Document:

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                                                                   EXHIBIT 10.3

                                    FORM OF

                INDEMNIFICATION AND INSURANCE MATTERS AGREEMENT

                                    BETWEEN

                              THE SOUTHERN COMPANY

                                      AND

                             SOUTHERN ENERGY, INC.

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                               TABLE OF CONTENTS

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ARTICLE I  MUTUAL RELEASES; INDEMNIFICATION.............................................................     1
   Section 1.1. Release of Pre-Closing Claims...........................................................     1
   Section 1.2. Indemnification by Southern Energy......................................................     2
   Section 1.3. Indemnification by Southern.............................................................     3
   Section 1.4. Procedures for Defense, Settlement and Indemnification of Third Party
                Claims..................................................................................     3
   Section 1.5. Additional Matters......................................................................     5
   Section 1.6. Survival of Indemnities.................................................................     6
ARTICLE II  INSURANCE MATTERS...........................................................................     6
   Section 2.1. Southern Energy Insurance Coverage During the Transition Period.........................     6
   Section 2.2. Cooperation and Agreement Not to Release Carriers.......................................     7
   Section 2.3. Southern Energy Insurance Coverage After the Insurance Transition
                 Period.................................................................................     7
   Section 2.4. Responsibilities for Self-insured Obligations...........................................     8
   Section 2.5. Procedures With Respect to Insured Southern Energy Liabilities..........................     8
   Section 2.6. Insufficient Limits of Liability for Southern Liabilities and Southern
                 Energy Liabilities.....................................................................     9
   Section 2.7. Cooperation.............................................................................    10
   Section 2.8. No Assignment or Waiver.................................................................    10
   Section 2.9. No Liability............................................................................    10
   Section 2.10. No Restrictions........................................................................    10
   Section 2.12. Further Agreements.....................................................................    10
   Section 2.13. Matters Governed by Employee Matters Agreement.........................................    10
ARTICLE III  MISCELLANEOUS..............................................................................    11
   Section 3.1. Entire Agreement........................................................................    11
   Section 3.2. Governing Law...........................................................................    11
   Section 3.3. Notices.................................................................................    11
   Section 3.4. Parties in Interest.....................................................................    11
   Section 3.5. Other Agreements Evidencing Indemnification Obligations.................................    11
   Section 3.6. Counterparts............................................................................    11
   Section 3.7. Assignment..............................................................................    11
   Section 3.8. Severability............................................................................    12
   Section 3.9. Failure or Indulgence Not Waiver........................................................    12
   Section 3.10. Amendment..............................................................................    12
   Section 3.11. Authority..............................................................................    12
   Section 3.12. Interpretation.........................................................................    12
   Section 3.13. Governmental Approvals.................................................................    12
ARTICLE IV  DEFINITIONS.................................................................................    13
   Section 4.1. Action..................................................................................    13
   Section 4.2. Affiliated Company......................................................................    13
   Section 4.3. Claims Committee........................................................................    13
   Section 4.4. Commingled Claims.......................................................................    13
   Section 4.5. Coverage Amount.........................................................................    13
   Section 4.6. Credit Support Arrangements.............................................................    13
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<TABLE>
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   Section 4.7. Employee Matters Agreement..............................................................    13
   Section 4.8. Employment Liabilities..................................................................    13
   Section 4.9. Environmental Claim.....................................................................    14
   Section 4.10. HoldCo Transaction.....................................................................    14
   Section 4.11. Indemnitee.............................................................................    14
   Section 4.12. Insurance Policies.....................................................................    14
   Section 4.13. Insurance Transition Period............................................................    14
   Section 4.13. Insurance Transition Period............................................................    14
   Section 4.14. Insured Southern Energy Liability......................................................    14
   Section 4.15. Intercompany Agreements................................................................    14
   Section 4.16. IPO Registration Statement.............................................................    14
   Section 4.17. Liabilities............................................................................    14
   Section 4.18. Person.................................................................................    15
   Section 4.19. Separation.............................................................................    15
   Section 4.20. Separation Agreement...................................................................    15
   Section 4.21. Separation Date........................................................................    15
   Section 4.22. Southern Business......................................................................    15
   Section 4.23. Southern Energy Business...............................................................    15
   Section 4.24. Southern Energy Covered Parties........................................................    15
   Section 4.25. Southern Energy Group..................................................................    15
   Section 4.26. Southern Energy Indemnitees............................................................    15
   Section 4.27. Southern Energy Liabilities............................................................    15
   Section 4.28. Southern Group.........................................................................    15
   Section 4.29. Southern Indemnitees...................................................................    16
   Section 4.30. Subsidiary.............................................................................    16
   Section 4.31. Tax Indemnification Agreement..........................................................    16
   Section 4.32. Taxes..................................................................................    16
   Section 4.33. Third Party Claim......................................................................    16
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                INDEMNIFICATION AND INSURANCE MATTERS AGREEMENT

         THIS INDEMNIFICATION AND INSURANCE MATTERS AGREEMENT (this
"Agreement") is entered into as of September 1, 2000, between The Southern
Company, a Delaware corporation ("Southern"), and Southern Energy, Inc., a
Delaware corporation ("Southern Energy"). Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to such terms in the
Article IV below.

                                    RECITALS

         WHEREAS, the Board of Directors of Southern has determined that it is
in the best interest of Southern and its stockholders to separate Southern's
existing businesses into two independent businesses;

         WHEREAS, as part of the foregoing, Southern and Southern Energy have
agreed, pursuant to the Master Separation and Distribution Agreement dated as
of September 1, 2000 (the "Separation Agreement"), which provides, among other
things, the initial public offering of Southern Energy stock, the distribution
of such stock and the execution and delivery of certain other agreements in
order to facilitate and provide for the foregoing; and

         WHEREAS, the parties desire to set forth certain agreements regarding
indemnification and insurance.

         NOW, THEREFORE, in consideration of the foregoing and the covenants
and agreements set forth below, the parties hereto agree as follows:

                                   ARTICLE I

                        MUTUAL RELEASES; INDEMNIFICATION

         Section 1.1. Release of Pre-Closing Claims.

         (a)        Southern Energy Release. Except as provided in Section
1.1(c), effective as of the Separation Date, Southern Energy does hereby, for
itself and as agent for each member of the Southern Energy Group, remise,
release and forever discharge the Southern Indemnitees from any and all
Liabilities whatsoever, whether at law or in equity (including any right of
contribution), whether arising under any contract or agreement, by operation of
law or otherwise, existing or arising from any acts or events occurring or
failing to occur or alleged to have occurred or to have failed to occur or any
conditions existing or alleged to have existed on or before the Separation
Date, including any such acts, events or conditions on or before the Separation
Date in connection with the transactions and all other activities to implement
any of the Separation, the IPO and the Distribution.

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         (b)      Southern Release. Except as provided in Section 1.1(c),
effective as of the Separation Date, Southern does hereby, for itself and as
agent for each member of the Southern Group, remise, release and forever
discharge the Southern Energy Indemnitees from any and all Liabilities
whatsoever, whether at law or in equity (including any right of contribution),
whether arising under any contract or agreement, by operation of law or
otherwise, existing or arising from any acts or events occurring or failing to
occur or alleged to have occurred or to have failed to occur or any conditions
existing or alleged to have existed on or before the Separation Date, including
any such acts, events or conditions on or before the Separation Date in
connection with the transactions and all other activities to implement any of
the Separation, the IPO and the Distribution.

         (c)      Excluded Liabilities; No Impairment. Nothing contained in
Section 1.1(a) or (b) shall release any claims under, or impair any right of
any Person to enforce, the Separation Agreement, any Ancillary Agreement
(including this Agreement), or any Intercompany Agreement, in each case in
accordance with its terms.

         (d)      No Actions as to Released Claims. Southern Energy agrees, for
itself and as agent for each member of the Southern Energy Group, not to make
any claim or demand, or commence any Action asserting any claim or demand,
including any claim of contribution or any indemnification, against Southern or
any member of the Southern Group, or any other Person released pursuant to
Section 1.1(a), with respect to any Liabilities released pursuant to Section
1.1(a). Southern agrees, for itself and as agent for each member of the
Southern Group, not to make any claim or demand, or commence any Action
asserting any claim or demand, including any claim of contribution or any
indemnification, against Southern Energy or any member of the Southern Energy
Group, or any other Person released pursuant to Section 1.1(b), with respect to
any Liabilities released pursuant to Section 1.1(b).

         (e)      Further Instruments. At any time, at the request of any other
party, each party shall cause each member of its respective Group to execute
and deliver releases reflecting the provisions hereof.

         Section 1.2.      Indemnification by Southern Energy. Except as
otherwise provided in this Agreement, Southern Energy shall, for itself and as
agent for each member of the Southern Energy Group, indemnify, defend (or,
where applicable, pay the defense costs for) and hold harmless the Southern
Indemnitees from and against any and all Liabilities that any third party seeks
to impose upon the Southern Indemnitees, or which are imposed upon the Southern
Indemnitees, if and to the extent such Liabilities relate to, arise out of or
result from any of the following items (without duplication):

                  (i)      any acts or omission or alleged acts or omissions by
         or on behalf of any member of the Southern Energy Group in the conduct
         of the Southern Energy Business or in connection with the IPO or the
         Distribution;

                  (ii)     any breach by Southern Energy or any member of the
         Southern Energy

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         Group of the Separation Agreement or any of the Ancillary Agreements
         (including this Agreement); and

                  (iii)    any Southern Energy Liability.

         In the event that any member of the Southern Energy Group makes a
payment to the Southern Indemnitees hereunder, and any of the Southern
Indemnitees subsequently diminishes the Liabilities on account of which such
payment was made, either directly or through a third-party recovery, Southern
will promptly repay (or will procure a Southern Indemnitee to promptly repay)
such member of the Southern Energy Group the amount by which the payment made
by such member of the Southern Energy Group exceeds the actual cost of the
associated indemnified Liability.

         Section 1.3.      Indemnification by Southern. Except as otherwise
provided in this Agreement, Southern shall, for itself and as agent for each
member of the Southern Group, indemnify, defend (or, where applicable, pay the
defense costs for) and hold harmless the Southern Energy Indemnitees from and
against any and all Liabilities that any third party seeks to impose upon the
Southern Energy Indemnitees, or which are imposed upon the Southern Energy
Indemnitees, if and to the extent such Liabilities relate to, arise out of or
result from any of the following items (without duplication):

                  (i)      any acts or omissions or alleged acts or omissions by
         or on behalf of any member of the Southern Group in the conduct of the
         Southern Business or in connection with the IPO or the Distribution;

                  (ii)     any breach by Southern or any member of the Southern
         Group of the Separation Agreement or any of the Ancillary Agreements
         (including this Agreement); and

                  (iii)    any Liabilities of the Southern Group other than the
         Credit Support Arrangements.

         In the event that any member of the Southern Group makes a payment to
the Southern Energy Indemnitees hereunder, and any of the Southern Energy
Indemnitees subsequently diminishes the Liabilities on account of which such
payment was made, either directly or through a third-party recovery, Southern
Energy will promptly repay (or will procure a Southern Energy Indemnitee to
promptly repay) such member of the Southern Group the amount by which the
payment made by such member of the Southern Group exceeds the actual cost of
the indemnified Liabilities.

         Section 1.4.      Procedures for Defense, Settlement and
Indemnification of Third Party Claims.

         (a)      Notice of Claims. If a Southern Indemnitee or a Southern
Energy Indemnitee (as applicable) (an "Indemnitee") shall receive notice or
otherwise learn of the assertion by a Person (including any Governmental
Authority) who is not a member of

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the Southern Group or the Southern Energy Group of any claim or of the
commencement by any such Person of any Action (collectively, a "Third Party
Claim") with respect to which a party (an "Indemnifying Party") may be
obligated to provide indemnification to such Indemnitee pursuant to Section 1.2
or 1.3, or any other section of the Separation Agreement or any Ancillary
Agreement (including this Agreement), Southern and Southern Energy (as
applicable) will ensure that such Indemnitee shall give such Indemnifying Party
written notice thereof within thirty (30) days after becoming aware of such
Third Party Claim. Any such notice shall describe the Third Party Claim in
reasonable detail. Notwithstanding the foregoing, the delay or failure of any
Indemnitee or other Person to give notice as provided in this Section 1.4(a)
shall not relieve the related Indemnifying Party of its obligations under this
Article I, except to the extent that such Indemnifying Party is actually and
substantially prejudiced by such delay or failure to give notice.

         (b)      Claims Committee. Any of the parties may refer any dispute
regarding the provisions of this Agreement to the Claims Committee for
resolution. All determinations of the Claims Committee, if unanimous, shall be
binding on all of the parties and their respective successors and assigns. The
Claims Committee shall reach a resolution that minimizes expenses for all
parties and seeks to avoid hiring multiple counsel. In the event a Liability
arises from both an event, act or omission relating primarily to the Southern
Energy Business and an event, act or omission relating primarily to the
Southern Business, the Claims Committee shall apportion the Liability in
accordance with comparative fault, and it may re-apportion the Liability as it
learns of additional facts bearing on that assessment. In the event that the
Claims Committee cannot reach a unanimous determination as to the nature,
status or handling of any such claims within thirty (30) days after such
referral (unless the Claims Committee unanimously agrees to a longer time
period), the issue will be submitted for resolution pursuant to the procedures
set forth in the dispute resolution provisions contained in Section 5.7 of the
Separation Agreement; provided, that the provisions of this Section 1.4(b)
shall supercede the requirements of the second sentence of Section 5.7(a) of
the Separation Agreement.

         (c)      Defense of Commingled Claims. With respect to any Commingled
Claim, the Claims Committee shall determine which party shall manage the
defense of, and may seek to settle or compromise, such Commingled Claim based
upon the specific facts of such claim.

         (d)      Defense By Indemnifying Party. Other than in the case of a
Commingled Claim, an Indemnifying Party will manage the defense of and (unless
the Indemnifying Party has specified any reservations or exceptions to the
obligation to manage the defense or to indemnify that have been referred to,
but not resolved by, the Claims Committee) may settle or compromise any Third
Party Claim. Within thirty (30) days after the receipt of notice from an
Indemnitee in accordance with Section 1.4(a) (or sooner, if the nature of such
Third Party Claim so requires), the Indemnifying Party shall notify the
Indemnitee that the Indemnifying Party will assume responsibility for managing
the defense of such Third Party Claim, which notice shall specify any
reservations or exceptions.

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         (e)      Defense By Indemnitee. If an Indemnifying Party fails to
assume responsibility for managing the defense of a Third Party Claim, or fails
to notify an Indemnitee that it will assume responsibility as provided in
Section 1.4(d), such Indemnitee may manage the defense of such Third Party
Claim.

         (f)      No Settlement By Indemnitee Without Consent. Unless the
Indemnifying Party has failed to manage the defense of the Third Party Claim in
accordance with the terms of this Agreement, no Indemnitee may settle or
compromise any Third Party Claim without the consent of the Indemnifying Party.

         (g)      No Consent to Certain Judgments or Settlements Without
Consent. Notwithstanding Section 1.4(d) above, no party shall consent to entry
of any judgment or enter into any settlement of a Third Party Claim without the
consent of the other party (such consent not to be unreasonably withheld) if
the effect of such judgment or settlement is to (A) permit any injunction,
declaratory judgment, other order or other nonmonetary relief to be entered,
directly or indirectly, against the other party or (B) materially affect the
other party due to the allocation of Liabilities and related indemnities set
forth in the Separation Agreement, this Agreement or any other Ancillary
Agreement.

