efforts to reach agreement on the disputed items or amounts. If the Parties are unable to reach
agreement within such period, they shall promptly thereafter cause a nationally recognized accounting firm agreeable to the Parties (the “Accounting Referee”) to review this Agreement and the disputed items or amounts. The
Accounting Referee shall deliver to the Parties as promptly as practicable (but in any event no later than thirty (30) days from the date of engagement of the Accounting Referee), a report setting forth the Accounting Referee’s
determination of the appropriate resolution of the dispute. Such determination shall be final and binding upon the Parties. The cost of such review and report shall be borne equally by each Party involved in the dispute. 
 4.4 Audit. The Northern Border Companies and their designated representatives, after fifteen (15) days notice in writing to the Provider,
shall have the right during normal business hours to audit, at their own expense, all books and records of the Provider related to the Services. Such audits shall not be commenced more often than twice each calendar year. The Northern Border
Companies shall have two (2) years after the close of a calendar year in which to make an audit of the Provider’s records for such calendar year. Absent fraud or intentional concealment or misrepresentation by the Provider or its
employees, the Provider shall neither be required nor permitted to adjust any item unless a claim therefore is presented or adjustment is initiated within two (2) years after the close of the calendar year in which the statement therefore is
rendered, and in the absence of such timely claims or adjustments, the bills and statements rendered shall be conclusively established as correct. The Provider shall use reasonable 

  

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commercial efforts to obtain similar audit rights from contractors, consultants and suppliers engaged to perform any of the Services on behalf of the
Provider. 
 ARTICLE V 
 LIMITATION OF LIABILITY AND INDEMNITIES 
 5.1 Purchaser’s Limitation of Liability. Each of the Northern Border
Companies agrees, with respect to the Services provided to such entity hereunder, to indemnify, defend and hold harmless the Provider and its Affiliates (provided that Northern Plains shall not be entitled to indemnity for any costs, expenses or
liabilities incurred by it as a general partner of the MLP or the ILP), and their respective employees, officers, directors, representatives and agents harmless from and against all claims, losses, costs, damages and expenses (including, without
limitation, attorneys’ fees and expenses), penalties and liabilities (collectively, “Liabilities”) arising out of the acts (or failure to act) by any such persons or entities in connection with the performance by such persons
or entities of such Services, REGARDLESS OF WHETHER THE PROVIDER, OR SUCH OTHER PERSONS OR ENTITIES MAY BE WHOLLY, CONCURRENTLY, PARTIALLY OR SOLELY NEGLIGENT OR OTHERWISE AT FAULT IN CONNECTION THEREWITH; PROVIDED, HOWEVER, THAT NEITHER THE
PROVIDER NOR ANY OF SUCH OTHER PERSONS AND ENTITIES SHALL BE INDEMNIFIED FOR THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PROVIDER OR SUCH OTHER PERSONS OR ENTITIES. 
 5.2 Provider’s Indemnification. The Provider shall indemnify, defend and hold the Northern Border Companies and their general partners and their respective employees, directors, policy committee members,
officers, representatives and agents harmless from and against all Liabilities arising out of the performance of this Agreement and resulting from the gross negligence or willful misconduct of the Provider or its Affiliates. 
 5.3 Defense of Claims. It is understood and agreed that in the event that any Party is made a defendant in any suit, action or proceeding for
which it is entitled to be indemnified pursuant to this Agreement, and the applicable indemnifying party fails or refuses to timely assume the defense thereof, after having been notified by the indemnified party to do so, that the indemnified party
may compromise and settle or defend any such claim, and the applicable indemnifying party shall be bound and obligated to reimburse said indemnified party for the amount expended by the indemnified party in settling and compromising any such claim,
or for the amount expended by the indemnified party in paying any judgment rendered therein, together with all reasonable attorneys’ fees and costs incurred by the indemnified party for defense or settlement of such claim. Any judgment rendered
against the indemnified party or amount expended by the indemnified party in compromising or settling such claim, together with all reasonable attorneys’ fees and costs, shall be conclusive as determining the amount for which the applicable
indemnifying party is liable to reimburse the indemnified party hereunder. 
 ARTICLE VI 
 CONFIDENTIALITY AND OWNERSHIP OF RECORDS 
 6.1 Confidentiality. The Parties acknowledge that in the course of this Agreement they may have access to and be in possession of Confidential Information (as described 

  

