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EXHIBIT 4.02    
    

 

 
 

FORM OF  
    
  
    SUPPLEMENTAL INDENTURE NO.  
    
  
    FROM  
    
  
    OGE ENERGY CORP.  
    
    TO  
    
    UMB BANK, N.A.  
    
    TRUSTEE  

DATED
AS OF                        

SUPPLEMENTAL
TO INDENTURE

DATED AS OF                        , 

 

 
 

TABLE OF CONTENTS    
    

	Parties	 	1
	

Recitals	
 	

1
	

ARTICLE ONE.	
 	

RELATION TO INDENTURE; DEFINITIONS	
 	

1
	 	
 Section 1.01.	
 	

Integral Part of Indenture	
 	

1
	 	
 Section 1.02.	
 	

Definitions; References to Articles and Sections; Terms referring to this Supplemental Indenture	
 	

1
	

ARTICLE TWO.	
 	

SECURITIES	
 	

1
	 	
 Section 2.01.	
 	

Designation and Principal Amount	
 	

1
	 	
 Section 2.02.	
 	

Stated Maturity Date	
 	

2
	 	
 Section 2.03.	
 	

Interest Payment Dates	
 	

2
	 	
 Section 2.04.	
 	

Office for Payment	
 	

2
	 	
 Section 2.05.	
 	

Redemption Provisions	
 	

2
	 	
 Section 2.06.	
 	

[Repayment of Securities	
 	

3
	 	
 Section 2.07.	
 	

Authorized Denominations	
 	

3
	 	
 Section 2.08.	
 	

Form of Security	
 	

3
	

ARTICLE THREE.	
 	

MISCELLANEOUS	
 	

4
	 	
 Section 3.01.	
 	

Recitals of fact, except as stated, are statements of the Company	
 	

4
	 	
 Section 3.02.	
 	

Supplemental Indenture to be construed as a part of the Indenture	
 	

4
	 	
 Section 3.03.	
 	

Trust Indenture Act to control; Severability of provisions contained in Supplemental Indenture and Securities	
 	

4
	 	
 Section 3.04.	
 	

References to either party in Supplemental Indenture include successors or assigns	
 	

4
	 	
 Section 3.05.	
 	

Provision for execution in counterparts; Table of Contents and descriptive headings of Articles not to affect meaning	
 	

4
	

Exhibit A—Form of Security

	
 	

 

        SUPPLEMENTAL INDENTURE No.            , made as of the            day
of                        , by and between OGE ENERGY CORP., a corporation duly organized and existing under the
laws of the State of Oklahoma (the "Company"), and UMB BANK, N.A., a national banking association, as trustee (the "Trustee"): 

WITNESSETH: 

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

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

        WHEREAS,
the Company has this day delivered a Company Order setting forth the terms of a series of debt securities designated
"                        " (hereinafter sometimes referred to as the
"Securities"); and 

        WHEREAS,
Section 12.01 of the Indenture provides that the Company and the Trustee may enter into indentures supplemental thereto for the purposes, among others, of establishing
the form of debt securities or establishing or reflecting any terms of any debt security and adding to the covenants of the Company; and 

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

        NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

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

ARTICLE ONE.

RELATION TO INDENTURE; DEFINITIONS  

        SECTION 1.01.    Integral Part of Indenture.    This Supplemental Indenture constitutes an integral part of the
Indenture. 

        SECTION
1.02.    Definitions; References to Articles and Sections; Terms referring to this Supplemental
Indenture.    For all purposes of this Supplemental Indenture: 

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

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

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

ARTICLE TWO.

SECURITIES  

        SECTION
2.01.    Designation and Principal Amount.    There shall be a series of debt securities designated the
"                        " (the "Securities"). The Securities shall be limited to
$                        aggregate principal amount.
 

 

        SECTION
2.02.    Stated Maturity Date.    Except as otherwise provided in Section 2.05 hereof, the principal
amount of the Securities shall be payable on the stated maturity date of                        . 

        SECTION
2.03.    Interest Payment Dates.    The Securities shall be dated their date of authentication as provided in
the Indenture and shall bear interest from their date at the rate of            % per annum payable semi-annually on
and                        of each year, commencing
                        . The Regular Record Dates with respect to
such                        and                
        interest payment dates shall
be                        and                 
       , respectively. Principal and
interest shall be payable to the persons and in the manner provided in Sections 2.04 and 2.12 of the Indenture. 

        SECTION
2.04.    Office for Payment.    The Securities shall be payable at the corporate trust office of the Trustee
and at the offices of such paying agents as the Company may appoint by Company Order in the future. 

        SECTION
2.05.    Redemption Provisions.    [The Securities are not redeemable prior to their
maturity.] 

        or
[The Company, at its option, may redeem on any date all or, from time to time, any part of the Securities, upon notice as provided in the Indenture, at a redemption price
equal to the greater of (i) 100% of the principal amount of such Securities to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and
interest thereon from and after the date of redemption discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus    basis points, plus in each case accrued and unpaid interest thereon to the date of redemption. 

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

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

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

        "Reference
Treasury Dealer" means each
of                        and                 
       , and their respective successors; provided, however, that if any of the foregoing shall cease to be a
primary U.S. Government 

2

 

securities
dealer in New York City (a "Primary Treasury Dealer"), the Company shall substitute therefor another Primary Treasury Dealer.] 

        or

        [On
or after                        , this Global Security is redeemable in whole or in part in increments of $1,000 (provided that
any remaining principal amount of this Global
Security shall be at least $                        ) at the option of the Company at the following redemption prices (expressed
as a percentage of the principal amount to be redeemed) plus accrued interest to
the redemption date:   

	Redemption Periods	 	Redemption Prices]

        The
Securities shall not be subject to any sinking fund. 

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

        SECTION
2.07.    Authorized Denominations.    The Securities shall be issued in fully registered form without coupons
in denominations of $1,000 and integral multiples thereof. 

        SECTION
2.08.    Form of            .    The Securities shall initially be in the form attached as
Exhibit A hereto. 

3

 

ARTICLE THREE.

MISCELLANEOUS  

        SECTION 3.01.    Recitals of fact, except as stated, are statements of the Company.    The recitals of fact
herein and in the Securities (except the Trustee's Certificate) shall be taken as statements of the Company and shall not be construed as made by the Trustee. 

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

        SECTION
3.03.    Trust Indenture Act to control; Severability of provisions contained in Supplemental Indenture and
Securities.    

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

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

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

        SECTION
3.05.    Provision for execution in counterparts; Table of Contents and descriptive headings of Articles not to affect
meaning.    

        (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. 

4

 

        IN
WITNESS WHEREOF, OGE ENERGY CORP. has caused this Supplemental Indenture to be signed by its President or a Vice President, and attested by its Secretary or an Assistant Secretary,
and UMB BANK, N.A. has caused this Supplemental Indenture to be signed by its President, Vice President or Assistant Vice President, and attested by a Vice President, this            day of
                        . 

