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Exhibit 10.20    
  

        PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. SUCH PORTIONS ARE
INDICATED HEREIN BY "[  ]."  

[SIEBEL LOGO]  

  
 

    SIEBEL ALLIANCE PROGRAM
  MASTER AGREEMENT    
  

THIS SIEBEL ALLIANCE PROGRAM MASTER AGREEMENT (the "Agreement") is between SIEBEL SYSTEMS, INC., with
its principal place of business at 2207 Bridgepointe Parkway, San Mateo, California 94404 ("Siebel") and the ALLIANCE PARTNER ("Partner") identified
below. 

This Agreement establishes the framework of the Siebel Alliance Program (the "Alliance Program"), a comprehensive technical and marketing program for Siebel's Alliance Partners
to develop and promote their products, services and solutions in conjunction with the Siebel Applications. The benefits available to Partner through the Alliance Program, and the requirements Partner
must meet, depend on the Partner's Category and Partner Level (as designated on Exhibit A) and are set forth in the Siebel Alliance Program Guide.  

1.    DEFINITIONS  

The following definitions shall apply to this Agreement and any addenda hereto (if any). Many of the definitions below are not referred to in this Agreement but may be referred
to in addenda to this Agreement: 

1.1    "Deliverables" shall mean any tangible materials provided to Partner by Siebel in the course of performing technical support services
(if any). 

1.2    "Documentation" shall mean Siebel's then current published guides, manuals and on-line help made generally available to its customers
for the Ordered Programs. 

1.3    "Effective Date" shall mean the effective date set forth at the end of this Agreement. 

1.4    "Intellectual Property Rights" will mean and include all trade secrets, patents, copyrights, designs, mask works, drawings, Marks and
other proprietary rights, whether registered or unregistered, and all applications and registrations therefor, which pertain to the Alliance Program, the Programs, or the Partner Products. 

1.5    "Logo Use Policy" shall mean Siebel's then current written policies for proper usage and placement of the Marks, as amended from time
to time by Siebel in its discretion. 

1.6    "Marks" shall mean the trademarks, service marks, trade names, and logos of Siebel, its licensors, and Partner. 

1.7    "Partner Category" shall mean Siebel's then current Alliance Program categories, as amended from time to time by Siebel in its
discretion. As of the Effective Date, the current Partner Categories are listed in Exhibit A.

1.8    "Partner Level" shall mean Siebel's then current Alliance Program participation levels within a given Partner Category, as amended from
time to time by Siebel in its discretion. As of the Effective Date, the current Partner Levels are listed in Exhibit A.

1.9    "Partner Products" shall mean one or more of the following value-added goods and/or services developed, sold, or provided by Partner to
customers in the ordinary course of business: (i) provision of consulting, professional, training, technical support or educational services; (ii) development and/or licensing of
application software; (iii) development and/or licensing of software content; (iv) development and/or sale of hardware, database systems, network services, and/or operating systems. 

1.10    "Programs" shall mean those Siebel software programs that are listed as generally available in Siebel's then-current marketing
literature and that are generally licensed by Siebel for commercial use. 

1.11    "Siebel Alliance Logo" shall mean the logo specified by Siebel for use in association with a given Partner Category and Partner Level. 

1.12    "Siebel Alliance Program Guide" shall mean Siebel's then current published guide for the Siebel Alliance Program setting forth the
specific benefits and requirements for each Partner Category and Partner Level, as amended from time to time by Siebel in its discretion. 

1.13    "Siebel Certified Professionals" shall mean the individuals who have been certified with respect to a particular major version of the
Programs by Siebel, or a third party authorized by Siebel, upon completion of the applicable certification requirements established by Siebel, as amended from time to time by Siebel in its discretion. 

1.14    "Territory" shall mean the geographical territory and/or vertical markets as specified in Exhibit
A.

1.15    "Training Materials" shall mean any training materials provided in connection with any training courses ordered by Partner and
delivered by Siebel. 

1.16    "Users" shall mean the individuals authorized by Partner to use or access the Programs, regardless of whether the individual is
actively using the Programs at any given time. The maximum number of Named or Concurrent Users (as defined in the Limited Use Program License Addendum) that may use or access the Programs is specified
in Exhibit A to the Limited Use Program License Addendum. Users may only include employees of Partner; notwithstanding the foregoing, Users shall exclude any individuals employed by, or acting on
behalf or under the direction of, a direct competitor of Siebel. 

2.    APPOINTMENT  

Siebel hereby appoints Partner within the Territory as a non-exclusive Siebel Alliance Program Partner for the Partner Category and Partner Level specified in  Exhibit A. Upon Partner's
request, Siebel has the right, but not the obligation, to upgrade Partner to a higher Partner Level and/or approve Partner for
a new Partner Category. If Partner is upgraded to a higher Partner Level and/or is approved for a new Partner Category, then Partner shall satisfy the corresponding requirements and obligations as set
forth in the Siebel Alliance Program Guide. If during the term of this Agreement Siebel offers a more
desirable program Partner will have the right to participate in such a program with the commitments and benefits of that level 

3.    TERM AND TERMINATION  

3.1    Term. This Agreement will commence as of the Effective Date and will remain in effect for a period of one
(1) year, unless terminated earlier upon mutual written agreement of the parties or as otherwise described in this Section 3. This Agreement and any addenda hereto may be renewed for additional
terms of one (1) year each so long as Partner has satisfied and continues to satisfy the Partner obligations and requirements as set forth in the Siebel Alliance Program Guide, this Agreement,
and any addenda hereto, including without limitation timely payment of all applicable fees due hereunder. Any renewal term is subject to Siebel's acceptance and final approval, which shall be
indicated by delivery to Partner of Siebel's letter of acceptance or notice of renewal. If Siebel does not accept Partner's renewal or if Partner fails to pay the applicable fees on or before the
anniversary date of this Agreement, then this Agreement shall immediately expire. 

3.2    Termination. Except during the first twelve (12) months following the Effective Date, either party may terminate this Agreement or any
addenda hereto without cause upon thirty (30) days prior written notice to the other party. In addition, either party may terminate this Agreement or any addenda hereto immediately upon notice to the
other party if (i) the other party materially breaches any obligation under this Agreement or any addenda hereto, and, if the breach is capable of being cured, such party fails to cure such
breach within thirty (30) calendar days after written notice of the breach; 

(ii) the other party ceases to conduct business in the normal course, becomes insolvent, enters in bankruptcy procedures or becomes subject to any other judicial proceedings that relate to
insolvency or protection of creditor's rights; or (iii) the other party undergoes a change in control that, in the terminating party's sole discretion, may have an adverse affect on the
terminating party's business or rights under this Agreement or any addenda hereto. 

3.3    Liability for Fees Upon Termination. If Partner terminates this Agreement or any addenda hereto for cause, or if Siebel terminates this
Agreement or any addenda hereto without cause, Partner shall only be liable for payment of any fees under this Agreement or any addenda hereto through the date of such termination and Partner shall
receive a pro-rata refund of any remaining pre-paid fees. If Siebel terminates this Agreement or any addenda hereto for cause, or if Partner terminates this Agreement or any addenda hereto without
cause, Partner shall be liable for payment of any accrued fees under this Agreement or any addenda hereto through the end of the current annual period. Neither party shall be responsible to the other
for any costs or damages resulting from the termination of this Agreement. 

3.4    Effects of Termination. Upon termination of this Agreement with or without cause: (i) all rights and obligations granted to
either party under this Agreement and any addenda hereto will immediately cease; (ii) Partner will immediately cease to represent itself as a Siebel Alliance Program Partner and
Siebel will immediately cease to represent Partner as a Siebel Alliance Program Partner; and (iii) each party will at its sole cost and expense promptly cease use of, and, at the other party's
option, either promptly destroy or return to the other party: (a) all logos, files and other materials provided by the other party under this Agreement, and (b) all Confidential
Information of such other party as well as any materials that embody any such Confidential Information. Partner shall at its sole cost and expense cease use of and either return or destroy all copies
of the Programs licensed to Partner under the Limited Use Program License Addendum to this Agreement within five business days of the termination or expiration of this Agreement. Termination of this
Agreement shall not limit either party from pursuing other remedies available to it, including injunctive relief, nor shall such termination relieve Partner of its obligation to pay all fees that have
accrued or are otherwise owed by Partner under this Agreement or an addenda hereto. 

3.5    Survival. Notwithstanding any provision to the contrary, Sections 4, 8, 9, 10, 11, 12 and this Section 3 will survive termination of
this Agreement. 

4.    PAYMENT  

4.1.    Fees. During the initial term and for each renewal term, Partner shall pay Siebel (i) the applicable
annual fee for the Partner Category and Partner Level as stated in the Siebel Alliance Program Guide, and (ii) any fees or charges due pursuant to a valid addendum hereto (if any). 

4.2.    Payment Terms. The applicable annual fee for the Partner Category and Partner Level as stated in the Siebel Alliance Program Guide
shall be due and payable in full on or before the anniversary date of this Agreement. Except as specifically provided otherwise, all other fees shall be due and payable in full on or before thirty
(30) days from the receipt of Siebel's invoice. All payments made pursuant to this Agreement or any addenda hereto shall be (i) payable in U.S. currency, (ii) made without any deduction,
whether by set-off, counterclaim, or otherwise, and (iii) nonrefundable and irrevocable except as set forth in Section 3.3 above. 

4.3    Taxes. The fees listed in this Agreement do not include taxes, duties or fees; if Siebel is required to pay (i) sales, use,
property, value-added, withholding or other taxes, (ii) any customs or other duties, or (iii) any import, warehouse or other fees, associated with the importation or delivery based on
the Programs or services provided in this Agreement or on Partner's use of Programs or services, then such taxes, duties or fees shall be billed to and paid by Partner. If Partner is permitted to
declare any such taxes, Partner shall declare and pay such taxes and Siebel shall not be required to invoice Partner. This Section shall not apply to taxes based on Siebel's income or payroll taxes. 

5.    ALLIANCE PROGRAM FEATURES  

5.1    Siebel Alliance Marketing Programs. Partner shall be eligible to participate in the Siebel marketing programs
as set forth in the Siebel Alliance Program Guide. Certain Siebel marketing programs are restricted to particular Partner Categories and/or Partner Levels as stated in the Siebel Alliance Program
Guide. 

5.2.    Market Development Fund. If Partner is joining the Siebel Alliance Program at a particular Partner Category and Partner Level for
which a Market Development Fund amount is specified under the Siebel Alliance Program Guide, Partner shall commit the amount specified for such Market Development Fund.
[  ] The parties agree to jointly develop a plan for using such Market Development Fund to benefit the parties, Programs, and/or Partner Products. 

5.3.    Siebel Alliance Logo Usage. Partner may use the applicable Siebel Alliance Program Partner Logo in accordance with the Logo Use Policy
upon (i) entering into a Logo License Addendum with Siebel pursuant to which Siebel grants Partner the right to use the applicable Siebel Alliance Program Partner Logo in connection with
Partner's marketing materials for the Partner Products, (ii) paying any corresponding license fees (if any), and (iii) fulfilling all other applicable requirements and obligations under
this Agreement. Except as specifically set forth in this Agreement, Partner's right to use the Marks of the Siebel Alliance Program shall be governed exclusively by the Siebel Alliance Program Logo
License Addendum. 

