Document:

<PAGE>
                                                                     Exhibit 4.1

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                             WESTERN RESOURCES, INC.

                                       TO

                            BNY MIDWEST TRUST COMPANY
                                   as Trustee

                                (as Successor to
                         HARRIS TRUST AND SAVINGS BANK)

                                   ----------

                       THIRTY-FIFTH SUPPLEMENTAL INDENTURE

                            Dated as of May 10, 2002

                  First Mortgage Bonds, 7 7/8% Series Due 2007

================================================================================

<PAGE>

                              TABLE OF CONTENTS/a/
                              -----------------

<TABLE>
<CAPTION>
                                                                                                     Page
                                                                                                     ----
<S>                                                                                                   <C>
Parties............................................................................................    1

Recitals...........................................................................................    1

Granting Clause....................................................................................    4

Habendum...........................................................................................    6

Exceptions and Reservations........................................................................    6

Grant in Trust.....................................................................................    6

General Covenant...................................................................................    6

                                              ARTICLE I

                                     DESCRIPTION OF BONDS OF THE
                                            2007 SERIES

SECTION 1.   General Description of Bonds of the 2007 Series.......................................    6

SECTION 2.   Denominations of Bonds of the 2007 Series and privilege of exchange...................    7

SECTION 3.   Form of Bonds of the 2007 Series......................................................    7

SECTION 4.   Execution and Form of Temporary Bonds of the 2007 Series..............................   14

                                             ARTICLE II

                                  ISSUE OF BONDS OF THE 2007 SERIES

SECTION 1.   Limitations as to Principal Amount....................................................   14

SECTION 2.   Execution and Delivery of Bonds of the 2007 Series....................................   14
</TABLE>

----------
/a/  Note: The Table of Contents is not part of this Supplemental Indenture and
     should not be considered as such. It is included only for purposes of
     convenience.

                                       -i-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                     Page
                                                                                                     ----
<S>                                                                                                   <C>
                                             ARTICLE III

                           REDEMPTION AND REPURCHASE UPON CHANGE OF CONTROL

SECTION 1.   Optional Redemption....................................................................  14

SECTION 2.   Repurchase at the Option of Holders Upon a Change of Control...........................  15

                                             ARTICLE IV

                                         ADDITIONAL COVENANTS

SECTION 1.   Title to mortgaged property............................................................  17

SECTION 2.   To retire certain portions of Bonds upon release of all or substantially all of
                 the electric properties............................................................  18

                                              ARTICLE V

                    AMENDMENTS TO RATIO OF BONDS ISSUABLE TO PROPERTY ADDITIONS
                      AND OF CERTAIN OTHER RATIOS. AMENDMENT TO NET EARNINGS
                      TEST. USE OF FACSIMILE SIGNATURES. AMENDMENT OF ARTICLE
                            XV. RESERVATION OF RIGHT TO AMEND ARTICLE VII

SECTION 1.   So long as Bonds of the 2007 Series remain outstanding:

             Bonds issuable on basis only of 60% of net bondable value of property additions
                not subject to an unfunded prior lien...............................................  18

             Amendment of definition of net bondable value of property additions not subject
                to an unfunded prior lien...........................................................  19

             Monies deposited with Trustee under Section 5(a) of Article
                III of the Original Indenture may not be withdrawn in an
                amount in excess of 60% of net bondable value of property
                additions not subject to an unfunded prior lien,
                notwithstanding provisions of Section 3(a) of Article
                VIII of the Original Indenture......................................................  19

             Amendment of definition of net bondable value of property additions subject to an
                unfunded prior lien.................................................................  19

             Amendment of covenants in Sections 14 and 16 of Article IV and Section 1 of
                Article XII of the Original Indenture with respect to acquisition of property
                subject to an unfunded prior lien...................................................  19
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<CAPTION>
                                                                                             Page
                                                                                             ----
<S>                                                                                          <C>
             Definitions: minimum charge for depreciation; net earnings available for
                interest, depreciation and property retirement; net earnings of another
                corporation available for interest, depreciation and property retirement...   20