	

 	

 	
 	
OGE ENERGY CORP.
	

 	

 	
 	
By:	

 Steven E. Moore

President and Chief Executive Officer
	ATTEST:	 	 	 
	

By:	

 Carla D. Brockman

Secretary	
 	

 	

 
	

 	

 	
 	

UMB BANK, N.A., as Trustee
	

 	

 	
 	

By:	

 Assistant Vice President
	

ATTEST:	
 	

 	

 
	

By:	

 Vice President	
 	

 	

 

5

  

 
 

EXHIBIT A    
    

FORM OF SECURITY  

	REGISTERED	 	REGISTERED

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

OGE ENERGY CORP.

SECURITY  

	CUSIP:	 	 	 	NUMBER: R-
	

ORIGINAL ISSUE DATE(S):	
 	

 	
 	

PRINCIPAL AMOUNT(S):
	

INTEREST RATE:	
 	

 	
 	

MATURITY DATE:

        OGE
ENERGY CORP., a corporation of the State of Oklahoma (the "Company"), for value received hereby promises to pay
to                        or registered assigns, the principal sum of 

on
the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date (or if this Global Security has two or more Original Issue Dates, interest shall, beginning on each such
Original Issue Date, begin to accrue for that part of the principal amount to which that Original Issue Date is applicable) set forth above or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semiannually in arrears
on                        and                 
       in each year, commencing on the first such Interest Payment Date succeeding the applicable
Original Issue Date set forth above, at the per annum Interest Rate set forth above, until the principal hereof is paid or made available for payment. No interest shall accrue on the Maturity Date, so
long as the principal amount of this Global Security is paid on the Maturity Date. The interest so payable and punctually paid or duly provided for on any such Interest Payment Date will, as provided
in the Indenture, be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date for such interest, which shall be
the                        or the
                        , as the case may be, next preceding such Interest Payment Date; provided that the first Interest Payment
Date for any part of 

6

 

this
Security, the Original Issue Date of which is after a Regular Record Date but prior to the applicable Interest Payment Date, shall be the Interest Payment Date following the next succeeding
Regular Record Date; and provided that interest payable on the Maturity Date set forth above or, if applicable, upon redemption, repayment or acceleration, shall be payable to the Person to whom
principal shall be payable. Except as otherwise provided in the Indenture (as defined below), any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and shall be paid to the Person in whose name this Security is registered at the close of business on a Special Record Date for the payment of such defaulted
interest to be fixed by the Trustee, notice whereof shall be given to Security holders not more than fifteen days or fewer than ten days prior to such Special Record Date. On or before
10:00 a.m., New York City time, or such other time as shall be agreed upon between the Trustee and the Depositary, of the day on which such payment of interest is due on this Global Security
(other than maturity), the Trustee shall pay to the Depositary such interest in same day funds. On or before 10:00 a.m., New York City time, or such other time as shall be agreed upon between
the Trustee and the Depositary, of the day on which principal, interest payable at maturity and premium, if any, is due on this Global Security, the Trustee shall deposit with the Depositary the
amount equal to the principal, interest payable at maturity and premium, if any, by wire transfer into the account specified by the Depositary. As a condition to the payment, on the Maturity Date or
upon redemption, repayment or acceleration, of any part of the principal and applicable premium of this Global Security, the Depositary shall surrender, or cause to be surrendered, this Global
Security to the Trustee, whereupon a new Global Security shall be issued to the Depositary. 

        This
Global Security is a global security in respect of a duly authorized issue of                        (the "Securities of this
Series", which term includes any Global Securities
representing such Securities) of the Company issued and to be issued under an Indenture dated as of                        between
the Company and UMB Bank, N.A. as trustee (the "Trustee", which term
includes any successor Trustee under the Indenture) (the "Indenture"). Under the Indenture, one or more series of debt securities may be issued and, as used herein, the term "Securities" refers to the
Securities of this Series and any other outstanding series of Securities. Reference is hereby made to the Indenture for a more complete statement of the respective rights, limitations of rights,
duties and immunities under the Indenture of the Company, the Trustee and the Security holders and of the terms upon which the Securities are and are to be authenticated and delivered. This Global
Security has been issued in respect of the series designated on the first page hereof, limited in aggregate principal amount to
$                        . 

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

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

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

7

 

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

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

        "Reference
Treasury Dealer" means each of                        and their respective successors; provided, however, that if any of the
foregoing shall cease to be a primary U.S. Government
securities dealer in New York City (a "Primary Treasury Dealer"), the Company shall substitute therefor another Primary Treasury Dealer.] or [On or
after                        , this
Global Security is redeemable in whole or in part in increments of $1,000 (provided that that any remaining principal amount of this Global Security shall be at least
$                        ) at the option
of the Company at the following redemption prices (expressed as a percentage of the principal amount to be redeemed) plus accrued interest to the redemption date: 

	Redemption Periods	 	Redemption Prices]

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

        [The
Securities of this Series will be repayable on                        , at the option of the Holders thereof, at 100% of their
principal amount, together with accrued and unpaid
interest to                        . In order for this Global Security to be repaid, the Company must receive at the corporate
trust office of the Trustee during the period from and including                        
to and including the close of business on                        (or
if                        is not a Business Day, the next succeeding Business Day): (i) this Global Security with the form
entitled
"Option to Elect Repayment" on this Global Security duly completed, or (ii) a telegram, telex, facsimile transmission or letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or a trust company in the United States of America setting forth the name of the Holder of this Global Security, the principal
amount of this Global Security, the principal amount of this Global Security to be repaid, a statement that the option to elect repayment is being exercised thereby and a guarantee that this Global
Security (with the form entitled "Option to Elect Repayment" on this 

8

 

Global
Security duly completed) will be received at the Trustee's corporate trust office, no later than five Business Days after the date of such telegram, telex, facsimile transmission or letter and
this Global Security and form duly completed are received at the Trustee's office, by such fifth Business Day. Effective exercise of the repayment option by the Holder of any Security of this Series
shall be irrevocable. No transfer or exchange of any Security of this Series (or, in the event that any Security of this Series is to be repaid in part, such portion of the Security of this Series to
be repaid) will be permitted after exercise of the repayment option. The repayment option may be exercised by the Holder of a Security of this Series for less than the entire principal amount of the
Security of this Series, provided the principal amount which is to be repaid is set forth on the form entitled "Option to Elect Repayment" on the Security of this Series and is equal to $1,000 or any
integral multiple thereof. All questions as to the validity, eligibility (including time of receipt) and acceptance of any Security of this Series for repayment will be determined by the Company,
whose determination will be final, binding and non-appealable. Upon timely delivery of a Security of this Series to the Trustee with the "Option to Elect Repayment" form completed in
accordance with the foregoing, the outstanding principal amount of such Security of this Series (or portion thereof indicated in the "Option to Elect Repayment") shall become due and payable on
                        , at a price equal to    % of the principal amount to be repaid plus accrued and
unpaid interest to                        .] 

