Document:

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                                                                    EXHIBIT 4.07

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                         SUPPLEMENTAL INDENTURE NO. ___

                                      FROM

                            OKLAHOMA GAS AND ELECTRIC
                                     COMPANY

                                       TO

                                 UMB BANK, N.A.

                                     TRUSTEE

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

                                   DATED AS OF

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

                            SUPPLEMENTAL TO INDENTURE
                           DATED AS OF OCTOBER 1, 1995

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                                TABLE OF CONTENTS
                                   (continued)

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                                                                                               PAGE
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Parties...........................................................................................1
Recitals..........................................................................................1

                                   ARTICLE ONE
                       RELATION TO INDENTURE; DEFINITIONS

SECTION 1.01           Integral Part of Indenture.................................................2
SECTION 1.02           (a)   Definitions..........................................................2
                       (b)   References to Articles and Sections..................................2
                       (c)   Terms Referring to this Supplemental Indenture.......................2

                                   ARTICLE TWO
                    ______% SENIOR NOTES, SERIES DUE ________

SECTION 2.01           Designation and Principal Amount...........................................2
SECTION 2.02           Stated Maturity Date.......................................................2
SECTION 2.03           Interest Payment Dates.....................................................3
SECTION 2.04           Office for Payment.........................................................3
SECTION 2.05           Redemption Provisions......................................................3
SECTION 2.06           Repayment Provisions.......................................................4
SECTION 2.07           Authorized Denominations...................................................4
SECTION 2.08           Occurrence of Release Date.................................................4
SECTION 2.09           Form of ____% Senior Notes, Series Due ________............................5

                                   ARTICLE THREE
                              ADDITIONAL COVENANTS

SECTION 3.01           Limitations on Liens.......................................................5
SECTION 3.02           Limitations on Sale and Lease-Back Transactions............................6
SECTION 3.03           Definitions................................................................7

                                   ARTICLE FOUR
                                  MISCELLANEOUS

SECTION 4.01           Recitals of fact, except as stated, are statements of the Company..........8
SECTION 4.02           Supplemental Indenture to be construed as a part of the Indenture..........8
SECTION 4.03           (a)   Trust Indenture Act to control.......................................8
                       (b)   Severability of provisions contained in Supplemental
                             Indenture and Notes..................................................9
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                                TABLE OF CONTENTS
                                   (continued)

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SECTION 4.04           References to either party in Supplemental Indenture include
                       successors or assigns......................................................9
SECTION 4.05           (a)   Provision for execution in counterparts..............................9
                       (b)   Table of Contents and descriptive headings of
                             Articles not to affect meaning.......................................9
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Exhibit A - Form of ____% Senior Notes, Series due _____

                                      -ii-
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     SUPPLEMENTAL INDENTURE No. ___, made as of the _____ day of ____________,
_________, by and between OKLAHOMA GAS AND ELECTRIC COMPANY, a corporation duly
organized and existing under the laws of the State of Oklahoma (the "Company"),
and UMB BANK, N.A., a national banking association duly organized and existing
under the laws of the United States, as trustee (the "Trustee"):

WITNESSETH:

     WHEREAS, the Company has heretofore executed and delivered its Indenture
(hereinafter referred to as the "Indenture"), made as of October 1, 1995; and

     WHEREAS, the Company has heretofore executed and delivered its Supplemental
Indenture No. 1 dated as of October 16, 1995, adding to the covenants,
conditions and agreements of the Indenture certain additional covenants,
conditions and agreements to be observed by the Company, and creating two series
of Notes designated "7.30% Senior Notes, Series due October 15, 2025" and
"6.250% Senior Notes, Series due October 15, 2000"; and

     WHEREAS, the Company has heretofore executed and delivered its Supplemental
Indenture No. 2 dated as of July 1, 1997, adding to the covenants, conditions
and agreements of the Indenture certain additional covenants, conditions and
agreements to be observed by the Company, and creating two series of Notes
designated "6.65% Senior Notes, Series due October 15, 2027" and "6.50% Senior
Notes, Series due July 15, 2017"; and

     WHEREAS, the Company has heretofore executed and delivered its Supplemental
Indenture No. 3 dated as of April 1, 1998, adding to the covenants, conditions
and agreements of the Indenture certain additional covenants, conditions and
agreements to be observed by the Company, and creating a series of Notes
designated "6 1/2% Senior Notes, Series due April 15, 2028"; and

     WHEREAS, the Company has heretofore executed and delivered its Supplemental
Indenture No. 4 dated as of October 15, 2000, adding to the covenants,
conditions and agreements of the Indenture certain additional covenants,
conditions and agreements to be observed by the Company, and creating a series
of Notes designated "7.125% Senior Notes, Series due October 15, 2005"; and

     WHEREAS, the Company, the Trustee and The Bank of New York (the "Prior
Trustee") have heretofore executed and delivered Supplemental Indenture No. 5
dated as of October 24, 2001, providing for the resignation of the Prior Trustee
and the acceptance, by the Trustee, of its appointment as trustee and the
assumption of all duties and responsibilities of the trustee under the
Indenture; and

     WHEREAS, Section 2.05 of the Indenture provides that Notes shall be issued
in series and that a Company Order shall specify the terms of each series; and

     WHEREAS, Boatmen's First National Bank of Oklahoma was formerly the Trustee
under the Indenture and NationsBank, N.A. succeeded Boatmen's First National
Bank of Oklahoma as Trustee pursuant to Section 9.13 of the Indenture, The Bank
of New York has subsequently

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succeeded  Boatmen's  First  National  Bank of Oklahoma  as Trustee  pursuant to
Section 9.13 of the Indenture and UMB Bank, N.A., has subsequently succeeded The
Bank of New York as Trustee pursuant to Section 9.11 of the Indenture; and

     WHEREAS, the Company has this day delivered a Company Order setting forth
the terms of a series of Notes designated "____% Senior Notes, Series due
___________, ________" (hereinafter sometimes referred to as the "Senior Notes
due ______") and

     WHEREAS, Section 13.01 of the Indenture provides that the Company and the
Trustee may enter into indentures supplemental thereto for the purposes, among
others, of establishing the form of Notes or establishing or reflecting any
terms of any Note and adding to the covenants of the Company; and

     WHEREAS, the execution and delivery of this Supplemental Indenture No. ____
(herein, "this Supplemental Indenture") have been duly authorized by a
resolution adopted by the Board of Directors of the Company;

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

         That in order to set forth the terms and conditions upon which the
Senior Notes due _____ are, and are to be, authenticated, issued and delivered,
and in consideration of the premises of the purchase and acceptance of the
Senior Notes due ____ by the Holders thereof and the sum of one dollar duly paid
to it by the Trustee at the execution of this Supplemental Indenture, the
receipt whereof is hereby acknowledged, the Company covenants and agrees with
the Trustee for the equal and proportionate benefit of the respective Holders
from time to time of the Senior Notes due ________, as follows:

                                   ARTICLE ONE
                       RELATION TO INDENTURE; DEFINITIONS

     Section 1.01      This Supplemental Indenture constitutes an integral part
     of the Indenture.

     Section 1.02      For all purposes of this Supplemental Indenture:

          (a) Capitalized terms used herein without definition shall have the
     meanings specified in the Indenture;

          (b) References to Articles and Sections. All references herein to
     Articles and Sections, unless otherwise specified, refer to the
     corresponding Articles and Sections of this Supplemental Indenture; and

          (c) The terms "hereof," "herein," "hereby," "hereto," "hereunder" and
     "herewith" refer to this Supplemental Indenture.

                                        2
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                                   ARTICLE TWO
                   ___% SENIOR NOTES, SERIES DUE _____________

     Section 2.01      There shall be a series of Notes designated the "______%
Senior Notes, Series due ________" (the "Senior Notes due ____"). The Senior
Notes due _____ shall be limited to $_______ aggregate principal amount.

     Section 2.02      Except as otherwise provided in Section 2.05 hereof, the
principal amount of the Senior Notes due ___ shall be payable on the stated
maturity date of ___________.

     Section 2.03      The Senior Notes due ______ shall be dated their date of
authentication as provided in the Indenture and shall bear interest from their
date at the rate of ___% per annum, payable semi-annually on ___________ and
_________ of each year, commencing _____________. The Regular Record Dates with
respect to such ____________ and ______________ interest payment dates shall be
______________ and _______, respectively. Principal and interest shall be
payable to the persons and in the manner provided in Sections 2.04 and 2.12 of
the Indenture.

     Section 2.04      The Senior Notes due ____ shall be payable at the
corporate trust office of the Trustee and at the offices of such paying agents
as the Company may appoint by Company Order in the future.

     Section 2.05      [The Senior Notes due _____ are not redeemable prior to
maturity.] [The Company, at its option, may redeem on any date all or, from time
to time, any part of the Senior Notes due _____, upon notice as provided in the
Indenture, at a redemption price equal to the greater of (i) 100% of the
principal amount of such Senior Notes due ____ to be redeemed and (ii) the sum
of the present values of the remaining scheduled payments of principal and
interest thereon from and after the date of redemption discounted to the
redemption date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate plus __ basis points, plus in each
case accrued and unpaid interest thereon to the date of redemption.