5.4    Marketing and Demonstration License. Partner may use the Programs upon (i) entering into a Limited Use Program License Addendum
executed by Siebel and Partner pursuant to which Siebel grants Partner limited use rights with respect to certain Programs for Partner's marketing and demonstration use and (ii) paying the
corresponding license fees (if any). The Siebel Alliance Program Guide sets forth whether entering into such addendum is required for a particular Partner Category and Partner Level. Except as
specifically set forth in this Agreement, Partner's rights and obligations with respect to such marketing and demonstration use shall be governed exclusively by the Siebel Alliance Program Limited Use
Program License Addendum. 

5.5    Integration Development License. [  ] 

5.6    Technical Support Addendum. If offered by Siebel, Partner shall be entitled to receive technical support from Siebel upon
(i) entering into the Siebel Alliance Program Technical Support Addendum pursuant to which Siebel provides Partner with certain technical support with respect to the Programs and
(ii) paying any corresponding fees (if any). The Siebel Alliance Program Technical Support Addendum and the Siebel Alliance Program Guide set forth the scope of technical support available to
Partner. Except as specifically set forth in this Agreement, Partner's rights and obligations with respect to such technical support shall be governed exclusively by the Siebel Alliance Partner
Technical Support Addendum. 

5.7    Training Services. Siebel will provide training to Partner, subject to availability, in accordance with Siebel's Training Services
schedule in effect at the time such training is ordered (available upon request). 

5.8    Technical Services. Siebel will provide technical services, subject to availability, in accordance with Siebel's Technical Services
schedule in effect at the time such services are ordered (available upon request). 

5.9    Advertising and Promotional Materials.  

	5.9.1	 	Permitted Uses of Partner Marks. Siebel may, in its discretion, reference the Partner and Partner's products by using the names and/or logos of Partner and/or its Products in advertising and promotional materials in
connection with the sale and promotion of the Programs and/or promotion of the Alliance Program as follows: (i) in lists of the Siebel Alliance Program Partners for customer information, (ii) in general advertising of the Siebel Alliance
Program, (iii) in general marketing materials listing all Siebel Alliance Partners of a particular Partner Category(ies) and/or Partner Level(s), (iv) by framing and displaying the names and/or logos along with those of other Alliance
Partners at Siebel's corporate headquarters in San Mateo, California and at its selected business offices, (v) by displaying such names and/or logos in a professionally prepared graphic for display at promotional events and trade show events,
and (vi) displaying such names and/or logos as a link to Partner's web site on the Siebel web site. In the event Partner provides Siebel with images of Partner's logo for use as set forth above, Siebel agrees it will not alter the color or
configuration of such image, except as to size, provided however that the proportions shall remain the same.
	
5.9.2	
 	

Other Uses of Partner Marks. When a specific advertisement or promotion is planned which will refer to Partner without reference to any other Siebel Alliance Partners, Siebel will obtain Partner's written permission before
such use. Siebel shall also obtain Partner's written permission before use of any logo of Partner; provided that Partner hereby consents to Siebel's display of Partner's logo on the area of the Siebel website relating to the Siebel Alliance Program
and Partner shall provide Siebel with digital files and artwork of Partner's logo for this purpose.

5.10    Changes to the Siebel Alliance Program. Partner acknowledges and agrees that Siebel may expand, change the
scope or contents of, and/or delete, any terms of benefits offered under the Siebel Alliance Program, including but not limited to expanding, changing the scope or contents of and/or deleting the
Siebel Alliance Program Guide or any terms therein. Siebel will provide Partner with thirty (30) days advance written notice of any changes to the scope, contents and/or benefits offered under the
Siebel Alliance Program that in Siebel's sole discretion are material. "Written notice" for the purposes of this Agreement may include notice via electronic means such as email. In the event that
Siebel changes any Alliance Program features, and should Partner be dissatisfied with those changes, Partner may
terminate this Agreement in accordance with Section 3.2 and will have no further recourse against Siebel. 

5.11    Partner Services. Partner may provide services to a customer to install, integrate, configure and/or implement one or more Programs
licensed by such customer (the "Implementation Services"). To the extent (i) Partner uses, directly or indirectly, any individuals who are not Siebel Certified Professionals to perform any
portion of the Implementation Services for a customer, and (ii) one or more customer satisfaction issues arise from, in connection with or as a result of any Implementation Services performed
by or on behalf of Partner that Partner cannot resolve to the satisfaction of such customer within [  ] following the initial customer complaint to Partner and/or
Siebel (whichever is earlier), Partner agrees to promptly pay to Siebel the then current Siebel services fees, in addition to any reasonable out-of-pocket expenses and costs, incurred by Siebel in its
discretion to promptly address and resolve such customer complaint(s). 

6.    VALIDATION  

[  ] 

6.1    Testing. [  ] 

6.2    Validation; Acceptance. [  ] 

6.3    New Releases. [  ] 

7.    PARTNER REPRESENTATIONS AND WARRANTIES  

7.1    Membership Application. Partner agrees that all the information provided on any registration or application
form submitted to Siebel is, in all material respects, true and correct. Should there by any changes in such information during the course of this Agreement, Partner agrees to promptly inform Siebel
in writing giving details of such changes. 

7.2    Partner Products. [Not applicable for Consulting Partners]. [  ] 

7.3    Certified Staffing Levels. [For Consulting Partners Only]. Partner acknowledges and agrees that, at all times
during the term of this Agreement and any renewals hereto, Partner shall employ the number and types of Siebel Certified Professionals as set forth in the Siebel Alliance Program Guide for the Partner
Category and Partner Level applicable to Partner (if any). Partner acknowledges and agrees that, as a condition to maintaining Siebel Certified Professional status, each Siebel Certified Professional
must be re-certified with respect to each new major release of the Programs within three (3) months of the general availability of such new major release by completion of the applicable
validation requirements established by Siebel, as amended from time to time by Siebel in its discretion. 

7.4    Full Power and Authority. Each party represents and warrants that (i) it has full power and authority to enter into this
Agreement; and (ii) it shall make no representations, warranties, or guarantees on behalf of the other party. 

7.5    Standardization on Siebel Applications. If required under the Siebel Alliance Program Guide, Partner represents and warrants that
(i) it has already entered into a valid and binding Software License and Services Agreement for the Programs with Siebel or it will do so within thirty (30) days of the Effective Date of this
Agreement; and (ii) it has standardized on such Programs or is using its best efforts to promptly standardize on such Programs. Such Software License and Services Agreement for the Programs,
and all fees payable thereunder, shall be entirely separate and distinct from this Agreement. 

8.    DISCLAIMER AND LIMITATION OF LIABILITY  

8.1    Warranty Disclaimer. ALL GOODS AND/OR SERVICES PROVIDED HEREUNDER ARE PROVIDED ON AN "AS IS" BASIS WITHOUT
WARRANTY OF ANY KIND. EACH PARTY HEREBY EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTIBILITY AND FITNESS FOR A
PARTICULAR PURPOSE. 

8.2    Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES,
INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, DATA OR USE, INCURRED BY EITHER PARTY OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT OR TORT, EVEN IF THE OTHER PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, NEITHER PARTY WILL BE LIABLE FOR ANY LOSS, DAMAGE OR EXPENSE THAT DIRECTLY OR INDIRECTLY ARISES FROM OR IN
CONNECTION WITH THE INABILITY OF EITHER THE PARTNER PRODUCTS OR THE PROGRAMS TO WORK WITH EACH OTHER. Except for Siebel's liability for any breach of its obligations under Sections 9 (Indemnification)
or 11 (Nondisclosure), Siebel's aggregate and cumulative liability for damages hereunder shall in no event exceed the amount of fees paid by Partner under this Agreement. Except for any breach of its
obligations under Sections 4 (Payment), 5.11 (Partner Services), 9 (Indemnification) and 11
(Nondisclosure), Partner's aggregate and cumulative liability for damages hereunder shall in no event exceed the amount of fees paid by Partner under this Agreement. 

9.    INDEMNIFICATION  

9.1    Siebel's Indemnity. If a third party makes a claim against Partner that the Programs directly infringe any U.S.
or Canadian patent issued as of the Effective Date or any copyright, trade secret or trademark ("IP Claim"); Siebel will defend Partner against the IP Claim and pay all costs, damages and 

expenses (including reasonable legal fees) finally awarded against Partner by a court of competent jurisdiction or agreed to in a written settlement agreement signed by Siebel arising out of such IP
Claim; provided that: (i) Partner promptly notifies Siebel in writing no later than sixty (60) days after Partner's receipt of notification of a
potential claim; (ii) Siebel may assume sole control of the defense of such claim and all related settlement negotiations; and (iii) Partner provides Siebel, at Siebel's request and
expense, with the assistance, information and authority necessary to perform Siebel's obligations under this Section. Notwithstanding the foregoing, Siebel shall have no liability for any claim of
infringement based on (a) the use of a superseded or altered release of Programs if the infringement would have been avoided by the use of a current unaltered release of the Programs, which
Siebel provided to Partner, (b) the modification of a Program, or (c) the use of the Programs other than in accordance with the Documentation and this Agreement. 

If,
due to an IP Claim or the threat of an IP Claim, (i) the Programs are held by a court of competent jurisdiction, or in Siebel's reasonable judgment may be held to infringe by such a court,
or (ii) Partner receives a valid court order enjoining Partner from using the Programs, or in Siebel's reasonable judgment Partner may receive such an order, Siebel shall in its reasonable
judgment, and at its expense, (a) replace or modify the Programs to be non-infringing; (b) obtain for Partner a license to continue using the Programs; or (c) if Siebel cannot
reasonably obtain the remedies in (a) or (b), terminate the Program License for the infringing Programs and refund the license fees paid for those Programs upon return by Partner. This Section
9.1 states Siebel's entire liability and Partner's exclusive remedy for any claim of infringement. 

9.2    Mutual General Indemnity. Each party ("Indemnitor") will defend and indemnify the other party ("Indemnitee") against any and all costs,
damages and expenses (including reasonable legal fees) finally awarded against Indemnitee by a court of competent jurisdiction or agreed to in a written settlement agreement signed by Indemnitor
arising out of or in connection with any claim by any third party arising out of or in connection: (i) information supplied by Indemnitor to the third party regarding the features,
functionality, performance, or use of the Programs or Partner's Products (as applicable) except where either such information was supplied to Indemnitor by Indemnitee for further distribution, or such
supply by Indemnitor was specifically authorized by Indemnitee in writing; (ii) any representation made by Indemnitor that Indemnitee has endorsed, warranted, or guaranteed Indemnitor's
Products or Programs (as applicable) without the specific, prior written consent of Indemnitee; provided that: (a) Indemnitee promptly notifies
Indemnitor in writing no later than sixty (60) days after Indemnitee's receipt of notification of a potential claim; (b) Indemnitor may assume sole control of the defense of such claim and all
related settlement negotiations; and (c) Indemnitee provides Indemnitor, at
Indemnitor's request and expense, with the assistance, information and authority necessary to perform Indemnitor's obligations under this Section. 