 6 

 
immediately below) of the other Party. Each Party shall protect the other Parties’ Confidential Information in the same manner as it protects its own
confidential information of like kind, which in no event shall be less than reasonable care. Each Party’s access to the Confidential Information of the other Parties shall be restricted to those of such Party’s personnel who have a need to
know in order to perform under this Agreement. The provisions of this Section shall survive any termination or expiration of this Agreement and shall not be limited by any limitation of liability contained herein. The term “Confidential
Information” shall mean information regarded by that Party as proprietary or confidential, including, but not limited to, information relating to its business affairs, financial information and prospects; future projects or purchases;
proprietary products, materials or methodologies; data; customer lists; system or network configurations; passwords and access rights; and any other information marked as confidential or, in the case of information verbally disclosed, verbally
designated as confidential. 
 6.2 Ownership of Records. The Northern Border Companies shall own the data, records, information, etc.
provided, generated, or otherwise related to the Services and the business of the Northern Border Companies (“Northern Border Company Records”), regardless of who prepares or generates such Northern Border Company Records. The
Provider shall maintain on behalf of the Northern Border Companies all Northern Border Company Records and shall not destroy or delete any Northern Border Company Records without the prior written consent of the Northern Border Companies.
Additionally, should this Agreement be terminated, then the Provider shall deliver or cause to be delivered all Northern Border Company Records to the Northern Border Companies; provided, however, that ONEOK shall be entitled to retain copies of any
such Records. 
 ARTICLE VII 
 FORCE MAJEURE 
 7.1 Force Majeure. Subject to the standards set forth in Article II, if, by reason of force
majeure (as defined in Section 7.2 below), a Party is rendered unable, wholly or in part, to carry out its obligations under this Agreement, and if the non-performing Party declaring force majeure gives notice and reasonable particulars
of such force majeure to the Party to whom the performance is due within a reasonable time after the occurrence of the cause relied on, upon giving such notice, so far as and to the extent that it is affected by such force majeure, the
non-performing Party declaring force majeure shall not be liable solely on account of such inability to perform during the continuance of any inability so caused; provided, however, the non-performing Party shall use commercially reasonable
efforts to recommence performance of the affected Services as promptly as possible; provided, further, however, that an event of force majeure shall not excuse payment for Services provided hereunder. 
 7.2 Definition of Force Majeure. The term “force majeure” as employed in this Agreement shall mean acts of God; strikes, lockouts or
industrial disputes or disturbances; civil disturbances; arrests and restraints from rulers of people; interruptions by government, administrative agency or court orders, other than as a result of a failure to comply with laws; present and future
valid orders, decisions or rulings of any governmental or administrative entity having proper jurisdiction; acts of a public enemy; wars; acts of terrorism; riots; blockades; insurrections; inability to secure materials by reason of allocations
promulgated by authorized governmental agencies; epidemics; landslides; lightning; earthquakes; fire; storm; floods; 

  

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washouts; whether of the kind herein enumerated or otherwise, not reasonably within the control of the Party claiming force majeure and not caused, in whole
or in part, by the acts or omissions of the Party so affected by force majeure. 
 ARTICLE VIII 
 NOTICES AND REPORTS 
 8.1
Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed duly given (i) when delivered personally or by prepaid overnight courier, with a record of receipt, (ii) the fourth day after
mailing, if mailed by certified mail, return receipt requested, or (iii) the day of transmission, if sent by facsimile or telecopy during regular business hours, or the day after transmission if sent after regular business hours (with a copy
promptly sent by prepaid overnight courier with record of receipt or by certified mail, return receipt requested), to the Parties at the following addresses or telecopy numbers (or to such other address or telecopy number as a Party may have
specified by notice given to the other Party pursuant to this provision): 
 If to the Provider(s), to: 
 ONEOK, Inc. 
 100 West 5th Street 
 Tulsa, OK
74103 
 Attn: General Counsel 
 Facsimile: (918) 588-7971 
 If to Northern Border Companies: 
 Northern Border Partners, L.P. 
 13710 FNB
Parkway 
 Omaha, NE 68154-5200 
 Attention: General Counsel 
 Facsimile: (402) 492-7480 
 ARTICLE IX 
 MISCELLANEOUS 
 9.1 Applicable Law. THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT, AND ANY CLAIM OR CONTROVERSY DIRECTLY OR
INDIRECTLY BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL IN ALL RESPECTS
BE GOVERNED BY AND INTERPRETED, CONSTRUED, AND DETERMINED IN ACCORDANCE WITH, THE APPLICABLE PROVISIONS OF THE BANKRUPTCY CODE AND THE INTERNAL LAWS OF THE STATE OF OKLAHOMA (WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION THAT WOULD REQUIRE THE
APPLICATION OF THE LAW OF ANY OTHER JURISDICTION). 
  