     "Treasury Rate" means, with respect to any redemption date, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

     "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Senior Notes due ____ to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Senior Notes due ____. "Independent
Investment Banker" means one of the Reference Treasury Dealers appointed by the
Trustee after consultation with the Company.

     "Comparable Treasury Price" means, with respect to any redemption date, (i)
the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
business day preceding such redemption date, as

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set forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated "Composite 3:30 p.m.
Quotations for U.S. Government Securities" or (ii) if such release (or any
successor release) is not published or does not contain such prices on such
third business day, (A) the average of the Reference Treasury Dealer Quotations
for such redemption date, after excluding the highest and lowest of such
Reference Treasury Dealer Quotations, or (B) if the Trustee is unable to obtain
at least four such Reference Treasury Dealer Quotations, the average of all such
Quotations obtained. "Reference Treasury Dealer Quotations" means, with respect
to each Reference Treasury Dealer and any redemption date, the average, as
determined by the Trustee, of the bid and asked prices of the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third business day preceding such redemption date.

     "Reference Treasury Dealer" means each of ___________________ and
______________, and their respective successors; provided, however, that if any
of the foregoing shall cease to be a primary U.S. Government securities dealer
in New York City (a "Primary Treasury Dealer"), the Company shall substitute
therefor another Primary Treasury Dealer.

     The Senior Notes due ____ shall not be subject to any sinking fund.]

     Section 2.06      [The Senior Notes due ____ will be repayable on ______,
at the option of the holders thereof, at 100% of their principal amount,
together with accrued and unpaid interest to _________. In order for a Senior
Note due ____ to be repaid, the Company must receive at the corporate trust
office of the Trustee during the period from and including ________ to and
including the close of business on ________ (or if _________ is not a Business
Day, the next succeeding Business Day): (i) a Senior Note due _____ with the
form entitled "Option to Elect Repayment" on the Senior Note due __________ duly
completed, or (ii) a telegram, telex, facsimile transmission or letter from a
member of a national securities exchange or the National Association of
Securities Dealers, Inc. or a commercial bank or a trust company in the United
States of America setting forth the name of the Holder of the Senior Note due
____, the principal amount of the Senior Note due ____, the principal amount of
the Senior Note due ____ to be repaid, a statement that the option to elect
repayment is being exercised thereby and a guarantee that the Senior Note due
____ to be repaid (with the form entitled "Option to Elect Repayment" on the
Senior Note due ____ duly completed) will be received at the Trustee's corporate
trust office, no later than five Business Days after the date of such telegram,
telex, facsimile transmission or letter and such Note and form duly completed
are received at the Trustee's office, by such fifth Business Day. Effective
exercise of the repayment option by the holder of any Senior Note due ____ shall
be irrevocable. No transfer or exchange of any Senior Note due ___ (or, in the
event that any Senior Note due ___ is to be repaid in part, such portion of the
Senior Note due ____ to be repaid) will be permitted after exercise of the
repayment option. The repayment option may be exercised by the Holder of a
Senior Note due __ for less than the entire principal amount of the Senior Note
due ___, provided the principal amount which is to be repaid is set forth on the
form entitled "Option to Elect Repayment" on the Senior Note due ___ and is
equal to $1,000 or any integral multiple thereof. All questions as to the
validity, eligibility (including time of receipt) and acceptance of any Senior
Note due ____ for repayment will be determined by the Company, whose
determination will be final, binding and non-appealable. Upon timely delivery of
a Senior Note due ____ to the Trustee with the "Option

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to Elect Repayment" form completed in accordance with the foregoing, the
outstanding principal amount of such Senior Note due ___ (or portion thereof
indicated on the "Option to Elect Repayment") shall become due and payable on
________, at a price equal to ____% of the principal amount to be repaid plus
accrued and unpaid interest to -------------.]

     Section 2.07      The Senior Notes due ___ shall be issued in fully
registered form without coupons in denominations of $1,000 and integral
multiples thereof.

     Section 2.08      The Release Date (as defined in the Indenture) occurred
on April 6, 1998. Accordingly, the Senior Notes due ____ shall be issued as
unsecured general obligations of the Company. The Senior Notes due ______, and
all other Notes issued or to be issued under the Indenture, will not be secured
by First Mortgage Bonds of the Company and will not be entitled to the lien of
or the benefits provided by the First Mortgage.

     Section 2.09      The Senior Notes due ____ shall initially be in the form
attached as Exhibit A hereto.

                                  ARTICLE THREE
                              ADDITIONAL COVENANTS
     Section 3.01

     (a)   So long as any Senior Notes due ____ are outstanding, the Company
will not permit to exist or issue, assume or guarantee any Debt secured by any
mortgage, security interest, pledge or lien (herein referred to as a "mortgage")
of or upon any Operating Property of the Company, whether owned at the date of
the Indenture or thereafter acquired, without in any such case effectively
securing the outstanding Senior Notes due ____ (together with, if the Company
shall so determine, any other Notes or indebtedness or obligation of or
guaranteed by the Company ranking senior to, or equally with, the Notes and then
existing or thereafter created) equally and ratably with such Debt; provided,
however, that the foregoing restriction shall not apply to Debt secured by any
of the following:

     (1)   mortgages on any property existing at the time of acquisition
thereof;

     (2)   mortgages on property of a corporation existing at the time such
corporation is merged into or consolidated with the Company, or at the time of a
sale, lease or other disposition of the properties of such corporation or a
division thereof as an entirety or substantially as an entirety to the Company,
provided that such mortgage as a result of such merger, consolidation, sale,
lease or other disposition is not extended to property owned by the Company
immediately prior thereto;

     (3)   mortgages on property to secure all or part of the cost of acquiring,
substantially repairing or altering, constructing, developing or substantially
improving such property, or to secure indebtedness incurred to provide funds for
any such purpose or for reimbursement of funds previously expended for any such
purpose, provided such mortgages are created or assumed contemporaneously with,
or within 18 months after, such acquisition or completion of substantial repair
or alteration, construction, development or substantial improvement or within
six months thereafter pursuant to a commitment for financing arranged with a
lender or investor within such 18 month period;

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     (4)   mortgages in favor of the United States of America or any State
thereof, or any department, agency or instrumentality or political subdivision
of the United States of America or any state thereof, or for the benefit of
holders of securities issued by any such entity, to secure any Debt incurred for
the purpose of financing all or any part of the purchase price or the cost of
substantially repairing or altering, constructing, developing or substantially
improving the property subject to such mortgages; or

     (5)   any extension, renewal or replacement (or successive extensions,
renewals or replacements), in whole or in part, of any mortgage referred to in
the foregoing clauses (1) to (4), inclusive; provided, however, that the
principal amount of indebtedness secured thereby and not otherwise authorized by
said clauses (1) to (4), inclusive, shall not exceed the principal amount of
indebtedness, plus any premium or fee payable in connection with any such
extension, renewal or replacement, so secured at the time of such extension,
renewal or replacement.

     (b)   Notwithstanding the provisions of Section 3.01(a), so long as any
Senior Notes due ___________ are outstanding, the Company may issue, assume or
guarantee Debt, or permit to exist Debt, secured by mortgages which would
otherwise be subject to the restrictions of Section 3.01(a) up to an aggregate
principal amount that, together with the principal amount of all other Debt of
the Company secured by mortgages (other than mortgages permitted by Section
3.01(a) that would otherwise be subject to the foregoing restrictions) and the
Value of all Sale and Lease-Back Transactions in existence at such time (other
than any Sale and Lease-Back Transaction that, if such Sale and Lease-Back
Transaction had been a mortgage, would have been permitted by Section 3.01(a),
other than Sale and Lease-Back Transactions permitted by Section 3.02 because
the commitment by or on behalf of the purchaser was obtained no later than 18
months after the later of events described in clause (i) or (ii) of Section
3.02, and other than Sale and Lease-Back Transactions as to which application of
amounts have been made in accordance with clause (z) of Section 3.02), does not
at the time exceed the greater of 10% of Net Tangible Assets or 10% of
Capitalization.

     (c)   If at any time the Company shall issue, assume or guarantee any Debt
secured by any mortgage and if Section 3.01(a) requires that the outstanding
Senior Notes due ____ be secured equally and ratably with such Debt, the Company
will promptly execute, at its expense, any instruments necessary to so equally
and ratably secure such series of Notes and deliver the same to the Trustee
along with:

                    (1)    An Officers' Certificate stating that the covenant of
                           the Company contained in Section 3.01(a) has been
                           complied with; and

                    (2)    An Opinion of Counsel to the effect that such
                           covenant has been complied with, and that any
                           instruments executed by the Company in the
                           performance of such covenant comply with the
                           requirements of such covenant.