10.    INTELLECTUAL PROPERTY RIGHTS  

10.1    Ownership. Siebel and Partner hereby acknowledge that the other party is the exclusive owner of all rights,
title, and interest in and to, or authorized licensee of, their respective Intellectual Property Rights (with respect to the Partner Products for Partner, and with respect to the Programs, the
Alliance Program, Training Materials and Deliverables for Siebel). Neither party will acquire any rights in or to any of the Intellectual Property Rights of the other. Neither party will take any
action that may adversely affect or impair the other party's, or its licensor's, rights, title and interest in or to their Intellectual Property Rights. Any terms regarding Intellectual Property
Rights in other materials shall be separately negotiated and agreed to in writing. 

10.2    Infringement Notification. Each party shall render to the other party all reasonable assistance as may be required to preserve the
validity and enforceability of the other party's, or its licensor's, rights, title and interest in and to the Intellectual Property Rights. Each party agrees that it shall promptly notify the other
party (i) of any and all infringements, imitations, illegal use, misuse, or misappropriation, by any third party of the Intellectual Property Rights which comes to its attention, and
(ii) of any claims or objections that such party's use of the Intellectual Property Rights may or will infringe the copyrights, patents, designs, trademarks or other proprietary rights of any
other third party. 

Each party, as the owner or authorized licensor of the Intellectual Property Rights, shall be responsible for taking any action or initiating any proceedings which such party, in its sole discretion,
determines to be necessary or appropriate to prevent any infringement of its Intellectual Property Rights, and the parties shall provide each other with such assistance as reasonably requested in
connection with any such action or proceeding. 

11.    NONDISCLOSURE  

11.1    Definition. Each party may have access to information that is confidential to the other party ("Confidential
Information"). Siebel's Confidential Information shall include, but not be limited to, the Programs, Documentation, formulas, methods, know how, processes, designs, new products, developmental work,
marketing requirements, marketing plans, customer names, prospective customer names, the terms and pricing under this Agreement, and all information clearly identified in writing at the time of
disclosure as confidential. Siebel's Confidential Information constitutes trade secrets of Siebel and/or its suppliers. Partner's Confidential Information constitutes trade secrets of Partner and/or
its suppliers. Partner's Confidential Information shall include, but not be limited to, its Partner Products, formulas, methods, know-how, processes, designs, new products, developmental work,
marketing requirements, marketing plans, customer names, prospective customer names, and all information clearly identified in writing at the time of disclosure as confidential. Confidential
Information includes all information received from third parties that either party is obligated to treat as confidential and oral information that is identified by the disclosing party as
confidential. 

11.2    Exceptions. A party's Confidential Information shall not include information that (i) is or becomes a part of the public domain
through no act or omission of the other party; (ii) was in the other party's lawful possession prior to the disclosure and had not been obtained by the other party either directly or indirectly
from the disclosing party; (iii) is lawfully disclosed to the other party by a third party without restriction on disclosure; (iv) is independently developed by the other party without
use of or reference to the other party's Confidential Information; or (v) is required to be disclosed by law or valid order of a court or other governmental authority;  provided, however, that the
responding party shall first have given notice to the other party and shall have made a reasonable effort to obtain a
protective order requiring that the Confidential Information so disclosed be used only for the purposes for which the order was issued. 

11.3    Restrictions. The parties agree, unless required by law, not to make each other's Confidential Information available in any form to
any third party (except third parties who are Users as defined hereunder) or to use each other's Confidential Information for any purpose other than in the performance of this Agreement.
[  ] Each party agrees to take all reasonable steps to ensure that Confidential Information is not disclosed or distributed by its employees or agents in breach of
this Agreement. The parties agree to hold each other's Confidential Information in confidence during the term and any renewal terms of this Agreement and for a period of three (3) years
thereafter. 

11.4    Equitable Relief. Each party acknowledges and agrees that, due to the unique nature of Confidential Information, there can be no
adequate remedy at law for breach of this Section 11 and that such breach would cause irreparable harm to the non-breaching party; therefore, the non-breaching party shall be entitled to seek
immediate injunctive relief, in addition to whatever remedies it might have at law or under this Agreement. This Section 11 constitutes the entire understanding of the parties and supersedes all prior
or contemporaneous agreements, representations or negotiations, whether oral or written, with respect to Confidential Information. 

12.    GENERAL PROVISIONS  

12.1    No Partnership. The parties undertake their respective obligations under this Agreement as independent
contractors. This Agreement does not, and is not intended to, create any employment, agency, distributorship, franchise, joint venture, legal partnership or other similar legal relationship between
Siebel and Partner. Neither party will have any right or authority to act on behalf of, or to bind, the other party and neither party will represent to any third party that it has such right or
authority. 

12.2    Non-Exclusivity; Freedom of Action. This Agreement is not exclusive in any respect. Each party may enter into similar agreements with
other parties. Partner acknowledges that, under the Alliance Program, Siebel intends to enter into similar agreements with other companies who may compete directly or indirectly with Partner or
Partner's Products. Nothing contained in this Agreement will limit the right of each party to develop products and/or services similar to those of the other party, provided that such development
activity does not violate any term or condition of this Agreement, including but not limited to the confidentiality provisions of Section 11. Each party shall be free to use for any purpose the ideas,
concepts, know-how and techniques that are contained in the Confidential Information provided hereunder and retained in the unaided memories of each party's employees who have had valid access to the
Confidential Information provided pursuant to this Agreement. 

12.3    No Assurances. Siebel makes no representation or warranty that Partner will succeed in licensing or selling any Partner Product to any
present or future Siebel customer, and Siebel will not be liable to Partner for Partner's failure to license or sell Partner Products. Partner makes no representation or warranty that Siebel will
succeed in licensing or selling the Programs or related products and services to any present or future Partner customer, and Partner will not be liable to Siebel for Siebel's failure to license or
sell the Programs or related products and services. 

12.4    Governing Law. This Agreement and all matters arising out of or relating to this Agreement, shall be governed by the laws of the State
of California, excluding its conflict of law provisions. 

12.4.1.    Dispute Resolution. The dispute resolution procedures set forth in this Section 12.4.1 shall apply to any claim, controversy, or
dispute arising from this Agreement ("Dispute"). In the event of a Dispute involving the material breach of this Agreement by Partner that is not cured after Siebel has provided the appropriate
written notice to Partner under Section 3.2 of this Agreement, Siebel may, at its option, bring a judicial proceeding in the location where the actions giving rise to the dispute occurred, in the
Superior Court of California, County of Santa Clara or County of San Francisco or, if appropriate, in the United States Federal District Court, Northern District of California, or Siebel may finally
settle such Dispute in the English language under the rules of the International Chamber of Commerce (ICC) or the American Arbitration Association (AAA), by a single arbitrator in accordance
with such rules. Siebel and Partner expressly and irrevocably consent and submit to the exclusive jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding
and waive any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world. The arbitrator shall be
mutually agreeable to the parties and shall be an attorney at law with arbitration experience and at least ten years' demonstrated legal experience in computer software license arrangements. Siebel
may choose among the following locations for the arbitration: London, Hong Kong, or San Francisco, California. The arbitration award shall be substantiated in writing, shall be binding on the parties,
and may be entered in any court having jurisdiction thereof. The arbitral award, if any, will be paid in United States Dollars, exclusive any tax, deduction or offset. The arbitrator shall be bound by
the applicable rules of procedure and evidence and the damage limitation clauses contained in this Agreement, and shall not have authority to award punitive damages. The arbitrator shall take
all steps as may be necessary to (i) schedule the initial hearing within ninety (90) days of the initial demand for arbitration, (ii) schedule all hearings to be heard consecutively and
for not longer than two days with each party allotted half the available time, and (iii) issue a written decision no later than fourteen (14) days after the hearing. Each party shall bear its
own costs and attorneys' fees in connection with such arbitration and shall share equally in the fees and expenses of the arbitrator. All information related to the arbitration proceedings
described herein shall be deemed Confidential Information and subject to the restrictions on disclosure contained in Section 11.3 of this Agreement. Notwithstanding the foregoing, in the event of an
actual or threatened breach of Partner's obligations regarding Siebel's intellectual property rights or Siebel's Confidential Information, Siebel shall be entitled, to immediately seek equitable
relief as set forth in Section 11.4 of this Agreement, as well as such further relief as may be granted by a court of competent jurisdiction. 

In
the event of a Dispute involving the material breach of this Agreement by Siebel that is not cured after Partner has provided the appropriate notice to Siebel under Section 3.2 of this Agreement, 

Partner may, at its option, bring an action in the Superior Court of California, County of Santa Clara or County of San Francisco, or, if appropriate, in the United States Federal District Court,
Northern District of California, or Partner may finally settle such Dispute in the English language under the rules of the AAA by a single arbitrator in accordance with such rules. The place of
arbitration shall be San Francisco, California. Siebel and Partner expressly and irrevocably consent and submit to the exclusive jurisdiction of such courts (and of the appropriate appellate courts)
in any such action or proceeding and waive any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the
world. The arbitrator shall be mutually agreeable to the parties and shall be an attorney at law with arbitration experience and at least ten years' demonstrated legal experience in computer software
license arrangements. The arbitration award shall be substantiated in writing, shall be binding on the parties, and may be entered in any court having jurisdiction thereof. The arbitral award, if any,
will be paid in United States Dollars, exclusive any tax, deduction or offset. The arbitrator shall be bound by the applicable rules of procedure and evidence and the damage limitation clauses
contained in this Agreement, and shall not have authority to award punitive damages. The arbitrator shall take all steps as may be necessary to (i) schedule the initial hearing within ninety
(90) days of the initial demand for arbitration, (ii) schedule all hearings to be heard consecutively and for not longer than two days with each party allotted half the available time, and
(iii) issue a written decision no later than fourteen (14) days after the hearing. Each party shall bear its own costs and attorneys' fees in connection with such arbitration and shall share
equally in the fees and expenses of the arbitrator. All information related to the arbitration proceedings described herein shall be deemed Confidential Information and subject to the restrictions on
disclosure contained in Section 11.3 of this Agreement. 

12.5    Notices. All notices required to be sent hereunder shall be in writing and shall be deemed to have been given upon (i) the date
sent by confirmed facsimile, (ii) on the date it was delivered by courier, or (iii) if by certified mail return receipt requested, on the date received, to the addresses set forth above
and to the attention of the signatory of this Agreement or to such other address or individual as the parties may specify from time to time by written notice to the other party. 

12.6    Severability. In the event any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions of this
Agreement will remain in full force. 