         Section 1.5. Additional Matters.

         (a)      Cooperation in Defense and Settlement. With respect to any
Third Party Claim that implicates both Southern Energy and Southern in a
material fashion due to the allocation of Liabilities, responsibilities for
management of defense and related indemnities set forth in the Separation
Agreement, this Agreement or any of the Ancillary Agreements, the parties agree
to cooperate fully and maintain a joint defense (in a manner that will preserve
the attorney-client privilege with respect thereto) so as to minimize such
Liabilities and defense costs associated therewith. The party that is not
responsible for managing the defense of such Third Party Claims shall, upon
reasonable request, be consulted with respect to significant matters relating
thereto and may, if necessary or helpful, associate counsel to assist in the
defense of such claims.

         (b)      Substitution. In the event of an Action in which the
Indemnifying Party is not a named defendant, if either the Indemnitee or the
Indemnifying Party shall so request, the parties shall endeavor to substitute
the Indemnifying Party for the named defendant. If such substitution or
addition cannot be achieved for any reason or is not requested, the rights and
obligations of the parties regarding indemnification and the management of the
defense of claims as set forth in this Article I shall not be altered.

         (c)      Subrogation. In the event of payment by or on behalf of any
Indemnifying Party to or on behalf of any Indemnitee in connection with any
Third Party Claim, such Indemnifying Party shall be subrogated to and shall
stand in the place of such Indemnitee, in whole or in part based upon whether
the Indemnifying Party has paid all or only part of the Indemnitee's Liability,
as to any events or circumstances in respect of which such Indemnitee may have
any right, defense or claim relating to such Third Party Claim against any
claimant or plaintiff asserting such Third Party Claim or against any other

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person. Such Indemnitee shall cooperate with such Indemnifying Party in a
reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right, defense or claim.

         (d)      Not Applicable to Taxes or Employment Liabilities. This
Agreement shall not apply to Taxes (which are covered by the Tax
Indemnification Agreement) or Employment Liabilities (which are covered by the
Employee Matters Agreement).

         Section 1.6. Survival of Indemnities. Subject to Section 3.7, the
rights and obligations of the members of the Southern Group and the Southern
Energy Group under this Article I shall survive the sale or other transfer by
any party of any assets or businesses or the assignment by it of any
Liabilities or the sale by any member of the Southern Group or the Southern
Energy Group of the capital stock or other equity interests of any Subsidiary
to any Person.

                                   ARTICLE II

                               INSURANCE MATTERS

         Section 2.1. Southern Energy Insurance Coverage During the Transition
Period.

         (a)      Maintain Comparable Insurance. Throughout the period beginning
on the Separation Date and ending on the Insurance Transition End Date (the
"Insurance Transition Period"), Southern shall, subject to insurance market
conditions and other factors beyond its control, maintain policies of
insurance, including for the benefit of Southern Energy or any of its
Subsidiaries, directors, officers, employees or other covered parties
(collectively, the "Southern Energy Covered Parties") which are comparable to
those maintained generally by Southern; provided, however, if Southern
determines that (i) the amount or scope of such coverage will be reduced during
the Insurance Transition Period to a level materially inferior to the level of
coverage in existence immediately prior to the Insurance Transition Period, or
(ii) the retention or deductible level applicable to such coverage, if any,
will be increased during the Insurance Transition Period to a level materially
greater than the levels in existence immediately prior to the Insurance
Transition Period, Southern shall give Southern Energy notice of such
determination as promptly as practicable. Upon notice of such determination,
Southern Energy shall be entitled to no less than sixty (60) days to evaluate
its options regarding continuance of coverage hereunder and may cancel its
interest in all or any portion of such coverage as of any day within such sixty
(60) day period. Except as provided below, during the Insurance Transition
Period, such policies of insurance shall cover Southern Energy Covered Parties
for liabilities and losses insured prior to the Insurance Transition End Date.

         (b)      Directors & Officers ("D&O") Insurance Coverage. With effect
from August 1, 2000, Southern shall obtain, subject to market availability and
favorable pricing, $200 million in D&O insurance coverage limits (in addition
to Southern's current D&O insurance coverage), with an option for a six-year
extended reporting period (the

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"Additional D&O Insurance;" and, together with Southern's current D&O insurance
coverage, the "D&O Insurance"). The D&O Insurance shall cover Southern and
Southern Energy individually and collectively. The Additional D&O Insurance
shall be maintained in force for a one-year period, unless the parties shall
mutually agree to renew it for a further period. Upon policy expiration,
Southern will exercise the option for the six-year extended reporting period.
At the end of the extended reporting period, either party may request a further
extension of the reporting period in respect of both parties. Upon such
request, Southern shall effect such extension, subject to market availability.
The cost of the Additional D&O Insurance, including any extended reporting
period option, shall be shared equally between Southern and Southern Energy.

         (c)      Reimbursement for Premiums. Southern Energy shall promptly pay
or reimburse Southern, as the case may be, for premium expenses, and Southern
Energy Covered Parties shall promptly pay or reimburse Southern for any costs
and expenses which Southern may incur in connection with the insurance
coverages maintained pursuant to this Section 2.1, including but not limited to
any subsequent premium adjustments. All payments and reimbursements by Southern
Energy and Southern Energy Covered Parties to Southern shall be made within
fifteen (15) days after Southern Energy's receipt of an invoice from Southern.

         Section 2.2. Cooperation and Agreement Not to Release Carriers. Each
of Southern and Southern Energy will share such information as is reasonably
necessary in order to permit the other to manage and conduct its insurance
matters in an orderly fashion. Each of Southern and Southern Energy, at the
request of the other, shall cooperate with and use commercially reasonable
efforts to assist the other in recoveries for claims made under any insurance
policy for the benefit of any insured party, and neither Southern nor Southern
Energy, nor any of their Subsidiaries, shall take any action which would
intentionally jeopardize or otherwise interfere with either party's ability to
collect any proceeds payable pursuant to any insurance policy. Except as
otherwise contemplated by the Separation Agreement, this Agreement or any
Ancillary Agreement, after the Separation Date, neither Southern nor Southern
Energy shall (and shall ensure that no member of their respective Groups
shall), without the consent of the other, provide any insurance carrier with a
release, or amend, modify or waive any rights under any such policy or
agreement, if such release, amendment, modification or waiver would adversely
affect any rights or potential rights of any member of the other Group
thereunder. However, nothing in this Section 2.2 shall (A) preclude any member
of any Group from presenting any claim or from exhausting any policy limit, (B)
require any member of any Group to pay any premium or other amount or to incur
any Liability, (C) require any member of any Group to renew, extend or continue
any policy in force or (D) except as otherwise provided in Section 2.12, apply
to Southern in connection with rights to coverage for Environmental Actions
under Insurance Policies in effect prior to the Separation Date.

         Section 2.3. Southern Energy Insurance Coverage After the Insurance
Transition Period.

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         (a)      Except as otherwise set forth herein, from and after the
Insurance Transition End Date, Southern Energy, and Southern Energy alone,
shall be responsible for obtaining and maintaining insurance programs for its
risk of loss and such insurance arrangements shall be separate and apart from
Southern's insurance programs. Notwithstanding the foregoing, Southern, upon
the request of Southern Energy, shall use all commercially reasonable efforts
to assist Southern Energy in the transition to its own separate insurance
programs from and after the Insurance Transition Period, and shall provide
Southern Energy with any information that is in the possession of Southern and
is reasonably available and necessary to either obtain insurance coverages for
Southern Energy or to assist Southern Energy in preventing unintended
self-insurance, in whatever form.

         (b)      D&O Insurance Coverage. After the Insurance Transition End
Date, Southern will endeavor to maintain, subject to market availability, a
minimum of $200 million D&O coverage insuring both Southern and Southern Energy
under Southern's policy for all activities prior to the Insurance Transition
End Date. With respect to Southern Energy, such coverage shall apply solely to
Southern Energy's wrongful act(s) or alleged wrongful act(s) occurring prior to
the Insurance Transition End Date.

         Section 2.4 Maintenance of D&O Insurance Limits. It is the intent of
Southern and Southern Energy that the D&O Insurance shall be maintained in an
amount sufficient to provide at least $100 million of coverage (the "Minimum
D&O Coverage") to each of the parties for claims arising during the policy
period which are unrelated to the IPO, the Distribution, the Separation or any
other actions contemplated by the Separation Agreement and this Agreement
("Unrelated Claims"). In the event that either party should experience claims
which, in the aggregate, are likely to erode D&O Insurance coverage limits
available to the other party to below $100 million, then Southern shall arrange
with its insurers, subject to market availability, for a reinstatement of
coverage limits sufficient to maintain $100 million of D&O Insurance coverage
for such other party's Unrelated Claims. Unless the parties shall mutually
agree otherwise, determination of the eroded coverage amount to be reinstated
shall be based on claims paid and reserves established by the insurers
underwriting the applicable D&O Insurance. The cost to reinstate policy limits
shall be borne by the party incurring the Unrelated Claims which have eroded
the other party's Minimum D&O Coverage.

         Section 2.5. Responsibilities for Self-insured Obligations. Southern
Energy will reimburse Southern for all amounts necessary to exhaust or
otherwise satisfy all applicable self-insured retentions, amounts for fronted
policies, deductibles and retrospective premium adjustments and similar amounts
not covered by Insurance Policies in connection with Southern Energy
Liabilities and Insured Southern Energy Liabilities.

         Section 2.6. Procedures With Respect to Insured Southern Energy
Liabilities.

         (a)      Reimbursement. Southern Energy will reimburse Southern for all
amounts incurred to pursue insurance recoveries from Insurance Policies for
Insured Southern

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 Energy Liabilities.

         (b)      Management of Claims. The defense of claims, suits or actions
giving rise to potential or actual Insured Southern Energy Liabilities will be
managed (in conjunction with Southern's insurers, as appropriate) by the party
that would have had responsibility for managing such claims, suits or actions
had such Insured Southern Energy Liabilities been Southern Energy Liabilities.

         Section 2.7. Insufficient Limits of Liability for Southern Liabilities
and Southern Energy Liabilities. In the event that there are insufficient
limits of liability available under Southern's Insurance Policies provided in
Sections 2.1(b), 2.3(b), 2.4 or other applicable polices in effect prior to the
Insurance Transition End Date to cover the Liabilities of Southern and/or
Southern Energy that would otherwise be covered by such Insurance Policies,
then to the extent that other insurance is not available to Southern and/or
Southern Energy for such Liabilities an adjustment will be made in accordance
with the following procedures:

                  (i)      Each party will be allocated an amount equal to their
         proportional share of any Liabilities (which Liabilities would
         otherwise be covered under Southern's Insurance Policies) in excess of
         the Coverage Amount. Each party's proportional share of such excess
         Liabilities shall be calculated by multiplying (A) the aggregate
         amount of all Liabilities (net of any deductible) of both parties
         which are eligible for coverage under a Southern Insurance Policy in
         the coverage period applicable to such policy, less the Coverage
         Amount applicable to such policy, by (B) a fraction, the numerator of
         which is the amount of such Liabilities attributable to such party,
         and the denominator of which is the aggregate amount of all such
         Liabilities of both parties. Any dispute between the parties in
         determining the proper allocation of liabilities pursuant to this
         section shall be resolved pursuant to the procedures set forth in
         Section 1.4(b) hereof.

                  (ii)     A party who receives more than its share of the
         Coverage Amount (the "Overallocated Party") agrees to reimburse the
         other party (the "Underallocated Party") to the extent that the
         Liabilities of the Underallocated Party that would have been covered
         under such Insurance Policies (subject to the limitations of Section
         2.12) is less than the Underallocated Party's share of the Coverage
         Amount.

                  (iii)    In addition to and without limiting the foregoing,
         Southern and Southern Energy shall cooperate and use their reasonable
         best efforts to maintain such general liability or other applicable
         shared coverage levels for both parties as are in existence on the
         Separation Date. To that effect, in the event that the coverage under
         any general liability or other applicable shared policy is eroded to
         less than 50% of the applicable level of coverage as of the Separation
         Date, the parties shall cooperate in equitably determining the
         appropriate allocation of the costs of and responsibility for the
         reinstatement, subject to market availability, of coverage under such
         policies to its original level. Additionally, Southern shall maintain
         Southern Energy's coverage for claims relating to Liabilities arising
         prior to the

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         Separation Date until such time as Southern Energy shall have arranged
         for "prior acts" coverage for such Liabilities; provided, that
         Southern Energy shall use commercially reasonable efforts to obtain
         such coverage as soon as practicable upon the reasonable request of
         Southern, and Southern shall, subject to market availability, use
         commercially reasonable efforts to assist Southern Energy in obtaining
         such coverage.

         Section 2.8.      Cooperation. Southern and Southern Energy will
cooperate with each other in all respects, and they shall execute any
additional documents which are reasonably necessary, to effectuate the
provisions of this Article II.

         Section 2.9.      No Assignment or Waiver. This Agreement shall not be
considered as an attempted assignment of any policy of insurance or as a
contract of insurance and shall not be construed to waive any right or remedy
of any member of the Southern Group in respect of any Insurance Policy or any
other contract or policy of insurance.

         Section 2.10.     No Liability. Southern Energy does hereby, for itself
and as agent for each other member of the Southern Energy Group, agree that no
member of the Southern Group or any Southern Indemnitee shall have any
Liability whatsoever as a result of the insurance policies and practices of
Southern and its Subsidiaries as in effect at any time prior to the Insurance
Transition End Date, including as a result of the level or scope of any such
insurance, the creditworthiness of any insurance carrier, the terms and
conditions of any policy, the adequacy or timeliness of any notice to any
insurance carrier with respect to any claim or potential claim or otherwise.

         Section 2.11.     No Restrictions. Nothing in this Agreement shall be
deemed to restrict any member of the Southern Energy Group from acquiring at
its own expense any other insurance policy in respect of any Liabilities or
covering any period.

         Section 2.12.     Further Agreements. The Parties acknowledge that they
intend to allocate financial obligations without violating any laws regarding
insurance, self-insurance or other financial responsibility. If it is
determined that any action undertaken pursuant to the Separation Agreement,
this Agreement or any Ancillary Agreement is violative of any insurance,
self-insurance or related financial responsibility law or regulation, the
parties agree to work together to do whatever is necessary to comply with such
law or regulation while trying to accomplish, as much as possible, the
allocation of financial obligations as intended in the Separation Agreement,
this Agreement and any Ancillary Agreement.

         Section 2.13.     Matters Governed by Employee Matters Agreement. This
Article II shall not apply to any insurance policies that are the subject of
the Employee Matters Agreement.

                                      10
<PAGE>   14

                                  ARTICLE III

                                 MISCELLANEOUS

         Section 3.1.      Entire Agreement. This Agreement, the Master
Separation Agreement, the other Ancillary Agreements and the Exhibits and
Schedules attached hereto and thereto, constitutes the entire agreement between
the parties with respect to the subject matter hereof and shall supersede all
prior written and oral and all contemporaneous oral agreements and
understandings with respect to the subject matter hereof.

         Section 3.2.      Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Georgia as to all
matters regardless of the laws that might otherwise govern under principles of
conflicts of laws applicable thereto.

         Section 3.3.      Notices. Any notice, demand, offer, request or other
communication required or permitted to be given by either party pursuant to the
terms of this Agreement shall be in writing and shall be deemed effectively
given the earlier of (i) when received, (ii) when delivered personally, (iii)
one (1) business day after being delivered by facsimile (with receipt of
appropriate confirmation), (iv) one (1) business day after being deposited with
an overnight courier service or (v) four (4) days after being deposited in the
U.S. mail, First Class with postage prepaid, and addressed to the attention of
the party's General Counsel at the address of its principal executive office or
such other address as a party may request by notifying the other in writing.

