Document:

<PAGE>

                                                                  Exhibit 10.2

                              EMPLOYMENT AGREEMENT

                  This EMPLOYMENT AGREEMENT (the "Agreement") dated as of
October 2, 2000, by and between Alexion Pharmaceuticals, Inc., a Delaware
corporation (the "Company"), and David Keiser (the "Executive").

                               W I T N E S S E T H

                  WHEREAS, the Company wishes to employ Executive in an
executive capacity and Executive is desirous of being so employed;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements herein contained, the parties hereto agree as
follows:

                  1.       EMPLOYMENT, DUTIES AND ACCEPTANCE.

                           (a) The Company hereby employs the Executive for the
Term (as hereinafter defined), to render full-time services to the Company as
Executive Vice-President and Chief Operating Officer ("COO"), and to perform
such duties commensurate with such office as he shall reasonably be directed by
the Board of Directors (the "Board") of the Company to perform, which duties
shall be consistent with the provisions of the By-laws in effect on the date
hereof that relate to the duties of the COO and Executive Vice President. The
Executive will report directly to the President.

                           (b) The Executive hereby accepts such employment and
agrees to render the services described above.

                  2.       TERM OF EMPLOYMENT.

                           The term of the Executive's employment under this
Agreement (the "Term") commenced as of July 17, 2000 (the "Effective Date") and
shall end on the second anniversary thereof unless sooner terminated pursuant to
Section 7 or 8 of this Agreement. This Agreement shall not be renewed unless
otherwise mutually agreed by the parties.

                  3.       COMPENSATION.

                           (a) As full compensation for all services to be
rendered pursuant to this Agreement, the Company agrees to pay the Executive,
during the Term, an annual base salary of $234,000 for the first year of the
Term and for each subsequent year of the Term an amount to be determined by the
Company, payable in such installments as is the policy of the Company with
respect to executive employees of the Company (the "Salary").

                           (b) Executive may receive bonuses on such dates, in
such amounts and on such other terms as may be determined by the Board of
Directors in its sole discretion. In the sole discretion of the Board of
Directors, such bonuses, if any, may be paid in the form of grants of stock of
the Company or non-qualified stock options, each granted pursuant to plans
adopted by the Company and approved by the Company's Board of Directors.
<PAGE>

                           (c) The Company shall pay or reimburse the Executive
for all reasonable expenses actually incurred or paid by him during the Term in
the performance of his services under this Agreement, upon presentation of
expense statements or vouchers or such other supporting information as it
reasonably may require.

                           (d) The Executive shall be eligible under any
incentive plan, stock option plan, stock award plan, bonus, participation or
extra compensation plan, relocation plan, pension, group insurance or other
so-called "fringe" benefits which the Company generally provides for its
executives.

                  4.       OTHER BENEFITS.

                                    In addition to all other benefits contained
herein, the Executive shall be entitled to:

                                    (1) Payment of health, disability, and life
insurance at regular rates; and

                                    (2) Vacation time of four weeks per year
taken, subject to fulfillment of his duties hereunder, in accordance with the
vacation policy of the Company during the Term.

                  5.       CONFIDENTIALITY.

                           The Executive agrees that the "Proprietary
Information and Inventions Agreement" annexed hereto as EXHIBIT A and made a
part hereof shall be deemed to be a part of this Employment Agreement.

                  6.       NON-COMPETITION.

                           (a) During the Term the Executive shall not (1)
provide any services, directly or indirectly, to any other business or
commercial entity or (2) participate in the formation of any business or
commercial entity. For a period of one year following the date of termination,
if terminated by the Company for Cause or by the Executive for any reason other
than as provided in Section 8 hereof, the Executive shall not (1) provide any
services, directly or indirectly, to any other business or commercial entity
engaged in the Company's Field of Interest or (2) participate in the formation
of any business or commercial entity engaged in the Company's Field of Interest;
provided, however, that nothing contained in this Section 6 shall be deemed to
prohibit the Executive from acquiring, solely as an investment, shares of
capital stock (or other interests) of any corporation (or other entity) not
exceeding 2% of such corporation's (or other entity's) then outstanding shares
of capital stock. The "Company's Field of Interest" means the primary business
of the Company as determined from time to time by the Board of Directors. This
Section 6 shall be subject to written waivers that may be obtained by the
Executive from the Company.