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

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

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

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

        As
set forth in and subject to the provisions of the Indenture, no Holder of any Securities will have any right to institute any proceeding with respect to the Indenture or for any
remedy thereunder unless such Holder shall have previously given to the Trustee written notice of a continuing Event of Default with respect to such Securities, the Holders of not less than a majority
in principal amount of 

9

 

the
outstanding Securities affected by such Event of Default shall have made written request and offered reasonable indemnity to the Trustee to institute such proceeding as Trustee and the Trustee
shall have failed to institute such proceeding within 60 days; provided that such limitations do not apply to a suit instituted by the Holder hereof for the enforcement of payment of the
principal of and any premium or interest on this Security on or after the respective due dates expressed here. 

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

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

        If
at any time the Depositary for this Global Security notifies the Company that it is unwilling or unable to continue as Depositary for this Global Security or if at any time the
Depositary for this Global Security shall no longer be eligible or in good standing under the Securities Exchange Act of
1934, as amended, or other applicable statute or regulation, the Company shall appoint a successor Depositary with respect to this Global Security. If a successor Depositary for this Global Security
is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the Company's election to issue this Security in global form shall
no longer be effective with respect to this Global Security and the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of individual Securities
of this Series in exchange for this Global Security, will authenticate and deliver individual Securities of this Series of like tenor and terms in definitive form in an aggregate principal amount
equal to the principal amount of this Global Security. 

        The
Company may at any time and in its sole discretion determine that all Securities of this Series (but not less than all) issued or issuable in the form of one or more Global
Securities need not be represented by such Global Security or Securities. In such event, the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery
of individual Securities of this Series in exchange for such Global Security, shall authenticate and deliver, individual Securities of this Series of like tenor and terms in definitive form in an
aggregate principal amount equal to the principal amount of such Global Security or Securities in exchange for such Global Security or Securities. 

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

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

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

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

10

 

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

	

 	
 	

OGE ENERGY CORP.
	

 	
 	

By:	
 	

  
 President
	

 	
 	

Attest:	
 	

  
 Secretary

Dated:

	

TRUSTEE'S CERTIFICATE OF

AUTHENTICATION	
 	

 
	

This Security is one of the Securities of the series herein designated, described or provided for in the with-in-mentioned Indenture.	
 	

 
	

UMB BANK, N.A., as Trustee	
 	

 
	

By:	
 	

  
 Authorized Officer	
 	

 

11

 
 
 

ABBREVIATIONS    
    

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

	

TEN COM—as tenants in common	
 	

UNIF GIFT

MIN ACT—            Custodian                      

                      (Cust)
                    (Minor)
	TEN ENT—as tenants by the entireties	 	Under Uniform Gifts to Minors
	JT TEN—as joint tenants with right of survivorship and not as tenants in common	 	 
	 	 	
 State

Additional abbreviations may also be used

though not in the above list. 

FOR VALUE RECEIVED the undersigned hereby sell(s),

assign(s) and transfer(s) unto 

PLEASE
INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE 

	

	

	

 Please print or typewrite name and address

including postal zip code of assignee

	

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

 	
 	

 
	

Dated:	
 	

  	
 	

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

12

QuickLinks

EXHIBIT 4.02

FORM OF SUPPLEMENTAL INDENTURE NO. FROM OGE ENERGY CORP. TO UMB BANK, N.A. TRUSTEE

TABLE OF CONTENTS

EXHIBIT A

ABBREVIATIONSQuickLinks
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EXHIBIT 10.8  

 
 
MIPS TECHNOLOGIES, INC.

1998 LONG-TERM INCENTIVE PLAN
  adopted by the Board of Directors on May 22, 1998

and approved by the Stockholder on May 22, 1998

(as amended August 27, 1998)

(as amended May 18, 1999 and approved by the Stockholders on October 28, 1999)

(as amended January 30, 2003)  

MIPS TECHNOLOGIES, INC.

1998 LONG-TERM INCENTIVE PLAN

adopted by the Board of Directors on May 22, 1998

and approved by the Stockholder on May 22, 1998

(as amended August 27, 1998)

(as amended May 18, 1999 and approved by the Stockholders on October 28, 1999)

(as amended January 30, 2003)  

1.     Purposes  

        The purposes of the Plan are to (a) promote the long-term success of the Company and to increase stockholder value by providing Eligible
Individuals and Consultants with incentives to contribute to the long-term growth and profitability of the Company and (b) assist the Company in attracting, retaining and motivating
highly qualified individuals. The Plan permits the Committee to make Awards which constitute "qualified performance-based compensation" for purposes of Section 162(m) of the Code. 

2.     Definitions  

        For purposes of the Plan, the following terms shall be defined as follows: 

        "Administrator" means the Committee or the individual or individuals to whom the Committee delegates authority under the Plan in
accordance with Section 3(d). 

        "Award" means an award made pursuant to the terms of the Plan to an Eligible Individual in the form of Stock Options, Stock Appreciation
Rights, Stock Awards, Restricted Stock, Performance Units or Other Awards. 

        "Award Document" means a written document approved in accordance with Section 3 which sets forth the terms and conditions of the
Award to the Participant. An Award Document may be in the form of (i) an agreement between the Company which is executed by an officer on behalf of the Company and
is signed by the Participant or (ii) a certificate issued by the Company which is executed by an officer on behalf of the Company but does not require the signature of the Participant. 

        "Board" means the Board of Directors of the Company. 

        "Business Combination" means and includes each and all of the following occurrences: 

          (i)  a
consolidation or merger pursuant to which more than 75% of the Company's Majority Voting Stock is transferred to different holders, except for a transaction intended
primarily to change the state of the Company's incorporation; 

         (ii)  more
than 75% of the assets of the Company are sold or otherwise disposed of; or 

        (iii)  the
Company dissolves or liquidates or effects a partial liquidation involving more than 75% of its assets. 

        "Cause" means the termination of Employee's employment as a result of: (i) an act or acts of dishonesty undertaken by such Employee
and intended to result in gain or personal enrichment of the Employee, (ii) persistent failure to perform the duties and obligations of such Employee which is not remedied in a reasonable
period of time after receipt of written notice from Employer, (iii) violation of confidentiality or proprietary information obligations to or agreements entered into with the Employer,
(iv) use, sale or distribution of illegal drugs on the Employer's premises, (v) threatening, intimidating or coercing or harassing fellow employees, or (vi) the conviction of
such Employee of a felony. 

        "Change in Control" means: 

          (i)  a
Business Combination. 