         Section 3.4.      Parties in Interest. This Agreement, including the
Schedules and Exhibits hereto, and the other documents referred to herein,
shall be binding upon Southern, Southern's Subsidiaries, Southern Energy and
Southern Energy's Subsidiaries and inure solely to the benefit of the Southern
Energy Indemnitees and the Southern Indemnitees and their respective permitted
assigns, and nothing in this Agreement, express or implied, is intended to
confer upon any other Person any rights or remedies of any nature whatsoever
under or by reason of this Agreement.

         Section 3.5.      Other Agreements Evidencing Indemnification
Obligations. Southern hereby agrees to execute, for the benefit of any Southern
Energy Indemnitee, such documents as may be reasonably requested by such
Southern Energy Indemnitee, evidencing Southern's agreement that the
indemnification obligations of Southern set forth in this Agreement inure to
the benefit of and are enforceable by such Southern Energy Indemnitee. Southern
Energy hereby agrees to execute, for the benefit of any Southern Indemnitee,
such documents as may be reasonably requested by such Southern Indemnitee,
evidencing Southern Energy's agreement that the indemnification obligations of
Southern Energy set forth in this Agreement inure to the benefit of and are
enforceable by such Southern Indemnitee.

         Section 3.6.      Counterparts. This Agreement, including the Schedules
and Exhibits hereto, and the other documents referred to herein, may be
executed in counterparts, each of which shall be deemed to be an original but
all of which shall constitute one and the same agreement.

         Section 3.7.      Assignment. The rights and obligations in this
Agreement may not be

                                      11
<PAGE>   15

assigned or delegated by any party hereto, in whole or in part, without the
express prior written consent of the other party hereto.

         Section 3.8.      Severability. If any term or other provision of this
Agreement or the Schedules or Exhibits attached hereto is determined by a
nonappealable decision by a court, administrative agency or arbitrator to be
invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party.

         Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner to the end that
transactions contemplated hereby are fulfilled to the fullest extent possible.

         Section 3.9.      Failure or Indulgence Not Waiver. No failure or delay
on the part of either party hereto in the exercise of any right hereunder shall
impair such right or be construed to be a waiver of, or acquiescence in, any
breach of any representation, warranty or agreement herein, nor shall any
single or partial exercise of any such right preclude other or further exercise
thereof or of any other right.

         Section 3.10.     Amendment.  No change or amendment will be made to
this Agreement except by an instrument in writing signed on behalf of each of
the parties to this Agreement.

         Section 3.11.     Authority. Each of the parties hereto represents to
the other that (a) it has the corporate or other requisite power and authority
to execute, deliver and perform this Agreement, (b) the execution, delivery and
performance of this Agreement by it have been duly authorized by all necessary
corporate or other action, (c) it has duly and validly executed and delivered
this Agreement, and (d) this Agreement is a legal, valid and binding
obligation, enforceable against it in accordance with its terms subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors' rights generally and general equity principles.

         Section 3.12.     Interpretation. The headings contained in this
Agreement, in any Exhibit or Schedule hereto and in the table or contents to
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement. Any capitalized term used in
any Schedule or Exhibit but not otherwise defined therein, shall have the
meaning assigned to such term in this Agreement. When a reference is made in
this Agreement to an Article or a Section, Exhibit or Schedule, such reference
shall be to an Article or Section of, or an Exhibit or Schedule to, this
Agreement unless otherwise indicated.

         Section 3.13.     Governmental Approvals. The parties acknowledge that
certain of the

                                      12
<PAGE>   16

provisions of this Agreement may be subject to certain conditions established
by applicable government regulations, orders, and approvals ("Existing
Authority"). The parties intend to implement this Agreement consistent with and
to the extent permitted by Existing Authority and to cooperate toward obtaining
and maintaining in effect such governmental agency consents, orders or
approvals as may be required in order to implement this Agreement as fully as
possible in accordance with its terms.

                                   ARTICLE IV

                                  DEFINITIONS

         Section 4.1.      Action. "Action" means any demand, action, suit,
countersuit, arbitration, inquiry, proceeding or investigation by or before any
federal, state, local, foreign or international governmental authority or any
arbitration or mediation tribunal.

         Section 4.2.      Affiliated Company. "Affiliated Company" has the
meaning set forth in the Separation Agreement.

         Section 4.3.      Claims Committee. "Claims Committee" means a
committee composed of (i) either the General Counsel or an Associate General
Counsel of Southern and (ii) either the General Counsel or an Associate General
Counsel of Southern Energy.

         Section 4.4.      Commingled Claims. "Commingled Claims" means,
collectively, any Third Party Claims (i) which involve an employee, consultant
or contractor that was employed by both the Southern Energy Business and the
Southern Business, (ii) in which both Southern and Southern Energy are named,
or (iii) involving both the Southern Energy Business and the Southern Business.

         Section 4.5.      Coverage Amount. "Coverage Amount" means the lesser
of (A) the available limits of liability under Southern's Insurance Policies in
effect prior to the Insurance Transition End Date, net of uncollectible amounts
attributable to insurer insolvencies, and (B) the proceeds received from
Southern's Insurance Policies if any Liabilities are the subject of disputed
coverage claims and, following consultation with each other, Southern and/or
Southern Energy agree to accept less than full policy limits from Southern's
and Southern Energy's insurers.

         Section 4.6.      Credit Support Arrangements. "Credit Support
Arrangements" has the meaning set forth in Section 5.13 of the Separation
Agreement.

         Section 4.7.      Employee Matters Agreement. "Employee Matters
Agreement" means the Employee Matters Agreement attached as an exhibit to the
Separation Agreement.

         Section 4.8.      Employment Liabilities. "Employment Liabilities" has
the meaning set forth in Schedule 2.01 to the Employee Matters Agreement.

                                      13
<PAGE>   17

         Section 4.9.      Environmental Claim. "Environmental Claim" means any
and all administrative or judicial actions, suits, orders, claims, liens,
notices of violation, investigations, complaints, requests for information,
proceedings or other written communication, whether criminal or civil, by any
Person based upon, alleging, asserting, or claiming any (a) violation of, or
liability under any environmental law, (b) violation of any permit, or (c)
liability for investigatory costs, cleanup costs, removal costs, remedial
costs, response costs, natural resource damages, property damage, personal
injury, fines, or penalties arising out of, based upon, resulting from or
related to, the presence, release, or threatened release into the environment
of any hazardous materials or any other environmental condition.

         Section 4.10.     HoldCo Transaction. "HoldCo Transaction" has the
meaning set forth in the Separation Agreement.

         Section 4.11.     Indemnitee. "Indemnitee" has the meaning set forth in
Section 1.4(a) hereof.

         Section 4.12.     Insurance Policies. "Insurance Policies" means
insurance policies pursuant to which a Person makes a true risk transfer to an
insurer.

         Section 4.13.     Insurance Transition End Date. "Insurance Transition
End Date" means the earlier of (i) the Distribution Date, or (ii) the first
date on which Southern owns less than 50% of the common stock of Southern
Energy then outstanding.

         Section 4.14.     Insurance Transition Period. "Insurance Transition
Period" has the meaning set forth in Section 2.1 of this Agreement.

         Section 4.15.     Insured Southern Energy Liability. "Insured Southern
Energy Liability" means any Southern Energy Liability to the extent that (i) it
is covered under the terms of Southern's Insurance Policies in effect prior to
the Insurance Transition End Date and (ii) Southern Energy is not a named
insured under, or otherwise entitled to the benefits of, such Insurance
Policies.

         Section 4.16.     Intercompany Agreements. "Intercompany Agreements"
means any written agreement between Southern or any of its Subsidiaries or
Affiliated Companies and Southern Energy or any of its Subsidiaries or
Affiliated Companies which is in effect prior to the Separation Date.

         Section 4.17.     IPO Registration Statement. "IPO Registration
Statement" means the registration statement on Form S-1 pursuant to the
Securities Act to be filed with the SEC registering the shares of common stock
of Southern Energy to be issued in the IPO, together with all amendments
thereto.

         Section 4.18.     Liabilities. "Liabilities" means all debts,
liabilities, guarantees, assurances, commitments and obligations, whether
fixed, contingent or absolute, asserted or unasserted, matured or unmatured,
liquidated or unliquidated, accrued or not accrued,

                                      14
<PAGE>   18

known or unknown, due or to become due, whenever or however arising (including,
without limitation, whether arising out of any contract or tort based on
negligence or strict liability) and whether or not the same would be required
by generally accepted principles and accounting policies to be reflected in
financial statements or disclosed in the notes thereto. For purposes of any
indemnification hereunder, "Liabilities" shall be deemed also to include any
and all damages, claims, suits, judgments, fines, penalties, costs and expenses
of any kind or character, including attorney's fees.

         Section 4.19.     Person. "Person" means an individual, a partnership,
a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

         Section 4.20.     Separation. "Separation" has the meaning set forth in
the Separation Agreement.

         Section 4.21.     Separation Agreement. "Separation Agreement" means
the Master Separation and Distribution Agreement dated as of September 1, 2000,
of which this is an exhibit thereto.

         Section 4.22.     Separation Date. "Separation Date" means as of 12:01
a.m., Eastern Standard Time, September 1, 2000, or such date as may be fixed by
the Board of Directors of Southern.

         Section 4.23.     Southern Business. "Southern Business" has the
meaning set forth in the Separation Agreement.

         Section 4.24.     Southern Energy Business. "Southern Energy Business"
has the meaning set forth in the Separation Agreement.

         Section 4.25.     Southern Energy Covered Parties. "Southern Energy
Covered Parties" shall have the meaning set forth in Section 2.1(a) of this
Agreement.

         Section 4.26.     Southern Energy Group. "Southern Energy Group" has
the meaning set forth in the Separation Agreement.

         Section 4.27.     Southern Energy Indemnitees. "Southern Energy
Indemnitees" means Southern Energy, each member of the Southern Energy Group
and each of their respective directors, officers and employees.

         Section 4.28.     Southern Energy Liabilities. "Southern Energy
Liabilities" means (i) all Liabilities of the Southern Energy Group, and (ii)
the Credit Support Arrangements.

         Section 4.29.     Southern Group. "Southern Group" has the meaning set
forth in the Separation Agreement.

                                      15
<PAGE>   19

         Section 4.30.     Southern Indemnitees. "Southern Indemnitees" means
Southern, each member of the Southern Group and each of their respective
directors, officers and employees.

         Section 4.31.     Subsidiary. "Subsidiary" has the meaning set forth in
the Separation Agreement.

         Section 4.32.     Tax Indemnification Agreement. "Tax Indemnification
Agreement" means the Tax Indemnification Agreement attached as an exhibit to
the Separation Agreement.

         Section 4.33.     Taxes. "Taxes" has the meaning set forth in the Tax
Indemnification Agreement.

         Section 4.34.     Third Party Claim. "Third Party Claim" has the
meaning set forth in Section 1.4(a) of this Agreement.

                         [SIGNATURES ON FOLLOWING PAGE]

                                      16
<PAGE>   20

         IN WITNESS WHEREOF, each of the parties has caused this Indemnification
and Insurance Matters Agreement to be executed on its behalf by its officers
thereunto duly authorized on the day and year first above written.

         THE SOUTHERN COMPANY

         By:
            ------------------------------------------
         Name:  H. Allen Franklin
         Title:  President and Chief Operating Officer

         SOUTHERN ENERGY, INC.

         By:
            ------------------------------------------
         Name:  S. Marce Fuller
         Title:  President and Chief Executive Officer

                                      17<PAGE>   1
                                                                   EXHIBIT 10.4

                                    FORM OF

                 TECHNOLOGY AND INTELLECTUAL PROPERTY OWNERSHIP

                                      AND

                               LICENSE AGREEMENT

                                    BETWEEN

                              THE SOUTHERN COMPANY

                                      AND

                             SOUTHERN ENERGY, INC.

<PAGE>   2

      TECHNOLOGY AND INTELLECTUAL PROPERTY OWNERSHIP AND LICENSE AGREEMENT

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                        Page

<S>                                                                                                     <C>
ARTICLE I  DEFINITIONS...................................................................................1
   1.1  AFFILIATED COMPANY...............................................................................1
   1.2  ALLOCATED PATENT ASSETS DATABASE.................................................................1
   1.3  ASSIGNED PATENTS.................................................................................1
   1.4  CHANGE OF CONTROL DATE...........................................................................2
   1.5  COPYRIGHTS.......................................................................................2
   1.6  CORPORATE IDENTITY MATERIALS.....................................................................2
   1.7  DATABASE RIGHTS..................................................................................2
   1.8  DISTRIBUTION DATE................................................................................3
   1.9  FIRST EFFECTIVE FILING DATE......................................................................3
   1.10  IMPROVEMENTS....................................................................................3
   1.11  INVENTION DISCLOSURE............................................................................3
   1.12  LICENSED MARKS..................................................................................3
   1.13  LICENSED SOUTHERN ENERGY TECHNOLOGY.............................................................3
   1.14  LICENSED SOUTHERN TECHNOLOGY....................................................................3
   1.15  MARK............................................................................................4
   1.16  MASTER SEPARATION AGREEMENT.....................................................................4
   1.17  PATENTS.........................................................................................4
   1.18  PERSON..........................................................................................4
   1.19  SELL............................................................................................4
   1.20  SEPARATION DATE.................................................................................4
   1.21  SOUTHERN ENERGY SERVICES........................................................................4
   1.22  SOUTHERN ENERGY OWNED TECHNOLOGY................................................................5
   1.23  SOUTHERN PATENTS................................................................................5
   1.24  SOUTHERN SERVICES...............................................................................5
   1.25  SUBLICENSED SOUTHERN ENERGY TECHNOLOGY..........................................................5
   1.26  SUBLICENSED SOUTHERN TECHNOLOGY.................................................................5
   1.27  SUBSIDIARY......................................................................................5
   1.28  TECHNOLOGY......................................................................................6
   1.29  THIRD PARTY.....................................................................................6
   1.30  TRADEMARK USAGE GUIDELINES......................................................................6
ARTICLE II - TECHNOLOGY ALLOCATION OF OWNERSHIP AND LICENSE GRANTS.......................................6
   2.1  ASSIGNMENT.......................................................................................6
   2.2  PRIOR GRANTS.....................................................................................6
   2.3  ASSIGNMENT DISCLAIMER............................................................................7
   2.6  IDENTIFICATION OF LICENSED TECHNOLOGY............................................................9
   2.7  IMPROVEMENTS.....................................................................................9
   2.8  DURATION OF LICENSE.............................................................................10
   2.9  NO PATENT LICENSES..............................................................................10
   2.10  THIRD PARTY TECHNOLOGY.........................................................................10
   2.11  TERMINATION....................................................................................10
ARTICLE III - TRADEMARKS ALLOCATION OF OWNERSHIP AND LICENSE GRANTS.....................................11
   3.1  ASSIGNMENT......................................................................................11
   3.2  LICENSE GRANT...................................................................................11
   3.3  LICENSE RESTRICTIONS............................................................................11
</TABLE>