     In the event that the Company shall hereafter secure outstanding Senior
Notes due _____ equally and ratably with any other obligation or indebtedness
(including other Notes) pursuant to the provisions of this Section 3.01, the
Trustee is hereby authorized to enter into an indenture or agreement
supplemental hereto and to take such action, if any, as it may deem advisable to

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enable it to enforce effectively the rights of the holders of such series of
Notes so secured, equally and ratably with such other obligation and
indebtedness.

     Section 3.02      So long as any Senior Notes due _____ are outstanding,
the Company will not permit to remain in effect or enter into any Sale and
Lease-Back Transaction with respect to any Operating Property if, in any case,
the commitment by or on behalf of the purchaser is obtained more than 18 months
after the later of (i) the completion of the acquisition, substantial repair or
alteration, construction, development or substantial improvement of such
Operating Property or (ii) the placing in operation of such Operating Property
or of such Operating Property as so substantially repaired or altered,
constructed, developed or substantially improved, unless (x) the Company would
be entitled pursuant to Section 3.01(a) to issue, assume or guarantee Debt
secured by a mortgage on such Operating Property without equally and ratably
securing the Senior Notes due or (y) the Company would be entitled pursuant to
Section 3.01(b), after giving effect to such Sale and Lease-Back Transaction, to
incur $1.00 of additional Debt secured by mortgages (other than mortgages
permitted by Section 3.01(a)) or (z) the Company shall apply or cause to be
applied, in the case of a sale or transfer for cash, an amount equal to the net
proceeds thereof (but not in excess of the net book value of such Operating
Property at the date of such sale or transfer) and, in the case of a sale or
transfer otherwise than for cash, an amount equal to the fair value (as
determined by the Board of Directors) of the Operating Property so leased, to
the retirement, within 180 days after the effective date of such Sale and
Lease-Back Transaction, of Notes or other Debt of the Company ranking senior to,
or equally with, the Notes; provided, however, that any such retirement of Notes
shall be in accordance with the terms and provisions of the Indenture and the
Notes and provided, further, that the amount to be applied to such retirement of
Notes or other Debt shall be reduced by an amount equal to the sum of (a) an
amount equal to the redemption price with respect to Notes delivered within such
180-day period to the Trustee for retirement and cancellation and (b) the
principal amount, plus any premium or fee paid in connection with any redemption
in accordance with the terms of other Debt voluntarily retired by the Company
within such 180-day period, excluding in each case retirements pursuant to
mandatory sinking fund or prepayment provisions and payments at maturity.

     Section 3.03      Definitions

     For purposes of Section 3.01 and Section 3.02, the following terms shall
have the following meanings:

     CAPITALIZATION: The term "Capitalization" shall mean the total of all the
following items appearing on, or included in, the -------------- balance sheet
of the Company:

            (1)   liabilities for indebtedness maturing more than 12 months from
                  the date of determination; and

            (2)   common stock, preferred stock, capital surplus, premium on
                  capital stock, capital in excess of par value and retained
                  earnings (however the foregoing may be designated), less to
                  the extent not otherwise deducted, the cost of shares of
                  capital stock of the Company held in its treasury.

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     Capitalization shall be determined in accordance with generally accepted
accounting principles and practices applicable to the type of business in which
the Company is engaged and that are approved by independent accountants
regularly retained by the Company, and may be determined as of a date not more
than 60 days prior to the happening of an event for which such determination is
being made.

     DEBT: The term "Debt" shall mean any outstanding debt for money borrowed.

     NET TANGIBLE ASSETS: The term "Net Tangible Assets" shall mean the amount
shown as total assets on the balance sheet of the Company, less the following:

            (3)   intangible assets including, but without limitation, such
                  items as goodwill, trademarks, trade names, patents and
                  unamortized debt discount and expense carried as an asset on
                  said balance sheet; and

            (4)   appropriate adjustments, if any, on account of minority
                  interests.

     Net Tangible Assets shall be determined in accordance with generally
accepted accounting principles and practices applicable to the type of business
in which the Company is engaged and that are approved by the independent
accountants regularly retained by the Company, and may be determined as of a
date not more than 60 days prior to the happening of the event for which such
determination is being made.

     OPERATING PROPERTY: The term "Operating Property" shall mean (i) any
interest in real property owned by the Company and (ii) any asset owned by the
Company that is depreciable in accordance with generally accepted accounting
principles.

     SALE AND LEASE-BACK TRANSACTION: The term "Sale and Lease-Back Transaction"
shall mean any arrangement with any person providing for the leasing to the
Company of any Operating Property (except for temporary leases for a term,
including any renewal thereof, of not more than 48 months), which Operating
Property has been or is to be sold or transferred by the Company to such person.

     VALUE: The term "Value" shall mean, with respect to a Sale and Lease-Back
Transaction, as of any particular time, the amount equal to the greater of (1)
the net proceeds to the Company from the sale or transfer of the property leased
pursuant to such Sale and Lease-Back Transaction or (2) the net book value of
such property, as determined in accordance with generally accepted accounting
principles by the Company at the time of entering into such Sale and Lease-Back
Transaction, in either case multiplied by a fraction, the numerator of which
shall be equal to the number of full years of the term of the lease that is part
of such Sale and Lease-Back Transaction remaining at the time of determination
and the denominator of which shall be equal to the number of full years of such
term, without regard, in any case, to any renewal or extension options contained
in such lease.

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                                  ARTICLE FOUR
                                  MISCELLANEOUS

     Section 4.01      The recitals of fact herein and in the Senior Notes due
(except the Trustee's Certificate) shall be taken as statements of the Company
and shall not be construed as made by the Trustee.

     Section 4.02      This Supplemental Indenture shall be construed in
connection with and as a part of the Indenture.

     Section 4.03

     (a)   If any provision of this Supplemental Indenture limits, qualifies, or
conflicts with another provision of the Indenture required to be included in
indentures qualified under the Trust Indenture Act of 1939 (as enacted prior to
the date of this Supplemental Indenture) by any of the provisions of Sections
310 to 317, inclusive, of said Act, such required provisions shall control.

     (b)   In case any one or more of the provisions contained in this
Supplemental Indenture or in the notes issued hereunder should be invalid,
illegal, or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected, impaired, prejudiced or disturbed thereby.

     Section 4.04      Whenever in this Supplemental Indenture either of the
parties hereto is named or referred to, this shall be deemed to include the
successors or assigns of such party, and all the covenants and agreements in
this Supplemental Indenture contained by or on behalf of the Company or by or on
behalf of the Trustee shall bind and inure to the benefit of the respective
successors and assigns of such parties, whether so expressed or not.

     Section 4.05

     (a)   This Supplemental Indenture may be simultaneously executed in several
counterparts, and all said counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.

     (b)   The Table of Contents and the descriptive headings of the several
Articles of this Supplemental Indenture were formulated, used and inserted in
this Supplemental Indenture for convenience only and shall not be deemed to
affect the meaning or construction of any of the provisions hereof.

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     IN WITNESS WHEREOF, OKLAHOMA GAS AND ELECTRIC COMPANY has caused this
Supplemental Indenture to be signed by its President or a Vice President, and
attested by its Secretary or an Assistant Secretary, and UMB BANK, N.A. has
caused this Supplemental Indenture to be signed by its President, Vice President
or Assistant Vice President, and attested by a Vice President, this _______ day
of ___________.

                                         OKLAHOMA GAS AND ELECTRIC COMPANY

                                         By: Steven E. Moore, President

ATTEST:

Carla D. Brockman, SECRETARY.
                                         UMB BANK, N.A., as Trustee

                                         By: ______, Assistant Vice President

ATTEST:

_______________, VICE PRESIDENT.

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                                                                       EXHIBIT A

                          FORM OF % SENIOR NOTE, SERIES
                              DUE ________________

REGISTERED                                                            REGISTERED

     THIS NOTE IS A GLOBAL NOTE REGISTERED IN THE NAME OF THE DEPOSITARY
(REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR THE INDIVIDUAL NOTES REPRESENTED HEREBY, THIS GLOBAL
NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK), TO THE TRUSTEE FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

                        OKLAHOMA GAS AND ELECTRIC COMPANY

                    ________% SENIOR NOTE, SERIES DUE _______

CUSIP:                                                      NUMBER: R-

ORIGINAL ISSUE DATE(S):                                     PRINCIPAL AMOUNT(S):

INTEREST RATE:                                              MATURITY DATE:

     OKLAHOMA GAS AND ELECTRIC COMPANY, a corporation of the State of Oklahoma
(the "COMPANY"), for value received hereby promises to pay to______________ or
registered assigns, the principal sum of

on the Maturity Date set forth above, and to pay interest thereon from the
Original Issue Date (or if this Global Note has two or more Original Issue
Dates, interest shall, beginning on each such Original Issue Date, begin to
accrue for that part of the principal amount to which that Original Issue Date
is applicable) set forth above or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semiannually in arrears on
_________ and ___________ in each year, commencing on the first such Interest
Payment Date succeeding the applicable