         (ii)  the
acquisition of any Person (as such term is used in Sections 13(d) and 14(d) of the Securities and Exchange Act of 1934, as amended (the "1934 Act") as Beneficial
Owner (as such 

 

term
is used in Rule 13d-3 promulgated under the 1934 Act), directly or indirectly, of fifty percent (50%) or more of the combined voting power of the outstanding shares of capital
stock of the Company's then outstanding securities with respect to the election of the directors of the Board. 

        (iii)  During
any period of three (3) consecutive years, individuals who, at the beginning of such period, constitute the Board (the "Incumbent Board") cease for any
reason to constitute at least a majority of the Board, provided that any person becoming a Director of the Board subsequent to the date of adoption of this Plan whose election, or a nomination for
election by the Company's shareholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of any individual
whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Board, as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the 1934 Act) shall be, for these purposes, considered as though such person were a member of the Incumbent Board. 

        "Code" means the Internal Revenue Code of 1986, as amended, and the applicable rulings and regulations (including any proposed
regulations) thereunder. 

        "Committee" means the committee of the Board, any successor committee thereto or any other committee appointed from time to time by the
Board to administer the Plan. The Committee shall consist of at least two Board members and shall serve at the pleasure of the Board. 

        "Common Stock" means the common stock, par value $.001 per share, of the Company. In the event the Company has more than one class of
Common Stock, the class of Common Stock shall be as designated in the Award Document. 

        "Company" means MIPS Technologies, Inc., a Delaware corporation. 

        "Consultant" means any person, including an advisor, who provides services to the Company or any Subsidiary. The term Consultant also
includes any director on the Board or on the board of directors of any Subsidiary. 

        "Eligible Individuals" means the Employees and Consultants. 

        "Employee" means any person employed by the Company, Company's parent or any Subsidiary. A Participant shall not cease to be an Employee
in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its parent, any Subsidiary, or any successor.
For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon
expiration of a leave of absence approved by the Company is not so guaranteed, three months after such ninety (90) day leave, any Incentive Stock Option held by the Optionee shall cease to be
treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonqualified Stock Option. Neither service as a director nor payment of a director's fee by the Company or a Subsidiary
shall be sufficient to constitute "employment" by the Company or a Subsidiary. 

        "Employer" means the Company, its parent, or a Subsidiary, as applicable, that employs the particular Employee. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the applicable rulings and regulations thereunder. 

        "Fair Market Value" means, with respect to a share of Common Stock, the fair market value thereof as of the relevant date of
determination, as determined in accordance with a valuation methodology approved by the Committee. In the absence of any alternative valuation methodology approved by the Committee, the Fair Market
Value of a share of Common Stock shall equal the closing 

2

 

selling
price of a share of Common Stock as reported on the composite tape for securities listed on the Nasdaq National Market, or such other national securities exchange as may be designated by the
Committee, or, in the event that the Common Stock is not listed for trading on a national securities exchange but is quoted on an automated system, on such automated system, in any such case on the
valuation date (or, if there were no sales on the valuation date, the average of the highest and the lowest quoted selling prices as reported on said composite tape or automated system for the most
recent day during which a sale occurred). 

        "Good Reason" for voluntary resignation means (i) the Employer reduces by ten percent (10%) or more the Employee's compensation at
the rate in effect immediately prior to the Change in Control or (ii) without the Employee's express written consent, the Employer requires the Employee to change the location of his or her job
or office, so that he or she will be based at a location more than fifty (50) miles from the location of his or her job or office immediately prior to the Change in Control. For these purposes,
"Compensation" means base salary, exclusive of bonus, incentive compensation and shift differential, paid by the Employer as consideration for the Employee's service. 

        "Incentive Stock Option" means a Stock Option which is an "incentive stock option" within the meaning of Section 422 of the Code
and designated by the Committee as an Incentive Stock Option in an Award Document. 

        "Majority Voting Stock" means the class of the Company's voting stock which, as of the time of determination, possesses the right to elect
a majority of the Board. 

        "Nonqualified Stock Option" means a Stock Option which is not an Incentive Stock Option. 

        "Other Award" means any other form of award authorized under Section 13 of the Plan. 

        "Participant" means an Eligible Individual to whom an Award has been granted under the Plan. 

        "Performance Unit" means a performance unit granted to an Eligible Individual pursuant to Section 12 hereof which is subject to
performance criteria. 

        "Plan" means this MIPS Technologies, Inc. 1998 Long-Term Incentive Plan. 

        "Restricted Stock" means Common Stock granted to an Eligible Individual pursuant to Section 11 hereof which is subject to
restrictions. 

        "Stock Appreciation Right" means a right to receive all or some portion of the appreciation on shares of Common Stock granted to an
Eligible Individual pursuant to Section 9 hereof. 

        "Stock Award" means a share of Common Stock granted to an Eligible Individual for no consideration other than the provision of services or
offer for sale to an Eligible Individual at a purchase price determined by the Committee, in either case pursuant to Section 10 hereof. 

        "Stock Option" means an Award to purchase shares of Common Stock granted to an Eligible Individual pursuant to Section 8 hereof. 

        "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code. 

        "Substitute Award" means an Award granted upon assumption of, or in substitution for, outstanding awards previously granted by a company
or other entity in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock. 

3

 

3.     Administration of the Plan  

        (a)    Power and Authority of the Committee.    The Plan shall be administered by the Committee, which shall have full
power and authority, subject to the express provisions hereof: 

          (i)  to
select Participants from the Eligible Individuals; 

         (ii)  to
make Awards in accordance with the Plan; 

        (iii)  to
determine the number of shares of Common Stock subject to each Award or the cash amount payable in connection with an Award; 

        (iv)  to
determine the terms and conditions of each Award, including, without limitation, those related to vesting, forfeiture, payment and exercisability, and the effect, if
any, of the termination of a Participant's status as an Employee or Consultant of the Company, its parent, or a Subsidiary, and including the authority to issue new Awards in exchange for the
surrender and cancellation of any or all outstanding Awards and to amend the terms and conditions of an Award after the granting thereof to a Participant in a manner that is not, without the consent
of the Participant, prejudicial to the rights of such Participant in such Award; 

         (v)  to
specify and approve the provisions of the Award Documents delivered to Participants in connection with their Awards; 

        (vi)  to
construe and interpret any Award Document delivered under the Plan; 

       (vii)  to
prescribe, amend and rescind rules and procedures relating to the Plan; 

      (viii)  to
vary the terms of Awards to take account of tax, securities law and other regulatory requirements of foreign jurisdictions; 

        (ix)  subject
to the provisions of the Plan and subject to such additional limitations and restrictions as the Committee may impose, to delegate to one or more officers of
the Company some or all of its authority under the Plan; 

         (x)  to
employ such legal counsel, independent auditors and consultants as it deems desirable for the administration of the Plan and to rely upon any opinion or computation
received therefrom; and 

        (xi)  to
make all other determinations and to formulate such procedures as may be necessary or advisable for the administration of the Plan. 

        (b)    Plan Construction and Interpretation.    The Committee shall have full power and authority, subject to the
express provisions hereof, to construe and interpret the Plan. 