12.7    Waiver. The waiver by either party of any default or breach of this Agreement shall not constitute a waiver of any other or subsequent
default or breach. Except for actions for nonpayment or breach of
Siebel's proprietary rights in the Programs or Documentation, or the parties' obligations under Section 11 (Nondisclosure) no action, regardless of form, arising out of this Agreement may be brought
by either party more than one year after the cause of action has accrued. 

12.8    Export Controls. Partner agrees to comply fully with all relevant export laws and regulations of the United States, including but not
limited to the U.S. Export Administration Regulations (collectively, "U.S. Export Controls"). Without limiting the generality of the foregoing, Partner expressly agrees that it shall not, and shall
cause its representatives to agree not to, export, directly or indirectly, re-export, divert, or transfer the Programs or any direct product thereof to any destination, company or person restricted or
prohibited by U.S. Export Controls. 

12.9    Delivery. All materials provided by Siebel hereunder shall be delivered to Partner on a F.O.B. Siebel's San Mateo Headquarters basis
for destinations within the United States, or on a FCA (Incoterms 1990) Siebel's San Mateo Headquarters basis for destinations outside the United States; at which point title to the carrier media and
risk of loss or damage to the materials shall be transferred from Siebel to Partner. Nothing in this Section shall be deemed to transfer title to, or provide Partner with any rights in, the Programs,
Deliverables or Documentation, except as specifically provided in this Agreement. 

12.10    Order of Precedence. In the event of conflict between this Agreement and any addendum hereto, the terms and conditions of the
applicable addendum shall prevail with respect to the subject matter of such addendum. 

12.11    Entire Agreement. This Agreement together with all exhibits and addenda, each of which is hereby incorporated by reference,
constitutes the complete agreement between the parties and supersedes all prior or contemporaneous agreements or representations, written or oral, concerning the subject matter of this Agreement, its
exhibits and addenda. This Agreement may not be modified or amended except in writing signed by a duly authorized representative of each party. No other act, document, usage or custom shall be deemed
to amend or modify this Agreement. 

12.12    Assignment. Partner may not assign this Agreement, nor delegate or otherwise transfer any rights, duties, obligations or licenses
granted under this Agreement, including any and all addenda hereto, without the prior written consent of Siebel, which consent Siebel may grant or withhold in its sole discretion. Any attempted
assignment, delegation and/or transfer in violation hereof shall be null and void. 

12.13    Counterparts and Exchanges by Fax. This Agreement, and any addenda hereto, may be executed simultaneously in two (2) or more
counterparts, each of which will be considered an original, but all of
which together will constitute one and the same instrument. The Agreement, and any exhibits or addenda hereto, shall not be effective unless and until the Agreement is executed by both parties. The
exchange of a fully executed Agreement (in counterparts or otherwise) by fax shall be sufficient to bind the parties to the terms and conditions of this Agreement. 

The
Effective Date of this Agreement shall be January 1, 2002 

	EXECUTED BY:	 	SYNAVANT, INC.
 ALLIANCE PARTNER
	

ADDRESS:	
 	

3445 PEACHTREE ROAD
ATLANTA, GA 30326

	
Signed:	
 	

 
	 	 	

	

Name:	
 	

 
	 	 	

	

Title:	
 	

 
	 	 	

	Date:	 	 
	 	 	

	
EXECUTED BY:	
 	

SIEBEL SYSTEMS, INC.

2207 BRIDGEPOINTE PARKWAY

SAN MATEO, CALIFORNIA 94404
	
Signed:	
 	

 
	 	 	

	

Name:	
 	

 
	 	 	

	

Title:	
 	

 
	 	 	

	

Date:	
 	

 
	 	 	

EXHIBIT A  

 SIEBEL ALLIANCE PROGRAM

PARTNER CATEGORIES, PARTNER LEVELS, AND TERRITORY  

This form is to be filled out by Siebel. Instructions: Check a total of 3 boxes below: 

(1) Check
one box only under the Partner Categories and Partner Levels heading,

(2) Check one box only under the Geographical Territory heading; and

(3) Check one box only under the Vertical Markets heading. 

PARTNER CATEGORY AND PARTNER LEVEL: Partner's applicable Partner Category and Partner Level is listed below: 

Strategic
Consulting Partner 

TERRITORY: For purposes of the Agreement, the Territory shall be the geographical territory and vertical markets indicated below. Siebel may grant
Partner rights outside this Territory by separate addendum to this Agreement and Partner acknowledges that such separate addendum may contain additional terms, conditions and restrictions relating to
Partner's rights hereunder: 

GEOGRAPHICAL TERRITORY (check one box only) 

        o    United
States and Canada 

        o    Latin
America 

        o    Europe 

        o    Japan 

        ý    Worldwide

        o    Other:

VERTICAL MARKETS (check one box only)  

        o    Unrestricted 

        ý    Restricted
to the following Vertical Markets: Life Sciences (It is understood that this
restriction requires that Partner will provide Partner services only for entities in the Life Sciences market and such services may include professional services related to, without limitation, Siebel
ePharma, Siebel eClinical, Siebel eMedical and Siebel ERM products in Life Sciences accounts). 

EXHIBIT B  

 ADDITIONAL TERMS AND CONDITIONS  

To the extent any terms and conditions of this Exhibit B conflict with the terms and conditions of the Agreement and/or the Siebel Alliance Program Guide, each party
acknowledges and agrees that the express provisions of this Exhibit B which conflict shall prevail and control the rights and obligations of the parties with respect thereto. 

	1.
	Market Development Fund. Notwithstanding anything to the contrary in the Siebel Alliance Program Guide, for the
[  ] term of the Agreement, Partner will commit to a Market Development Fund (the "MDF") [  ]. For
each term of the Agreement after the first annual term, Partner will contribute to a MDF the amount specified in the Siebel Alliance Program Guide for the Partner's then-current category and level of
partnership.

	2.
	Business Plan. No later than sixty (60) days following the execution of this Agreement, the parties will jointly develop and mutually
agree upon a business plan (the "Business Plan") that may specify, among other things, [  ].

	3.
	Executive Sponsor. Each party will assign an executive sponsor to the alliance ("Executive Sponsor"). Each
party must obtain the approval of the other party to replace its Executive Sponsor, such approval not to be unreasonably withheld. The Executive Sponsors will review the Business Plan and the status
of the alliance on a quarterly basis.

	4.
	Sale of SYNAVANT Products; [  ]. It is understood and agreed that Partner may sell its own products
and services to its existing customer base and to new customers. [  ]

	5.
	Joint Engagement and Support of Targeted Accounts. Partner and Siebel may mutually agree upon targeted Enterprise-level accounts for
joint engagement, on a case-by-case basis (the "Targeted Accounts"). Partner and Siebel will jointly engage to sell products and services to Targeted Accounts
("Joint Engagement"). In a Joint Engagement, unless the Targeted Account demands otherwise, (a) Siebel will engage to license Siebel products and provide
maintenance and support of Siebel products to the Targeted Account via relevant contract(s) between Siebel and such Targeted Account; and (b) Partner will engage to sell only Partner
implementation and support services to the Targeted Account via relevant contract(s) between Partner and such Targeted Account and will not engage to sell to the Targeted Account Partner products that
are in any way competitive with any Siebel products. [  ]

	6.
	Use of Siebel Logos, Trade Names. To the extent that Partner intends to use any of Siebel's corporate names, corporate logos, and/or
trade names in its marketing materials, Partner shall submit all proposed marketing materials to Siebel for prior written approval. Nothing in this agreement shall waive Partner's obligations to
comply with all Siebel Logo Usage Guidelines.

	7.
	Training. Within [  ] days following the Effective Date, Siebel will commence training
(i) [  ] on the value proposition of a [  ]; (ii) [  ] on SYNAVANT products
and product positioning ("Siebel Training"). The content of the Siebel Training will be determined by Siebel. Within sixty (60) days following the Effective Date, Partner
will ensure that [  ] personnel have commenced training for, and will pursue Siebel Certification on Siebel ePharma.

	8.
	Demonstration of Siebel Products. Within [  ] days of the Effective Date, Partner will execute the
Siebel Alliance Program Limited Use Program License Agreement (the "LUL") to obtain a demonstration license of Siebel ePharma (the "ePharma Product
Demo").

	9.
	Installation of Siebel Software for Internal Use. Within a commercially reasonable time, Partner will install licensed Siebel Call
Center software at all internal help desk locations, including without limitation, at Partner's facility in Avalon Ridge

	10.
	Implementation Plan and Services. No later than [  ] Partner will develop and submit to Siebel a
plan to provide services, and a roadmap to create a highly skilled and highly valued practice focused on supporting and implementing services for Siebel products for the Life Sciences industry. 

Partner
will make commercially available the Partner implementation process for Siebel Life Science Version 7.x within [  ] of the first date of the general
commercial availability of such products, if and when such products are made generally commercially available. It is understood and agreed that Partner shall use the service name "SynPharma", if at
all, to describe Partner's professional services only, and Partner shall not use "SynPharma" to describe any Partner product offering. Partner shall use its best efforts to avoid confusion of
customers and potential customers through Partner's use of "SynPharma" or any other name or description. Such efforts shall include, without limitation, Partner clearly communicating in Partner's
advertising, marketing efforts, sales presentations or any other public or customer communications that "SynPharma" describes a professional services offering and does not describe a product offering. 

	11.
	Press Release; Announcement of Alliance Partnership. Within [  ] following the Effective Date, the
parties will (i) issue a mutually agreed upon press release (the "Press Release") announcing the alliance partnership; and (ii) announce the alliance
partnership within each party's organization. It is understood that Siebel's internal announcement will include a posting on Siebel's company intranet site, "mySiebel."

	12.
	Staffing; Reviews; Meetings. Partner shall commit the following resources to the objectives of this partnership: (i) a
designated Alliance Manager; (ii) a designated marketing department resource; (iii) product marketing personnel it deems necessary to achieve the mutually agreed upon objectives of the
alliance; (iv) trained sales personnel, technical personnel, and Siebel Certified professionals necessary to engage Targeted Accounts; and (v) engineering personnel and resources
necessary to adequately staff and achieve a commercially viable, pre-configured implementation of Siebel ePharma. [  ] During the term of this Agreement, the
parties will mutually agree to meet as necessary and appropriate to conduct and execute tactical go-to market activities, and will attempt to hold such meetings on a quarterly basis. Any requirement
for either party to assign or appoint one or more dedicated resources will be deemed to mean that such resources may have responsibilities other than solely regarding the other party.

	13.
	Termination of Existing Alliance Agreement. Pursuant to the provisions of Section 3.2 of the Siebel Alliance Program Master Agreement,
by and between IMS Health Strategic Technologies, Inc. ("Original Partner Name") and Siebel Systems, Inc., effective as of July 14, 2000 (the
"Old Agreement"), with the name change from Original Partner Name to Partner, effective September 1, 2000, each of Partner and Siebel hereby agree to terminate the
Old Agreement effective as of January 1, 2002. As a result, each of Partner and Siebel acknowledge and agree that, except for the provisions of Sections 8, 9, 10, 11 and 12, which will survive
the termination of the Old Agreement, none of the remaining provisions of the Old Agreement or any exhibits thereto shall have any legal effect following January 1, 2002 and that each party is
hereby relieved of any and all of its obligations in such remaining provisions under the Old Agreement as of January 1, 2002. Further, each of Partner and Siebel acknowledge and agree that the
terms and conditions of this Agreement will control and supersede those of the Old Agreement.