             Amendment of Articles III, IV and XII of the Original Indenture...............   21

SECTION 2.   Facsimile Signatures..........................................................   21

SECTION 3.   Reservation of Right to Amend Article VII.....................................   21

SECTION 4.   Reservation of Right to Delete certain requirements and conditions............   24

                                             ARTICLE VI

                                      MISCELLANEOUS PROVISIONS

SECTION 1.   Acceptance of Trust...........................................................   25

SECTION 2.   Responsibility and Duty of Trustee............................................   25

SECTION 3.   Parties to include successors and assigns.....................................   25

SECTION 4.   Benefits restricted to parties and to holders of Bonds and coupons............   25

SECTION 5.   Execution in counterparts.....................................................   25

SECTION 6.   Titles of Articles not part of the Thirty-Fifth Supplemental Indenture........   25

TESTIMONIUM ...............................................................................  S-1

SIGNATURES AND SEALS.......................................................................  S-1

ACKNOWLEDGMENTS............................................................................  S-2

                                             APPENDIX A

DESCRIPTION OF PROPERTIES
</TABLE>

                                      -iii-

<PAGE>

     THIRTY-FIFTH SUPPLEMENTAL INDENTURE, dated as of the 10th day of May, Two
Thousand and Two, made by and between Western Resources, Inc., formerly The
Kansas Power and Light Company, a corporation organized and existing under the
laws of the State of Kansas (hereinafter called the "Company"), party of the
first part, and BNY Midwest Trust Company, an Illinois trust company whose
mailing address is 2 North LaSalle Street, Suite 1020, Chicago, IL 60602
(hereinafter called the "Trustee"), as Trustee (as successor to Harris Trust and
Savings Bank), under the Mortgage and Deed of Trust dated July 1, 1939,
hereinafter mentioned, party of the second part;

     WHEREAS, the Company has heretofore executed and delivered to the Trustee
its Mortgage and Deed of Trust dated July 1, 1939 (hereinafter referred to as
the "Original Indenture"), to provide for and to secure the issue of First
Mortgage Bonds of the Company, issuable in series, and to declare the terms and
conditions upon which the Bonds (as defined in the Original Indenture) are to be
issued thereunder; and

     WHEREAS, the Company has heretofore executed and delivered to the Trustee
Thirty-Four Supplemental Indentures supplemental to said Original Indenture, of
which Thirty-Two provided for the issuance thereunder of series of the Company's
First Mortgage Bonds, and there is set forth below information with respect to
such Supplemental Indentures as have provided for the issuance of Bonds, and the
principal amount of Bonds which remain outstanding as of May 10, 2002.

<TABLE>
<CAPTION>
                                                     Series of First    Principal     Principal
                                                     Mortgage Bonds      Amount        Amount
   Supplemental Indenture              Date            Provided For      Issued      Outstanding
-----------------------------   -----------------    ---------------   -----------   -----------
<S>                             <C>                  <C>              <C>               <C>
Supplemental Indenture          July 1, 1939         3-1/2% Series    $26,500,000       None
                                                     Due 1969

Second Supplemental Indenture   April 1, 1949        2-7/8% Series     10,000,000       None
                                                     Due 1979

Fourth Supplemental Indenture   October 1, 1949      2-3/4% Series      6,500,000       None
                                                     Due 1979

Fifth Supplemental Indenture    December 1, 1949     2-3/4% Series     32,500,000       None
                                                     Due 1984

Seventh Supplemental            December 1, 1951     3-1/4% Series      5,250,000       None
  Indenture                                          Due 1981

Eighth Supplemental Indenture   May 1, 1952          3-1/4% Series      4,750,000       None
                                                     Due 1982

Ninth Supplemental Indenture    October 1, 1954      3-1/8% Series      8,000,000       None
                                                     Due 1984

Tenth Supplemental Indenture    September 1, 1961    4-3/4% Series     13,000,000       None
                                                     Due 1991

Eleventh Supplemental           April 1, 1969        7-5/8% Series     19,000,000       None
  Indenture                                          Due 1999