<PAGE>   3

<TABLE>
<S>                                                                                                    <C>
   3.4  LICENSEE UNDERTAKINGS...........................................................................11
   3.5  NON-TRADEMARK USE...............................................................................12
   3.6  RESERVATION OF RIGHTS...........................................................................12
   3.7  SUBLICENSES.....................................................................................12
   3.8  ENFORCEMENT OF AGREEMENTS.......................................................................12
   3.9  ROYALTIES.......................................................................................13
   3.10  TRADEMARK USAGE GUIDELINES.....................................................................13
   3.11  OWNERSHIP AND RIGHTS...........................................................................13
   3.12  PROTECTION OF MARKS............................................................................13
   3.13  SIMILAR MARKS..................................................................................13
   3.14  INFRINGEMENT PROCEEDINGS.......................................................................14
   3.15  TERMINATION....................................................................................14
   3.16  USE OF MARKS FOLLOWING TERMINATION.............................................................14
ARTICLE IV - PATENTS ALLOCATION OF OWNERSHIP AND LICENSE GRANTS.........................................14
   4.1  PATENT OWNERSHIP................................................................................14
   4.2  LICENSE GRANTS TO SOUTHERN......................................................................15
   4.3  LICENSE GRANTS TO SOUTHERN ENERGY...............................................................15
   4.4  IDENTIFICATION OF LICENSED PATENTS..............................................................15
   4.5  SUBLICENSE RIGHTS...............................................................................15
   4.6  DURATION........................................................................................15
   4.7  ROYALTIES.......................................................................................15
   4.8  PATENT APPLICATIONS AND INVENTION DISCLOSURES...................................................15
   4.9  ADDITIONAL OBLIGATIONS WITH REGARD TO SOUTHERN PATENTS..........................................16
   4.10  DEFENSIVE PROTECTION MEASURES..................................................................16
   4.11  STANDARDS BODIES...............................................................................16
   4.12  ASSIGNMENT OF PATENTS..........................................................................16
   4.13  RESPONSE TO REQUESTS...........................................................................16
   4.14  RECORDATION OF LICENSES........................................................................17
ARTICLE V CONFIDENTIALITY...............................................................................17
ARTICLE VI DISPUTE RESOLUTION...........................................................................17
ARTICLE VII LIMITATION OF LIABILITY.....................................................................18
ARTICLE VIII MISCELLANEOUS PROVISIONS...................................................................18
   8.1  DISCLAIMER......................................................................................18
   8.2  NO IMPLIED LICENSES.............................................................................18
   8.3  INFRINGEMENT SUITS..............................................................................18
   8.4  NO OTHER OBLIGATIONS............................................................................19
   8.5  ENTIRE AGREEMENT................................................................................19
   8.6  GOVERNING LAW...................................................................................19
   8.7  DESCRIPTIVE HEADINGS............................................................................19
   8.8  NOTICES.........................................................................................19
   8.9  NONASSIGNABILITY................................................................................20
   8.10  SEVERABILITY...................................................................................20
   8.11  FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE..........................................21
   8.12  AMENDMENT......................................................................................21
   8.13  COUNTERPARTS...................................................................................21
   8.14  GOVERNMENTAL APPROVAL..........................................................................21
</TABLE>

<PAGE>   4

      TECHNOLOGY AND INTELLECTUAL PROPERTY OWNERSHIP AND LICENSE AGREEMENT

         This Technology and Intellectual Property Ownership and License
Agreement (the "Agreement") dated as of September 1, 2000 (the "Effective
Date"), between The Southern Company, a Delaware corporation ("Southern"),
having an office at 270 Peachtree Street, N.W., Atlanta, Georgia 30303, and
Southern Energy, Inc., a Delaware corporation ("Southern Energy"), having an
office at 900 Ashwood Parkway, Suite 500, Atlanta, Georgia 30338-4780.

         WHEREAS, the Board of Directors of Southern has determined that it is
in the best interest of Southern and its stockholders to separate Southern's
existing businesses into two independent businesses;

         WHEREAS, as part of the foregoing, Southern and Southern Energy have
entered into a Master Separation Agreement (as defined below), which provides,
among other things, the initial public offering of Southern Energy stock, the
distribution of such stock and the execution and delivery of certain other
agreements in order to facilitate and provide for the foregoing; and

         WHEREAS, also as part of the foregoing, Southern and Southern Energy
desire to resolve and assign ownership of certain technology and intellectual
property and each party desires to license to the other party certain of its
technology and intellectual property.

         NOW, THEREFORE, in consideration of the mutual promises of the
parties, and of good and valuable consideration, it is agreed by and between
the parties as follows:

                                   ARTICLE I
                                  DEFINITIONS

         For the purpose of this Agreement the following capitalized terms are
defined in this Article I and shall have the meaning specified herein:

         1.1 AFFILIATED COMPANY. "Affiliated Company" shall have the same
meaning as defined in the Master Separation Agreement.

         1.2 ALLOCATED PATENT ASSETS DATABASE. "Allocated Patent Assets
Database" means the Allocated Patent Assets Database as set forth on the
attached Exhibit A, as it may be updated by the parties upon mutual agreement
from time to time to add Patents, patent applications and Invention
Disclosures.

         1.3 ASSIGNED PATENTS. "Assigned Patents" means only those;

         (a)      Patents, patent applications and Invention Disclosures
allocated to Southern Energy in the Allocated Patent Assets Database;

<PAGE>   5

         (b)      Patent applications filed on the foregoing Invention
Disclosures described in Section (a);

         (c)      continuations, continuations-in-part, divisions and
substitutions of any of the foregoing Patent applications described in Sections
(a) and (b);

         (d)      Patents which may issue on any of the foregoing Patent
applications described in Sections (a)-(c);

         (e)      renewals, reissues, reexaminations and extensions of the
foregoing Patents described in Sections (a) and (d); and

         (f)      foreign Patent applications and Patents that are counterparts
of any of the foregoing Patent applications or Patents described in Sections
(a)-(e), including any Patent application or Patent to the extent that it
claims priority from any of the foregoing Patent applications or Patents
described in Sections (a)-(e); but

         (g)      excluding from any Patent or Patent application described in
Sections (c)-(f) any claim (i) directed to subject matter that does not appear
in any Patent application having a First Effective Filing Date prior to the
Separation Date and (ii) of which neither Southern Energy nor any person having
a legal duty to assign his/her interest therein to Southern Energy is entitled
to be named as an inventor.

         1.4 CHANGE OF CONTROL DATE. "Change of Control Date" means the earlier
of: (a) the Distribution Date, or (b) the first date on which Southern ceases
to control at least 33 1/3% of the common stock of Southern Energy then
outstanding.

         1.5 COPYRIGHTS. "Copyrights" mean collectively (i) any copyright in
any original works of authorship fixed in any tangible medium of expression as
set forth in 17 U.S.C. Section 101 et seq., whether registered or unregistered,
including any applications for registration thereof, (ii) any corresponding
foreign copyrights under the laws of any jurisdiction, in each case, whether
registered or unregistered, and any applications for registration thereof, and
(iii) moral, common law or other rights in creative works however vested under
the laws of any jurisdiction.

         1.6 CORPORATE IDENTITY MATERIALS. "Corporate Identity Materials" means
materials that are not products or product-related and that Southern Energy may
now or hereafter use to communicate its identity, including, by way of example
and without limitation, business cards, letterhead, stationery, paper stock and
other supplies, signage on real property, buildings, fleet and uniforms.

         1.7 DATABASE RIGHTS. "Database Rights" means any rights in databases
under the laws of the United States or any other jurisdiction, whether
registered or unregistered, and any applications for registration thereof. As
used in this Agreement, Database Rights shall not include any databases needed
to provide the Services provided for in the Master Services Agreement, and the
Ancillary Agreements as provided therein.

                                       2
<PAGE>   6

         1.8 DISTRIBUTION DATE. "Distribution Date" shall have the meaning set
forth in the Master Separation and Distribution Agreement.

         1.9 FIRST EFFECTIVE FILING DATE. "First Effective Filing Date" means
the earliest effective filing date in the particular country for any Patent or
any application for any Patent. By way of example, it is understood that the
First Effective Filing Date for a United States Patent is the earlier of (i)
the actual filing date of the United States Patent application which issued
into such Patent, (ii) the priority date under 35 U.S.C. Section 119 for such
Patent, or (iii) the priority date under 35 U.S.C. Section 120 for such Patent.

         1.10 IMPROVEMENTS. "Improvements" to Technology means (i) with respect
to Copyrights, any modifications, derivative works, and translations of works
of authorship, (ii) with respect to Database Rights, any database that is
created by extraction or re-utilization of another database, and (iii) with
respect to trade secrets and other intellectual property rights included within
the definition of Technology and not covered by Sections (i) - (ii) herein, any
improvements of Technology. For the purposes of clarification, an item of
Technology will be deemed to be an Improvement of another item of Technology
only if it is actually derived from such other item of Technology and not
merely because it may have the same or similar functionality or use as such
other item of Technology.

         1.11 INVENTION DISCLOSURE. "Invention Disclosure" means a disclosure
of an invention (i) written for the purpose of allowing legal and business
people to determine whether to file a Patent application with respect to such
invention and (ii) recorded with a control number in the owning party's
records.

         1.12 LICENSED MARKS. "Licensed Marks" means the Marks set forth on
Exhibit B hereto as mutually amended by the parties hereto from time to time.

         1.13 LICENSED SOUTHERN ENERGY TECHNOLOGY. "Licensed Southern Energy
Technology" means, specifically including without limitation as listed on
Exhibit C as mutually amended by the parties hereto from time to time pursuant
to the procedure set forth in Article II herein, any Technology:

         (a)      which, as of the Separation Date, Southern Energy or any
Subsidiary or Affiliated Company of Southern Energy (i) owns or controls or
(ii) otherwise has the right to grant any licenses of the type and on the terms
herein granted to Southern without the obligation to pay royalties or other
consideration to Third Parties;

         (b)      which is in the possession of Southern or its Subsidiaries or
Affiliated Companies as of the Separation Date and necessary to the ongoing
business operation of Southern; and

         (c)      the competitive harm to Southern Energy resulting from the
license granted in Article II herein does not greatly outweigh the benefit to
Southern resulting from the license.

         1.14 LICENSED SOUTHERN TECHNOLOGY. "Licensed Southern Technology"
means, specifically including without limitation as listed on Exhibit D as
mutually amended by the

                                       3
<PAGE>   7

parties from time to time pursuant to the procedure set forth in Article II
herein, any Technology:

         (a)      which, as of the Separation Date, Southern or any Subsidiary
or Affiliated Company of Southern (i) owns or controls or (ii) otherwise has
the right to grant any licenses of the type and on the terms herein granted to
Southern Energy without the obligation to pay royalties or other consideration
to Third Parties;

         (b)      which is in the possession of Southern Energy, its
Subsidiaries or Affiliated Companies as of the Separation Date and necessary to
the ongoing business operation of Southern Energy; and

         (c)      the competitive harm to Southern resulting from the license
to Southern Energy granted in Article II herein, does not greatly outweigh the
benefit to Southern Energy resulting from the license.

         1.15 MARK. "Mark" means any trademark, service mark, trade name, and
the like, or other word, name, symbol or device, or any combination thereof,
used or intended to be used by a Person to identify and distinguish the
products or services of that Person from the products or services of others and
to indicate the source of such goods or services, including without limitation
all registrations and applications therefor throughout the world and all common
law and other rights therein throughout the world.

         1.16 MASTER SEPARATION AGREEMENT. "Master Separation Agreement" means
the Master Separation and Distribution Agreement between the parties executed
simultaneously herewith.

         1.17 PATENTS. "Patents" means patents, utility models, design patents,
design registrations, certificates of invention and other governmental grants
for the protection of inventions or industrial designs anywhere in the world
and all reissues, renewals, re-examinations and extensions of any of the
foregoing.

         1.18 PERSON. "Person" means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, and a
governmental entity or any department, agency or political subdivision thereof.

         1.19 SELL. To "Sell" a product means to sell, transfer, lease or
otherwise dispose of a product. "Sale" and "Sold" have the corollary meanings
ascribed thereto.

         1.20 SEPARATION DATE. "Separation Date" shall have the same meaning as
used in the Master Separation Agreement.

         1.21 SOUTHERN ENERGY SERVICES. "Southern Energy Services" means any
and all services which Southern Energy or any of its Subsidiaries or Affiliated
Companies provide as of the Separation Date.

                                       4
<PAGE>   8

         1.22 SOUTHERN ENERGY OWNED TECHNOLOGY. "Southern Energy Owned
Technology" means as listed on Exhibit E (i) all Technology developed solely by
Southern Energy, its Subsidiaries or its subcontractors for Southern Energy or
its Subsidiaries, (ii) all Technology for which the direct costs were solely
paid by Southern Energy.

         1.23 SOUTHERN PATENTS. "Southern Patents" mean the Patents:

         (a)      identified on the Allocated Patent Assets Database as owned
by Southern and licensed to Southern Energy; and

         (b)      which are in the possession of Southern Energy, its
Subsidiaries or Affiliated Companies as of the Separation Date and necessary to
the ongoing business operation of Southern Energy; and

         (c)      the competitive harm to Southern resulting from the license
to Southern Energy granted in Article IV herein, does not greatly outweigh the
benefit to Southern Energy resulting from the license.

         1.24 SOUTHERN SERVICES. "Southern Services" means any and all services
and products which Southern or any of its Subsidiaries or Affiliated Companies
provide as of the Separation Date.

         1.25 SUBLICENSED SOUTHERN ENERGY TECHNOLOGY. "Sublicensed Southern
Energy Technology" means, specifically including, without limitation, the
Technology set forth on Exhibit F as mutually amended from time to time, any
Technology:

         (a)      which as of the Separation Date, Southern Energy or any
Subsidiary or Affiliated Company of Southern Energy (i) is licensed to use
pursuant to a license agreement from any Third Party Person; and

         (b)      which is in the possession of Southern, its Subsidiaries or
Affiliated Companies as of the Separation Date.

         1.26     SUBLICENSED SOUTHERN TECHNOLOGY. "Sublicensed Southern
Technology" means, specifically including without limitation, the Technology
set forth on Exhibit G as mutually amended from time to time, any Technology:

         (a)      which as of the Separation Date, Southern or any Subsidiary
or Affiliated Company of Southern: (i) is licensed to use pursuant to a license
agreement from any Third Party; and

         (b)      which is in the possession of Southern Energy, its
Subsidiaries or Affiliated Companies as of the Separation Date.

         1.27 SUBSIDIARY. "Subsidiary" means the same as defined in the Master
Separation Agreement.

                                       5
<PAGE>   9

         1.28 TECHNOLOGY. "Technology" means Copyrights, Database Rights, trade
secrets and any other intellectual property right, but expressly does not
include (i) any Mark, trademark, trade name, trade dress or service mark, or
applications for registration thereof, or (ii) any Patents or applications
therefor but does include trade secret rights in and to inventions disclosed in
such Patent applications and Invention Disclosures.

         1.29 THIRD PARTY. "Third Party" means a Person other than Southern and
its Subsidiaries and Affiliated Companies and Southern Energy and its
Subsidiaries and Affiliated Companies.

         1.30 TRADEMARK USAGE GUIDELINES. "Trademark Usage Guidelines" means
the guidelines for proper usage of the Licensed Marks, as in use immediately
prior to the Separation Date, as such guidelines may be revised and updated in
writing by Southern from time to time.