	14.
	Limited Waiver of Fees. For the initial term of this Agreement only, [  ] as stated in the Siebel
Alliance Program Guide. The Alliance Program benefits that Siebel will provide to Partner during the term of the Agreement are those stated in the Siebel Alliance Program Guide, and specified for
Partner's category and level of partnership.

	15.
	Share of Siebel's Future Sales to [  ] provided such sales occur on or before June 30, 2002,
and provided further that Partner provides Siebel with assistance in such sales as may be reasonably requested by Siebel. In no event shall Partner be entitled to receive any commission, payment or
other form of compensation as a result of any other Siebel sales to Pharmacia. 

QuickLinks

Exhibit 10.20

SIEBEL ALLIANCE PROGRAM MASTER AGREEMENT<Page>
                                                                    EXHIBIT 4.42

                             SUPPLEMENTAL INDENTURE

                                      FROM

                       LOUISVILLE GAS AND ELECTRIC COMPANY

                                       TO

                          HARRIS TRUST AND SAVINGS BANK
                                     TRUSTEE

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

                             DATED SEPTEMBER 1, 2001

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

                         SUPPLEMENTAL TO TRUST INDENTURE

                             DATED NOVEMBER 1, 1949

<Page>

                               TABLE OF CONTENTS

                               -----------------
<Table>
<Caption>
                                                                                                                PAGE

<S>                                                                                                              <C>
Parties............................................................................................................1
Recitals...........................................................................................................1
Form of Bonds of Pollution Control Series AA.......................................................................6
Further Recitals..................................................................................................11

                                   ARTICLE I.
     SPECIFIC SUBJECTION OF PROPERTY TO THE LIEN OF THE ORIGINAL INDENTURE.

Section 1.01-   Grant of certain property, including all personal property to comply with Uniform
                Commercial Code of the State of Kentucky, subject to permissible encumbrances
                and other exceptions contained in Original Indenture..............................................11

                                   ARTICLE II.
               PROVISIONS OF BONDS OF POLLUTION CONTROL SERIES AA.

Section 2.01-   Terms of Bonds of Pollution Control Series AA.....................................................12
Section 2.02-   Payment of principal and interest-Bonds of Pollution Control Series AA............................13
Section 2.03-   Bonds of Pollution Control Series AA deemed fully paid upon payment of corresponding
                Environmental Facilities Revenue Bonds............................................................14
Section 2.04-   Interchangeability of bonds.......................................................................15
Section 2.05-   Charges upon exchange or transfer of bonds........................................................15

                                  ARTICLE III.
                                 MISCELLANEOUS.

Section 3.01-   Recitals of fact, except as stated, are statements of the Company.................................15
Section 3.02-   Supplemental Indenture to be construed as a part of the Original Indenture........................15
Section 3.03-   (a)  Trust Indenture Act to control...............................................................15
                (b)  Severability of provisions contained in Supplemental Indenture and bonds.....................15
Section 3.04-   Word "Indenture" as used herein includes in its meaning the Original Indenture and all indentures
                supplemental thereto..............................................................................16
Section 3.05-   References to either party in Supplemental Indenture include successors or assigns................16
Section 3.06-   (a)  Provision for execution in counterparts......................................................16
                (b) Table of contents and descriptive headings of Articles not to affect meaning..................16

Schedule A        ...............................................................................................A-1
</Table>

                                        i
<Page>

     SUPPLEMENTAL INDENTURE, made as of the 1st day of September, 2001, by and
between LOUISVILLE GAS AND ELECTRIC COMPANY, a corporation duly organized and
existing under and by virtue of the laws of the Commonwealth of Kentucky, having
its principal office in the City of Louisville, County of Jefferson, in said
Commonwealth of Kentucky (the "Company"), the party of the first part, and
HARRIS TRUST AND SAVINGS BANK, a corporation duly organized and existing under
and by virtue of the laws of the State of Illinois, having its principal office
at Two North LaSalle Street, City of Chicago, County of Cook, State of Illinois
60602, as Trustee (the "Trustee"), party of the second part;

                                   WITNESSETH:

     WHEREAS, the Company has heretofore executed and delivered its Trust
Indenture (the "Original Indenture"), made as of November 1, 1949, whereby the
Company granted, bargained, sold, warranted, released, conveyed, assigned,
transferred, mortgaged, pledged, set over and confirmed unto the Trustee under
said Indenture and to its respective successors in trust, all property, real,
personal and mixed then owned or thereafter acquired or to be acquired by the
Company (except as therein excepted from the lien thereof) and subject to the
rights reserved by the Company in and by the provisions of the Original
Indenture, to be held by said Trustee in trust in accordance with the provisions
of the Original Indenture for the equal pro rata benefit and security of all and
each of the bonds issued and to be issued thereunder in accordance with the
provisions thereof, and

     WHEREAS, Section 2.01 of the Original Indenture provides that bonds may be
issued thereunder in one or more series, each series to have such distinctive
designation as the Board of Directors of the Company may select for such series;
and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture, bonds of a series designated "First
Mortgage Bonds, Series due November 1, 1979," bearing interest at the rate of 2
3/4% per annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated February 1, 1952, bonds of a series designated "First Mortgage
Bonds, Series due February 1, 1982," bearing interest at the rate of 3 1/8% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated February 1, 1954, bonds of a series designated "First Mortgage
Bonds, Series due February 1, 1984," bearing interest at the rate of 3 1/8% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 1, 1957, bonds of a series designated "First Mortgage
Bonds, Series due September 1, 1987," bearing interest at the rate of 4 7/8% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated October 1, 1960, bonds

<Page>

of a series designated "First Mortgage Bonds, Series due October 1, 1990,"
bearing interest at the rate of 4 7/8% per annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated June 1, 1966, bonds of a series designated "First Mortgage
Bonds, Series due June 1, 1996," bearing interest at the rate of 5 5/8% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated June 1, 1968, bonds of a series designated "First Mortgage
Bonds, Series due June 1, 1998," bearing interest at the rate of 6 3/4% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated June 1, 1970, bonds of a series designated "First Mortgage
Bonds, Series due July 1, 2000," bearing interest at the rate of 9 1/4% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated August 1, 1971, bonds of a series designated "First Mortgage
Bonds, Series due August 1, 2001," bearing interest at the rate of 8 1/4% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated June 1, 1972, bonds of a series designated "First Mortgage
Bonds, Series due July 1, 2002," bearing interest at the rate of 7 1/2% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated February 1, 1975, bonds of a series designated "First Mortgage
Bonds, Series due March 1, 2005," bearing interest at the rate of 8 7/8% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 1, 1975, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series A," bearing interest as provided therein and
maturing September 1, 2000; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 1, 1976, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series B," bearing interest as provided therein and
maturing September 1, 2006; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated October 1, 1976, bonds

                                        2
<Page>

of a series designated "First Mortgage Bonds, Series due November 1, 2006,"
bearing interest at the rate of 8 1/2% per annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated June 1, 1978, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series C," bearing interest as provided therein and
maturing June 1, 1998/2008; and

     WHEREAS, the Company has heretofore executed and delivered to the Trustee a
Supplemental Indenture dated February 15, 1979, setting forth duly adopted
modifications and alterations to the Original Indenture and all Supplemental
Indentures thereto; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 1, 1979, bonds of a series designated "First Mortgage
Bonds, Series due October 1, 2009," bearing interest at the rate of 10 1/8% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 15, 1979, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series D," bearing interest as provided therein and
maturing October 1, 2004/2009; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 15, 1981, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series E," bearing interest as provided therein and
maturing September 15, 1984; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated March 1, 1982, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series F," bearing interest as provided therein and
maturing March 1, 2012; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated March 15, 1982, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series G," bearing interest as provided therein and
maturing March 1, 2012; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 15, 1982, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series H," bearing interest as provided therein and
maturing September 15, 1992; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated February 15, 1984, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series I," bearing interest

                                        3
<Page>

as provided therein and maturing February 15, 2011; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated July 1, 1985, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series J," bearing interest as provided therein and
maturing July 1, 1995/2015; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated November 15, 1986, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series K," bearing interest as provided therein and
maturing December 1, 2016; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated November 16, 1986, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series L," bearing interest as provided therein and
maturing December 1, 2016; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated August 1, 1987, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series M," bearing interest as provided therein and
maturing August 1, 1997; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated February 1, 1989, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series N," bearing interest as provided therein and
maturing February 1, 2019; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated February 2 1989, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series O," bearing interest as provided therein and
maturing February 1, 2019; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated June 15, 1990, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series P," bearing interest as provided therein and
maturing June 15, 2015; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated November 1, 1990, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series Q" and bonds of a series designated "First
Mortgage Bonds, Pollution Control Series R," each series bearing interest as
provided therein and maturing November 1, 2020; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 1, 1992,

                                        4
<Page>

bonds of a series designated "First Mortgage Bonds, Pollution Control
Series S," bearing interest as provided therein and maturing September 1, 2017;
and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated September 2, 1992, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series T," bearing interest as provided therein and
maturing September 1, 2017; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated August 15, 1993, bonds of a series designated "First Mortgage
Bonds, Series due August 15, 2003," bearing interest at the rate of 6% per
annum; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated August 16, 1993, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series U," bearing interest as provided therein and
maturing August 15, 2013 and bonds of a series designated "First Mortgage Bonds,
Pollution Control Series V," bearing interest as provided therein and maturing
August 15, 2019; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated October 15, 1993, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series W," bearing interest as provided therein and
maturing October 15, 2020, and bonds of a series designated "First Mortgage
Bonds, Pollution Control Series X," bearing interest as provided therein and
maturing April 15, 2023; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated May 1, 2000, bonds of a series designated "First Mortgage Bonds,
Pollution Control Series Y," bearing interest as provided therein and maturing
May 1, 2027; and

     WHEREAS, the Company has heretofore issued in accordance with the
provisions of the Original Indenture as supplemented by the Supplemental
Indenture dated August 1, 2000, bonds of a series designated "First Mortgage
Bonds, Pollution Control Series Z," bearing interest as provided therein and
maturing August 1, 2030; and

     WHEREAS, the County of Jefferson in the Commonwealth of Kentucky (the
"County") has agreed to issue $10,104,000 principal amount of its Environmental
Facilities Revenue Bonds, 2001 Series A (Louisville Gas and Electric Company
Project) (the "Environmental Facilities Revenue Bonds") pursuant to the
provisions of the Indenture of Trust, dated as of July 1, 2001 (the
"Environmental Facilities Indenture"), between and among the County and BNY
Trust Company of Missouri, as Trustee, Paying Agent and Bond Registrar (said
Trustee or any successor trustee under the Environmental Facilities Indenture
being hereinafter referred to as the