                                       11
<Page>

Original Issue Date set forth above, at the per annum Interest Rate set forth
above, until the principal hereof is paid or made available for payment. No
interest shall accrue on the Maturity Date, so long as the principal amount of
this Global Note is paid on the Maturity Date. The interest so payable and
punctually paid or duly provided for on any such Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Note is
registered at the close of business on the Regular Record Date for such
interest, which shall be the ______ or the____ , as the case may be, next
preceding such Interest Payment Date, provided that the first Interest Payment
Date for any part of this Note, the Original Issue Date of which is after a
Regular Record Date but prior to the applicable Interest Payment Date, shall be
the Interest Payment Date following the next succeeding Regular Record Date; and
provided that interest payable on the Maturity Date set forth above or, if
applicable, upon redemption, repayment or acceleration, shall be payable to the
Person to whom principal shall be payable. Except as otherwise provided in the
Indenture (as defined below), any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date and shall be paid to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of
such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Noteholders not more than fifteen days or fewer than ten days prior to
such Special Record Date. On or before 10:00 a.m., New York City time, or such
other time as shall be agreed upon between the Trustee and the Depositary, of
the day on which such payment of interest is due on this Global Note (other than
maturity), the Trustee shall pay to the Depositary such interest in same day
funds. On or before 10:00 a.m., New York City time, or such other time as shall
be agreed upon between the Trustee and the Depositary, of the day on which
principal, interest payable at maturity and premium, if any, is due on this
Global Note, the Trustee shall deposit with the Depositary the amount equal to
the principal, interest payable at maturity and premium, if any, by wire
transfer into the account specified by the Depositary. As a condition to the
payment, on the Maturity Date or upon redemption, repayment or acceleration, of
any part of the principal and applicable premium of this Global Note, the
Depositary shall surrender, or cause to be surrendered, this Global Note to the
Trustee, whereupon a new Global Note shall be issued to the Depositary.

     This Global Note is a global security in respect of a duly authorized issue
of __________% Senior Notes, Series due _________(the "NOTES OF THIS SERIES",
which term includes any Global Notes representing such Notes) of the Company
issued and to be issued under an Indenture dated as of October 1, 1995 between
the Company and UMB Bank, N.A., as successor trustee (the "TRUSTEE", which term
includes any subsequent successor Trustee under the Indenture) to Boatmen's
First National Bank of Oklahoma, and indentures supplemental thereto
(collectively, the "INDENTURE"). Under the Indenture, one or more series of
notes may be issued and, as used herein, the term "Notes" refers to the Notes of
this Series and any other outstanding series of Notes. Reference is hereby made
to the Indenture for a more complete statement of the respective rights,
limitations of rights, duties and immunities under the Indenture of the Company,
the Trustee and the Noteholders and of the terms upon which the Notes are and
are to be authenticated and delivered. This Global Note has been issued in
respect of the series designated on the first page hereof, limited in aggregate
principal amount to $______.

                                       12
<Page>

     Each Note of this Series shall be dated and issued as of the date of its
authentication by the Trustee and shall bear an Original Issue Date or Dates.
Each Note or Global Note issued upon transfer, exchange or substitution of such
Note or Global Note shall bear the Original Issue Date or Dates of such
transferred, exchanged or substituted Note or Global Note, as the case may be.

     [This Global Note is not redeemable prior to maturity.] [The Company, at
its option, may redeem on any date all or, from time to time, any part of this
Global Note at a redemption price equal to the greater of (i) 100% of the
principal amount of this Global Note to be redeemed and (ii) the sum of the
present values of the remaining scheduled payments of principal and interest
thereon discounted to the redemption date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate plus ____
basis points, plus in each case accrued and unpaid interest thereon to the date
of redemption.

     "Treasury Rate" means, with respect to any redemption date, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

     "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Notes of this Series to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of Notes of this Series. "Independent Investment
Banker" means one of the Reference Treasury Dealers appointed by the Trustee
after consultation with the Company.

     "Comparable Treasury Price" means, with respect to any redemption date, (i)
the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
business day preceding such redemption date, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such third business day, (A) the
average of the Reference Treasury Dealer Quotations for such redemption date,
after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (B) if the Trustee is unable to obtain at least four such
Reference Treasury Dealer Quotations, the average of all such Quotations
obtained. "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third business day preceding such redemption date.

     "Reference Treasury Dealer" means each of ___________ and their respective
successors; provided, however, that if any of the foregoing shall cease to be a
primary U.S. Government securities dealer in New York City (a "Primary Treasury
Dealer"), the Company shall substitute therefor another Primary Treasury Dealer.

                                       13
<Page>

     Notice of redemption will be given by mail to Holders of Notes of this
Series not less than 30 or more than 60 days prior to the date fixed for
redemption, all as provided in the Indenture. In the event of redemption of this
Global Note in part only, a new Global Note or Notes of like tenor and series
for the unredeemed interest hereof will be issued in the name of the Noteholder
hereof upon the surrender hereof.]

     [The Notes of this Series will be repayable on ________, at the option of
the Holders thereof, at 100% of their principal amount, together with accrued
and unpaid interest to _________. In order for this Global Note to be repaid,
the Company must receive at the corporate trust office of the Trustee during the
period from and including ____________to and including the close of business on
___________ (or if __________ is not a Business Day, the next succeeding
Business Day): (i) this Global Note with the form entitled "Option to Elect
Repayment" on this Global Note duly completed, or (ii) a telegram, telex,
facsimile transmission or letter from a member of a national securities exchange
or the National Association of Securities Dealers, Inc. or a commercial bank or
a trust company in the United States of America setting forth the name of the
Holder of this Global Note, the principal amount of this Global Note, the
principal amount of this Global Note to be repaid, a statement that the option
to elect repayment is being exercised thereby and a guarantee that this Global
Note (with the form entitled "Option to Elect Repayment" on this Global Note
duly completed) will be received at the Trustee's corporate trust office, no
later than five Business Days after the date of such telegram, telex, facsimile
transmission or letter and this Global Note and form duly completed are received
at the Trustee's office, by such fifth Business Day. Effective exercise of the
repayment option by the Holder of any Note of this Series shall be irrevocable.
No transfer or exchange of any Note of this Series (or, in the event that any
Note of this Series is to be repaid in part, such portion of the Note of this
Series to be repaid) will be permitted after exercise of the repayment option.
The repayment option may be exercised by the Holder of a Note of this Series for
less than the entire principal amount of the Note of this Series, provided the
principal amount which is to be repaid is set forth on the form entitled "Option
to Elect Repayment" on the Note of this Series and is equal to $1,000 or any
integral multiple thereof. All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Note of this Series for
repayment will be determined by the Company, whose determination will be final,
binding and non-appealable. Upon timely delivery of a Note of this Series to the
Trustee with the "Option to Elect Repayment" form completed in accordance with
the foregoing, the outstanding principal amount of such Note of this Series (or
portion thereof indicated in the "Option to Elect Repayment") shall become due
and payable on ___________, at a price equal to __________% of the principal
amount to be repaid plus accrued and unpaid interest to _______________.]

     Interest payments for this Global Note shall be computed and paid on the
basis of a 360-day year of twelve 30-day months. If any Interest Payment Date or
date on which the principal of this Global Note is required to be paid is not a
Business Day, then payment of principal, premium or interest need not be made on
such date but may be made on the next succeeding Business Day with the same
force and effect as if made on such Interest Payment Date or date on which the
principal of this Global Note is required to be paid and, in the case of timely
payment thereof, no interest shall accrue for the period from and after such
Interest Payment Date or the date on which the principal of this Global Note is
required to be paid.

     The Company, at its option, and subject to the terms and conditions
provided in the Indenture, will be discharged from any and all obligations in
respect of the Notes (except for

                                       14
<Page>

certain obligations including obligations to register the transfer or exchange
of Notes, replace stolen, lost or mutilated Notes, maintain paying agencies and
hold monies for payment in trust, all as set forth in the Indenture) if the
Company deposits with the Trustee money, U.S. Government Obligations which
through the payment of interest thereon and principal thereof in accordance with
their terms will provide money, or a combination of money and U.S. Government
Obligations, in any event in an amount sufficient, without reinvestment, to pay
all the principal of and any premium and interest on the Notes on the dates such
payments are due in accordance with the terms of the Notes.

     If an Event of Default shall occur and be continuing, the principal of the
Notes may be declared due and payable in the manner and with the effect provided
in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modifications of the rights and obligations of the
Company and the rights of the Noteholders under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of not less than a
majority in principal amount of the outstanding Notes. Any such consent or
waiver by the Holder of this Global Note shall be conclusive and binding upon
such Holder and upon all future Holders of this Global Note and of any Note
issued upon the registration of transfer hereof or in exchange therefor or in
lieu thereof whether or not notation of such consent or waiver is made upon the
Note.