                            ARTICLE II - TECHNOLOGY
                          ALLOCATION OF OWNERSHIP AND
                                 LICENSE GRANTS

         2.1 ASSIGNMENT. Subject to Sections 2.2 and 2.3 below, Southern hereby
grants, conveys and assigns (and agrees to cause its appropriate Subsidiaries
to grant, convey and assign) to Southern Energy, by execution hereof (or, where
appropriate or required, by execution of separate instruments of assignment),
all its (and their) right, title and interest in and to the Southern Energy
Owned Technology, to be held and enjoyed by Southern Energy, its successors and
assigns. Southern further grants, conveys and assigns (and agrees to cause its
appropriate Subsidiaries to grant, convey and assign) to Southern Energy all
its (and their) right, title and interest in and to any and all causes of
action and rights of recovery for past infringement of Copyrights and Database
Rights in and to the Southern Energy Owned Technology, and for past
misappropriation of trade secrets in and to the Southern Energy Owned
Technology. Southern further covenants that Southern will, without demanding
any further consideration therefor, at the request and expense of Southern
Energy (except for the value of the time of Southern employees), do (and cause
its Subsidiaries to do) all lawful and just acts that may be or become
necessary for evidencing, maintaining, recording and perfecting Southern
Energy's rights to such Southern Energy Owned Technology consistent with
Southern's general business practice as of the Separation Date, including but
not limited to, execution and acknowledgment of (and causing its Subsidiaries
to execute and acknowledge) assignments and other instruments in a form
reasonably required by Southern Energy for each Copyright or Database Right
jurisdiction. Southern Energy hereby waives any and all claims of any right,
title and interest in and to any Technology not within the definition of
Southern Energy Owned Technology subject to the licensees granted in this
Article.

         2.2 PRIOR GRANTS. Southern Energy acknowledges and agrees that the
foregoing assignment is subject to any and all licenses or other rights that
may have been granted by Southern or its Subsidiaries with respect to the
Southern Energy Owned Technology prior to the Separation Date. Southern shall
respond to reasonable inquiries from Southern Energy regarding any such prior
grants.

                                       6
<PAGE>   10

         2.3 ASSIGNMENT DISCLAIMER. SOUTHERN ENERGY ACKNOWLEDGES AND AGREES
THAT THE FOREGOING ASSIGNMENTS ARE MADE ON AN "AS IS," QUITCLAIM BASIS AND THAT
NEITHER SOUTHERN NOR ANY SUBSIDIARY OR AFFILIATED COMPANY OF SOUTHERN HAS MADE
OR WILL MAKE ANY WARRANTY WHATSOEVER, EXPRESS, IMPLIED OR STATUTORY, INCLUDING
WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, TITLE, ENFORCEABILITY OR NON-INFRINGEMENT.

         2.4 LICENSE TO SOUTHERN.

         (a)      Southern Energy grants (and agrees to cause its appropriate
Subsidiaries or Affiliated Companies to grant) to Southern and its Subsidiaries
and Affiliated Companies, the following personal, nonexclusive, worldwide,
fully paid up, royalty-free and non-transferable (except as specified in
Section 8.9 below) licenses:

                  (i)      under its and their Copyrights in and to the
         Licensed Southern Energy Technology, (A) to reproduce and have
         reproduced the works of authorship included in the Licensed Southern
         Energy Technology and Improvements thereof prepared by or for
         Southern, in whole or in part, as part of Southern Services, (B) to
         prepare Improvements or have Improvements prepared for it based upon
         the works of authorship included in the Licensed Southern Energy
         Technology in order to provide Southern Services, (C) to distribute
         (by any means and using any technology, whether now known or unknown,
         including without limitation electronic transmission) copies of the
         works of authorship included in the Licensed Southern Energy
         Technology and Improvements thereof prepared by or for Southern to the
         public by sale or other transfer of ownership or by rental, lease or
         lending, as part of Southern Services, and (D) to perform (by any
         means and using any technology, whether now known or unknown,
         including without limitation electronic transmission) and display the
         works of authorship included in the Licensed Southern Energy
         Technology and Improvements thereof prepared by or for Southern, as
         part of Southern Services;

                  (ii)     under its and their Database Rights in and to the
         Licensed Southern Energy Technology, to extract data from the
         databases included in the Licensed Southern Energy Technology and to
         re-utilize such data to design, develop, Sell and offer for sale
         Southern Services and to Sell such Southern Services that incorporate
         such data, databases and Improvements thereof prepared by or for
         Southern; and

                  (iii)    under its and their trade secrets and other
         intellectual property rights in and to the Licensed Southern Energy
         Technology (except the intellectual property rights excluded from the
         definition of Technology), to use the Licensed Southern Energy
         Technology and Improvements thereof prepared by or for Southern to
         design, develop, Southern Services.

         (b)      Without limiting the generality of the foregoing licenses
granted in Section 2.4 (a)

                                       7
<PAGE>   11

above, with respect to software included within the Licensed Southern Energy
Technology, such licenses include the right to use, modify, and reproduce such
software and Improvements thereof made by or for Southern as part of the
Southern Services, in source code and object code form, and to Sell such
software and Improvements thereof made by or for Southern, in source code and
object code form, solely as part of the Southern Services.

         (c)      Southern, its Subsidiaries and Affiliated Companies may not
grant sublicenses under Sections (a) and (b) above.

         (d)      The license granted in this Section may be assigned to a
Person that succeeds to all or substantially all of the assets of Southern or
its Subsidiaries or Affiliated Companies, but may not be sublicensed by such
future assigns.

         2.5 LICENSE TO SOUTHERN ENERGY.

         (a)      Southern grants (and agrees to cause its appropriate
Subsidiaries or Affiliated Companies to grant) to Southern Energy and its
Subsidiaries and Affiliated Companies the following personal, nonexclusive,
worldwide, fully paid up, royalty-free and non-transferable (except as
specified in Section 8.9 below) licenses:

                  (i)      under its and their Copyrights in and to the
         Licensed Southern Technology, (A) to reproduce and have reproduced the
         works of authorship included in the Licensed Southern Technology and
         Improvements thereof prepared by or for Southern Energy, in whole or
         in part, as part of Southern Energy Services, (B) to prepare
         Improvements or have Improvements prepared for it based upon the works
         of authorship included in the Licensed Southern Technology in order to
         create Southern Energy Services, (C) to distribute (by any means and
         using any technology, whether now known or unknown, including without
         limitation electronic transmission) copies of the works of authorship
         included in the Licensed Southern Technology and Improvements thereof
         prepared by or for Southern Energy to the public by sale or other
         transfer of ownership or by rental, lease or lending, as part of
         Southern Energy Services, and (D) to perform (by any means and using
         any technology, whether now known or unknown, including without
         limitation electronic transmission) and display the works of
         authorship included in the Licensed Southern Technology and
         Improvements thereof prepared by or for Southern Energy, as part of
         Southern Energy Services;

                  (ii)     under its and their Database Rights in and to the
         Licensed Southern Technology, to extract data from the databases
         included in the Licensed Southern Technology and to re-utilize such
         data to design, develop, manufacture and have manufactured Southern
         Energy Services and to Sell such Southern Energy Services that
         incorporate such data, databases and Improvements thereof prepared by
         or for Southern Energy; and

                  (iii)    under its and their trade secrets and other
         intellectual property rights in and to the Licensed Southern
         Technology (except the intellectual property rights excluded from the
         definition of Technology), to use the Licensed Southern Technology and
         Improvements

                                       8
<PAGE>   12

         thereof prepared by or for Southern Energy to Sell such Southern
         Energy Services.

         (b)      Without limiting the generality of the foregoing licenses
granted in Section 2.5(a) above, with respect to software included within the
Licensed Southern Technology, such licenses include the right to use, modify,
and reproduce such software and Improvements thereof made by or for Southern
Energy as part of the Southern Energy Services, in source code and object code
form, and to Sell such software and Improvements thereof made by or for
Southern Energy, in source code and object code form, solely as part of the
Southern Energy Services.

         (c)      Southern Energy, its Subsidiaries and Affiliated Companies
may not grant sublicenses under Sections (a) and (b) above.

         (d)      The license granted in this Section may be assigned to a
Person that succeeds to all or substantially all of the assets of Southern
Energy or its Subsidiaries or Affiliated Companies, but may not be sublicensed
by such future assigns.

         2.6 IDENTIFICATION OF LICENSED TECHNOLOGY. Prior to the Separation
Date, and thereafter from time to time as the parties identify applicable
Technology, Southern Energy shall use reasonable best efforts to identify to
Southern the Licensed Southern Technology, and Southern shall use reasonable
best efforts to identify to Southern Energy the Licensed Southern Energy
Technology. The parties shall also identify to each other the Technology each
believes should be specifically excluded from Licensed Southern Technology and
Licensed Southern Energy Technology. As thereafter mutually agreed upon by the
parties, the Licensed Southern Energy Technology and Licensed Southern
Technology shall be set forth on Exhibit C and Exhibit D, respectively, as
amended from time to time. The tangible copies of all documents or other
materials embodying excluded Technology shall either be returned to its owner
or destroyed, as directed by its owner. In the absence of an express exclusion,
Technology within the definition of Southern Licensed Technology and Southern
Energy Licensed Technology shall be licensed pursuant to Sections 2.4 and 2.5
herein, even if not listed in Exhibit C or Exhibit D. The parties' senior
executives responsible for intellectual property, or their designees, shall
mutually agree upon such procedures as necessary or helpful to comply with the
requirements of this Section. Disputes between the parties regarding this
Section which cannot be resolved by such procedures shall follow the procedures
for disputes as set forth in the Master Separation Agreement.

         2.7 IMPROVEMENTS. As between the parties, after the Separation Date,
Southern Energy hereby retains all right, title and interest, including all
intellectual property rights, in and to any Improvements to Licensed Southern
Technology made by or for Southern Energy in the exercise of the licenses
granted to it hereunder, subject only to the ownership of Southern in the
underlying Licensed Southern Technology, and Southern hereby retains all right,
title and interest, including all intellectual property rights, in and to any
Improvements to Licensed Southern Energy Technology made by or for Southern in
the exercise of the licenses granted to it hereunder, subject only to the
ownership of Southern Energy in the underlying Licensed Southern Energy
Technology. Upon the request of the licensing party, the licensee shall grant
the licensing party a license in and to any such Improvements pursuant to the
terms of Section 2.4 or 2.5 herein as applicable.

                                       9
<PAGE>   13

         2.8 DURATION OF LICENSE. The licenses granted above to the Licensed
Southern Technology and Licensed Southern Energy Technology shall continue in
perpetuity (or, in the case of Copyrights and Database Rights, until the
expiration of the term thereof).

         2.9 NO PATENT LICENSES. Nothing contained in this Agreement shall be
construed as conferring to either party by implication, estoppel or otherwise
any license or right under any Patent or applications therefor, whether or not
the exercise of any right herein granted necessarily employs an invention of
any existing or later issued Patent. The applicable licenses granted between
Southern and Southern Energy with respect to Patents are set forth in Article
IV herein.

         2.10 THIRD PARTY TECHNOLOGY.

         (a)      Southern hereby agrees to sublicense or to use reasonable
commercial efforts to obtain, or to cause to be obtained any consent, approval
or amendment required to convey a license or sublicense in the Sublicensed
Southern Technology to Southern Energy pursuant to the same or substantially
the same terms as Southern's license.

         (b)      Southern Energy hereby agrees to sublicense or to use
commercially reasonable efforts to obtain or cause to be obtained any consent,
approval or amendment required to obtain a license or sublicense in the
Sublicensed Southern Energy Technology to Southern pursuant to the same or
substantially the same terms as Southern Energy's license.

         2.11 TERMINATION.

                 2.11.1 VOLUNTARY TERMINATION. By written notice to the other
party, each party may voluntarily terminate all or a specified portion of the
licenses and rights granted to it hereunder by such other party. Such notice
shall specify the effective date of such termination and shall clearly specify
any affected Technology, product or service.

                 2.11.2 SURVIVAL. Any voluntary termination of licenses and
rights of a party under Section (a) herein shall not affect such party's
licenses and rights with respect to any licensed product made or service
furnished prior to such termination, and shall not affect the licenses and
rights granted to the other party hereunder.

                 2.11.3 NO OTHER TERMINATION. Each party acknowledges and
agrees that its remedy for breach by the other party of the licenses granted to
it hereunder or of any other provision hereof shall be, subject to the
requirements of Article VI, to bring a claim to recover damages subject to the
limits set forth in this Agreement and to seek any other appropriate equitable
relief, other than termination of the licenses granted by it in this Agreement.

                            ARTICLE III - TRADEMARKS
                      ALLOCATION OF OWNERSHIP AND LICENSE
                                     GRANTS

                                      10
<PAGE>   14

         3.1 ASSIGNMENT. Southern Energy hereby grants, conveys and assigns
(and agrees to cause its appropriate Subsidiaries to grant, convey and assign)
to Southern, by execution hereof (or, where appropriate or required, by
execution of separate instruments of assignment), all its (and their) right,
title and interest in and to the mark "Southern Energy" and any and all
variants incorporating the mark "Southern Energy," including all applications
and registrations therefor, and goodwill associated therewith, to be held and
enjoyed by Southern, its successors and assigns and waives any and all claims
to such Mark, subject to the license granted herein.

         3.2 LICENSE GRANT. Southern grants (and agrees to cause its
appropriate Subsidiaries to grant) to Southern Energy a personal, nonexclusive,
worldwide, fully-paid up and non-transferable (except as set forth in Section
8.9) license to use the Licensed Marks solely in connection with the
advertisement, promotion and Sale of the Southern Energy Services.

         3.3 LICENSE RESTRICTIONS.

         (a)      Once Southern Energy abandons the use of a Licensed Mark for
the Southern Energy Services, then Southern Energy agrees that its license
granted hereunder with respect to that Licensed Mark shall thereupon terminate.

         (b)      Southern Energy may not use any Licensed Mark in direct
association with another non-Licensed Mark such that the two Marks appear to be
a single Mark or in any other composite manner with any Marks of Southern
Energy or any Third Party (other than the Southern Energy Business Marks as
permitted herein).

         (c)      In all respects, Southern Energy's usage of the Licensed
Marks pursuant to the license granted hereunder shall be in a manner consistent
with the high standards, reputation and prestige represented by the Licensed
Marks, and any usage by Southern Energy that is inconsistent with the foregoing
shall be deemed to be outside the scope of the license granted hereunder. As a
condition to the license granted hereunder, Southern Energy shall at all times
present, position and promote the Southern Energy Business when using one or
more of the Licensed Marks in a manner consistent with the high standards and
prestige represented by the Licensed Marks.

         3.4 LICENSEE UNDERTAKINGS. As a condition to the licenses granted
hereunder, Southern Energy undertakes to Southern that:

         (a)      Southern Energy shall not use the Licensed Marks (or any
other Mark of Southern) in any manner contrary to public morals, in any manner
which is deceptive or misleading, which ridicules or is derogatory to the
Licensed Marks, or which compromises or reflects unfavorably upon the goodwill,
good name, reputation or image of Southern or the Licensed Marks, or which
might jeopardize or limit Southern's proprietary interest therein.

         (b)      Southern Energy shall not use the Licensed Marks in
connection with any products or services other than in connection with the
Southern Energy Services.

         (c)      Southern Energy shall not (i) misrepresent to any Person the
scope of its authority

                                      11
<PAGE>   15

under this Agreement, (ii) incur or authorize any expenses or liabilities
chargeable to Southern, or (iii) take any actions that would impose upon
Southern any obligation or liability to a Third Party other than obligations
under this Agreement, or other obligations which Southern expressly approves in
writing for Southern Energy to incur on its behalf.