Twelfth Supplemental            September 1, 1970    8-3/4% Series     20,000,000       None
  Indenture                                          Due 2000
</TABLE>

<PAGE>
                                       -2-

<TABLE>
<CAPTION>
                                                  Series of First     Principal     Principal
                                                  Mortgage Bonds        Amount       Amount
   Supplemental Indenture           Date           Provided For         Issued     Outstanding
---------------------------   -----------------   ----------------   -----------   -----------
<S>                           <C>                 <C>                <C>           <C>
Thirteenth Supplemental       February 1, 1975    8-5/8% Series       35,000,000      None
  Indenture                                       Due 2005

Fourteenth Supplemental       May 1, 1976         8-5/8% Series       45,000,000      None
  Indenture                                       Due 2006

Fifteenth Supplemental        April 1, 1977       5.90% Pollution     32,000,000      None
  Indenture                                       Control Series
                                                  Due 2007

Sixteenth Supplemental        June 1, 1977        8-1/8% Series       30,000,000      None
  Indenture                                       Due 2007

Seventeenth Supplemental      February 1, 1978    8-3/4% Series       35,000,000      None
  Indenture                                       Due 2008

Eighteenth Supplemental       January 1, 1979     6-3/4% Pollution    45,000,000      None
  Indenture                                       Control Series
                                                  Due 2009

Nineteenth Supplemental       May 1, 1980         8-1/4% Pollution    45,000,000      None
  Indenture                                       Control Series
                                                  Due 1983

Twentieth Supplemental        November 1, 1981    16.95% Series       25,000,000      None
  Indenture                                       Due 1988

Twenty-First Supplemental     April 1, 1982       15% Series          60,000,000      None
  Indenture                                       Due 1992

Twenty-Second Supplemental    February 1, 1983    9-5/8% Pollution    58,500,000      None
  Indenture                                       Control Series
                                                  Due 2013

Twenty-Third Supplemental     July 1, 1986        8-1/4% Series       60,000,000      None
  Indenture                                       Due 1996

Twenty-Fourth Supplemental    March 1, 1987       8-5/8% Series       50,000,000      None
  Indenture                                       Due 2017

Twenty-Fifth Supplemental     October 15, 1988    9.35% Series        75,000,000      None
  Indenture                                       Due 1998

Twenty-Sixth Supplemental     February 15, 1990   8-7/8% Series       75,000,000      None
  Indenture                                       Due 2000

Twenty-Seventh Supplemental   March 12, 1992      7.46% Demand       370,000,000      None
  Indenture                                       Series

Twenty-Eighth Supplemental    July 1, 1992        7-1/4% Series      125,000,000      None
  Indenture                                       Due 1999
                                                  8-1/2% Series      125,000,000   125,000,000
                                                  Due 2022

Twenty-Ninth Supplemental     August 20, 1992     7-1/4% Series      100,000,000      None
  Indenture                                       Due 2002
</TABLE>

<PAGE>

                                       -3-

<TABLE>
<CAPTION>
                                                  Series of First     Principal     Principal
                                                  Mortgage Bonds        Amount       Amount
  Supplemental Indenture           Date            Provided For         Issued     Outstanding
--------------------------   ----------------   ------------------   -----------   -----------
<S>                          <C>                <C>                  <C>           <C>
Thirtieth Supplemental       February 1, 1993   6% Pollution          58,500,000    58,340,000
  Indenture                                     Control Revenue
                                                Refunding Series
                                                Due 2033

Thirty-First Supplemental    April 15, 1993     7.65% Series         100,000,000   100,000,000
  Indenture                                     Due 2023

Thirty-Second Supplemental   April 15, 1994     7-1/2% Series         75,500,000    75,500,000
  Indenture                                     Pollution Control
                                                Revenue Refunding
                                                Series Due 2032

Thirty-Third Supplemental    August 11, 1997    6-7/8% Convertible   370,000,000      None
  Indenture                                     Series Due 2004
                                                7-1/8% Convertible   150,000,000      None
                                                Series Due 2009

Thirty-Fourth Supplemental   June 28, 2000      9-1/2% Series        397,800,000      None
  Indenture                                     Due 2003
</TABLE>