     As set forth in and subject to the provisions of the Indenture, no Holder
of any Notes will have any right to institute any proceeding with respect to the
Indenture or for any remedy thereunder unless such Holder shall have previously
given to the Trustee written notice of a continuing Event of Default with
respect to such Notes, the Holders of not less than a majority in principal
amount of the outstanding Notes affected by such Event of Default shall have
made written request and offered reasonable indemnity to the Trustee to
institute such proceeding as Trustee and the Trustee shall have failed to
institute such proceeding within 60 days; provided that such limitations do not
apply to a suit instituted by the Holder hereof for the enforcement of payment
of the principal of and any premium or interest on this Note on or after the
respective due dates expressed here.

     No reference herein to the Indenture and to provisions of this Global Note
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
interest on this Global Note at the times, places and rates and the coin or
currency prescribed in the Indenture.

     As provided in the Indenture and subject to certain limitations therein set
forth, this Global Note may be transferred only as permitted by the legend
hereto.

     If at any time the Depositary for this Global Note notifies the Company
that it is unwilling or unable to continue as Depositary for this Global Note or
if at any time the Depositary for this Global Note shall no longer be eligible
or in good standing under the Securities Exchange Act of 1934, as amended, or
other applicable statute or regulation, the Company shall appoint a successor
Depositary with respect to this Global Note. If a successor Depositary for this
Global Note is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such ineligibility, the Company's
election to issue this Note in global form shall no longer be effective with
respect to this Global Note and

                                       15
<Page>

the Company will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of individual Notes of this Series in exchange
for this Global Note, will authenticate and deliver individual Notes of this
Series of like tenor and terms in definitive form in an aggregate principal
amount equal to the principal amount of this Global Note.

     The Company may at any time and in its sole discretion determine that all
Notes of this Series (but not less than all) issued or issuable in the form of
one or more Global Notes shall no longer be represented by such Global Note or
Notes. In such event, the Company shall execute, and the Trustee, upon receipt
of a Company Order for the authentication and delivery of individual Notes of
this Series in exchange for such Global Note, shall authenticate and deliver,
individual Notes of this Series of like tenor and terms in definitive form in an
aggregate principal amount equal to the principal amount of such Global Note or
Notes in exchange for such Global Note or Notes.

     Under certain circumstances specified in the Indenture, the Depositary may
be required to surrender any two or more Global Notes which have identical terms
(but which may have differing Original Issue Dates) to the Trustee, and the
Company shall execute and the Trustee shall authenticate and deliver to, or at
the direction of, the Depositary a Global Note in principal amount equal to the
aggregate principal amount of, and with all terms identical to, the Global Notes
surrendered thereto and that shall indicate all Original Issue Dates and the
principal amount applicable to each such Original Issue Date.

     The Indenture and the Notes shall be governed by, and construed in
accordance with, the laws of the State of Oklahoma.

     Unless the certificate of authentication hereon has been executed by the
Trustee, directly or through an Authenticating Agent by manual signature of an
authorized officer, this Global Note shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     All terms used in this Global Note which are defined in the Indenture shall
have the meanings assigned to them in the Indenture unless otherwise indicated
herein.

                                       16
<Page>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                         OKLAHOMA GAS AND ELECTRIC COMPANY

                                         By:
                                            ------------------------------------
                                                     PRESIDENT

Dated:                                   Attest:
                                                --------------------------------
                                                     SECRETARY
     TRUSTEE'S CERTIFICATE
      OF AUTHENTICATION

This Note is one of the Notes of the
series herein designated, described or
provided for in the within-mentioned
Indenture.

UMB BANK, N.A., AS TRUSTEE

By:
    -------------------------------------
           AUTHORIZED OFFICER

                                       17
<Page>

                                  ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations.

TEN COM - as tenants in common           UNIF GIFT
                                         MIN ACT - __________ Custodian_________
                                                     (Cust)              (Minor)

TEN ENT - as tenants by the entireties   Under Uniform Gifts to Minors

JT TEN - as joint tenants with right of
survivorship andnot as tenants in common ---------------------------------------
                                                         State

                    Additional abbreviations may also be used
                          though not in the above list.

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

               FOR VALUE RECEIVED the undersigned hereby sell(s),
                         assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

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

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

--------------------------------------------------------------------------------
                   Please print or typewrite name and address
                      including postal zip code of assignee

-----------------------------------------
the within note and all rights
thereunder, hereby irrevocably
constituting and appointing
           attorney to transfer said note
on the books of the Company, with full
power of substitution in the premises.

Dated:___________________________________

                                         ---------------------------------------
                                         NOTICE: The signature to this
                                         assignment must correspond with the
                                         name as written upon the face of the
                                         within instrument in every particular,
                                         without alteration or enlargement or
                                         any change whatever.

                                       18<Page>

                                                                 EXHIBIT 10.4

                          UNITED INDUSTRIES CORPORATION
                             STOCK OPTION AGREEMENT

          THIS STOCK OPTION AGREEMENT (the "AGREEMENT") is entered into as of
_______ by and between UNITED INDUSTRIES CORPORATION, a Delaware corporation
(the "COMPANY"), and ("OPTIONEE") pursuant to the United Industries
Corporation 2001 Stock Option Plan (the "PLAN"). The Company and Optionee are
referred to collectively herein as the "PARTIES." Capitalized terms used but
not defined herein shall have the meaning set forth in the Plan.

          THE PARTIES AGREE AS FOLLOWS:

1.        GRANT OF OPTIONS AND EFFECTIVE DATE.

     1.1       GRANT. The Company hereby grants to Optionee pursuant to the Plan
          an option (the "OPTION") to purchase all or any part of an aggregate
          of _______ OptionA shares (the "CLASS A SHARES") of the Company's
          Class A Voting Common Stock, par value $0.01 per share, and _______
          OptionB shares (the "CLASS B SHARES" and, together with the Class A
          Shares (the "SHARES")) of the Company's Class B Non-Voting Common
          Stock, par value $0.01 per share (collectively, "COMMON STOCK"), on
          the terms and conditions set forth herein and in the Plan as in effect
          on the Grant Date (as defined below), the terms of which are
          incorporated herein by reference.

     1.2       GRANT DATE. The Grant Date of this Option is ___________ (the
          "GRANT DATE").

2.        EXERCISE PRICE. The exercise price for the Shares of Common Stock
     covered by this Option shall be $____ per share (the "EXERCISE PRICE").

3.        ADJUSTMENT AND TERMINATION OF OPTIONS. Subject to the restrictions,
     and under the circumstances described, in the Plan and this Agreement, the
     Company shall adjust the number and kind of Shares and the Exercise Price
     thereof, and this Option shall be terminated in certain circumstances, in
     accordance with the provisions of the Plan.

4.        EXERCISE OF OPTIONS.

          4.1       WHEN EXERCISABLE.

               (a)       RATE OF EXERCISE FOR 4-YEAR OPTIONS. Optionee's right
                    to exercise this Option as to ______ Shares of Class A
                    Shares and ______ Class B Shares) subject thereto (the "4
                    YEAR OPTIONS") shall vest ratably over the four (4) year
                    period commencing on the Grant Date in accordance with the
                    following schedule if (but only if) Optionee is employed by
                    the Company or any of its Subsidiaries as of each such date:

<Page>

<Table>
<Caption>
                                                     Cumulative Shares of
            Date                                     4 Year Option Vested
            ----                                     --------------------
<S>                                                        <C>
1st Anniversary of Grant Date                              ______

2nd Anniversary of Grant Date                              ______

3rd Anniversary of Grant Date                              ______

4th Anniversary of Grant Date                              ______
</Table>

Notwithstanding any provision to the contrary in this SECTION 4.1(a). but
subject to the other restrictions in the Plan and this Agreement, in the event
of a Sale (as defined below) prior to the fourth anniversary of the Grant Date,
the 4 Year Options shall become vested and immediately exercisable.

          (b)       RATE OF EXERCISE ON TARSAP OPTIONS.

                    (i)    Optionee shall not be vested with the right to
     exercise this Option with respect to _______ of the Shares (______ Class A
     Shares and ______ Class B Shares) (the "TARSAP SHARES") subject thereto
     (the "TARSAP OPTIONS") until ten (10) years after the Grant Date, at which
     time Optionee shall acquire the vested right to exercise the TARSAP Options
     and purchase one hundred percent (100%) of the TARSAP Shares if (but only
     if) Optionee is an employee of the Company or any of its Subsidiaries as of
     such date.