                                        5
<Page>

"Environmental Facilities Trustee"); and

     WHEREAS, the proceeds of the Environmental Facilities Revenue Bonds (other
than any accrued interest, if any, thereon) will be loaned by the County to the
Company pursuant to the provisions of a Loan Agreement, dated as of July 1,
2001, between the County and the Company (the "Agreement"), to reimburse the
Company for a portion of the costs of the acquisition, construction,
installation and equipping of certain solid waste disposal facilities at the
Mill Creek Generating Station of the Company, which facilities are hereinafter
sometimes referred to as the "Project," which Project is located in the County
and which Project is more fully described in Exhibit A to the Agreement; and

     WHEREAS, payments by the Company under and pursuant to the Agreement have
been assigned by the County to the Environmental Facilities Trustee in order to
secure the payment of the Environmental Facilities Revenue Bonds; and

     WHEREAS, in order to further secure the payment of the Environmental
Facilities Revenue Bonds, the Company desires to provide for the issuance under
the Original Indenture to the Environmental Facilities Trustee of a new series
of bonds designated "First Mortgage Bonds, Pollution Control Series AA"
(sometimes called "Bonds of Pollution Control Series AA"), in a principal amount
equal to the principal amount of the Environmental Facilities Revenue Bonds, and
with corresponding terms and maturity, the Bonds of Pollution Control Series AA
to be issued as registered bonds without coupons in denominations of a multiple
of $1,000; and the Bonds of Pollution Control Series AA are to be substantially
in the form and tenor following, to-wit:

                 (Form of Bonds of Pollution Control Series AA)

     This Bond has not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in contravention of said Act and is not
transferable except to a successor Trustee under the Indenture of Trust dated as
of July 1, 2001, from the County of Jefferson, Kentucky, to BNY Trust Company of
Missouri, as Trustee, Paying Agent and Bond Registrar.

                       LOUISVILLE GAS AND ELECTRIC COMPANY
          (Incorporated under the laws of the Commonwealth of Kentucky)
                               First Mortgage Bond
                           Pollution Control Series AA

No...................                                         $...............

     Louisville Gas and Electric Company, a corporation organized and existing
under and by virtue of the laws of the Commonwealth of Kentucky (herein called
the "Company"), for value received, hereby promises to pay to BNY Trust Company
of Missouri, St. Louis, Missouri, as Trustee under the Indenture of Trust (the
"Environmental Facilities Indenture") dated as of July 1, 2001, from the County
of Jefferson, Kentucky, to BNY Trust Company of Missouri, or any successor
trustee under the Environmental Facilities Indenture (the "Environmental
Facilities

                                        6
<Page>

Trustee") and at the office of Harris Trust and Savings Bank, Chicago, Illinois
(the "Trustee") the sum of .................. Dollars in lawful money of the
United States of America on the Demand Redemption Date, as HEREinafter defined,
and to pay on the Demand Redemption Date to the Environmental Facilities
Trustee, interest hereon from the Initial Interest Accrual Date, as hereinafter
defined, to the Demand Redemption Date at the same rate or rates per annum then
and thereafter from time to time borne by the Environmental Facilities Revenue
Bonds, in like money, said interest being payable at the office of the Trustee
in Chicago, Illinois, subject to the provisions hereinafter set forth in the
event of a rescission of a Redemption Demand, as hereinafter defined.

     This bond is one of a duly authorized issue of bonds of the Company, known
as its First Mortgage Bonds, unlimited in aggregate principal amount, which
issue of bonds consists, or may consist of several series of varying
denominations, dates and tenors, all issued and to be issued under and equally
secured (except in so far as a sinking fund, or similar fund, established in
accordance with the provisions of the Indenture may afford additional security
for the bonds of any specific series) by a Trust Indenture dated November 1,
1949 (the "Original Indenture"), and Supplemental Indentures thereto dated
February 1, 1952, February 1, 1954, September 1, 1957, October 1, 1960, June 1,
1966, June 1, 1968, June 1,1970, August 1, 1971, June 1, 1972, February 1, 1975,
September 1, 1975, September 1, 1976, October 1, 1976, June 1, 1978, February
15, 1979, September 1, 1979, September 15, 1979, September 15, 1981, March 1,
1982, March 15, 1982, September 15, 1982, February 15, 1984, July 1, 1985,
November 15, 1986, November 16, 1986, August 1, 1987, February 1, 1989, February
2, 1989, June 15, 1990, November 1, 1990, September 1, 1992, September 2, 1992,
August 15, 1993, August 16, 1993, October 15, 1993, May 1, 2000, August 1, 2000
and September 1, 2001 (all of which instruments are herein collectively called
the "Indenture"), executed by the Company to the Trustee, to which Indenture
reference is hereby made for a description of the property mortgaged and
pledged, the nature and extent of the security, the rights of the holders of the
bonds as to such security, and the terms and conditions upon which the bonds may
be issued under the Indenture and are secured. The principal hereof may be
declared or may become due on the conditions, in the manner and at the time set
forth in the Indenture, upon the happening of a completed default as in the
Indenture provided. The Indenture provides that such declaration may in certain
events be waived by the holders of a majority in principal amount of the bonds
outstanding.

     This bond is one of a series of bonds of the Company issued under the
Indenture and designated as First Mortgage Bonds, Pollution Control Series AA.
The bonds of this Series have been issued to the Environmental Facilities
Trustee under the Environmental Facilities Indenture to secure payment of the
Environmental Facilities Revenue Bonds, 2001 Series A (Louisville Gas and
Electric Company Project) (the "Environmental Facilities Revenue Bonds") issued
by the County of Jefferson, Kentucky (the "County") under the Environmental
Facilities Indenture, the proceeds of which have been or are to be loaned to the
Company pursuant to the provisions of the Loan Agreement dated as of July 1,
2001 (the "Agreement") between the Company and the County. The maturity of the
obligation represented by the bonds of this Series is September 1, 2027. The
date of maturity of the obligation represented by the bonds of this Series is
hereinafter referred to as the Final Maturity Date. The bonds of this Series
shall bear interest

                                        7
<Page>

from the Initial Interest Accrual Date, as hereinafter defined, at the same rate
or rates per annum then and thereafter from time to time borne by the
Environmental Facilities Revenue Bonds.

     With the consent of the Company and to the extent permitted by and as
provided in the Indenture, the rights and obligations of the Company and/or of
the holders of the bonds, and/or the terms and provisions of the Indenture
and/or of any instruments supplemental thereto may be modified or altered by
affirmative vote of the holders of at least seventy percent in principal amount
of the bonds then outstanding under the Indenture and any instruments
supplemental thereto (excluding bonds disqualified from voting by reason of the
interest of the Company or of certain related persons therein as provided in the
Indenture), and by the affirmative vote of at least seventy percent in principal
amount of the bonds of any series entitled to vote then outstanding under the
Indenture and any instruments supplemental thereto (excluding bonds disqualified
from voting as aforesaid) and affected by such modification or alteration, in
case one or more but less than all of the series of bonds then outstanding are
so affected; provided that no such modification or alteration shall permit the
extension of the maturity of the principal of this bond or the reduction in the
rate of interest, if any, hereon or any other modification in the terms of
payment of such principal or interest, if any, or the taking of certain other
action as more fully set forth in the Indenture, without the consent of the
holder hereof.

     Except as provided in the next succeeding paragraph, in the event of a
default under Section 9.1 of the Agreement or in the event of a default in the
payment of the principal of, premium, if any, or interest (and such default in
the payment of interest continues for the full grace period, if any, permitted
by the Environmental Facilities Indenture and the Environmental Facilities
Revenue Bonds) on the Environmental Facilities Revenue Bonds, whether at
maturity, by tender for purchase, by acceleration, by sinking fund, redemption
or otherwise, as and when the same becomes due, the bonds of this Series shall
be redeemable in whole upon receipt by the Trustee of a written demand
(hereinafter called a "Redemption Demand") from the Environmental Facilities
Trustee stating that there has been such a default, stating that it is acting
pursuant to the authorization granted by Section 9.02(c) of the Environmental
Facilities Indenture, specifying the last date to which interest on the
Environmental Facilities Revenue Bonds has been paid (such date being
hereinafter referred to as the "Initial Interest Accrual Date") and demanding
redemption of the bonds of this Series. The Trustee shall, within 10 days after
receiving such Redemption Demand, mail a copy thereof to the Company marked to
indicate the date of its receipt by the Trustee. Promptly upon receipt by the
Company of such copy of a Redemption Demand, the Company shall fix a date on
which it will redeem the bonds of this Series so demanded to be redeemed
(hereinafter called the "Demand Redemption Date"). Notice of the date fixed as
and for the Demand Redemption Date shall be mailed by the Company to the Trustee
at least 30 days prior to such Demand Redemption Date. The date to be fixed by
the Company as and for the Demand Redemption Date may be any date up to and
including the earlier of (i) the 120th day after receipt by the Trustee of the
Redemption Demand or (ii) the Final Maturity Date, provided that if the Trustee
shall not have received such notice fixing the Demand Redemption Date within 90
days after receipt by it of the Redemption Demand, the Demand Redemption Date
shall be deemed to be the earlier of (i) the 120th day after receipt by the
Trustee of the Redemption Demand or (ii) the Final Maturity Date. The

                                        8
<Page>

Trustee shall mail notice of the Demand Redemption Date (such notice being
hereinafter called the "Demand Redemption Notice") to the Environmental
Facilities Trustee not more than 10 nor less than five days prior to the Demand
Redemption Date. Notwithstanding the foregoing, if a default to which this
paragraph is applicable is existing on the Final Maturity Date, such date shall
be deemed to be the Demand Redemption Date without further action (including
actions specified in this paragraph) by the Environmental Facilities Trustee,
the Trustee or the Company. The bonds of this Series shall be redeemed by the
Company on the Demand Redemption Date, upon surrender thereof by the
Environmental Facilities Trustee to the Trustee, at a redemption price equal to
the principal amount thereof, plus accrued interest thereon at the rate per
annum set forth in the third paragraph of this Bond, from the Initial Interest
Accrual Date to the Demand Redemption Date. If a Redemption Demand is rescinded
by the Environmental Facilities Trustee by written notice to the Trustee prior
to the Demand Redemption Date, no Demand Redemption Notice shall be given, or,
if already given, shall be automatically annulled, and interest on the bonds of
this Series shall cease to accrue, all interest accrued thereon shall be
automatically rescinded and cancelled and the Company shall not be obligated to
make any payments of principal of or interest on the bonds of this Series; but
no such rescission shall extend to or affect any subsequent default or impair
any right consequent thereon.

     In the event that all of the bonds outstanding under the Indenture shall
have become immediately due and payable, whether by declaration or otherwise,
and such acceleration shall not have been annulled, the bonds of this Series
shall bear interest at the rate per annum set forth in the third paragraph of
this bond, from the Initial Interest Accrual Date, as specified in a written
notice to the Trustee from the Environmental Facilities Trustee, and the
principal of and interest on the bonds of this Series from the Initial Interest
Accrual Date shall be payable in accordance with the provisions of the
Indenture.