                           (b) If the Executive commits a breach, or threatens
to commit a breach, of any of the provisions of this Section 6 or EXHIBIT A, the
Company shall have the right and remedy to have the provisions of this Agreement
specifically enforced by any court having equity jurisdiction, it being
acknowledged and agreed that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an
adequate remedy to the Company.
<PAGE>

                           (c) If any of the covenants contained in Section 5, 6
or 10, or any part thereof, is hereafter construed to be invalid or
unenforceable, the same shall not affect the remainder of the covenant or
covenants, which shall be given full effect without regard to the invalid
portions.

                           (d) If any of the covenants contained in Section 5, 6
or 10, or any part thereof, is held to be unenforceable because of the duration
of such provision or the area covered thereby, the parties agree that the court
making such determination shall have the power to reduce the duration and/or
area of such provision and, in its reduced form, such provision shall then be
enforceable.

                           (e) The parties hereto intend to and hereby confer
jurisdiction to enforce the covenants contained in Sections 5, 6 and 10 upon the
courts of any state within the geographical scope of such covenants. In the
event that the courts of any one or more of such states shall hold any such
covenant wholly unenforceable by reasons of the breadth of such scope or
otherwise, it is the intention of the parties hereto that such determination not
bar or in any way affect the Company's right to the relief provided above in the
courts of any other states within the geographical scope of such other
covenants, as to breaches of such covenants in such other respective
jurisdictions, the above covenants as they relate to each state being, for this
purpose, severable into diverse and independent covenants.

                  7.       TERMINATION BY THE COMPANY.

                           (a) The Company may terminate this Agreement without
Cause or if any one or more of the following shall occur:

                                    (1) The Executive shall die during the Term;
PROVIDED, HOWEVER, that the Executive's legal representatives shall be entitled
to receive his Salary through the last day of the month in which his death
occurs.

                                    (2) The Executive shall become physically or
mentally disabled so that he is unable substantially to perform his services
hereunder for (a) a period of 120 consecutive days, or (b) for shorter periods
aggregating 180 days during any twelve-month period. Notwithstanding such
disability the Company shall continue to pay the Executive his Salary through
the date of such termination.

                                    (3) The Executive acts, or fails to act, in
a manner that provides Cause for termination. For purposes of this Agreement,
the term "Cause" means (a) the Executive's indictment for, or conviction of, any
crime or serious offense involving money or other property which constitutes a
felony in the jurisdiction involved, (b) the Executive's wilful and continual
neglect or failure to discharge his duties, responsibilities, and obligations as
Executive Vice President and COO of the Company after notice and a reasonable
opportunity to cure, (c) the Executive's wilful misconduct or wilful breach of
his fiduciary duties to the Company in connection with the performance of his
duties, (d) the Executive's violation of any of the non-competition provisions
of Section 6 hereof or the Executive's breach of any confidentiality provisions
contained in EXHIBIT A hereto or (e) any act of fraud or embezzlement by the
Executive involving the Company or any of its Affiliates.

                           (b) All determinations of Cause or termination
pursuant this Section 7 shall be determined by the Board (excluding the
Executive if he is at such time a member of the Board).
<PAGE>

                  8.       TERMINATION BY THE EXECUTIVE.

                                    The Executive may terminate this Agreement
on written notice to the Company in the event of a material breach of the terms
of this Agreement by the Company and such breach continues uncured for 30 days
after notice of such breach is first given; PROVIDED, HOWEVER, it shall
constitute the termination of this Agreement if such breach is for the payment
of money and continues uncured for ten days after notice of such breach is
given.