        (c)    Determinations of Committee Final and Binding.    All determinations by the Committee in carrying out and
administering the Plan and in construing and interpreting the Plan shall be final, binding and conclusive for all purposes and upon all persons interested herein. 

        (d)    Delegation of Authority.    The Committee may, but need not, from time to time delegate some or all of its
authority under the Plan to an Administrator consisting of one or more members of the Committee or of one or more officers of the Company; provided,  however, that the Committee may not delegate its authority (i) to make Awards to Eligible Individuals who are officers of the Company who are
delegated authority by the Committee hereunder, or (ii) under Sections 3(b) and 16 of the Plan. Any delegation hereunder shall be subject to the restrictions and limits that the Committee
specifies at the time of such delegation or thereafter. Nothing in the Plan shall be construed as obligating the Committee to delegate authority to an Administrator, and the Committee may at any time
rescind the authority delegated to an Administrator appointed hereunder or appoint a new Administrator. At all times, the Administrator appointed under this Section 3(d) shall serve in such
capacity at the pleasure 

4

 

of
the Committee. Any action undertaken by the Administrator in accordance with the Committee's delegation of authority shall have the same force and effect as if undertaken directly by the Committee,
and any reference in the Plan to the Committee shall, to the extent consistent with the terms and limitations of such delegation, be deemed to include a reference to the Administrator. 

        (e)    Liability of Committee.    No member of the Committee shall be liable for any action nor determination made in
good faith, and the members of the Committee shall be entitled to indemnification and reimbursement in the manner provided in the Company's certificate of incorporation as it may be amended from time
to time. In the performance of its responsibilities with respect to the Plan, the Committee shall be entitled to rely upon information and advice furnished by the Company's officers, the Company's
accountants, the Company's counsel and any other party the Committee deems necessary, and no member of the Committee shall be liable for any action taken or not taken in reliance upon any such advice. 

        (f)    Action by the Board.    Anything in the Plan to the contrary notwithstanding, any authority or responsibility
which, under the terms of the Plan, may be exercised by the Committee may alternatively be exercised by the Board. 

4.     Effective Date and Term  

        The Plan shall become effective upon its adoption by the Board subject to its approval by the stockholders of the Company. Prior to such stockholder approval, the
Committee may grant Awards conditioned on stockholder approval. If such stockholder approval is not obtained at or before the first annual meeting of stockholders to occur after the adoption of the
Plan by the Board (including any adjournment or adjournments thereof), the Plan and any Awards made thereunder shall terminate ab initio and be of no
further force and effect. In no event shall any Awards be made under the Plan after the tenth anniversary of the date of the Board's adoption of the Plan. 

5.     Shares of Common Stock Subject to the Plan  

        (a)    General.    Subject to adjustment as provided in Section 15(b) hereof, the number of shares of Common
Stock that may be issued pursuant to Awards under the Plan (the "Section 5 Limit") shall be 8,000,000 shares, plus an annual increase to be added
on July 1 of each year, beginning July 1, 2000 equal to the lesser of: 

          (i)  4%
of the total number of shares of Common Stock outstanding as of the immediately preceding June 30, or 

         (ii)  2,000,000
shares, or 

        (iii)  an
amount determined by the Board. 

Shares
issued under this Plan may be either authorized but unissued shares, treasury shares or any combination thereof. 

        (b)    Special Limits.    Anything to the contrary in Section 5(a) above notwithstanding, the following special
limits shall apply to shares of Common Stock available for Awards under the Plan: 

          (i)  The
maximum number of shares that may be issued in the form of Stock Awards (under Section 10), or issued upon settlement of Restricted Stock (under
Section 11) or Other Awards (under Section 13), shall equal 800,000 shares, of which no more than a number of shares equal to 10% of the Section 5 Limit shall be in the form of
Other Awards, provided, however, that any such Stock Awards, Restricted Stock or Other Awards that are issued in lieu of cash compensation that
otherwise would be paid to a Participant, or in satisfaction of any other obligation owed by the Company to a Participant, shall not be counted against such limitation; and 

5

 

         (ii)  The
maximum number of shares of Common Stock that may be subject to Stock Options (under Section 8) or Stock Appreciation Rights (under Section 9) granted
to any Eligible Individual in any fiscal year of the Company shall equal 3,000,000 shares plus any shares which were available under this Section 5(b)(ii) for Awards of Stock Options or
Stock Appreciation Rights to such Eligible Individual in any prior fiscal year but which were not covered by such Awards. 

6.     Eligible Individuals  

        Awards may be granted by the Committee to Eligible Individuals; provided,  however, that
Consultants shall not be eligible to receive Incentive Stock Options. An individual's status as an Administrator will not, by itself,
affect his or her eligibility to participate in the Plan. 

7.     Awards in General  

        (a)    Types of Award and Award Document.    Awards under the Plan may consist of Stock Options, Stock Appreciation
Rights, Stock Awards, Restricted Stock, Performance Units or Other Awards. Any Award described in Sections 8 through 13 of the Plan may be granted singly or in combination or in tandem with any other
Award, as the Committee may determine. Awards may be made in combination with, in replacement of, or as alternatives to grants of rights under any other employee compensation plan of the Company,
including the plan of any acquired entity, or may be granted in satisfaction of the Company's obligations under any such plan. 

        (b)    Terms Set Forth in Award Document.    The terms and provisions of an Award shall be set forth in a written
Award Document approved by the Committee and delivered or made available to the Participant as soon as administratively practicable following the date of such Award. The vesting, exercisability,
payment and other restrictions applicable to an Award (which may include, without limitation, restrictions on transferability or provision for mandatory resale to the Company) shall be determined by
the Committee and set forth in the applicable Award Document. Notwithstanding the foregoing, the Committee may accelerate (i) the vesting or payment of any Award, (ii) the lapse of
restrictions on any Award or (iii) the date on which any Stock Option, Stock Appreciation Right or Other Award first becomes exercisable. 

        (c)    Termination as Employee or Consultant.    If a Participant ceases to be an Employee or Consultant, the
Participant may exercise his or her Award within such period of time as is specified in the Award Document to the extent that the Award is vested on the date of termination (but in no event later than
the expiration of the term of such Award as set forth in the Award Document). The date of a Participant's termination as an Employee or Consultant for any reason shall be determined in the sole
discretion of the Committee. In the absence of a specified time in the Award Document, the Award shall remain exercisable for three (3) months following the Participant's termination as an
Employee or Consultant and then terminate, unless otherwise provided in this Plan. If, on the date of termination, the Participant is not vested as to his or her entire Award, the shares covered by
the unvested portion of the Award shall revert to the Plan. If, after termination, the Participant does not exercise the vested portion of his or her Award within the period of time as is specified in
the Award Document (or this Plan, if not specified in the Award Document), the shares covered by such vested portion of the Award shall revert to the Plan. 