     Upon payment of the principal of and premium, if any, and interest on the
Environmental Facilities Revenue Bonds, whether at maturity or prior to maturity
by redemption or otherwise, and the surrender thereof to and cancellation
thereof by the Environmental Facilities Trustee (other than any Environmental
Facilities Revenue Bond that was cancelled by the Environmental Facilities
Trustee and for which one or more other Environmental Facilities Revenue Bonds
were delivered and authenticated pursuant to the Environmental Facilities
Indenture in lieu of or in exchange or substitution for such cancelled
Environmental Facilities Revenue Bond), or upon provision for the payment
thereof having been made in accordance with the Environmental Facilities
Indenture, bonds of this Series in a principal amount equal to the principal
amount of the Environmental Facilities Revenue Bonds so surrendered and
cancelled or for the provision for which payment has been made shall be deemed
fully paid and the obligations of the Company thereunder shall be terminated,
and such bonds of this Series shall be surrendered by the Environmental
Facilities Trustee to the Trustee and shall be cancelled by the Trustee. From
and after the Release Date (as defined below), the bonds of this Series shall be
deemed fully paid, satisfied and discharged and the obligations of the Company
hereunder and thereunder shall be terminated. The Release Date shall be the date
that the Bond Insurer (as such term is defined in the Environmental Facilities
Indenture), at the request of the Company, consents to the release of the bonds
of this Series as security for the Environmental Facilities Revenue Bonds,
provided

                                        9
<Page>

that in no event shall that date be later than the date as of which all bonds
issued under the Indenture prior to the date of initial issuance of this bond
(and excluding bonds of this Series and First Mortgage Bonds, Pollution Control
Series Y and Z) have been retired through payment, redemption or otherwise
(including those bonds "deemed to be redeemed" within the meaning of that term
as used in Article X of the Original Indenture) at, before or after the maturity
thereof. On the Release Date, the bonds of this Series shall be surrendered by
the Environmental Facilities Trustee to the Trustee whereupon the bonds of said
Series so surrendered shall be cancelled by the Trustee.

     No recourse shall be had for the payment of principal of, or interest, if
any, on this bond, or any part thereof, or of any claim based hereon or in
respect hereof or of the Indenture, against any incorporator, or any past,
present or future stockholder, officer or director of the Company or of any
predecessor or successor corporation, either directly or through the Company, or
through any such predecessor or successor corporation, or through any receiver
or trustee in bankruptcy, whether by virtue of any constitution, statute or rule
of law or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released, as more fully provided in the
Indenture.

     This bond shall not be valid or become obligatory for any purpose unless
and until the certificate of authentication hereon shall have been signed by or
on behalf of Harris Trust and Savings Bank, as Trustee under the Indenture, or
its successor thereunder.

     IN WITNESS WHEREOF, LOUISVILLE GAS AND ELECTRIC COMPANY has caused this
instrument to be signed in its name by its President or a Vice President or with
the facsimile signature of its President, and its corporate seal, or a facsimile
thereof, to be hereto affixed and attested by its Secretary or Assistant
Secretary or with the facsimile signature of its Secretary.

     Dated                            LOUISVILLE GAS AND ELECTRIC COMPANY

Attest:                               By
                                         --------------------------------
                                                Vice President

-------------------------
        Secretary

                                       10
<Page>

and

     WHEREAS, the Company is desirous of specifically assigning, conveying,
mortgaging, pledging, transferring and setting over additional property unto the
Trustee and to its respective successors in trust; and

     WHEREAS, Sections 4.01 and 21.03 of the Original Indenture provide in
substance that the Company and the Trustee may enter into indentures
supplemental thereto for the purposes, among others, of creating and setting
forth the particulars of any new series of bonds and of providing the terms and
conditions of the issue of the bonds of any series not expressly provided for in
the Original Indenture and of assigning, conveying, mortgaging, pledging and
transferring unto the Trustee additional property of the Company, and for any
other purpose not inconsistent with the terms of the Original Indenture; and

     WHEREAS, the execution and delivery of this Supplemental Indenture have
been duly authorized by a resolution adopted by the Board of Directors of the
Company;

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     Louisville Gas and Electric Company, in consideration of the premises and
of one dollar to it duly paid by the Trustee at or before the ensealing and
delivery of these presents, the receipt whereof is hereby acknowledged, and
other good and valuable considerations, does hereby covenant and agree to and
with Harris Trust and Savings Bank, as Trustee, and its successors in the trust
under the Indenture for the benefit of those who hold or shall hold the bonds
issued or to be issued thereunder, as follows:

                                   ARTICLE I.

      SPECIFIC SUBJECTION OF PROPERTY TO THE LIEN OF THE ORIGINAL INDENTURE

     Section 1.01. The Company in order better to secure the payment, both of
principal and interest, of all bonds of the Company at any time outstanding
under the Indenture, according to their tenor and effect, and the performance of
and compliance with the covenants and conditions in the Indenture contained, has
granted, bargained, sold, warranted, released, conveyed, assigned, transferred,
mortgaged, pledged, set over and confirmed and by these presents does grant,
bargain, sell, warrant, release, convey, assign, transfer, mortgage, pledge, set
over and confirm unto Harris Trust and Savings Bank, as Trustee and to its
respective successors in said trust forever, subject to the rights reserved by
the Company in and by the provisions of the Indenture, all the property
described and mentioned or enumerated in a schedule hereto annexed and marked
Schedule A, reference to said schedule being hereby made with the same force and
effect as if the same were incorporated herein at length; together with all and
singular the tenements, hereditaments and appurtenances belonging or in any wise
appertaining to the aforesaid property or any part thereof with the reversion
and reversions, remainder and remainders, tolls, rents and revenues, issues,
income, product and profits thereof;

                                       11
<Page>

     Also, in order to subject all of the personal property and chattels of the
Company to the lien of the Indenture in conformity with the provisions of the
Uniform Commercial Code of the Commonwealth of Kentucky, all steam, hydro and
other electric generating plants, including buildings and other structures,
turbines, generators, boilers, condensing equipment, and all other equipment;
substations; electric transmission and distribution systems, including
structures, poles, towers, fixtures, conduits, insulators, wires, cables,
transformers, services and meters; steam and heating mains and equipment; gas
generating and coke plants, including buildings, holders and other structures,
boilers and other boiler plant equipment, benches, retorts, coke ovens, water
gas sets, condensing and purification equipment, piping and other accessory
works equipment; facilities for gas storage whether above or below surface; gas
transmission and distribution systems, including structures, mains, compressor
stations, purifier stations, pressure holders, governors, services and meters;
office, shop, garage and other general buildings and structures, furniture and
fixtures; and all municipal and other franchises and all leaseholds, licenses,
permits, easements, and privileges; all as now owned or hereafter acquired by
the Company pursuant to the provisions of the Original Indenture; and

     All the estate, right, title and interest and claim whatsoever, at law as
well as in equity, which the Company now has or may hereafter acquire in and to
the aforesaid property and franchises and every part and parcel thereof;

     Excluding, however, (1) all shares of stock, bonds, notes, evidences of
indebtedness and other securities other than such as may be or are required to
be deposited from time to time with the Trustee in accordance with the
provisions of the Indenture; (2) cash on hand and in banks other than such as
may be or is required to be deposited from time to time with the Trustee in
accordance with the provisions of the Indenture; (3) contracts, claims, bills
and accounts receivable and chooses in action other than such as may be or are
required to be from time to time assigned to the Trustee in accordance with the
provisions of the Indenture; (4) motor vehicles; (5) any stock of goods, wares
and merchandise, equipment, materials and supplies acquired for the purpose of
sale or lease in the usual course of business or for the purpose of consumption
in the operation, construction or repair of any of the properties of the
Company; and (6) the properties described in Schedule B annexed to the Original
Indenture.

     To have and to hold all said property, real, personal and mixed, mortgaged,
pledged or conveyed by the Company as aforesaid, or intended so to be, unto the
Trustee and its successors and assigns forever, subject, however, to permissible
encumbrances as defined in Section 1.09 of the Original Indenture and to the
further reservations, covenants, conditions, uses and trusts set forth in the
Indenture, in trust nevertheless for the same purposes and upon the same
conditions as are set forth in the Indenture.

                                   ARTICLE II.

               PROVISIONS OF BONDS OF POLLUTION CONTROL SERIES AA

     Section 2.01. There is hereby created, for issuance under the Original
Indenture, a series of bonds designated Pollution Control Series AA, each of
which shall bear the descriptive title

                                       12
<Page>

"First Mortgage Bonds, Pollution Control Series AA" and the form thereof shall
contain suitable provisions with respect to the matters specified in this
section. The Bonds of Pollution Control Series AA shall be printed, lithographed
or typewritten and shall be substantially of the tenor and purport previously
recited. The Bonds of Pollution Control Series AA shall be issued as registered
bonds without coupons in denominations of a multiple of $1,000 and shall be
registered in the name of the Environmental Facilities Trustee. The Bonds of
Pollution Control Series AA shall be dated as of the date of their
authentication.

     The Bonds of Pollution Control Series AA shall be payable, both as to
principal and interest, at the office of the Trustee in Chicago, Illinois, in
lawful money of the United States of America. The maturity of the obligation
represented by the Bonds of Pollution Control Series AA is September 1, 2027.
The date of maturity of the obligation represented by the Bonds of Pollution
Control Series AA is hereinafter referred to as the Final Maturity Date. The
Bonds of Pollution Control Series AA shall bear interest from the Initial
Interest Accrual Date, as hereinafter defined, at the same rate or rates then
and thereafter from time to time borne by the Environmental Facilities Revenue
Bonds.