                  9.       SEVERANCE.

                                    (a) If, within the Term of this Agreement,
the Company terminates this Agreement for any reason other than Cause, death, or
disability, or if the Executive terminates this Agreement pursuant to Section 8,
then: (1) the Company shall pay the Executive a lump sum cash payment (the
"Severance Payment") equal to the greater of (x) the annual salary for the
remainder of the then current year of employment and (y) six months salary at
the annual rate for the then current year of employment; and (2) for options
granted to the Executive prior to the date of termination, the Company shall
accelerate the vesting schedule for such options such that the number of such
options vested on the day of termination shall be equal to the number of such
options vested if the Executive were to have been continuously employed by the
Company until the date twelve months after the date of termination. After
termination of employment for any reason other than death of the Executive, the
Company shall continue to provide all benefits subject to COBRA at its expense
for the maximum required COBRA period.

                                    (b) If the Executive is unable to continue
his employment/service due to his death or unable to continue his employment and
perform his duties due to physical or mental incapacity or disability, with or
without reasonable accommodation, in accordance with applicable law, for a
period of six months or more, all stock options and stock awards (and similar
equity rights), held by Executive prior to his death/disability, or the
expiration of the Agreement, shall vest and become immediately exercisable and
remain exercisable through their original terms with all rights. This Section
9(b) shall survive the expiration or termination of the Agreement, except for
any terminations pursuant to Section 7(a)(3) or 7(b).

                  10.      INDEMNIFICATION.

                                    The Company shall indemnify the Executive,
to the maximum extent permitted by applicable law, against all costs, charges
and expenses incurred or sustained by him in connection with any action, suit or
proceeding to which he may be made a party by reason of his being an officer,
director or employee of the Company or of any subsidiary or affiliate of the
Company. The Company shall provide, at its expense, Directors and Officers
insurance for the Employee in amounts reasonably satisfactory to the Executive
to the extent available at reasonable rates, which determination shall be made
by the Board.

                  11.      ARBITRATION.

                                    Any controversy or claim arising out of or
relating to this Agreement or the breach thereof shall be settled by arbitration
in the City of New York, in accordance with the rules then existing of the
American Arbitration Association (three arbitrators), and judgment upon the
award rendered may be entered in any court having jurisdiction thereof. The
parties shall be free to pursue any remedy before the
<PAGE>

arbitration tribunal that they shall be otherwise permitted to pursue in a court
of competent jurisdiction. The award of the arbitrators shall be final and
binding. During the pendency of any arbitration or any dispute not yet submitted
to arbitration, the Company shall not be entitled to any offset against
payments, stock awards or other benefits due to the Executive under this
Agreement or otherwise.

                  12.      NOTICES.

                                    All notices, requests, consents and other
communications required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given if sent by private overnight mail
service (delivery confirmed by such service), registered or certified mail
(return receipt requested and received), telecopy (confirmed receipt by return
fax from the receiving party) or delivered personally, as follows (or to such
other address as either party shall designate by notice in writing to the other
in accordance herewith):
<PAGE>

                           If to the Company:

                           Alexion Pharmaceuticals, Inc.
                           25 Science Park
                           New Haven, Connecticut  06510

                           Telephone:       203-776-1790
                           Fax:             203-776-2089

                           If to the Executive:

                           David Keiser
                           37 Georgetown Circle
                           Madison, CT 06443

                           Telephone:       203-421-5691

                  13.      GENERAL.

                           (a) This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Connecticut applicable
to agreements made and to be performed entirely in Connecticut.

                           (b) This Agreement sets forth the entire agreement
and understanding of the parties relating to the subject matter hereof, and
supersedes all prior agreements, arrangements and understandings, written or
oral, relating to the subject matter hereof. No representation, promise or
inducement has been made by either party that is not embodied in this Agreement,
and neither party shall be bound by or liable for any alleged representation,
promise or inducement not so set forth.

                           (c) This Agreement may be amended, modified,
superseded, canceled, renewed or extended, and the terms or covenants hereof may
be waived, only by a written instrument executed by the parties hereto, or in
the case of a waiver, by the party waiving compliance. The failure of a party at
any time or times to require performance of any provision hereof shall in no
manner affect the right at a later time to enforce the same. No waiver by a
party of the breach of any term or covenant contained in this Agreement, whether
by conduct or otherwise, or any one or more or continuing waivers of any such
breach, shall constitute a waiver of the breach of any other term or covenant
contained in this Agreement.
<PAGE>

                           (d) This Agreement shall be binding upon the legal
representatives, heirs, distributees, successors and assigns of the parties
hereto.