         (d)      All press releases and corporate advertising and promotions
that embody the Licensed Marks and messages conveyed thereby shall be
consistent with the high standards and prestige represented by the Licensed
Marks.

         3.5 NON-TRADEMARK USE. Each party may make appropriate and truthful
references to the other party, the party's services and affiliation between the
parties.

         3.6 RESERVATION OF RIGHTS. Except as otherwise expressly provided in
this Agreement, Southern shall retain all rights in and to the Licensed Marks,
including without limitation:

         (a)      All rights of ownership in and to the Licensed Marks;

         (b)      The right to use (including the right of Southern's
Subsidiaries and Affiliated Companies to use) the Licensed Marks, either alone
or in combination with other Marks, in connection with the marketing, offer or
provision of any product or service, including any product or service which
competes with Southern Energy Business products or services; and

         (c)      The right to license Third Parties to use the Licensed Marks.

         3.7 SUBLICENSES.

         Subject to the terms and conditions of this Agreement, including all
applicable Trademark Usage Guidelines and other restrictions in this Agreement,
Southern Energy may grant sublicenses to its Subsidiaries and Affiliated
Companies to use the Licensed Marks in accordance with the license grant above;
provided, that (i) Southern Energy enters into a written sublicense agreement
with each such Subsidiary or Affiliated Company sublicensee, and (ii) such
agreement does not include the right to grant further sublicenses other than,
in the case of a sublicensed Subsidiary or Affiliated Company of Southern
Energy, to another Subsidiary or Affiliated Company of Southern Energy.
Southern Energy shall provide copies of such written sublicense agreements to
Southern upon request. If Southern Energy grants any sublicense rights pursuant
to this Section (a) and any such sublicensed Subsidiary or Affiliated Company
ceases to be a Subsidiary or Affiliated Company, then the sublicense granted to
such Subsidiary pursuant to this Section shall terminate one hundred eighty
(180) days from the date of such cessation.

         3.8 ENFORCEMENT OF AGREEMENTS. Southern Energy shall take all
appropriate measures at Southern Energy's expense promptly and diligently to
enforce the terms of any sublicense agreement or other agreement with any
Subsidiary or Affiliated Company, and shall restrain any such Subsidiary or
Affiliated Company from violating such terms, including without limitation (i)
monitoring the Subsidiaries' and Affiliated Companies' compliance with the
relevant Trademark Usage Guidelines and causing any noncomplying Subsidiary or
Affiliated

                                      12
<PAGE>   16

Company promptly to remedy any failure, (ii) terminating such agreement and/or
(iii) commencing legal action, in each case, using a standard of care
consistent with Southern's practices as of the Separation Date. In the event
that Southern determines that Southern Energy has failed promptly and
diligently to enforce the terms of any such agreement using such standard of
care, Southern reserves the right to enforce such terms, and Southern Energy
shall reimburse Southern for its fully allocated direct costs and expenses
incurred in enforcing such agreement, plus all out-of-pocket costs and
expenses, plus five percent (5%) (or, if such costs and expenses are incurred
more than two (2) years after the Separation Date, ten percent (10%)).

         3.9 ROYALTIES. The license granted in this Article III shall be
royalty-free.

         3.10 TRADEMARK USAGE GUIDELINES. Southern Energy and its Subsidiaries
and Affiliated Companies shall use the Licensed Marks only in a manner that is
consistent with the Trademark Usage Guidelines.

         3.11 OWNERSHIP AND RIGHTS. Southern Energy agrees not to challenge the
ownership or validity of the Licensed Marks. Southern Energy shall not
disparage, dilute or adversely affect the validity of the Licensed Marks.
Southern Energy's use of the Licensed Marks shall inure exclusively to the
benefit of Southern, and Southern Energy shall not acquire or assert any rights
therein. Southern Energy recognizes the value of the goodwill associated with
the Licensed Marks, and that the Licensed Marks may have acquired secondary
meaning in the minds of the public.

         3.12 PROTECTION OF MARKS. Southern Energy shall assist Southern, at
Southern's request and expense, in the procurement and maintenance of
Southern's intellectual property rights in the Licensed Marks. Southern Energy
will not grant or attempt to grant a security interest in the Licensed Marks,
or to record any such security interest in the United States Patent and
Trademark Office or elsewhere, against any trademark application or
registration belonging to Southern. Southern Energy agrees to, and to cause its
Subsidiaries and Affiliated Companies to, execute all documents reasonably
requested by Southern to effect further registration of, maintenance and
renewal of the Licensed Marks, recordation of the license relationship between
Southern and Southern Energy, and recordation of Southern Energy as a
registered user. Southern makes no warranty or representation that trademark
registrations have been or will be applied for, secured or maintained in the
Licensed Marks throughout, or anywhere within, the world. Southern Energy shall
cause to appear on all documents, instruments or other materials bearing the
Licensed Marks, such legends, markings and notices as may be required by
applicable law or reasonably requested by Southern.

         3.13 SIMILAR MARKS. Southern Energy agrees not to use or register in
any country any Mark that infringes Southern's rights in the Licensed Marks, or
any element thereof. If any application for registration is, or has been, filed
in any country by Southern Energy which relates to any Mark that infringes
Southern's rights in the Licensed Marks, Southern Energy shall immediately
abandon any such application or registration or assign it to Southern. Southern
Energy shall not challenge Southern's ownership of or the validity of the
Licensed Marks or any application for registration thereof throughout the
world. Southern Energy shall not use or register in any country any copyright,
domain name, telephone number or any other intellectual

                                      13
<PAGE>   17

property right, whether recognized currently or in the future, or other
designation which would create a likelihood of confusion or otherwise affects
the ownership or rights of Southern in and to the Licensed Marks, or otherwise
to take any action which would adversely affect any of such ownership rights,
or assist anyone else in doing so. Southern Energy shall cause its
Subsidiaries, Affiliated Companies and Authorized Dealers to comply with the
provisions of this Section.

         3.14 INFRINGEMENT PROCEEDINGS. In the event that Southern Energy
learns of any infringement or threatened infringement of the Licensed Marks, or
any unfair competition, passing-off or dilution with respect to the Licensed
Marks, Southern Energy shall notify Southern or its authorized representative
giving particulars thereof, and Southern Energy shall provide necessary
information and assistance to Southern or its authorized representatives at
Southern's expense in the event that Southern decides that proceedings should
be commenced. Notwithstanding the foregoing, Southern Energy is not obligated
to monitor or police use of the Licensed Marks by Third Parties other than any
sublicenses granted by it. Southern shall have exclusive control of any
litigation, opposition, cancellation or related legal proceedings. The decision
whether to bring, maintain or settle any such proceedings shall be at the
exclusive option and expense of Southern, and all recoveries shall belong
exclusively to Southern. Southern Energy shall not and shall have no right to
initiate any such litigation, opposition, cancellation or related legal
proceedings in its own name, but, at Southern's request, agrees to be joined as
a party in any action taken by Southern to enforce its rights in the Licensed
Marks. Southern shall incur no liability to Southern Energy or any other Person
under any legal theory by reason of Southern's failure or refusal to prosecute
or by Southern's refusal to permit Southern Energy to prosecute, any alleged
infringement by Third Parties, nor by reason of any settlement to which
Southern may agree.

         3.15 TERMINATION.

         (a)      By written notice to Southern, Southern Energy may
voluntarily terminate all or a specified portion of the licenses and rights
granted to it hereunder by Southern. Such notice shall specify the effective
date of such termination and shall clearly specify any affected Licensed Marks.

         (b)      The licenses, sublicenses and rights granted to Southern
Energy hereunder shall terminate on the Change of Control Date unless extended
in Southern's sole discretion and confirmed in writing.

         3.16 USE OF MARKS FOLLOWING TERMINATION. Southern shall not use the
marks "Southern Energy," "Southern Company Energy Marketing" or any mark
incorporating "Southern Energy" for eighteen (18) months from the date Southern
Energy ceases use of such marks, unless shortened in Southern Energy's sole
discretion and confirmed in writing.

                              ARTICLE IV - PATENTS
                            ALLOCATION OF OWNERSHIP
                               AND LICENSE GRANTS

         4.1 PATENT OWNERSHIP. Southern Energy hereby waives any and all claims
of any

                                      14
<PAGE>   18

right, title and interest in and to any Patents not within the definition of
Assigned Patents, subject to the licenses granted in this Article.

         4.2 LICENSE GRANTS TO SOUTHERN. Southern Energy grants (and agrees to
cause its appropriate Subsidiaries or Affiliated Companies to grant) to
Southern, under the Southern Energy Patents, a personal, irrevocable,
nonexclusive, worldwide and non-transferable (except as set forth in Section
8.9) license solely to Sell and offer for sale Southern Services.

         4.3 LICENSE GRANTS TO SOUTHERN ENERGY. Southern grants (and agrees to
cause its appropriate Subsidiaries or Affiliated Companies to grant) to
Southern Energy, under the Southern Patents, a personal, irrevocable,
nonexclusive, worldwide, and non-transferable (except as set forth in Section
8.9) license solely to Sell and offer for sale Southern Energy Services.

         4.4 IDENTIFICATION OF LICENSED PATENTS. Prior to the Separation Date,
and thereafter from time to time upon additions to the Allocated Patent Assets
Database, (a) Southern Energy shall use reasonable best efforts to identify to
Southern the Southern Patents, and (b) Southern shall use reasonable best
efforts to identify to Southern Energy the Southern Energy Patents. The parties
shall also identify to each other the Patents specifically excluded from
Southern Patents and Southern Energy Patents. As thereafter mutually agreed
upon by the parties, the Southern Patents and Southern Energy Patents shall be
identified on Exhibit A, as amended from time to time. In the absence of an
express exclusion, the Patents within the definition of Southern Patents and
Southern Energy Patents shall be licensed pursuant to Article IV herein. The
parties' senior executives responsible for intellectual property shall mutually
agree upon such procedures as necessary or helpful to comply with the
requirements of this Section. Disputes between the parties regarding this
Section which cannot be resolved by such procedures shall follow the procedures
for disputes as set forth in the Master Separation Agreement.

         4.5 SUBLICENSE RIGHTS.

         (a)      Southern Energy may grant sublicenses to its Subsidiaries and
Affiliated Companies within the scope of its license hereunder (with no right
to grant further sublicenses other than, in the case of a sublicensed
Subsidiary or Affiliated Companies, to another Subsidiary or Affiliated Company
of such party).

         (b)      the license granted in this Section may be assigned to a
Person that succeeds to all or substantially all of the assets of Southern
Energy or its Subsidiaries or Affiliated Companies, but may not be sublicensed
by such future assigns.

         4.6 DURATION. All licenses granted herein with respect to each Patent
shall expire upon the expiration of the term of such Patent.

         4.7 ROYALTIES. The licenses granted in this Article shall be subject
to the same royalties (if any) as paid by Southern for the subject Patent.

         4.8 PATENT APPLICATIONS AND INVENTION DISCLOSURES. Each party agrees,

                                      15
<PAGE>   19

at its own expense, to provide to the other party copies of any Patents, Patent
applications and Invention Disclosures that are listed in the Allocated Patent
Assets Database in the form that such Patents, Patent applications and
Invention Disclosures exist as of the Separation Date. Neither party has any
obligation to disclose or provide copies to the other party any other Patents,
Patent applications or Invention Disclosures. The licenses granted under this
Agreement cover only statutory rights under Patents and statutory rights (if
any) under Patent applications. Trade secret and other non-Patent licenses with
respect to inventions described in Invention Disclosures and Patent
applications shall be solely as set forth in Article IV herein.

         4.9 ADDITIONAL OBLIGATIONS WITH REGARD TO SOUTHERN PATENTS. Southern
Energy acknowledges that its employees and contractors who are former Southern
employees and contractors have a continuing duty to assist Southern with the
prosecution of Southern Patent applications and, accordingly, Southern Energy
agrees to make available, to Southern or its counsel, inventors and other
persons employed by Southern Energy for interviews and/or testimony to assist
in good faith in further prosecution, maintenance or litigation of the Southern
Patents, including the signing of documents related thereto. Any actual and
reasonable out-of-pocket expenses associated with such assistance shall be
borne by Southern, expressly excluding the value of the time of such Southern
Energy personnel; provided, however, that in the case of assistance with
litigation, the parties shall agree on a case by case basis on compensation, if
any, of Southern Energy for the value of the time of Southern Energy's
employees as reasonably required in connection with such litigation.

         4.10 DEFENSIVE PROTECTION MEASURES. The parties shall cooperate
reasonably and in good faith to the extent consistent with each party's own
business objectives in the event that either party is involved in Patent
litigation or controversies in which it would be helped in some way by the
other party's Patents or relevant knowledge. Such cooperation may include, by
way of example, (i) cooperation with respect to knowledge of prior art (whether
the other party's or a Third Party's), (ii) consent to the granting of licenses
to such other party's Patents, and (iii) assignment to such party of such other
party's Patents for the purpose of bringing a counterclaim against a Third
Party. The party requesting such cooperation shall bear the actual and
reasonable out-of-pocket expenses of the cooperating party (except for the
value of the time of the cooperating party's employees).

         4.11 STANDARDS BODIES. The parties agree to cooperate reasonably and
in good faith with each other with respect to the licensing of each party's
Patents in the context of standards bodies, to the extent consistent with each
party's own business objectives.

         4.12 ASSIGNMENT OF PATENTS. Southern shall not assign or grant any
rights under any of the Southern Patents unless such assignment or grant is
made subject to the licenses granted in this Agreement. Southern Energy shall
not assign or grant any rights under any of the Southern Energy Patents unless
such assignment or grant is made subject to the licenses granted in this
Agreement.

         4.13 RESPONSE TO REQUESTS. Each party shall, upon a request from the
other party sufficiently identifying any Patent or Patent application, inform
the other party as to the extent to which said Patent or Patent application is
subject to the licenses and other rights granted

                                      16
<PAGE>   20

hereunder. If such licenses or other rights under said Patent or Patent
application are restricted in scope, copies of all pertinent provisions of any
contract or other arrangement creating such restrictions shall, upon request,
be furnished to the party making such request, unless such disclosure is
prevented by such contract or other arrangement, and in such event, a statement
of the nature of such restriction shall be provided.

         4.14 RECORDATION OF LICENSES.

         (a)      For any country, now or in the future, that requires the
express consent of all inventors or their assignees to the grant of licenses or
rights under Patents issued in such countries for joint inventions:

                  (i)      each party shall give such consent, or shall obtain
         such consent from its employees, its Subsidiaries or employees of any
         of its Subsidiaries, as required to make full and effective any such
         licenses and rights respecting any joint invention granted to a
         grantee hereunder by such party; and

                  (ii)     each party shall take steps that are reasonable
         under the circumstances to obtain from Third Parties whatever other
         consents are necessary to make full and effective such licenses and
         rights respecting any joint invention purported to be granted by it
         hereunder. If, in spite of such reasonable steps, such party is unable
         to obtain the requisite consents from such Third Parties, the
         resulting inability of such party to make full and effective its
         purported grant of such licenses and rights shall not be considered to
         be a breach of this Agreement.

         (b)      Each party agrees, without demanding any further
consideration, to execute (and to cause its Subsidiaries or Affiliated
Companies to execute) all documents reasonably requested by the other party to
effect recordation of the license relationship between the parties created by
this Agreement.

                                   ARTICLE V
                                CONFIDENTIALITY

         The terms of the Master Confidential Disclosure Agreement between the
parties shall apply to any Confidential Information (as defined therein) which
is the subject matter of this Agreement.