 8 

 9.2 Waiver. The performance of or compliance with a Party’s obligation hereunder may be
waived, but only in writing signed by an authorized representative of the other relevant Party. No waiver or failure of enforcement by any Party of any default by any other Party in the performance of any provision, condition or requirement herein
shall be deemed to be a waiver of, or in any manner a release of the defaulting Party from, performance of any other provision, condition or requirement herein, nor deemed to be a waiver of, or in any manner a release of the defaulting Party from,
future performance of the same provision, condition or requirement; nor shall any delay or omission of any non-defaulting Party to exercise any right hereunder in any manner impair the exercise of any such right or any like right accruing to it
thereafter. 
 9.3 Modification. This Agreement may not be modified, varied or amended except by an instrument in writing signed by
the Parties. 
 9.4 Headings. The headings to each of the various Articles and Sections in this Agreement are included for convenience
and reference only and shall have no effect on, or be deemed as part of the text of, this Agreement. 
 9.5 Third Parties. Except as
provided in Article V hereof, this Agreement is not intended to confer upon any Person not a Party hereto any rights or remedies hereunder, and no Person other than the Parties hereto is entitled to rely on or enforce any representation,
warranty or covenant contained herein. 
 9.6 Survival; Limitations Period. Notwithstanding any other provisions in this Agreement,
all indemnities, limitations of liability, and payment obligations set forth in this Agreement, and the provisions set forth in Section 4.2 and Articles V, VI, VII, VIII, IX, X and XI,
shall survive the termination of this Agreement or the expiration of the Term, in whole or in part. NO PARTY MAY ASSERT ANY CAUSE OF ACTION AGAINST ANY OTHER PARTY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT MORE THAN ONE (1) YEAR AFTER
TERMINATION OF THIS AGREEMENT. 
 9.7 Binding Effect Assignment. 
 (a) Subject to Section 9.7(b) below, no Party hereto may assign this Agreement, in whole or in part, except with the prior
written approval of each other Party. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective permitted successors and assigns. 
 (b) The Provider may assign the performance by it of any Service to an Affiliate (other than the Northern Border Companies and their
subsidiaries) or any subsidiary or any successor in interest to any such Affiliate or subsidiary. In addition, the Provider may subcontract or outsource the performance of any Service to a third party. 
 9.8 Entire Agreement. This Agreement, including any exhibits, attachments and schedules hereto, constitutes the entire agreement between the
Parties concerning the subject matter hereof, and supersedes any prior understandings or written or oral agreements relative to such subject matter. However, this Agreement in no way changes or amends the terms of the Operating Agreements or the
Administrative Services Agreement or the obligations of NBP 

  

 9 

 
Services and Northern Plains to any of the Northern Border Companies under any of those agreements. 
 9.9 Waiver of Jury Trial. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
THAT THEY MAY HAVE TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT,
OR ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTIES WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 9.10 No Strict Construction. The Parties to this Agreement have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring a
Party by virtue of the authorship of any of the provisions of this Agreement. 
 9.11 Severability. If any provision of this Agreement
is invalid or unenforceable, the balance of this Agreement shall remain in effect. 
 9.12 Counterparts. This Agreement may be
executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
 9.13 Acknowledgement of Applicability of Section 365(n) of the Bankruptcy Code. The Parties hereby acknowledge that this Agreement is an executory contract granting rights in intellectual property to the
Northern Border Companies as described in the U. S. Bankruptcy Code, Title 11 Section 365(n)(1)(B), and, as such, the Northern Border Companies may retain their rights under this Agreement in the event that the Provider or its Affiliates or its
trustee, as applicable, rejects such executory contract or this Agreement pursuant to, and in accordance with, Section 365(n) of Title 11. Furthermore, the Parties acknowledge and agree that the execution of this Agreement shall not impair any
of the Provider’s rights under title 11 of the United States Code. 
 ARTICLE X 
 INTERPRETATION; DEFINITIONS 
 10.1
Definitions. Capitalized terms used herein and not otherwise defined shall have the following meanings: 
  