                    (ii)   ACCELERATION OF TARSAP OPTIONS. Set forth on ANNEX
     I hereto are the Company's performance objectives (referred to herein as
     the "PERFORMANCE GOALS") for the fiscal years ending _________________
     through _________________, inclusive. The two Performance Goals for each
     fiscal year reflect the EBITDA (as defined below) goals for such fiscal
     year and are referred to as the "BANK PLAN PERFORMANCE GOALS" and the
     "GROWTH PLAN PERFORMANCE GOALS." Notwithstanding the foregoing
     subsection (b)(i), if on and after the publication of each written
     determination by the Board of Directors of the Company (the "BOARD") or
     a committee thereof which is authorized to do so that the Company has
     met at least ____________ percent of its objective for EBITDA under the
     Bank Plan Performance Goals with respect to any fiscal year commencing
     with the fiscal year ending _________________ and continuing for each of
     the _______ fiscal years thereafter, then (subject to the other
     restrictions in the Plan and this Agreement), Optionee shall acquire the
     vested right to exercise the TARSAP Options to purchase _________________
     _________________ percent of the TARSAP Shares, and for each achievement
     for any such fiscal year of incremental EBITDA in excess of the Bank
     Plan Performance Goal representing _________ percent of the difference
     between the Bank Plan Performance Goals and the Growth Plan Performance
     Goals, as so determined, Optionee shall acquire the vested right to
     exercise the TARSAP Options to purchase an additional _________________
     percent of the TARSAP Shares, but no more than an aggregate of
     ______________ percent of the TARSAP Shares in respect of each full
     fiscal year. In addition, on and after publication of

                                      - 2 -
<Page>

     a written determination by the Board or a committee thereof which is
     authorized to do so that the Company has met at least _______ percent of
     the Bank Plan Performance Goal for the fiscal year ending _____________
     _______ and at least _______ percent of its cumulative Bank Plan
     Performance Goals for the four fiscal years ending ______________ (the
     "AGGREGATE BANK PLAN PERFORMANCE GOAL"), then subject to the other
     restrictions in the Plan and this Agreement, (i) if Optionee had
     acquired vested rights hereunder to exercise the TARSAP Options to
     purchase an aggregate of less than _______ percent of the TARSAP Shares,
     then Optionee shall acquire the vested right to exercise the TARSAP
     Options to purchase such amount as would result in Optionee acquiring in
     aggregate the vested right to exercise TARSAP Options to purchase _____
     percent of the TARSAP Shares, and (ii) for each achievement of
     incremental EBITDA above the Aggregate Bank Plan Performance Goal
     representing ____ percent of the difference between (A) the cumulative
     Growth Plan Performance Goals for the four fiscal years ending
     ______________ (the "AGGREGATE GROWTH PLAN PERFORMANCE GOAL") and (B)
     the Aggregate Bank Plan Performance Goal, Optionee shall acquire the
     vested right to exercise the TARSAP Options to purchase TARSAP Shares in
     an amount equal to (X) ______ percent of the TARSAP Shares LESS (Y) the
     aggregate percentage of TARSAP Options to purchase TARSAP Shares which
     have been granted to Optionee on an annual basis as a result of the
     achievement of EBITDA in excess of the Bank Plan Performance Goals in
     each of the four fiscal years ending ___________________ (such
     additional exercise rights pursuant to clauses (i) and (ii) above are
     referred to herein as the "ADDITIONAL EXERCISE RIGHTS"). If the result
     of the calculation in clause (ii) of the foregoing sentence is a
     negative number, no Additional Rights to Exercise the TARSAP Options to
     purchase TARSAP Shares will be granted to Optionee as a result of such
     clause (ii), and as a further result no vested rights to exercise the
     TARSAP Options to purchase TARSAP Shares which were previously granted
     to Optionee will be affected or forfeited. In no event will Optionee
     acquire vested rights hereunder with respect to more than ______________
     percent of the TARSAP Shares. All such determinations shall be made by
     the Board or such committee within ten (10) days after receipt of
     audited financial statements for each fiscal year. The Board's or
     committee's determination as to whether the Company has met such
     objectives shall be final and not subject to dispute. In addition, the
     Board or a committee thereof shall have complete discretion to modify
     such objectives from time to time for any year or years to reflect
     business combinations or dispositions, fiscal year changes, purchases or
     sales of assets or any other circumstances the Board or committee thereof
     deems relevant. For purposes hereof, "EBITDA" shall mean earnings before
     interest, taxes, depreciation and amortization, excluding any non-recurring
     or extraordinary items, as determined in accordance with generally accepted
     accounting principles, consistently applied.

                    (iii)  ACCELERATION UPON SALE. Notwithstanding any provision
     to the contrary in this SECTION 4.1(b), but subject to the other
     restrictions in the Plan and this Agreement, in the event of a Sale (as
     defined below) prior to ______________, the TARSAP Options shall become
     vested and immediately exercisable to the extent set forth below. On and
     after publication of a written determination by the Board or a committee
     thereof which is authorized to do so that the Company has met at least
     _______ percent

                                      - 3 -
<Page>

     of its Bank Plan Performance Goals for the last twelve (12) full months and
     at least ________________ percent of its cumulative Bank Plan Performance
     Goals for the completed fiscal years (if any) and the Interim Period (as
     defined below) (based on months elapsed), the Board or such committee shall
     treat the percentage of cumulative Performance Goals achieved through the
     completed fiscal years (if any) and Interim Period as the percentage of
     Performance Goals achieved and on that basis shall determine the Additional
     Exercise Rights with respect to all TARSAP Options as to which Optionee had
     not otherwise acquired the vested right to exercise consistent with the
     method set forth in SECTION 4.1(b)(ii) above beginning with the fourth
     sentence thereof. For purposes hereof, the term "INTERIM PERIOD" shall
     mean the period beginning on the first day of the then current fiscal year
     and ending on the last full month of that uncompleted fiscal year.

          For purposes hereof, the term "SALE" shall mean:

                    (w)    the acquisition by any individual, entity or group
     (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
     "PERSON") of beneficial ownership (within the meaning of Rule 13d-3
     promulgated under the Exchange Act) of voting securities of (a) the Company
     or (b) the surviving entity in any reorganization, merger or consolidation
     (each an "ACQUISITION") involving the Company (any such entity referred to
     herein as the "CORPORATION") where such Acquisition causes such Person to
     own more than ________ percent of the combined voting power of the then
     outstanding voting securities of the Corporation entitled to vote generally
     in the election of directors, other than acquisitions by the Thomas H. Lee
     Company or its affiliates;

                    (x)    approval by the shareholders of the Company of a
     complete liquidation or dissolution of the Company;

                    (y)    the acquisition by a third party not affiliated with
     the Company of all or substantially all of the Company's assets; or

                    (z)    individuals who constitute the Board on the date of
     the Company's initial public sale of equity securities registered under the
     Securities Act (the "INCUMBENT BOARD") cease for any reason to constitute
     at least a majority of the Board thereafter. Any person becoming a director
     subsequent to such date whose, election, or nomination for election, is, at
     any time, approved by a vote of at least a majority of the directors
     comprising the Incumbent Board shall be considered a member of the
     Incumbent Board.

          The accelerated vesting provided in this SECTION 4.1(b)(iii) shall
take effect immediately prior to but contingent upon the Sale giving rise
to such accelerated vesting. The phrase "IMMEDIATELY PRIOR TO THE SALE" shall be
understood to mean sufficiently in advance of a Sale to permit the Optionee to
take all steps reasonably necessary to permit the Optionee to become a
shareholder of the Company as of the consummation of such Sale with respect to
the TARSAP

                                      - 4 -
<Page>

Shares subject to the accelerated vesting provided in this SECTION 4.1(b)(iii).
The Board or committee thereof may in good faith shorten the Interim Period or
make approximations of EBITDA during the Interim Period in order to comply with
the preceding sentence.

               (c)         PARTIAL EXERCISE. Subject to the other restrictions
                    in the Plan and this Agreement, the Options may be exercised
                    for all or a part of the Shares with respect to which each
                    Option is exercisable under SECTION 4.1(a) and (b) above.

          4.2       METHOD OF EXERCISE: STOCKHOLDERS AGREEMENT. Subject to
               SECTION 4.1 and the other restrictions in the Plan and this
               Agreement, Options are exercisable from time to time by Optionee,
               who shall complete, execute and deliver to the Company a Form of
               Exercise and Stock Transfer Power in such form as the Company may
               require. Except as otherwise permitted by SECTION 6(d) of the
               Plan, such notice shall be accompanied by payment in full for the
               Shares to be purchased. Payment of the Exercise Price may be
               made: (i) in cash, (ii) in shares of Common Stock which either
               (A) were purchased by Optionee in other than a compensatory
               transaction, (B) have been held by Optionee free and clear for at
               least six (6) months prior to the use thereof to pay part or all
               of the Exercise Price or (C) otherwise are considered "mature"
               shares for purposes of generally accepted accounting principles,
               as determined by the Company's outside auditors, or (iii) so long
               as the Common Stock is publicly traded, by delivery to the
               Committee of irrevocable instructions to a stockbroker to deliver
               promptly to the Company an amount of sale or loan proceeds
               sufficient to pay a portion of the Exercise Price subject to this
               clause (iii), or a combination of the methods specified in
               clauses (i), (ii) and (iii), or in the sole discretion of the
               Committee, through a cashless exercise procedure. Optionee shall
               also execute and deliver to the Company a copy of the Company's
               Stockholders Agreement, dated as of January 20, 1999, in the form
               in effect at the time of exercise (as amended and modified from
               time to time, the "STOCKHOLDERS AGREEMENT"), if Optionee has not
               previously done so. Upon due exercise of any Option and (if
               required) execution and delivery of the Stockholders Agreement,
               subject to the terms and conditions in this Agreement, the
               Company shall issue in the name of Optionee and deliver to
               Optionee a certificate for the Shares in respect of which such
               Option shall have been exercised, but no Shares will be issued
               until arrangements satisfactory to Company have been made for
               appropriate income tax withholding, if any, pursuant to SECTION
               12 hereof.