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

ALEXION PHARMACEUTICALS, INC.

By       /s/ Leonard Bell
         -------------------------------------
         Leonard Bell
         President and Chief Executive Officer

         /s/ David Keiser
         -------------------------------------
         David Keiser
<PAGE>

                                    EXHIBIT A

                          ALEXION PHARMACEUTICALS, INC.

                PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

                  I recognize that ALEXION Pharmaceuticals, Inc., a Delaware
corporation (the "Company", which term includes any subsidiaries thereof), is
engaged in multiple aspects of pharmaceutical development and biotechnology.

                  I understand that:

                  A. As part of my employment by the Company I am expected to
make new contributions of value of the Company.

                  B. My employment creates a relationship of confidence and
trust between me and the Company with respect to any information:

                           (1) Applicable to the business of the Company and
made known to me by the Company or learned by me during the period of my
employment; or

                           (2) Applicable to the business of any client,
customer or strategic partner of the Company, which may be made known to me by
the Company or by any client, customer or strategic partner of the Company, or
learned by me during the period of my employment.

                  C. The Company possesses and will continue to possess
information that has been created, discovered or developed, or has otherwise
become known to the Company (including without limitation information created,
discovered, developed or made known by or to me during the period of my
employment by the Company), and/or in which property or other rights have been
assigned or otherwise conveyed to the Company, which information has commercial
value in the business in which the Company is engaged and none of which is in
the public domain except through the breach by me or anyone else of a
confidentiality duty. All of the aforementioned information is hereinafter
called "Proprietary Information." By way of illustration, but not limitation,
Proprietary Information includes "Developments (as herein defined), data and
know-how, techniques, marketing plans and opportunities, cost and pricing data,
strategies, forecasts and customer lists. By way of illustration, but not
limitation, "Developments" includes developments, improvements, discoveries,
trade secrets, technologies, processes, research, methods, procedures, designs,
models, testing systems, research, assays, compounds, molecules, organisms, gene
sequences, cell lines, complement inhibitors and other re-agents (including the
composition thereof), uses of any of the foregoing, computer software and
programs (including source code and related documentation), test and/or
experimental data and results, specifications, laboratory notebooks, drawings
and technical information and materials.

                  D. As used herein, the period of my employment includes any
time in which I may be retained by the Company as a consultant.
<PAGE>

                  In consideration of my employment or continued employment, as
the case may be, and the compensation received by me from the Company from time
to time, I hereby agree as follows:

                  1. Prior to entering the employ of the Company, I have
terminated employment with one or more prior employers. I agree to indemnify and
hold harmless the Company, its directors, officers and employees against any
liabilities and expenses including reasonable attorneys' fees and amounts paid
in settlement, incurred by any of them in connection with any claim by any of my
prior employers that the termination of my employment with such employer, my
employment by the Company, or use of any skills and knowledge by the Company is
a violation of contract or law.

                  2. All Proprietary Information shall be the sole property of
the Company and its assigns, and the Company and its assigns shall be the sole
owner of all patents, copyrights, trade secrets and trademarks and other rights
in connection therewith. I hereby assign to the Company any and all rights I may
have or acquire in all Proprietary Information. At all times, both during my
employment by the Company and after its termination, I will keep in confidence
and trust all Proprietary Information, and I will not use or disclose any
Proprietary Information without the written consent of the Company, except as
may be necessary in the ordinary course of performing my duties as an employee
of the Company.

                  3. During the period of my employment by the Company I will
not, without the Company's express written consent, engage in any employment or
activity in any competitive business, other than for the Company.

                  4. I will promptly disclose to the Company, or any persons
designated by it, all Developments, improvements, processes, techniques,
know-how, data and Developments made or conceived or reduced to practice or
learned by me, either alone or jointly with others, during the period of my
employment by the Company which are related to or useful in the business of the
Company, or result from use of premises owned, leased or contracted for by the
Company (all said Developments, improvements, processes, techniques, know-how,
data and documentation, shall be collectively hereinafter called "Know-how").