 10 

 “Administrative Services Agreement” means the agreement between NBP Services, LLC,
Northern Border Partners, L.P. and Northern Border Intermediate Limited Partnership effective as of October 1, 1993, as amended. 
 “Affiliate” means any person or entity that is Controlled By a person. For purposes of this Agreement, a Provider shall not constitute an Affiliate of any Purchaser. 
 “Control” or “Controlled By” means possession, directly or indirectly, of power to direct or cause the direction of management
or policies (whether through ownership of securities or partnership or other ownership interests, by written contract or otherwise). 
 “Northern Border Companies” (each, individually, a Northern Border Company) means (i) the MLP, (ii) the ILP, (iii) any direct or indirect subsidiary of the MLP, and (iv) any other entity that directly,
or through one or more intermediaries, is controlled by the MLP, and (v) any entity in which the MLP or ILP has a direct or indirect ownership interest and NBP Services or Northern Plains is contractually obligated to provide administrative
and/or operational services. 
 “ONEOK Affiliates” means any direct or indirect subsidiary of ONEOK or any entity controlled
by ONEOK, but shall exclude any of the Northern Border Companies. 
 “Operating Agreements” include (i) the Northern
Border Pipeline Project Operating Agreement between Northern Plains Natural Gas Company and Northern Border Pipeline Company dated February 28, 1980; (ii) the Midwestern Gas Transmission Company Operating Agreement between Northern Plains
Natural Gas Company and Midwestern Gas Transmission Company dated May 1, 2001; (iii) the Viking Gas Transmission Company Operating Agreement between Northern Plains Natural Gas Company and Viking Gas Transmission Company dated
January 17, 2003, and (iv) the Operating Agreement between Northern Plains Natural Gas Company and Guardian Pipeline, L.L.C. dated April 5, 2004. Additionally, this definition shall include any other operating agreement subsequently
entered into by Northern Plains for the purpose of providing similar services to other natural gas transmission companies or similar services to other entities in the energy industry. 
 10.2 Construction and Interpretation. All references herein to agreements and other contractual instruments shall be deemed to include all
exhibits, attachments and appendices attached thereto and all amendments and other modifications to such agreements and instruments. Words used herein in the singular, where the context so permits, shall also apply to words when used in the plural
and visa versa. The term “including” when used in this Agreement will be by way of example and not considered in any way to be a limitation, and means “including, without limitation”. 
 ARTICLE XI 
 LICENSE GRANT

 11.1 License. Subject to the terms and conditions of this Agreement, and subject to the right of ONEOK and the ONEOK Affiliates
to do so, ONEOK and the ONEOK Affiliates (collectively, for purposes of this Article XI, “Licensor”) hereby grant and agree to grant to each Northern Border Company (each, for purposes of this Article XI, a
“Licensee”), under all of Licensor’s intellectual property rights in and to the software programs, object code and source 

  

 11 

 
code, and documentation related to the Services and licensed patents related thereto (“Licensed Programs”), a fully paid-up, irrevocable and
perpetual (during the term of this Agreement), worldwide, non-exclusive, transferable, sublicensable, assignable license to: (i) copy, modify and use the Licensed Programs and documentation; (ii) use, make, have made, distribute, and sell
any and all products and services of Licensee, its Affiliates, and its sublicensees (if any) and (iii) engage in the business as conducted by Licensee, its Affiliates, and sublicensees (if any). The foregoing license shall include the right for
any third party service company or independent contractor retained by any Licensee or an Affiliate of any Licensee (“Contractor”) to install, copy, modify and/or use the Licensed Programs on behalf of such Licensee and its
Affiliates. The grant of the foregoing licenses with respect to any particular Licensed Program and related documentation or patents shall be limited to those Licensed Programs utilized by the Provider to provide the Services to the Purchasers and
shall not include any Licensed Programs subject to agreements that would be breached by the grant in this paragraph. 
 11.2 Existing
Rights. Except as expressly provided herein, Licensor shall retain all of its right, title and interest, including, without limitation, all intellectual property rights, in and to the Licensed Programs, including any and all copies in whatever
form. Licensee acknowledges that all materials provided by Licensor to Licensee under this provision, including, but not limited to the Licensed Programs, class libraries, scripts, algorithms, designs, flow-charts, procedures, processes, systems,
methodologies, and information shall remain the sole and exclusive property of Licensor. 
 11.3 Hardware and Software Platform.
Licensee acknowledges that Licensee’s operation of the Licensed Programs may require, among other things, Licensee’s obtaining rights to use third party hardware and licensed copies of third party software, and Licensee shall be
responsible for obtaining such rights to use third party hardware and software. Licensor assumes no responsibility or liability under this license grant or otherwise for obtaining or providing any such third party hardware or software or for
providing any labor support. Licensor shall provide reasonable assistance in converting Licensee’s data files for use with the Licensed Programs. 
 (Signature Page Follows) 
  

 12 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective officers
thereunto duly authorized, all as of the date first above written. 
  

			
	 ONEOK, Inc.,
 an Oklahoma corporation

		
	 By:
	 	  
	 Name:
	 	  
	 Title:
	 	  
	
	 NORTHERN PLAINS NATURAL GAS COMPANY, LLC,
 a Delaware limited liability company

		
	 By:
	 	  
	 Name:
	 	  
	 Title:
	 	  
	
	 NBP SERVICES, LLC,
 a Delaware limited liability company

		
	 By:
	 	  
	 Name:
	 	  
	 Title:
	 	  
	
	 NORTHERN BORDER PARTNERS, L.P.
 a Delaware limited partnership

		
	 By:
	 	  
	 Name:
	 	  
	 Title:
	 	  
	
	 NORTHERN BORDER INTERMEDIATE LIMITED PARTNERSHIP,
 a Delaware limited partnership

		
	 By:
	 	  
	 Name:
	 	  
	 Title:
	 	  

 Exhibit A 
 Description of Additional Services

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