          4.3       EXERCISE AFTER TERMINATION OF EMPLOYMENT; TERMINATION OF
 OPTIONS.

               (a)         DEFINITIONS. The following definitions shall be
                    applied to the capitalized terms used in this SECTION 4.3
                    and in SECTION 4.4 below for all purposes, unless otherwise
                    clearly indicated:

                                      - 5 -
<Page>

                    (i)    "CAUSE" for termination by the Company of Optionee's
     employment with the Company means (a) misappropriation of the Company's
     property, interests or opportunities; (b) violation of reasonable
     directions of the Company to Optionee which directions are consistent with
     Optionee's duties and responsibilities; (c) misconduct which causes damage
     to the Company or its finances or to its business relationships or
     reputation in the industry or the community; (d) breach or nonperformance
     by Optionee of his obligations provided for in this Agreement or in other
     material agreement between Optionee and the Company (including, without
     limitation, any employment or noncompetition agreement) or reasonably
     implied by his position; (e) the habitual drug addiction or habitual
     intoxication of Optionee which negatively impacts his job performance or
     Optionee's failure of a Company-required drug test; or (f) failure of
     Optionee to reasonably cooperate with an examining physician as may be
     required by any agreement between Optionee and the Company.

                    (ii)   "FAIR MARKET VALUE" of each Share means the fair
     value of such share determined in good faith by the Board, based on the
     assumption of an arms-length transaction between a willing buyer and a
     willing seller, taking into account all reasonable and customary factors
     relevant to value including, without limitation, the fact that there may be
     no public market for the Company's securities, but not including any
     minority discount; until the first anniversary hereof, the "FAIR MARKET
     VALUE" of each Share shall not be less than the Original Cost of such
     Share.

                    (iii)  "ORIGINAL COST" for each Share shall be equal to
     $2.00 (as proportionately adjusted for all subsequent stock splits, stock
     dividends and other recapitalizations).

                    (iv)   "PUBLIC OFFERING" means the sale in an underwritten
     public offering registered under the Securities Act of shares of any class
     of the Company's Common Stock.

                    (v)    "TERMINATION DATE" means the date on which Optionee's
     employment with the Company terminates, whether pursuant to an employment
     agreement between Optionee and the Company or otherwise.

          (b)       TERMINATION BY OPTIONEE. Upon any termination of employment
               by Optionee, the Options may, to the extent exercisable and not
               terminated pursuant to SECTION 4.3(e), be exercised only within
               thirty (30) days after the date of such employment termination.
               This SECTION 4.3(b) shall not, however, extend the term of the
               Options beyond that specified in SECTION 4.3(e). For purposes of
               this SECTION 4.3(b), the extent to which the Options are
               exercisable shall be determined as of the date of termination of
               employment.

                                      - 6 -
<Page>

          (c)       TERMINATION BY VIRTUE OF DEATH OR DISABILITY OR WITHOUT
               CAUSE. Upon any termination of employment of Optionee by virtue
               of Optionee's death or Disability or upon any termination of
               employment by the Company without Cause, the Options may, to the
               extent exercisable and not terminated pursuant to SECTION 4.3(e),
               be exercised only within twelve (12) months after the date of
               such termination. This SECTION 4.3(c) shall not extend the term
               of the Options beyond that specified in SECTION 4.3(e). For
               purposes of this SECTION 4.3(c), the extent to which the Options
               are exercisable shall be determined as of the date of termination
               of employment.

          (d)       TERMINATION FOR CAUSE. The Option shall terminate
               immediately upon termination by the Company of the employment of
               Optionee for Cause.

          (e)       OTHER TERMINATION. The Options shall not be exercisable
               after the earliest of (i) a Sale (PROVIDED THAT Optionee has at
               least five (5) business days prior to the Sale to exercise the
               Options or the Options are treated as exercised in connection
               with such Sale) or (ii) ______________.

     4.4  REPURCHASE OPTION.

          (a)       RIGHT OF REPURCHASE. In the event Optionee ceases to be
               employed by the Company and its Subsidiaries for any reason (the
               "TERMINATION"), the Shares (whether held by Optionee or one or
               more of Optionee's transferees) shall be subject to repurchase by
               the Company pursuant to the terms and conditions set forth in
               this SECTION 4.4 (the "REPURCHASE OPTION").

          (b)       PURCHASE PRICE. Any repurchase of Shares pursuant to the
               Repurchase Option shall be at the "REPURCHASE PRICE" described in
               this SECTION 4.4(b) determined as of the Termination Date. If
               Optionee's employment is terminated by Optionee prior to the
               fifth anniversary hereof or by the Company for Cause, the
               Repurchase Price for all of the Shares shall be the lower of (i)
               the Fair Market Value therefor and (ii) the Original Cost
               therefor. If Optionee's employment is terminated for any other
               reason (including, without limitation, as a result of Optionee's
               retirement in good standing from the Company at or after age 65
               in accordance with the Company's retirement policies as in effect
               at that time), the Repurchase Price for all Shares shall be the
               Fair Market Value therefor.

          (c)       REPURCHASE BY THE COMPANY. The Company may elect to purchase
               all or any portion of the Shares at the Repurchase Price by
               delivering written notice (the "REPURCHASE NOTICE") to Optionee
               (i) within 120 days after the Termination Date, and (ii) for
               Shares acquired by Optionee after the Termination Date pursuant
               to SECTION 4.3 above, then within 120 days after the issuance of
               such Shares. The Repurchase Notice shall set forth the

                                      - 7 -
<Page>

               number of Shares to be acquired from Optionee and/or his or her
               transferees (if any), the aggregate consideration to be paid for
               such securities, and the time and place for the closing of the
               transaction (the "REPURCHASE CLOSING"). The Company may, in its
               sole discretion, assign its rights pursuant to this SECTION 4.4
               to the holders of its capital stock (other than Optionee and any
               other stockholder whose Shares are being repurchased) pro rata on
               the basis of the number of Shares owned (with subsequent re-offer
               in the event of under subscription); PROVIDED that any such
               assignees shall comply with the terms of this SECTION 4.4.

          (d)       REPURCHASE CLOSING. The closing of the purchase of the
               Shares pursuant to the Repurchase Option shall take place on the
               date designated by the Company in the Repurchase Notice which
               date shall not be more than 60 days nor less than 10 days after
               the delivery of such notice. Subject to SECTION 4.4(e), the
               Company shall pay for the Shares to be purchased pursuant to the
               Repurchase Option by delivery of a check or wire transfer of
               funds. The Company shall be entitled to receive customary
               representations and warranties regarding good title to such
               securities, free and clear of any liens or encumbrances, power
               and authority, due execution, and enforceability.

          (e)       CERTAIN RESTRICTIONS. Notwithstanding anything to the
               contrary contained in this Agreement, all repurchases of Shares
               by the Company shall be subject to applicable restrictions
               contained in the Delaware General Corporation Law and in the
               Company's and its Subsidiaries' debt and equity financing
               agreements. If any such restrictions prohibit the repurchase of
               Shares hereunder which the Company is otherwise entitled or
               required to make, the time periods provided in this SECTION 4.4
               shall be suspended, and the Company shall make such repurchases
               as soon as it is permitted to do so under such restrictions with
               interest at an annual rate of 7%. In addition, the Company may
               pay the Repurchase Price for such Shares by offsetting any
               bona fide debts owed by Optionee to me Company.

          (f)       TERMINATION OF REPURCHASE OPTION. The Repurchase Option set
               forth in this SECTION 4.4 shall continue with respect to all
               Shares following any Transfer thereof; PROVIDED that such
               Repurchase Option shall terminate effective immediately after the
               consummation of a Sale of the Company or a Public Offering of the
               Company's equity securities in which the Company receives net
               proceeds of at least $ 100 million; and PROVIDED FURTHER that,
               with respect to each Share, the Repurchase Option with respect to
               such Share shall terminate immediately upon the Transfer of such
               Share pursuant to a Public Sale.

                                      - 8 -
<Page>

5.        NON-TRANSFERABILITY OF OPTIONS. The Options shall not be transferable
     or assignable except upon Optionee's death by will or the laws of descent
     and distribution and shall be exercisable, during Optionee's lifetime, only
     by Optionee.