                                   ARTICLE VI
                               DISPUTE RESOLUTION

       The parties shall make a good faith attempt to resolve any dispute or
claim arising out of or related to this Agreement through negotiation. Within
thirty (30) days after notice of a dispute or claim is given by either party to
the other party, the parties' senior executive responsible for intellectual
property (or his or her delegate) shall meet to attempt to resolve the matter.
Such meeting shall constitute the vice president meeting required in Section
5.7(c) of the Master Separation Agreement. If the parties' representatives are
unable to resolve the dispute, the

                                      17
<PAGE>   21

dispute resolution procedures set forth in the Master Separation Agreement
shall be followed.

                                  ARTICLE VII
                            LIMITATION OF LIABILITY

         IN NO EVENT SHALL EITHER PARTY OR ITS SUBSIDIARIES, AFFILIATED
COMPANIES, DIRECTORS, OFFICERS OR EMPLOYEES BE LIABLE TO THE OTHER PARTY OR ITS
SUBSIDIARIES OR AFFILIATED COMPANIES FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT,
INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY
THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS
AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT
DAMAGES FOR INFRINGEMENT AVAILABLE TO EITHER PARTY UNDER APPLICABLE LAW IN THE
EVENT OF BREACH BY THE OTHER PARTY OF THE LICENSES GRANTED HEREIN AND SHALL NOT
LIMIT EACH PARTY'S OBLIGATIONS EXPRESSLY ASSUMED IN THE MASTER SEPARATION
AGREEMENT; PROVIDED FURTHER THAT THE EXCLUSION OF PUNITIVE DAMAGES SHALL APPLY
IN ANY EVENT.

                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

         8.1 DISCLAIMER. EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL
TECHNOLOGY, INTELLECTUAL PROPERTY AND ANY OTHER INFORMATION OR MATERIALS
LICENSED OR PROVIDED HEREUNDER IS LICENSED OR PROVIDED ON AN "AS IS" BASIS, AND
THAT NEITHER PARTY NOR ANY OF ITS SUBSIDIARIES OR AFFILIATED COMPANIES MAKES
ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES WHATSOEVER, EXPRESS, IMPLIED OR
STATUTORY, WITH RESPECT THERETO, INCLUDING WITHOUT LIMITATION ANY IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE,
ENFORCEABILITY OR NON-INFRINGEMENT. Without limiting the generality of the
foregoing, neither party nor any of its Subsidiaries or Affiliated Companies
makes any warranty or representation that any manufacture, use, importation,
offer for sale or sale of any product or service will be free from infringement
of any intellectual property right of any Third Party.

         8.2 NO IMPLIED LICENSES. Nothing contained in this Agreement shall be
construed as conferring any rights by implication, estoppel or otherwise, under
any intellectual property right, other than the rights expressly granted in
this Agreement. Neither party is required hereunder to furnish or disclose to
the other any technical or other information (including copies of the Licensed
Southern Energy Technology and the Licensed Southern Technology), except as
specifically provided herein.

         8.3 INFRINGEMENT SUITS. Neither party shall have any obligation
hereunder to institute any action or suit against Third Parties for
infringement of any technology or intellectual property licensed to the other
party hereunder, or to defend any action or suit brought by a Third

                                      18
<PAGE>   22

Party which challenges or concerns the validity of any of such rights or which
claims that any technology or intellectual property assigned or licensed to the
other party hereunder infringes any technology or other intellectual property
right of any Third Party or constitutes a misappropriated trade secret of any
Third Party. Southern shall not have any right to institute any action or suit
against Third Parties for infringement of any technology or intellectual
property of Southern Energy and Southern Energy shall not have any right to
institute any action or suit against Third Parties for infringement of any of
the technology or intellectual property of Southern.

         8.4 NO OTHER OBLIGATIONS. NEITHER PARTY ASSUMES ANY RESPONSIBILITIES
OR OBLIGATIONS WHATSOEVER, OTHER THAN THE RESPONSIBILITIES AND OBLIGATIONS
EXPRESSLY SET FORTH IN THIS AGREEMENT OR A SEPARATE WRITTEN AGREEMENT BETWEEN
THE PARTIES. Without limiting the generality of the foregoing, neither party,
nor any of its Subsidiaries or Affiliated Companies, is obligated to provide
any technical assistance.

         8.5 ENTIRE AGREEMENT. This Agreement, the Master Separation Agreement
and the other Ancillary Agreements (as defined in the Master Separation
Agreement) constitute the entire agreement between the parties with respect to
the subject matter hereof and shall supersede all prior written and oral and
all contemporaneous oral agreements and understandings with respect to the
subject matter hereof. To the extent there is a conflict between this Agreement
and the Master Separation Agreement between the parties, the terms of this
Agreement shall govern.

         8.6 GOVERNING LAW. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Georgia as to all
matters regardless of the laws that might otherwise govern under principles of
conflicts of laws applicable thereto.

         8.7 DESCRIPTIVE HEADINGS. The descriptive headings herein are inserted
for convenience of reference only and are not intended to be part of or to
affect the meaning or interpretation of this Agreement.

         8.8 NOTICES. All notices and other communications hereunder shall be
in writing and shall be deemed to have been duly given when delivered in
person, by telecopy with answer back, by express or overnight mail delivered by
a nationally recognized air courier (delivery charges prepaid), by registered
or certified mail (postage prepaid, return receipt requested) to the respective
parties as follows:

                                      19
<PAGE>   23

              if to Southern:
                  The Southern Company
                  270 Peachtree Street, N.W.
                  Atlanta, Georgia  30303
                  Attention: General Counsel
                  Telecopy: (404) 506-0564

              if to Southern Energy:
                  Southern Energy, Inc.
                  900 Ashwood Parkway
                  Suite 500
                  Atlanta, Georgia  30338-4780
                  Attention: General Counsel
                  Telecopy: (770) 821-6767

or to such other address as the party to whom notice is given may have
previously furnished to the other in writing in the manner set forth above. Any
notice or communication delivered in person shall be deemed effective on
delivery. Any notice or communication sent by telecopy or by air courier shall
be deemed effective on the first Business Day following the day on which such
notice or communication was sent. Any notice or communication sent by
registered or certified mail shall be deemed effective on the third Business
Day following the day on which such notice or communication was mailed. As used
in this Section 8.8, "Business Day" means any day other than a Saturday, a
Sunday or a day on which banking institutions located in the State of Georgia
are authorized or obligated by law or executive order to close.

         8.9 NONASSIGNABILITY. Neither party may, directly or indirectly, in
whole or in part, whether by operation of law or otherwise, assign or transfer
this Agreement, without the other party's prior written consent, and any
attempted assignment, transfer or delegation without such prior written consent
shall be voidable at the sole option of such other party. Notwithstanding the
foregoing, each party (or its permitted successive assignees or transferees
hereunder) may assign or transfer this Agreement as a whole without consent to
a Person that succeeds to all or substantially all of the business or assets of
such party. Without limiting the foregoing, this Agreement will be binding upon
and inure to the benefit of the parties and their permitted successors and
assigns.

         8.10 SEVERABILITY. If any term or other provision of this Agreement is
determined by a nonappealable decision of a court, administrative agency or
arbitrator to be invalid, illegal or incapable of being enforced by any rule of
law or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to either party. Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an
acceptable manner to the end that the transactions contemplated hereby are
fulfilled to the fullest extent possible.

                                      20
<PAGE>   24

         8.11 FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE. No failure
or delay on the part of either party hereto in the exercise of any right
hereunder shall impair such right or be construed to be a waiver of, or
acquiescence in, any breach of any representation, warranty or agreement
herein, nor shall any single or partial exercise of any such right preclude
other or further exercise thereof or of any other right. All rights and
remedies existing under this Agreement are cumulative to, and not exclusive of,
any rights or remedies otherwise available.

         8.12 AMENDMENT. No change or amendment will be made to this Agreement
except by an instrument in writing signed on behalf of each of the parties to
such agreement.

         8.13 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, all of which, taken together, shall be considered to be one and
the same instrument.

         8.14 GOVERNMENTAL APPROVAL. The parties acknowledge that in the past
they have licensed Technology to each other in accordance with certain existing
regulatory authority. The parties intend to implement this Agreement to the
fullest extent permissible under such existing regulatory authority and to
cooperate toward obtaining and maintaining in effect such governmental agency
approvals as may be required in order to implement this Agreement as fully as
possible in accordance with its terms, and to cooperate so as to revise and
mutually agree on such revisions as become necessary in the event regulatory
approval is withheld.

                                      21
<PAGE>   25

         WHEREFORE, the parties have signed this Technology and Intellectual
Property Ownership and License Agreement effective as of the date first set
forth above.

THE SOUTHERN COMPANY                        SOUTHERN ENERGY, INC.:

By:                                         By:
   -----------------------------               ------------------------------
Name:  H. Allen Franklin                    Name:  S. Marce Fuller
Title: President and Chief                  Title: President and Chief
       Operating Officer                           Executive Officer

                                      22
<PAGE>   26

                                   EXHIBIT A
                       "ALLOCATED PATENT ASSETS DATABASE"
                                 (SECTION 1.2)

A.        Southern Energy, Inc.

          None.

B.        Southern Company

     1.   5,968,254, Oct. 19, 1999, Concrete mix containing coal ash and
          organic plant ash, Dodgen, Harold Dean, Hiram, Georgia Larrimore,
          Charles Lamar, Birmingham, Alabama, Southern Company Services,
          Birmingham, Alabama. (LICENSED)

     2.   5,951,200, Sep. 14, 1999, Enclosement to shield structure which
          secures entrance-deterring cap to manhole opening from water and dirt
          containments, Barton, David L., Avondale Estates, Georgia, Barton
          Southern Company, Inc., Conyers, Georgia.

     3.   5,912,916, Jun. 15, 1999, Electric furnace with insulated electrodes
          and process for producing molten metals, Hendrix, Charles F., Pell
          City, Alabama, Alabama Power Company, Birmingham, Alabama.

     4.   5,882,374, Mar. 16, 1999, Process for producing foundry iron with an
          insulated electrode, Hendrix, Charles F., Pell City, Alabama, Alabama
          Power Company, Birmingham, Alabama.

     5.   5,834,686, Nov. 10, 1998, Insulated electrical equipment, Barrett,
          Donald Christopher, Swindon, England Cook, Michael Robert, Swindon,
          England Spalding, Matthew, Newark, Delaware, Raychem Limited,
          Swindon, United Kingdom (03), Date Transaction Recorded: May 17, 1999
          ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). GEORGIA
          POWER COMPANY 333 PIEDMONT AVENUE ATLANTA, GEORGIA 30308 Reel & Frame
          Number: 009974/0524. (LICENSED)

     6.   5,821,656, Oct. 13, 1998, Magnetic bearing with reduced
          control-flux-induced rotor loss, Colby, Roy S., Tariffville,
          Connecticut Piech, Zbigniew, E. Hampton, Connecticut, United
          Technologies Corporation, Hartford, Connecticut (02), Date
          Transaction Recorded: Mar. 31, 1999 ASSIGNMENT OF ASSIGNOR'S INTEREST
          (SEE DOCUMENT FOR DETAILS). SOUTHERN COMPANY ENERGY SOLUTIONS, INC.
          241 RALPH MCGILL BOULEVARD

<PAGE>   27

          ATLANTA, GEORGIA 30308 Reel & Frame Number: 009857/0726. (LICENSED)

     7.   5,747,907, May 5, 1998, Backup bearings for positive re-centering of
          magnetic bearings, Miller, Robin M., Ellington, Connecticut, United
          Technologies Automotive, Inc., Dearborn, Michigan (02), Date
          Transaction Recorded: Jul. 09, 1998 ASSIGNMENT OF ASSIGNOR'S INTEREST
          (SEE DOCUMENT FOR DETAILS). SOUTHERN COMPANY ENERGY SOLUTIONS, INC.
          241 RALPH MCGILL BOULEVARD ATLANTA, GEORGIA 30308 Reel & Frame
          Number: 9297/0204. (LICENSED)

     8.   5,682,015, Oct. 28, 1997, Squirrel shield device, Harben, Michael,
          Acworth, Georgia, Georgia Power Company, Atlanta, Georgia. (LICENSED)

     9.   5,679,922, Oct. 21, 1997, Squirrel shield device, Harben, Michael,
          Woodstock, Georgia, Georgia Power Company, Atlanta, Georgia.
          (LICENSED)

     10.  5,654,976, Aug. 5, 1997, Method for melting ferrous scrap metal and
          chromite in a submerged arc furnace to produce a chromium containing
          iron, Cowx, Peter, Oslo, Norway Rognsaa, Hjalte, Oslo, Norway, Elkem
          Technology a/s, Norway (03), Date Transaction Recorded: Jun. 16, 1998
          ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). ALABAMA
          POWER COMPANY, AN ALABAMA CORPORATION BIRMINGHAM, ALABAMA Reel &
          Frame Number: 009289/0025 Date Transaction Recorded: Feb. 12, 1999
          FREE FORM TEXT GRANT-BACK LICENSE ELKEM ASA HOFFSVEIEN 65 B OSLO,
          NORWAY N-0303 Reel & Frame Number: 009746/0756.

     11.  5,640,472, Jun. 17, 1997, Fiber optic sensor for magnetic bearings,
          Meinzer, Richard A., Glastonbury, Connecticut Grudkowski, Thomas W.,
          Glastonbury, Connecticut Polley, Evan C., Hartford, Connecticut,
          United Technologies Corporation, Hartford, Connecticut (02), Date
          Transaction Recorded: Mar. 31, 1999 ASSIGNMENT OF ASSIGNOR'S INTEREST
          (SEE DOCUMENT FOR DETAILS). SOUTHERN COMPANY ENERGY SOLUTIONS, INC.
          241 RALPH MCGILL BOULEVARD ATLANTA, GEORGIA 30308 Reel & Frame
          Number: 009857/0726. (LICENSED)

     12.  5,634,960, Jun. 3, 1997, Scrap melting in a submerged arc furnace,
          Cowx, Peter, Oslo, Norway, Elkem A/S, Norway (03), Date Transaction
          Recorded: Jun. 16, 1998 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE
          DOCUMENT FOR DETAILS). ALABAMA POWER COMPANY, AN ALABAMA CORPORATION,
          BIRMINGHAM, ALABAMA Reel & Frame Number: .009289/0025 Date
          Transaction Recorded: Feb. 12, 1999 FREE FORM TEXT GRANT-BACK LICENSE
          ELKEM ASA HOFFSVEIEN 65 B OSLO, NORWAY N-0303 Reel & Frame Number:
          009748/0756.