                  5. I agree that all Know-how shall be the sole property of the
Company and its assigns, and the Company and its assigns shall be the sole owner
of all patents, copyrights, trademarks and other rights in connection therewith.
I hereby assign to the Company any rights I may have or acquire in all Know-how.

                  I understand that this paragraph 5 does not apply to Know-how
for which no equipment, supplies, facility or trade secret information of the
Company was used and which was developed entirely on my own time, and (a) which
does not relate (1) to the business of the Company or (2) to the Company's
actual or demonstrably anticipated research or development, or (b) which does
not result from any work performed by me for the Company. I agree to execute any
documents requested by the Company to effectuate the intent of this paragraph.

                  6. The Company shall have the right (but shall not be
obligated) to use, assert and/or apply for patent, copyright, trademark and
other statutory or common law protection for any or all Know-how in any and all
countries. I agree to assist the Company in every reasonable way without
additional compensation (but at the Company's expense), to apply for, prosecute
and obtain, and from time to time enforce, defend and protect, any and all
patent, copyright, trademark and other statutory or
<PAGE>

common law protection for any of the Know-how in any and all countries. I shall,
whether during or following my employment by the Company, at the Company's
request and expense, but without additional compensation to me, execute any and
all assignments, transfers, applications and other papers covering any Know-how
which may be considered necessary or helpful by the Company in furtherance of
the foregoing and/or to accomplish the assignment, transfer and/or license of
any Know-how to persons designated by the Company.

                  7. In the event of the termination of my employment by me or
by the Company for any reason, I will deliver to the Company all documents,
materials, compounds, samples, plasmids, proteins, probes and data of any nature
pertaining to my work with the Company and I will not take with me any documents
or data of any description or any reproduction of any description containing or
pertaining to any Proprietary Information, and Know-how.

                  8. I represent that to the best of my knowledge my performance
of all the terms of this Agreement and as an employee of the Company does not
and will not breach any agreement to keep in confidence proprietary information
acquired by me in confidence or in trust prior to my employment by the Company.
I have not entered into, and I agree I will not enter into, any agreement either
written or oral in conflict herewith.

                  9. I understand as part of the consideration for the offer of
employment extended to me by the Company and of my employment or continued
employment by the Company, that I have not brought and will not bring with me to
the Company or use in the performance of my responsibilities at the Company any
materials or documents of a former employer which are not generally available to
the public, unless I have obtained written authorization from the former
employer for their possession and use.

                  Accordingly, this is to advise the Company that the only
materials or documents of a former employer which are not generally available to
the public that I have brought or will bring to the Company or have used or will
use in my employment are identified on SCHEDULE A attached hereto, and, as to
each such item, I represent that I have obtained prior to the effective date of
my employment with the Company written authorization for their possession and
use in my employment with the Company.

                  I also understand that, in my employment with the Company, I
am not to breach any obligation of confidentiality that I have to former
employers, and I agree that I shall fulfill all such obligations during my
employment with the Company.

                  10. In the event that any provision herein would be held to be
invalid, prohibited or unenforceable in any jurisdiction for any reason
(including, but not limited to, any provision which may be held unenforceable
because of the scope, duration or area of its applicability), unless narrowed by
construction, this Agreement shall, as to such jurisdiction, be construed as if
such invalid, prohibited or unenforceable provision had been more narrowly drawn
so as not to be invalid, prohibited or unenforceable (and the court making any
such determination as to any provision shall have the power to modify such
scope, duration or area or all of them, and such provision shall then be
applicable in such modified form in such jurisdiction only). If, notwithstanding
the foregoing, any provision herein would be held to be invalid, prohibited or
unenforceable in any jurisdiction for any reason, such provision, as to such
jurisdiction, shall be ineffective to the extent of such invalidity, prohibition
or unenforceability, without invalidating the remaining provisions of this
Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction.
<PAGE>

                  11. By reason of the fact that irreparable harm would be
sustained by the Company in the event that there is a breach by me of any of the
terms, covenants and agreements set forth herein, in addition to any other
rights that the Company may otherwise have, the Company shall be entitled to
apply to any court of competent jurisdiction and obtain specific performance
and/or injunctive relief against me, without making a showing that monetary
damages would be inadequate and without the requirement of posting any bond or
other security whatsoever, in order to enforce or prevent any breach or
threatened breach of any of the terms, covenants and agreements set forth
herein, and I will not object thereto.
<PAGE>

                  12. This Agreement shall be binding upon me, my heirs,
executors, assigns and administrators and shall inure to the benefit of the
Company, its successors and assigns.