6.        PURCHASE FOR INVESTMENT; OTHER REPRESENTATIONS OF OPTIONEE: LEGENDS.

     6.1       INVESTMENT INTENT. As provided in the Plan, in the event that the
          offering of Shares with respect to which the Options are being
          exercised is not registered under the Securities Act, but an exemption
          is available that requires an investment representation or other
          representation, Optionee, if electing to purchase Shares, will be
          required to represent that such Shares are being acquired for
          investment and not with a view to distribution thereof, and to make
          such other reasonable and customary representations regarding matters
          relevant to compliance with applicable securities laws as are deemed
          necessary by counsel to the Company. Stock certificates evidencing
          such unregistered Shares that are acquired upon exercise of the
          Options shall bear restrictive legends in substantially the following
          form and such other restrictive legends as are required or advisable
          under the provisions of any applicable laws or are provided for in the
          Stockholders Agreement or any other agreement to which Optionee is a
          party:

               THE SHARES REPRESENTED BY THIS STOCK CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
     ACT"), NOR UNDER ANY STATE SECURITIES LAWS AND SHALL NOT BE TRANSFERRED AT
     ANY TIME IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER
     THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS WITH RESPECT TO
     SUCH SHARES AT SUCH TIME, OR (II) AN OPINION OF COUNSEL SATISFACTORY TO THE
     COMPANY AND ITS COUNSEL, TO THE EFFECT THAT SUCH TRANSFER AT SUCH TIME WILL
     NOT VIOLATE THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS.

     6.2       OTHER REPRESENTATIONS. Optionee hereby represents and warrants to
          the Company as follows:

          (a)       ACCESS TO INFORMATION. Because of Optionee's business
               relationship with the Company and with the management of the
               Company, Optionee has had access to all material and relevant
               information concerning the Company, thereby enabling Optionee to
               make an informed investment decision with respect to his
               investment in the Company, and all pertinent data and information
               requested by Optionee from the Company or its representatives
               concerning the business and financial condition of the Company
               and the terms and conditions of this Agreement have been
               furnished. Optionee acknowledges that Optionee has had the
               opportunity to ask questions of and receive answers from and to
               obtain additional information from the Company

                                      - 9 -
<Page>

               and its representatives concerning the present and proposed
               business and financial condition of the Company.

          (b)       FINANCIAL SOPHISTICATION. Optionee has such knowledge and
               experience in financial and business matters that Optionee is
               capable of evaluating the merits and risks of investing in the
               Shares.

          (c)       UNDERSTANDING THE INVESTMENT RISKS. Optionee understands
               that:

               (i)       An investment in the Shares represents a highly
                    speculative investment, and there can be no assurance as to
                    the success of the Company in its business; and

               (ii)      There is at present no market for the Shares and there
                    can be no assurance that a market will develop in the
                    future.

          (d)       UNDERSTANDING OF THE NATURE OF THE SHARES. Optionee
               understands and agrees that:

               (i)       There can be no assurance that the Shares will be
                    registered under the Securities Act or any state securities
                    laws and if they are not so registered, they will only be
                    issued and sold in reliance upon certain exemptions
                    contained in the Securities Act and applicable state
                    securities laws, and the representations and warranties of
                    Optionee contained herein, which will have to be renewed as
                    to the Shares at the times of exercise of the Options, are
                    essential to any claim of exemption by the Company under the
                    Securities Act and such state laws;

               (ii)      If the Shares are not so registered, the Shares will be
                    "restricted securities" as that term is defined in Rule 144
                    promulgated under the Securities Act;

               (iii)     The Option cannot be exercised and the Shares will not
                    be sold to Optionee and Optionee cannot resell or transfer
                    the Shares without registration under the Securities Act and
                    applicable state securities laws unless the Company receives
                    an opinion of counsel acceptable to it (as to both counsel
                    and the opinion) that such registration is not necessary,
                    the cost of such opinion to be borne by the Company;

               (iv)      Only the Company can register the Shares under the
                    Securities Act and applicable state securities laws;

                                     - 10 -
<Page>

               (v)       The Company has not made any representations to
                    Optionee that the Company will register the Shares under the
                    Securities Act or any applicable state securities laws, or
                    with respect to compliance with any exemption therefrom;

               (vi)      Optionee is aware of the conditions for Optionee's
                    obtaining an exemption for the resale of the Shares under
                    the Securities Act and any applicable state securities laws;
                    and

               (vii)     The Company may, from time to time, make stop transfer
                    notations in its transfer records to ensure compliance with
                    the Securities Act and any applicable state securities laws,
                    and any additional restrictions imposed by state securities
                    administrators.

          (e)       INVESTMENT INTENT. Optionee acknowledges that:

               (i)       Optionee is acquiring the Option for Optionee's own
                    account and not on behalf of any other person;

               (ii)      Optionee is acquiring the option for investment and not
                    with a view to distribution or with the intent to divide
                    Optionee's participation with others or resell or otherwise
                    distribute the Options or the Shares;

               (iii)     Neither Optionee nor anyone acting on Optionee's behalf
                    has paid or will pay a commission or other remuneration to
                    any person in connection with the acquisition of the Options
                    or the Shares; and

               (iv)      At the time of exercise of any Option, Optionee will
                    have to make all the representations and warranties
                    contained in this SECTION 6 with respect to the Shares to be
                    issued and other representations concerning investment
                    intent as a condition of the issuance of the Shares by the
                    Company.

7.        RESTRICTION ON ISSUANCE OF SHARES. The Company shall not be obligated
     to sell or issue any Shares pursuant to this Agreement if such issuance
     would result in the violation of any laws, including the Securities Act or
     any applicable state securities laws. The Company agrees to use its
     reasonable best efforts to qualify for available exemptions under the
     Securities Act or any applicable state securities laws which will enable it
     to issue Shares hereunder in compliance with applicable law.

8.        RIGHTS AS A SHAREHOLDER. Optionee shall have no rights as a
     shareholder with respect to any Shares covered by the Options until the
     date of exercise and payment of the Exercise Price in accordance with the
     terms of this Agreement. Subject to SECTION 3 hereof, no

                                     - 11 -
<Page>

     adjustment shall be made for dividends or other rights for which the record
     date is prior to the date such stock certificate is issued.

9.        NO EMPLOYMENT RIGHTS. This Agreement shall not confer upon Optionee
     any right with respect to the continuance as an employee of the Company or
     any Subsidiary, nor shall it interfere in any way with the right of the
     Company or any Subsidiary to terminate such employment at any time.

10.       GOVERNING LAW. All issues and questions concerning the construction,
     validity, enforcement and interpretation of this Agreement shall be
     governed by, and construed in accordance with, the laws of the State of
     Delaware, without giving effect to any choice of law or conflict of law
     rules or provisions (whether of the State of Delaware or any other
     jurisdiction) that would cause the application of the laws of any
     jurisdiction other than the State of Delaware.

11.       NOTICES. All notices and other communications under this Agreement
     shall be in writing, and shall be deemed to have been duly given on the
     date of delivery if delivered personally or when received if mailed to the
     party to whom notice is to be given, by certified mail, return receipt
     requested, postage prepaid, or by reputable overnight courier service
     (charges prepaid), or transmitted by facsimile with answer-back
     confirmation to the following address, or any other address specified, by
     notice duly given:

               To Optionee at:         _____________________
                                       _____________________
                                       _____________________

               To the Company at:     United Industries Corporation
                                      8825 Page Boulevard
                                      St. Louis, MO 63114
                                      Attention: President
                                      Telecopy: (314) 253-5941

12.       WITHHOLDINGS. Except to the extent prohibited by applicable law,
     Optionee may satisfy any required withholding obligation upon the exercise
     of an Option hereunder by either of the following methods, or by a
     combination of such methods: (a) tendering a cash payment or (b) delivering
     to the Company previously acquired Shares, or having the Company withhold
     Shares otherwise deliverable upon the exercise of an Option, in either case
     having an aggregate Fair Market Value, determined as of the date the
     withholding obligation arises, less than or equal to the amount of the
     total withholding obligation.

13.       PRO RATA EXERCISE. The Shares of Common Stock covered by this Option
     shall only be exercised, if at all, ratably among the Class A Shares and
     Class B Shares, based on the aggregate number of Class A Shares and Class B
     Shares subject to the Options granted hereunder.

                                     - 12 -
<Page>

14.       RULE 701 OFFERING. THE GRANT OF THE OPTION HEREUNDER (AND THE PURCHASE
     AND SALE OF SHARES UPON ANY EXERCISE OF THE OPTION PURSUANT TO THE TERMS
     HEREOF) IS MADE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
     OF THE SECURITIES ACT OF 1933, AS AMENDED, PROVIDED BY RULE 701,
     PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION.

                                    * * * * *

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

                                                   UNITED INDUSTRIES CORPORATION

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

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

                                                   OPTIONEE:

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

<Page>

                                     ANNEX I

The Performance Goals with respect to each fiscal year from 2001 through 2004
are as follows:

<Table>
<Caption>
          Fiscal Year      Bank Plan               Growth Plan
          -----------      ---------               -----------
           <S>             <C>                     <C>

           Aggregate
           =========       =========               ===========
</Table>

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