        (d)    Disability of Participant.    If a Participant ceases to be an Employee or Consultant as a result of the
Participant's disability (as defined in Section 22(e)(3) of the Code), the Participant may exercise his or her Award within such period of time as is specified in the Award Document to the
extent the Award is vested on the date of termination (but in no event later than the expiration of the term of such Award as set forth in the Award Document). In the absence of a specified time in
the Award Document, the Award shall remain exercisable for twelve (12) months following the Participant's 

6

 

termination
and then terminate. If, on the date of termination, the Participant is not vested as to his or her entire Award, the shares covered by the unvested portion of the Award shall revert to the
Plan unless otherwise provided in the Award Document. If, after termination, the Participant does not exercise the vested portion of his or her Award within the period of time as is specified in the
Award Document (or this Plan if not specified in the Award Document), the shares covered by such vested portion of the Award shall revert to the Plan. 

        (e)    Death of Participant.    If a Participant dies while an Employee or Consultant, the Award may be exercised
within such period of time as is specified in the Award Document (but in no event later than the expiration of the term of such Award as set forth in the Award Document), but only to the extent that
the Award is vested on the date of death. The Award may be exercised by the executor or administrator of the Participant's estate or, if none, by the person(s) entitled to exercise the Award under the
Participant's will or the laws of descent or distribution. In the absence of a specified time in the Award Document, the Award shall remain exercisable for twelve (12) months following the
Participant's termination and then terminate. If, at the time of death, the Participant is not vested as to his or her entire Award, the shares covered by the unvested portion of the Award shall
immediately revert to the Plan unless otherwise provided in this Plan or the Award Document. If, after Participant's death, the vested portion of the Award is not exercised within the period of time
as is specified in the Award Document (or this Plan if not specified in the Award Document), the shares covered by such vested portion of the Award shall revert to the Plan. 

        (f)    Dividends and Dividend Equivalents.    The Committee may provide Participants with the right to receive
dividends or payments equivalent to dividends or interest with respect to an outstanding Award. Payments can either be paid currently or deemed to have been reinvested in shares of Common Stock, and
can be made in Common Stock, cash or a combination thereof, as the Committee shall determine. 

8.     Stock Options  

        (a)    Terms of Stock Options Generally.    A Stock Option shall entitle the Participant to whom the Stock Option was
granted to purchase a specified number of shares of Common Stock during a specified period at a price that is determined in accordance with Section 8(b) below. Stock Options may be either
Nonqualified Stock Options or Incentive Stock Options. The Committee will fix the vesting and exercisability conditions applicable to a Stock Option. 

        (b)    Exercise Price.    The exercise price per share of Common Stock purchasable under a Stock Option shall be fixed
by the Committee at the time of grant or, alternatively, shall be determined by a method specified by the Committee at the time of grant. Notwithstanding the foregoing, the exercise price per share of
a Stock Option that is a Substitute Award may be less than the Fair Market Value per share on the date of award, provided that the excess of: 

          (i)  the
aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares of Common Stock subject to the Substitute Award, over 

         (ii)  the
aggregate exercise price thereof, 

        does
not exceed the excess of: 

        (iii)  the
aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by
the Committee) of the shares of the predecessor entity that were subject to the award assumed or substituted for by the Company, over 

        (iv)  the
aggregate exercise price of such shares. 

7

   
        (c)    Option Term.    The term of each Stock Option shall be fixed by the Committee and, subject to
Section 3(a)(viii) above, shall not exceed ten years from the date of grant. 

        (d)    Incentive Stock Options.    Each Stock Option granted pursuant to the Plan shall be designated at the time of
grant as either an Incentive Stock Option or as a Nonqualified Stock Option. No Incentive Stock Option may be issued pursuant to the Plan to any individual who, at the time the Stock Option is
granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, unless (A) the exercise price determined as of
the date of grant is at least 110% of the Fair Market Value on the date of grant of the shares of Common Stock subject to such Stock Option, and (B) the Incentive Stock Option is not
exercisable more than five years from the date of grant thereof. No Incentive Stock Option may be granted under the Plan after the tenth anniversary of the adoption of the Plan by the Board. To the
extent that the aggregate Fair Market Value of the shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year
(under all plans of the Company and any parent or Subsidiary) exceeds $100,000, the excess Stock Options shall be treated as Nonqualified Stock Options. For purposes of this Section, Incentive Stock
Options shall be taken into account in the order in which they were granted. The Fair Market Value of the shares of Common Stock shall be determined as of the time the Stock Option with respect to
such shares is granted. 

        (e)    Method of Exercise.    Subject to the provisions of the applicable Award Document, the exercise price of a
Stock Option may be paid in cash or previously owned shares or a combination thereof. In accordance with the rules and procedures established by the Committee for this purpose, the Stock Option may
also be exercised through a "cashless exercise" procedure approved by the Committee involving a broker or dealer approved by the Committee, that affords Participants the opportunity to sell
immediately some or all of the shares underlying the exercised portion of the Stock Option in order to generate sufficient cash to pay the Stock Option exercise price and/or to satisfy withholding tax
obligations related to the Stock Option. 

        (f)    Accelerated Vesting Upon Death or Disability.    In the event a Participant terminates his or her service with
the Company, its parent or a Subsidiary due to Participant's death or disability (as defined in Section 22(e)(3) of the Code), all Stock Options granted to Participant shall become fully vested
and exercisable upon such termination and remain exercisable for the period of time stated in the Participant's Award Document (or this Plan if not specified in the Award Document). 

9.     Stock Appreciation Rights  

        (a)    General.    A Stock Appreciation Right shall entitle a Participant to receive, upon satisfaction of the
conditions to the payment specified in the applicable Award Document, an amount equal to the excess, if any, of the Fair Market Value on the exercise date of the number of shares of Common Stock for
which the Stock Appreciation Right is exercised, over the exercise price for such Stock Appreciation Right specified in the applicable Award Document. The exercise price per share of Common Stock
covered by a Stock Appreciation Right shall be fixed by the Committee at the time of grant or, alternatively, shall be determined by a method specified by the Committee at the time of grant;  provided,
however, that, except as provided in Section 9(b) below, the exercise price per share
shall be no less than 100% of the Fair Market Value per share on the date of grant (or if the exercise price is not fixed on the date of grant, then on such date as the exercise price is fixed).
Notwithstanding the foregoing, the exercise price per share of a Stock Appreciation Right that is a Substitute Award may be less than the Fair Market Value per share on the date of award,  provided, that
such exercise price is not less than the minimum exercise price that would be permitted for an equivalent Stock Option as determined in
accordance with Section 8(b) above. At the sole discretion of the Committee, payments to a Participant upon exercise of a Stock Appreciation Right may be made in cash, in shares of Common Stock
having an aggregate Fair Market Value as of the date of exercise equal to such amount, or in a combination of cash and shares of Common Stock having an aggregate 

8

 

value
as of the date of exercise equal to such amount. A Stock Appreciation Right may be granted alone or in addition to other Awards, or in tandem with a Stock Option. 