                                       2
<PAGE>   28

     13.  5,590,569, Jan. 7, 1997, Energy storage flywheel device, Nardone,
          Vincent C., South Windsor, Connecticut Thompson, Mark S., Vernon,
          Connecticut Meyer, Thomas G., Lebanon, Connecticut, United
          Technologies Corporation, Hartford, Connecticut, Date Transaction
          Recorded: Mar. 13, 1998 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE
          DOCUMENT FOR DETAILS). SOUTHERN COMPANY ENERGY SOLUTIONS, INC. 241
          RALPH MCGILL BLVD. ATLANTA, GEORGIA 30308 Reel & Frame Number:
          9027/0701 Date Transaction Recorded: Apr. 29, 1998 ASSIGNMENT OF
          ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). SOUTHERN COMPANY
          ENERGY SOLUTIONS, INC. 241 RALPH MCGILL BLVD. ATLANTA, GEORGIA 30308
          Reel & Frame Number: 9138/0243 Date Transaction Recorded: Aug. 26,
          1998 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS).
          SOUTHERN COMPANY ENERGY SOLUTIONS, INC. 241 RALPH MCGILL BLVD.
          ATLANTA, GEORGIA 30308 Reel & Frame Number: 9405/0733. (LICENSED)

     14.  5,588,982, Dec. 31, 1996, Process for producing foundry iron,
          Hendrix, Charles F., Pell City, Alabama, Alabama Power Company,
          Birmingham, Alabama, Date Transaction Recorded: Jun. 16, 1998
          ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). ALABAMA
          POWER COMPANY, AN ALABAMA CORPORATION BIRMINGHAM, ALABAMA Reel &
          Frame Number: 009289/0025 Date Transaction Recorded: Feb. 12, 1999
          FREE FORM TEXT GRANT-BACK LICENSE ELKEM ASA HOFFSVEIEN 65 B OSLO,
          NORWAY 1-0303 Reel & Frame Number: 009748/0756.

     15.  5,588,754, Dec. 31, 1996, Backup bearings for extreme speed touch
          down Applications, Miller, Robin M., Ellington, Connecticut, United
          Technologies Automotive, Inc., Dearborn, Michigan, Date Transaction
          Recorded: Jul. 9, 1998 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE
          DOCUMENT FOR DETAILS). SOUTHERN COMPANY ENERGY SOLUTIONS, INC. 241
          RALPH MCGILL BOULEVARD ATLANTA, GEORGIA 30308 Reel & Frame Number:
          9297/0204. (LICENSED)

     16.  5,586,471, Dec. 24, 1996, Energy storage flywheel device, Nardone,
          Vincent C., South Windsor, Connecticut Thompson, Mark S., Vernon,
          Connecticut Meyer, Thomas G., Lebanon, Connecticut, United
          Technologies Corporation, Hartford, Connecticut, Date Transaction
          Recorded: Mar. 13, 1998 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE
          DOCUMENT FOR DETAILS). SOUTHERN COMPANY ENERGY SOLUTIONS, INC. 241
          RALPH MCGILL BLVD. ATLANTA, GEORGIA 30308 Reel & Frame Number:
          9027/0701 Date Transaction Recorded: Apr. 29, 1998 ASSIGNMENT OF
          ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). SOUTHERN COMPANY
          ENERGY SOLUTIONS, INC. 241 RALPH MCGILL BLVD. ATLANTA, GEORGIA 30308
          Reel & Frame Number: 9138/0243 Date Transaction Recorded: Aug. 26,
          1998 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS).
          SOUTHERN COMPANY ENERGY

                                       3
<PAGE>   29

          SOLUTIONS, INC., 241 RALPH MCGILL BLVD. ATLANTA, GEORGIA 30308 Reel &
          Frame Number: 9405/0733. (LICENSED)

     17.  5,481,198, Jan. 2, 1996, Method and device for measuring corrosion on
          a portion of a metallic path carrying an undetermined load current,
          Patel, Shashikant G., Atlanta, Georgia, The Georgia Power Company,
          Atlanta, Georgia.

     18.  5,479,059, Dec. 26, 1995, Thin film superconductor magnetic bearings,
          Weinberger, Bernard R., Avon, Connecticut, United Technologies
          Corporation, Hartford, Connecticut (02), Date Transaction Recorded:
          Apr. 29, 1996 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR
          DETAILS). UNITED TECHNOLOGIES AUTOMOTIVE INC. DEARBORN, MICHIGAN Reel
          & Frame Number: 7921/0516 Date Transaction Recorded: Jun. 22, 1998
          ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS) -
          SOUTHERN COMPANY ENERGY SOLUTIONS, INC. 241 RALPH MCGILL BOULEVARD
          ATLANTA, GEORGIA 30308 Reel & Frame Number: 9257/0724. (LICENSED)

     19.  5,460,240, Oct. 24, 1995, Stabilized ladder and platform, Jones,
          Cecil G., Gulfport, Mississippi, Mississippi Power Company, Gulfport,
          Mississippi. (LICENSED)

     20.  5,452,625, Sep. 26, 1995, Energy storage flywheel device, Nardone,
          Vincent C., South Windsor, Connecticut Thompson, Mark S., Vernon,
          Connecticut Meyer, Thomas G., Lebanon, Connecticut, United
          Technologies Corporation, Hartford, Connecticut, Date Transaction
          Recorded: Apr. 29, 1996 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE
          DOCUMENT FOR DETAILS). UNITED TECHNOLOGIES AUTOMOTIVE, INC. DEARBORN,
          MICHIGAN Reel & Frame Number: 7921/0524 Date Transaction recorded:
          Oct. 22, 1996 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR
          DETAILS). THE SOUTHERN COMPANY, ATLANTA, GEORGIA Reel & Frame Number:
          8194/0658 Date Transaction Recorded: Nov. 18, 1997 ASSIGNMENT OF
          ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). SOUTHERN DEVELOPMENT
          AND INVESTMENT GROUP, INC., THE 333 PIEDMONT AVENUE ATLANTA, GEORGIA
          30308 Reel & Frame Number: 8800/0972 Date Transaction Recorded: Apr.
          29, 1998 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR
          DETAILS). SOUTHERN COMPANY ENERGY SOLUTIONS, INC. 241 RALPH MCGILL
          BLVD. ATLANTA, GEORGIA 30308 Reel & Frame Number: 9138/0243.
          (LICENSED)

     21.  5,387,451, Feb. 7, 1995, Flywheel containment device, Miller, Robin
          M., Ellington, Connecticut, United Technologies Corporation,
          Hartford, Connecticut, Date Transaction Recorded: Sep. 18, 1995
          ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS) - UNITED
          TECHNOLOGIES AUTOMOTIVE, INC. DEARBORN, MICHIGAN Reel & Frame Number:

                                       4
<PAGE>   30

          7658/0048 Date Transaction Recorded: Oct. 22, 1996 ASSIGNMENT OF
          ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). THE SOUTHERN COMPANY,
          ATLANTA, GEORGIA Reel & Frame Number: 8186/0791 Date Transaction
          Recorded: Nov. 18, 1997 ASSIGNMENT OF ASSIGNOR'S INTEREST (SEE
          DOCUMENT FOR DETAILS) SOUTHERN DEVELOPMENT AND INVESTMENT GROUP,
          INC., THE 333 PIEDMONT AVENUE ATLANTA, GEORGIA 30308 Reel & Frame
          Number: 8800/0972 Date Transaction Recorded: Apr. 29, 1998 ASSIGNMENT
          OF ASSIGNOR'S INTEREST (SEE DOCUMENT FOR DETAILS). SOUTHERN COMPANY
          ENERGY SOLUTIONS, INC. 241 RALPH MCGILL BLVD. ATLANTA, GEORGIA 30308
          Reel & Frame Number: 9138/0243. (LICENSED)

     22.  5,058,272, Oct. 22, 1991, Tool apparatus for applying large forces,
          Steube, Gary J., Pass Christian, Mississippi, Mississippi Power
          Company, Gulfport, Mississippi.

     23.  4,868,547, Sep. 19, 1989, Transformer alarm annunciator, Thomas,
          Clifford .1 Hephzibah, Georgia Johnson, John P., Evans, Georgia,
          Georgia Power Company, Atlanta, Georgia. (LICENSED)

     24.  4,833,917, May 30, 1989, Three-component velocity probe for large
          scale application, Wilson, Steve M., Birmingham, Alabama, Southern
          Company Services, Inc., Birmingham, Alabama. (LICENSED)

     25.  4,828,943, May 9, 1989, Battery having indicia for correcting
          specific gravity determination at varying electrolyte levels,
          Pritchard, Sue P., Birmingham, Alabama, Southern Company Services,
          Inc., Atlanta, Georgia. (LICENSED)

     26.  4,776,180, Oct. 11, 1988, Updraft integrated heat pump, Patton, Sr.,
          James M., Gulfport, Mississippi Blackshaw, Andrew L., Dunwoody,
          Georgia Reid, Matthew S., Atlanta, Georgia Channell, Ray E., Decatur,
          Georgia Hogan, James T., Roswell, Georgia McGuffey, Jerry O., Stone
          Mountain, Georgia, Mississippi Power Company, Gulfport, Mississippi.

     27.  4,647,296, Mar. 3, 1987, Spacers for straightening warped
          precipitator curtains, Tuck, Morris B., Pascagoula, Mississippi,
          Mississippi Power Company, Gulfport, Mississippi. (LICENSED)

     28.  4,598,557, Jul. 8, 1986, Integrated heat pump water heater, Robinson,
          Glen P., Atlanta, Georgia Blackshaw, Andrew L., Dunwoody, Georgia,
          Southern Company Services, Inc., Atlanta, Georgia.

     29.  4,497,630, Feb. 5, 1985, Kit for teaching characteristics and use of
          Electrical devices, Oliver, Roland A. G., Tuscaloosa, Alabama,
          Alabama Power Company, Birmingham, Alabama.

                                       5
<PAGE>   31

     30.  4,252,398, Feb. 24, 1981, Electric power meter, Avara, Teddy W.,
          Clinton, Michigan Dixon, James A., Clinton, Michigan, Mississippi
          Power and Light Company, Jackson, Michigan a part interest.

C.        Joint Patents

          None.

                                       6
<PAGE>   32

                                   EXHIBIT B
                                "LICENSED MARKS"
                                 (SECTION 1.12)

SOUTHERN ENERGY

All marks incorporating "SOUTHERN ENERGY"

TRIANGLE LOGO

ENERGY TO SERVE YOUR WORLD

SOUTHERN COMPANY ENERGY MARKETING

SOUTHERN COMPANY

<PAGE>   33

                                   EXHIBIT C
                     "LICENSED SOUTHERN ENERGY TECHNOLOGY"
                                 (SECTION 1.13)

None.

<PAGE>   34

                                   EXHIBIT D
                         "LICENSED SOUTHERN TECHNOLOGY"
                                 (SECTION 1.14)

<TABLE>
<S>                                                   <C>
EXHIBIT D
SOFTWARE                                              DESCRIPTION
75 Check                                              Environmental software
ACCC Sort                                             PSSE (application) results sorting software
AVM                                                   Account Validation for STARS
CFM                                                   Consolidated financial modeling software
CHEM RTK                                              Chemical analysis software
Howler                                                Weather regression analysis model
Load Forecast Viewer                                  Load forecasting software
Mobius Document Direct                                Viewing SCS reports
PeopleNet/JobNet                                      Custom web application
PPAT                                                  Financial performance projection tool

   SHIPS                                                  HUMAN RESOURCES
                                                          INFORMATION SYSTEM
STARS                                                 Timekeeping system

METHODS, MANUALS, OTHER                               DESCRIPTION
Corporate Welding Manual                              SCS welding procedure
Corporate Auditing Manual                             SCS auditing procedure
General Specification for Boiler Tubes & Tube
Sections
Performance Management Philosophy
Personal Leadership Questionnaire                     360 degree feedback survey
Vision Progress Survey                                Survey, feedback, action & follow-up
                                                      process
Skills Training
GPC Positive Discipline Program
Workforce Planning
Soco College Individual Development Planning
Workboook
Action Forum Process                                  Power plant problem-solving process
SRCM Workstation                                      Streamlined Reliability-Centered
                                                      Maintenance
New Generation Power Island
Technical Specifications for Condenser &
Auxiliaries
Technical Specifications for Combined Cycle
Power Plants
Technical Specifications for Steam Turbine for
Combined Cycle Power Plants
General Specifications for Unit Reserve
Auxiliaries Transformers
General Specifications for Generator Step-Up
Power Transformers
Technical Specifications for Instrumentation &
Control Equipment
</TABLE>

<PAGE>   35

<TABLE>
<S>                                                   <C>
   GENERAL PROCEDURE #2075                            PLANT CLEARANCE AND
                                                      TAGGING PROCEDURE
Contractor Control Manual
SCS Compliance Support Documents
SC Audit Program Overview and Safety & Health
Protocols
SC Environmental Audit Protocols
GPC Safety & Health Programs
Development Methodology
Maintenance Methodology
Development Project Plan Template & supporting        SCS IR methodology
methodology
Maintenance Project Plan Template & supporting        SCS IR methodology
methodology
Vision Progress Survey                                Survey, feedback, action & follow-up
                                                      process
Skills Training
GPC Positive Discipline Program
Workforce Planning
Soco College Individual Development Planning
Workbook
Performance Management Philosophy
Personal Leadership Questionnaire                     360 degree feedback survey
Coal Gasification Studies performed for SEI
projects in Florida and Europe
Action Forum Process                                  Power plant problem-solving process
</TABLE>

<PAGE>   36

                                   EXHIBIT E
                       "SOUTHERN ENERGY OWNED TECHNOLOGY"
                                 (SECTION 1.23)

1.       Southern Company Energy Marketing Technology

<PAGE>   37

                                   EXHIBIT F
                    "SUBLICENSED SOUTHERN ENERGY TECHNOLOGY"
                                 (SECTION 1.26)

None.

<PAGE>   38

                                   EXHIBIT G
                       "SUBLICENSED SOUTHERN TECHNOLOGY"
                                 (SECTION 1.27)

<TABLE>
<S>                                                     <C>
SYSTEM: SOFTWARE & HARDWARE                             DESCRIPTION

3Com                                                    Hubs, data switches
ACCS Sort                                               Sorts PSSE (see below) software results
ACL for Windows                                         Audit software
CEMS                                                    Emission monitoring system
Corp Tax / Corp Int'l Tax                               Tax reporting software
E-monitor Odyssey                                       Vibration monitoring analytic software
Enerlink                                                Energy Management software for C&I accounts
Entek                                                   Vibration monitoring software
Environmental Compliance                                Tracking of plant's compliance activities
Management System
Express Options                                         Employee stock grant option software
Front Page                                              Web editing software (Microsoft)
GRS Web Page*                                           Governmental Resources System web page
Henwood suite of dispatching products                   Dispatching tool
Hewlett Packard                                         Operating System
IBM Server                                              Servers
Internet Router
IPP database                                            Independent Power Producer reports
LDIS                                                    Legal Department Information System
Maximo                                                  Work order management system
Meta Group                                              Technology research service
Micro Gads                                              NERC GADS reporting software
ss.  Microsoft                                          Desktop suite of Microsoft products
ss.  Microsoft contract for CEPA's Home Run
     environment
MV90                                                    Meter data collection software
Myriad                                                  Electronic document viewer
Nortel VPN Boxes                                        VPN Boxes
Oracle database                                         Database license
Oracle Financials (incl. Purchasing)                    Financial (ERP) suite
Paragon                                                 Construction scheduling and budgeting
                                                        software
PI                                                      Plant historian/ plant information system
Pivotal Relationship 99                                 Customer relationship management suite
Polycom VC Equipments                                   Video conference equipment
Power Dat, Coal Dat, Gas Dat, Base Case, Power Map      Historical power market database,
Power Player                                            Tax credit / modeling calculation software
Prism                                                   Compensation market pricing software
PSSE                                                    Transmission planning study software
Schenk Vibration Analysis                               Vibration monitoring system
Secretariat                                             SoCo Corporate Secretary function database
</TABLE>

<PAGE>   39

<TABLE>
<S>                                                     <C>
Siemens                                                 3 Com switches, PABX
Toxic Release Inventory                                 Environmental reporting software
Visio                                                   Graphics software
Wonderware                                              Plant historian/plant information system
WRQ                                                     Billing system
</TABLE>

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