     Section 2.02. Except as provided in the next succeeding paragraph of this
Section 2.02, in the event of a default under Section 9.1 of the Agreement or in
the event of a default in the payment of the principal of, premium, if any, or
interest (and such default in the payment of interest continues for the full
grace period, if any, permitted by the Environmental Facilities Indenture and
the Environmental Facilities Revenue Bonds) on the Environmental Facilities
Revenue Bonds, whether at maturity, by tender for purchase, by acceleration, by
sinking fund, redemption or otherwise, as and when the same becomes due, the
Bonds of Pollution Control Series AA shall be redeemable in whole upon receipt
by the Trustee of a written demand (hereinafter called a "Redemption Demand")
from the Environmental Facilities Trustee stating that there has been such a
default, stating that it is acting pursuant to the authorization granted by
Section 9.02(c) of the Environmental Facilities Indenture, specifying the last
date to which interest on the Environmental Facilities Revenue Bonds has been
paid (such date being hereinafter referred to as the "Initial Interest Accrual
Date") and demanding redemption of the Bonds of Pollution Control Series AA. The
Trustee shall, within 10 days after receiving such Redemption Demand, mail a
copy thereof to the Company marked to indicate the date of its receipt by the
Trustee. Promptly upon receipt by the Company of such copy of a Redemption
Demand, the Company shall fix a date on which it will redeem the Bonds of
Pollution Control Series AA so demanded to be redeemed (hereinafter called the
"Demand Redemption Date"). Notice of the date fixed as the Demand Redemption
Date shall be mailed by the Company to the Trustee at least 30 days prior to
such Demand Redemption Date. The date to be fixed by the Company as and for the
Demand Redemption Date may be any date up to and including the earlier of (i)
the 120th day after receipt by the Trustee of the Redemption Demand or (ii) the
Final Maturity Date, provided that if the Trustee shall not have received such
notice fixing the Demand Redemption Date within 90 days after receipt by it of
the Redemption Demand, the Demand Redemption Date shall be deemed to be the
earlier of (i) the 120th day after receipt by the Trustee of the Redemption
Demand or (ii) the Final Maturity Date. The Trustee shall mail notice of the
Demand Redemption Date (such notice being hereinafter called the "Demand

                                       13
<Page>

Redemption Notice") to the Environmental Facilities Trustee not more than 10
nor less than five days prior to the Demand Redemption Date. Notwithstanding the
foregoing, if a default to which this paragraph is applicable is existing on the
Final Maturity Date, such date shall be deemed to be the Demand Redemption Date
without further action (including actions specified in this paragraph) by the
Environmental Facilities Trustee, the Trustee or the Company. The Bonds of
Pollution Control Series AA shall be redeemed by the Company on the Demand
Redemption Date, upon surrender thereof by the Environmental Facilities Trustee
to the Trustee, at a redemption price equal to the principal amount thereof,
plus accrued interest thereon at the rate per annum set forth in Section 2.01
hereof, from the Initial Interest Accrual Date to the Demand Redemption Date. If
a Redemption Demand is rescinded by the Environmental Facilities Trustee by
written notice to the Trustee prior to the Demand Redemption Date, no Demand
Redemption Notice shall be given, or, if already given, shall be automatically
annulled, and interest on the Bonds of Pollution Control Series AA shall cease
to accrue, all interest accrued thereon shall be automatically rescinded and
cancelled and the Company shall not be obligated to make any payments of
principal of or interest on the Bonds of Pollution Control Series AA; but no
such rescission shall extend to or affect any subsequent default or impair any
right consequent thereon.

     In the event that all of the bonds outstanding under the Indenture shall
have become immediately due and payable, whether by declaration or otherwise,
and such acceleration shall not have been annulled, the Bonds of Pollution
Control Series AA shall bear interest at the rate per annum set forth in Section
2.01 hereof, from the Interest Accrual Date, as specified in a written notice to
the Trustee from the Environmental Facilities Trustee, and the principal of and
interest on the Bonds of Pollution Control Series AA from the Initial Interest
Accrual Date shall be payable in accordance with the provisions of the
Indenture.

     Anything herein contained to the contrary notwithstanding, the Trustee is
not authorized to take any action pursuant to a Redemption Demand or a
rescission thereof or a written notice required by this Section 2.02, and such
Redemption Demand, rescission or notice shall be of no force or effect, unless
it is executed in the name of the Environmental Facilities Trustee by one of its
Vice Presidents.

     Section 2.03. Upon payment of the principal of and premium, if any, and
interest on the Environmental Facilities Revenue Bonds, whether at maturity or
prior to maturity by redemption or otherwise, and the surrender thereof to and
cancellation thereof by the Environmental Facilities Trustee (other than any
Environmental Facilities Revenue Bond that was cancelled by the Environmental
Facilities Trustee and for which one or more other Environmental Facilities
Revenue Bonds were delivered and authenticated pursuant to the Environmental
Facilities Indenture in lieu of or in exchange or substitution for such
cancelled Environmental Facilities Revenue Bond), or upon provision for the
payment thereof having been made in accordance with the Environmental Facilities
Indenture, Bonds of Pollution Control Series AA in a principal amount equal to
the principal amount of the Environmental Facilities Revenue Bonds so
surrendered and cancelled or for the provision for which payment has been made
shall be deemed fully paid and the obligations of the Company thereunder shall
be terminated, and such

                                       14
<Page>

Bonds of Pollution Control Series AA shall be surrendered by the Environmental
Facilities Trustee to the Trustee and shall be cancelled and destroyed by the
Trustee, and a certificate of such cancellation and destruction shall be
delivered to the Company. From and after the Release Date (as defined below),
the bonds of this Series shall be deemed fully paid, satisfied and discharged
and the obligations of the Company hereunder and thereunder shall be terminated.
The Release Date shall be the date that the Bond Insurer (as such term is
defined in the Environmental Facilities Indenture), at the request of the
Company, consents to the release of the bonds of this Series as security for the
Environmental Facilities Revenue Bonds, provided that in no event shall that
date be later than the date as of which all bonds issued under the Indenture
prior to the date of initial issuance of this bond (and excluding bonds of this
Series and First Mortgage Bonds, Pollution Control Series Y and Z) have been
retired through payment, redemption or otherwise (including those bonds "deemed
to be redeemed" within the meaning of that term as used in Article X of the
Original Indenture) at, before or after the maturity thereof. On the Release
Date, the bonds of this Series shall be surrendered by the Environmental
Facilities Trustee to the Trustee whereupon the Bonds of said Series so
surrendered shall be cancelled by the Trustee.

     Section 2.04. Prior to the Release Date, the Environmental Facilities
Trustee as the registered holder of the Bonds of Pollution Control Series AA at
its option may surrender the same at the office of the Trustee, in Chicago,
Illinois, or elsewhere, if authorized by the Company, for cancellation, in
exchange for other bonds of the same series of the same aggregate principal
amount. Thereupon, and upon receipt of any payment required under the provisions
of Section 2.05 hereof, the Company shall execute and deliver to the Trustee and
the Trustee shall authenticate and deliver such other registered bonds to such
registered holder at its office or at any other place specified as aforesaid.

     Section 2.05. No charge shall be made by the Company for any exchange or
transfer of Bonds of Pollution Control Series AA other than for taxes or other
governmental charges, if any, that may be imposed in relation thereto.

                                  ARTICLE III.

                                  MISCELLANEOUS

     Section 3.01. The recitals of fact herein and in the bonds (except the
Trustee's Certificate) shall be taken as statements of the Company and shall not
be construed as made or warranted by the Trustee. The Trustee makes no
representations as to the value of any of the property subject to the lien of
the Indenture, or any part thereof, or as to the title of the Company thereto,
or as to the security afforded thereby and hereby, or as to the validity of this
Supplemental Indenture and the Trustee shall incur no responsibility in respect
of such matters.

     Section 3.02. This Supplemental Indenture shall be construed in connection
with and as a part of the Original Indenture.

     Section 3.03. (a) If any provision of this Supplemental Indenture limits,
qualifies or

                                       15
<Page>

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

     (b) In case any one or more of the provisions contained in this
Supplemental Indenture or in the bonds issued hereunder shall 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 3.04. Wherever in this Supplemental Indenture the word "Indenture"
is used without either prefix, "Original" or "Supplemental," such word was used
intentionally to include in its meaning both the Original Indenture and all
indentures supplemental thereto.

     Section 3.05. Wherever 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 3.06. (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.

                                       16
<Page>

     IN WITNESS WHEREOF, the party of the first part has caused its corporate
name and seal to be hereunto affixed and this Supplemental Indenture to be
signed by its Treasurer and attested by its Executive Vice President, General
Counsel and Corporate Secretary for and in its behalf, and the party of the
second part to evidence its acceptance of the trust hereby created, has caused
its corporate name and seal to be hereunto affixed, and this Supplemental
Indenture to be signed by one of its Vice Presidents, and attested by its
Secretary or an Assistant Secretary, for and in its behalf, all done as of the
1st day of September, 2001.

                                        LOUISVILLE GAS AND ELECTRIC COMPANY

                                        By:
                                           -------------------------
                                                 Daniel K. Arbough
                                                     TREASURER

(CORPORATE SEAL)

ATTEST:
       --------------------
           John R. McCall
      EXECUTIVE VICE PRESIDENT,
        GENERAL COUNSEL AND
        CORPORATE SECRETARY

                                        HARRIS TRUST AND SAVINGS BANK

                                        By:
                                           --------------------------
                                                  J. Bartolini
                                                 VICE PRESIDENT

(CORPORATE SEAL)

ATTEST:
       --------------------
            C. Potter
       ASSISTANT SECRETARY

                                       17
<Page>

COMMONWEALTH OF            )
KENTUCKY                   )       SS:
                           )
COUNTY OF JEFFERSON        )

     BE IT REMEMBERED that on this _____ day of September, 2001, before me, a
Notary Public duly commissioned in and for the County and Commonwealth
aforesaid, personally appeared DANIEL K. ARBOUGH and JOHN R. MCCALL,
respectively, Treasurer and Executive Vice President, General Counsel and
Corporate Secretary of Louisville Gas and Electric Company, a corporation
organized and existing under and by virtue of the laws of the Commonwealth of
Kentucky, who are personally known to me to be such officers, respectively, and
who are personally known to me to be the same persons who executed as officers
the foregoing instrument of writing, and such persons duly acknowledged before
me the execution of the foregoing instrument of writing to be their act and deed
and the act and deed of said corporation.

     WITNESS my hand and notarial seal this _____ day of September, 2001.

                                                  NOTARY PUBLIC
                                        KENTUCKY, COMMONWEALTH AT LARGE

                                                                (Notarial Seal)

                                   My Commission Expires:
                                                         --------------------

                                       18
<Page>

STATE OF ILLINOIS          )        SS:
                           )
COUNTY OF COOK             )

     BE IT REMEMBERED that on this ______ day of September, 2001, before me, a
Notary Public duly commissioned in and for the County and State aforesaid,
personally appeared J. BARTOLINI and C. POTTER respectively, Vice President and
Assistant Secretary of Harris Trust and Savings Bank, a corporation organized
and existing under and by virtue of the laws of the State of Illinois, who are
personally known to me to be such officers, respectively, and who are personally
known to me to be the same persons who executed as officers the foregoing
instrument of writing, and such persons duly acknowledged before me the
execution of the foregoing instrument of writing to be their act and deed and
the act and deed of said corporation.

     WITNESS my hand and notarial seal this ______ day of September, 2001.

                                        NOTARY PUBLIC IN AND FOR THE COUNTY OF
                                              COOK AND STATE OF ILLINOIS

                                                                (Notarial Seal)

                                   My Commission Expires:
                                                         --------------------
This Instrument Prepared by:

James Dimas
LG&E Energy Corp.
220 W. Main Street
Louisville, Kentucky  40202

By
  -------------------------------
       James Dimas
       (502) 627-3712

                                       19
<Page>

                                   SCHEDULE A

     The following property situated, lying and being in the County of
Jefferson, State of Kentucky, to wit:

ELECTRIC TRANSMISSION LINES

     A 138KV steel pole transmission line #3823 in Jefferson County, Kentucky.
This line is built from International Substation to existing Cane Run Switching
for a distance of 1.3 miles.

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