                  This Agreement shall be governed in all respects by the laws
of the State of Delaware, applicable to agreements made and to be performed
solely therein.

Dated: __________________________   By: ____________________________

ACCEPTED AND AGREED TO:
ALEXION PHARMACEUTICALS, INC.

By: _____________________________

Title: ___________________________<PAGE>

                                                                    EXHIBIT 4.05
================================================================================

                          SUPPLEMENTAL INDENTURE NO. __

                                      FROM

                            OKLAHOMA GAS AND ELECTRIC
                                     COMPANY

                                       TO

                              THE BANK OF NEW YORK

                                     TRUSTEE

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

                                   DATED AS OF

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

                            SUPPLEMENTAL TO INDENTURE
                           DATED AS OF OCTOBER 1, 1995

================================================================================
<PAGE>

                                TABLE OF CONTENTS

<TABLE>

  <S>                                                                        <C>
  Parties...................................................................  1
  Recitals..................................................................  1

                                   ARTICLE ONE
                       RELATION TO INDENTURE; DEFINITIONS

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

                                   ARTICLE TWO
                 ____% SENIOR NOTES, SERIES DUE ________________

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

                                  ARTICLE THREE
                              ADDITIONAL COVENANTS

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

                                  ARTICLE FOUR
                                  MISCELLANEOUS

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

                                      (i)

<PAGE>

<TABLE>
  <S>                                                                        <C>
  SECTION 4.04   References to either party in Supplemental Indenture
                 include successors or assigns..............................  9
  SECTION 4.05   (a)    Provision for execution in counterparts.............  9
                 (b)    Table of Contents and descriptive headings
                        of Articles not to affect meaning...................  9

  Exhibit A - Form of ____% Senior Notes, Series due __________

</TABLE>

                                      (ii)

<PAGE>

     SUPPLEMENTAL INDENTURE No. __, made as of the _____ day of __________,
____, by and between OKLAHOMA GAS AND ELECTRIC COMPANY, a corporation duly
organized and existing under the laws of the State of Oklahoma (the "Company"),
and THE BANK OF NEW YORK, a New York banking corporation, as trustee (the
"Trustee"):

WITNESSETH:

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

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

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

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

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

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

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

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

                                       1

<PAGE>

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE ONE
                       RELATION TO INDENTURE; DEFINITIONS

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

     SECTION 1.02 For all purposes of this Supplemental Indenture:

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

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

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

                                   ARTICLE TWO
                    ____% SENIOR NOTES, SERIES DUE __________

     SECTION 2.01 There shall be a series of Notes designated the "____% Senior
Notes, Series due __________" (the "Senior Notes due ____"). The Senior Notes
due ____ shall be limited to $__________ aggregate principal amount.

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

                                       2

<PAGE>

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

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

     SECTION 2.05 The Company, at its option, may redeem on any date all or,
from time to time, any part of the Senior Notes due ____, upon notice as
provided in the Indenture, at a redemption price equal to the greater of (i)
100% of the principal amount of such Senior Notes due ____ to be redeemed and
(ii) the sum of the present values of the remaining scheduled payments of
principal and interest thereon from and after the date of redemption discounted
to the redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus ___ basis points,
plus in each case accrued and unpaid interest thereon to the date of redemption.

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

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

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

                                       3

<PAGE>

Treasury Dealer and any redemption date, the average, as determined by the
Trustee, of the bid and asked prices of the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) quoted in writing to the
Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on
the third business day preceding such redemption date.