        (b)    Stock Appreciation Rights in Tandem with Stock Options.    A Stock Appreciation Right granted in tandem with a
Stock Option may be granted either at the same time as such Stock Option or subsequent thereto. If granted in tandem with a Stock Option, a Stock Appreciation Right shall cover the same number of
shares of Common Stock as covered by the Stock Option (or such lesser number of shares as the Committee may determine) and shall be exercisable only at such time or times and to the extent the related
Stock Option shall be exercisable, and shall have the same term and exercise price as the related Stock Option (which, in the case of a Stock Appreciation Right granted after the grant of the related
Stock Option, may be less than the Fair Market Value per share on the date of grant of the tandem Stock Appreciation Right). Upon exercise of a Stock Appreciation Right granted in tandem with a Stock
Option, the related Stock Option shall be canceled automatically to the extent of the number of shares covered by such exercise; conversely, if the related Stock Option is exercised as to some or all
of the shares covered by the tandem grant, the tandem Stock Appreciation Right shall be canceled automatically to the extent of the number of shares covered by the Stock Option exercise. 

10.   Stock Awards  

        (a)    General.    A Stock Award shall consist of one or more shares of Common Stock granted to a Participant for no
consideration other than the provision of services (or, if required by applicable law in the reasonable judgment of the Company, for payment of the par value of such shares). Stock Awards shall be
subject to such restrictions (if any) on transfer or other incidents of ownership for such periods of time, and shall be subject to such conditions of vesting, as the Committee may determine and as
shall be set forth in the applicable Award Document. 

        (b)    Distributions.    Any shares of Common Stock or other securities of the Company received by a Participant to
whom a Stock Award has been granted as a result of a stock distribution to holders of Common Stock or as a stock dividend on Common Stock shall be subject to the same terms, conditions and
restrictions as such Stock Award. 

11.   Restricted Stock  

        (a)    General    An Award of Restricted Stock shall consist of a grant of one or more shares of Common Stock to a
Participant for no consideration other than the provision of services or may be offered for sale to a Participant at a purchase price determined by the Committee, subject to the terms and conditions
established by the Committee in connection with the Award and as set forth in the applicable Award Document. Such shares of Common Stock shall be subject to such restrictions on transfer or other
incidents of ownership for such periods of time, and shall be subject to such conditions of vesting, as the Committee may determine and as shall be set forth in the Award Document relating to such
stock. If shares of Common Stock are offered for sale under the Plan, the purchase price shall be payable in cash, or, in the sole discretion of the Committee and to the extent provided in any
applicable Award Document, in shares of Common Stock already owned by the Participant, for other consideration acceptable to the Committee or in any combination of cash, shares of Common Stock or such
other consideration. 

        (b)    Share Certificates; Rights and Privileges.    At the time Restricted Stock is granted or sold to a Participant,
share certificates representing the appropriate number of shares or Restricted Stock shall be registered in the name of the Participant but shall be held by the Company in custody for the account of
such person. Company may take whatever actions it determines necessary to restrict the transferability of the unvested Restricted Stock including providing that the certificates bear a legend
restricting their transferability. Except for such restrictions on transfer or other incidents of ownership as may be determined by the Committee and set forth in the Award Document relating to an
award or 

9

 

sale
of Restricted Stock, a Participant shall have the rights of a stockholder as to such Restricted Stock, including the right to receive dividends and the right to vote in accordance with the
Company's certificate of incorporation. 

        (c)    Distributions.    Any shares of Common Stock or other securities of the Company received by a Participant to
whom Restricted Stock has been granted or sold as a result of a stock distribution to holders of Common Stock or as a stock dividend on Common Stock shall be subject to the same terms, conditions and
restrictions as such Restricted Stock. 

12.   Performance Units  

        Performance Units may be granted as fixed or variable share- or dollar-denominated units subject to such conditions of vesting and time of payment as the
Committee may determine and as shall be set forth in the applicable Award Document relating to such Performance Units. Performance Units may be paid in Common Stock upon the satisfaction of the
applicable performance criteria as described in the Award Document, cash or a combination of Common Stock and cash, as the Committee may determine. 

13.   Other Awards  

        The Committee shall have the authority to specify the terms and provisions of other forms of equity-based or equity-related Awards not described above which the
Committee determines to be consistent with the purpose of the Plan and the interests of the Company, which Awards may provide for cash payments based in whole or in part on the value or future value
of Common Stock, for the acquisition or future acquisition of Common Stock, or any combination thereof. Other Awards shall also include cash payments (including the cash payment of dividend
equivalents) under the Plan which may be based on one or more criteria determined by the Committee which are unrelated to the value of Common Stock and which may be granted in tandem with, or
independent of, other Awards under the Plan. 

14.   Certain Restrictions  

        (a)    Transfers.    Unless the Committee determines otherwise, no Award shall be transferable other than by will or
by the laws of descent and distribution or pursuant to a domestic relations order. 

        (b)    Exercise.    During the lifetime of the Participant, a Stock Option, Stock Appreciation Right or
similar-type Other Award shall be exercisable only by the Participant or by a permitted transferee to whom such Stock Option, Stock Appreciation Right or Other Award has been transferred
in accordance with Section 14(a). 

15.   Recapitalization or Reorganization  

        (a)    Authority of the Company and Stockholders.    The existence of the Plan, the Award Documents and the Awards
granted hereunder shall not affect or restrict in any way the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or
other change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 

        (b)    Change in Capitalization.    Notwithstanding any provision of the Plan or any Award Document, the number and
kind of shares authorized for issuance under Section 5(a) above, including 

10

 

the
maximum number of shares available under the special limits provided for in Section 5(b) above, may be equitably adjusted in the sole discretion of the Committee in the event of a stock
split, stock dividend, recapitalization, reorganization, merger, consolidation, extraordinary dividend, split-up, spin-off, combination, exchange of shares, warrants or rights
offering to purchase Common Stock at a price substantially below Fair Market Value or other similar corporate event affecting the Common Stock in order to preserve, but not increase, the benefits or
potential benefits intended to be made available under the Plan. In addition, upon the occurrence of any of the foregoing events, the number of outstanding Awards and the number and kind of shares
subject to any outstanding Award and the purchase price per share, if any, under any outstanding Award may be equitably adjusted (including by payment of cash to a Participant) in the sole discretion
of the Committee in order to preserve the benefits or potential benefits intended to be made available to Participants granted Awards. Such adjustments shall be made by the Committee, whose
determination as to what adjustments shall be made, and the extent thereof, shall be final. Unless otherwise determined by the Committee, such adjusted Awards shall be subject to the same vesting
schedule and restrictions to which the underlying Award is subject. 