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

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

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

                                       4

<PAGE>

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

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

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

                                  ARTICLE THREE
                              ADDITIONAL COVENANTS

     SECTION 3.01

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

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

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

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

                                       5

<PAGE>

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

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

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

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

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

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

                                       6

<PAGE>

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

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

     SECTION 3.03  Definitions

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

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

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

                                       7

<PAGE>

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

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

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

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

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

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

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

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

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

     VALUE: The term "Value" shall mean, with respect to a Sale and Lease-Back
Transaction, as of any particular time, the amount equal to the greater of (1)
the net proceeds to the Company from the sale or transfer of the property leased
pursuant to such Sale and Lease-Back Transaction or (2) the net book value of
such property, as determined in accordance with generally accepted accounting
principles by the Company at the time of entering into such Sale and Lease-Back
Transaction, in either case multiplied by a fraction, the numerator of which
shall be equal to the

                                       8

<PAGE>

number of full years of the term of the lease that is part of such Sale and
Lease-Back Transaction remaining at the time of determination and the
denominator of which shall be equal to the number of full years of such term,
without regard, in any case, to any renewal or extension options contained in
such lease.

                                  ARTICLE FOUR
                                  MISCELLANEOUS

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

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

     SECTION 4.03

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

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

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

     SECTION 4.05

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

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

                                       9

<PAGE>

     IN WITNESS WHEREOF, OKLAHOMA GAS AND ELECTRIC COMPANY has caused this
Supplemental Indenture to be signed by its President or a Vice President, and
attested by its Secretary or an Assistant Secretary, and THE BANK OF NEW YORK
has caused this Supplemental Indenture to be signed by its President, Vice
President or Assistant Vice President, and attested by a Vice President, this
___ day of __________.

                                OKLAHOMA GAS AND ELECTRIC COMPANY

                                By:  Steven E. Moore, President

ATTEST:

Irma B. Elliott, SECRETARY.

                                THE BANK OF NEW YORK, as Trustee

                                By:  _________________, Assistant Vice President
ATTEST:

_______________, VICE PRESIDENT.

                                       10

<PAGE>

                                                                       EXHIBIT A

                       FORM OF _____% SENIOR NOTE, SERIES
                                 DUE __________

REGISTERED                                                            REGISTERED

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

                        OKLAHOMA GAS AND ELECTRIC COMPANY

                    _____% SENIOR NOTE, SERIES DUE __________

CUSIP:                                                     NUMBER: R-

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

INTEREST RATE:                                             MATURITY DATE:

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

on the Maturity Date set forth above, and to pay interest thereon from the
Original Issue Date (or if this Global Note has two or more Original Issue
Dates, interest shall, beginning on each such Original Issue Date, begin to
accrue for that part of the principal amount to which that Original Issue Date
is applicable) set forth above or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semiannually in arrears on
__________ and __________ in each year, commencing on the first such Interest
Payment Date succeeding the applicable Original Issue Date set forth above, at
the per annum Interest Rate set forth above, until the principal hereof is paid
or made available for payment. No interest shall accrue on the Maturity Date, so
long as the principal amount of this Global Note is paid on

<PAGE>

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

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

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

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

                                      -12-

<PAGE>

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

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

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

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

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

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

                                      -13-

<PAGE>

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

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

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

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

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

                                      -14-

<PAGE>

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

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

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

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

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

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

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

                                      -15-

<PAGE>

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

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

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

                                               OKLAHOMA GAS AND ELECTRIC COMPANY

                                               By: _____________________________
                                                             PRESIDENT

Dated:                                         Attest: _________________________
                                                             SECRETARY

       TRUSTEE'S CERTIFICATE
         OF AUTHENTICATION

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

THE BANK OF NEW YORK, AS TRUSTEE

By: _________________________________
           AUTHORIZED OFFICER

                                      -16-

<PAGE>

                                  ABBREVIATIONS

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

TEN COM -- as tenants in common             UNIF GIFT
                                            MIN ACT -- _____ Custodian _________
                                                       (Cust)            (Minor)

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

JT TEN -- as joint tenants with right of
  survivorship and not as tenants in common ____________________________________
                                                          State

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

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

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

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________________________

________________________________________________________________________________

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

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

Dated: ________________________________________

                                                 ______________________________

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

                                      -17-

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