        (c)    Business Combination.    Except as otherwise specified in the applicable Award Document, in the event of a
Business Combination, each outstanding Stock Option and all other Awards shall be assumed or an equivalent option or award substituted by the successor corporation or a parent or subsidiary of the
successor corporation. In the event that the successor corporation refuses to assume or substitute for the Awards, the Committee may, in its discretion, provide for (i) the Participant to fully
vest in and have the right to exercise the Stock Option or Stock Appreciation Right as to all of the Common Stock, including shares as to which it would not otherwise be vested or exercisable,
(ii) all restrictions and conditions of any Stock Award and Restricted Stock held by such Participant to lapse, and (iii) all Performance Units and any Other Awards held by such
Participant to be deemed fully earned. If in lieu of assumption or substitution in the event of a Business Combination, a Stock Option or Stock Appreciation Right becomes fully vested and exercisable,
the restrictions and conditions on Restricted and Stock Awards lapse, and Performance Units and Other Awards are deemed fully earned, then the Committee shall notify the Participant in writing or
electronically of the change in the Award and that the Award shall terminate fifteen (15) days from the date of such notice (to the extent applicable). For the purposes of this
Section 15(c), the Award shall be considered assumed if, following the merger or sale of assets, the award confers the right to purchase or receive on the same terms and conditions as the
Award, for each share of Common Stock subject to the Award immediately prior to the Business Combination, the consideration (whether stock, cash, or other securities or property) received in the
Business Combination by holders of Common Stock for each share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by
the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the Business Combination is not solely common stock of the successor corporation or its
parent, the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each share of Common Stock subject to the
Award, to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of Common Stock in the Business Combination. 

        (d)    Change in Control.    In the event of the involuntary termination of an Employee's employment with the Company
or a Subsidiary not for Cause or an Employee's termination of employment with the Company or a Subsidiary for Good Reason within twenty-four months after a Change in Control of the
Company, the following shall occur: (i) all of such Employee's outstanding Stock Options and Stock Appreciation Rights shall become vested and exercisable, (ii) all restrictions and
conditions of all Stock Awards and Restricted Stock held by such Employee shall lapse and (iii) all Performance Units and any Other Awards held by such Employee shall be deemed to be fully
earned. 

11

 

16.   Amendments; Termination  

        The Board or Committee may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part;  provided,
however, that any amendment which under the requirements of any applicable law or stock
exchange rule must be approved by the stockholders of the Company shall not be effective unless and until such stockholder approval has been obtained in compliance with such law or rule. No
termination or amendment of the Plan may, without the consent of the Participant to whom an Award has been granted, adversely affect the rights of such Participant under such Award. Notwithstanding
any provision herein or in any Award Document to the contrary, the Board or Committee shall have broad authority to amend the Plan or any Award under the Plan to take into account changes in
applicable tax laws, securities laws, accounting rules and other applicable state and federal laws. 

17.   Miscellaneous  

        (a)    Tax Withholding.    The Company may require any individual entitled to receive a payment in respect of an Award
to remit to the Company, prior to such payment, an amount sufficient to satisfy any federal, state or local tax withholding requirements. The Company shall also have the right to deduct from all cash
payments made pursuant to or in connection with any Award any federal, state or local taxes required to be withheld with respect to such payments. In addition, the Company may permit any individual to
whom an Award has been made to satisfy, in whole or in part, such obligation to remit taxes, by directing the Company to withhold shares of Common Stock that would otherwise be received by such
individual upon settlement or exercise of such Award or by delivering to the Company shares of Common Stock owned by the individual prior to exercising the option, subject to such rules as the
Committee may establish from time to time. 

        (b)    No Right to Grants or Employment.    No Eligible Individual or Participant shall have any claim or right to
receive grants of Awards under the Plan. Nothing in the Plan or in any Award or Award Document shall confer upon any Employee any right to continued employment with Employer or interfere in any way
with the right of Employer to terminate the employment of any of its employees at any time, with or without cause. 

        (c)    Other Compensation.    Nothing in this Plan shall preclude or limit the ability of the Employer to pay any
compensation to a Participant under the Employer's other compensation and benefit plans and programs. 

        (d)    Other Employee Benefit Plans.    Payments received by a Participant under any Award made pursuant to the Plan
shall not be included in, nor have any effect on, the determination of benefits under any other employee benefit plan or similar arrangement provided by the Employer, unless otherwise specifically
provided for under the terms of such plan or arrangement or by the Committee. 

        (e)    Unfunded Plan.    The Plan is intended to constitute an unfunded plan for incentive compensation. Prior to the
payment or settlement of any Award, nothing contained herein shall give any Participant any rights that are greater than those of a general creditor of the Company. In its sole discretion, the
Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Common Stock or payments in lieu thereof with respect to awards
hereunder. 

        (f)    Securities Law Restrictions.    The Committee may require each Eligible Individual purchasing or acquiring
shares of Common Stock pursuant to a Stock Option or other Award under the Plan to represent to and agree with the Company in writing that such Eligible Individual is acquiring the shares for
investment and not with a view to the distribution thereof. All certificates for shares of Common Stock delivered under the Plan shall be subject to such stock-transfer orders and other restrictions
as the Committee may deem advisable under the rules, regulations, and other requirements of the 

12

 

Securities
and Exchange Commission, any exchange upon which the Common Stock is then listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be
put on any such certificates to make appropriate reference to such restrictions. No shares of Common Stock shall be issued hereunder unless the Company shall have determined that such issuance is in
compliance with, or pursuant to an exemption from, all applicable federal and state securities laws. 

        (g)    Compliance with Rule 16b-3.    Notwithstanding anything contained in the Plan or in any
Award Document to the contrary, if the consummation of any transaction under the Plan would result in the possible imposition of liability on a Participant pursuant to Section 16(b) of the
Exchange Act, the Committee shall have the right, in its sole discretion, but shall not be obligated, to defer such
transaction or the effectiveness of such action to the extent necessary to avoid such liability, but in no event for a period longer than six months. 

        (h)    Award Document.    In the event of any conflict or inconsistency between the Plan and any Award Document, the
Plan shall govern, and the Award Document shall be interpreted to minimize or eliminate any such conflict or inconsistency. 

        (i)    Expenses.    The costs and expenses of administering the Plan shall be borne by the Company. 

        (j)    Application of Funds.    The proceeds received from the Company from the sale of Common Stock or other
securities pursuant to Awards will be used for general corporate purposes. 

        (k)    Deferral.    The Committee may, in its discretion and as provided in the applicable Award Document, permit a
Participant to defer receipt of the shares underlying a Stock Option upon exercise or otherwise defer the recognition of income with respect to an Award pursuant to the terms of any deferred
compensation plan maintained by the Company. 

        (l)    Applicable Law.    Except as to matters of federal law, the Plan and all actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of Delaware without giving effect to conflicts of law principles. 

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1998 LONG-TERM INCENTIVE PLAN

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