; and

     WHEREAS, the Company is entitled at this time to have authenticated and
delivered additional bonds in substitution for refundable Bonds, upon compliance
with the provisions of Article III of the Original Indenture, as amended; and

     WHEREAS, the Company desires by this Thirty-Fifth Supplemental Indenture
(hereinafter referred to as this "Supplemental Indenture") to supplement the
Original Indenture and to provide for the creation of a new series of bonds
under the Original Indenture to be designated "First Mortgage Bonds, 7-7/8%
Series Due 2007"; and the Original Indenture provides that certain terms and
provisions, as determined by the Board of Directors of the Company, of the Bonds
of any particular series may be expressed in and provided by the execution of an
appropriate supplemental indenture; and

     WHEREAS, the Company in the exercise of the powers and authority conferred
upon and reserved to it under the provisions of the Original Indenture and
indentures supplemental thereto, and pursuant to appropriate resolutions of its
Board of Directors, has duly resolved and determined to make, execute and
deliver to the Trustee a supplemental indenture in the form hereof for the
purposes herein provided; and

<PAGE>

                                       -4-

     WHEREAS, all conditions and requirements necessary to make this
Supplemental Indenture a valid, binding and legal instrument have been done,
performed and fulfilled, and the execution and delivery hereof have been in all
respects duly authorized;

     NOW, THEREFORE, THIS INDENTURE WITNESSETH: That, in consideration of the
premises and of the mutual covenants herein contained and of the sum of One
Dollar duly paid by the Trustee to the Company at or before the time of the
execution of these presents, and of other valuable considerations, the receipt
whereof is hereby acknowledged, and in order further to secure the payment of
the principal of and interest and premium, if any, on all Bonds at any time
issued and outstanding under the Original Indenture as amended by all indentures
supplemental thereto (hereinafter sometimes collectively called the "Indenture")
according to their tenor, purport and effect, and to declare certain terms and
conditions upon and subject to which Bonds are to be issued and secured, the
Company has executed and delivered this Supplemental Indenture, and by these
presents grants, bargains, sells, warrants, aliens, releases, conveys, assigns,
transfers, mortgages, pledges, sets over and ratifies and confirms unto BNY
Midwest Trust Company, as Trustee, and to its successors in trust under the
Indenture forever, all and singular the following described properties (in
addition to all other properties heretofore specifically subjected to the lien
of the Indenture and not heretofore released from the lien thereof), that is to
say:

                                     FIRST.

     All and singular the rents, real estate, chattels real, easements,
servitudes, and leaseholds of the Company, or which, subject to the provisions
of Article XII of the Original Indenture, the Company may hereafter acquire,
including, among other things, the property described in Appendix A hereto under
the caption "First", which description is hereby incorporated herein by
reference and made a part hereof as if fully set forth herein, together with all
improvements of any type located thereon.

     Also all power houses, plants, buildings and other structures, dams, dam
sites, substations, heating plants, gas works, holders and tanks, compressor
stations, gasoline extraction plants, together with all and singular the
electric heating, gas and mechanical appliances appurtenant thereto of every
nature whatsoever, now owned by the Company or which it may hereafter acquire,
including all and singular the machinery, engines, boilers, furnaces,
generators, dynamos, turbines and motors, and all and every character of
mechanical appliance for generating or producing electricity, steam, water, gas
and other agencies for light, heat, cold or power or any other purpose
whatsoever.

                                     SECOND.

     Also all transmission and distribution systems used for the transmission
and distribution of electricity, steam, water, gas and other agencies for light,
heat, cold or power, or any other purpose whatever, whether underground or
overhead or on the surface or otherwise of the Company, or which, subject to the
provisions of Article XII of the Original Indenture, the Company may hereafter
acquire, including all poles, posts, wires, cables, conduits, mains, pipes,
tubes, drains, furnaces, switchboards, transformers, insulators, meters, lamps,
fuses, junction boxes, water pumping stations,

<PAGE>

                                       -5-

regulator stations, town border metering stations and other electric, steam,
water and gas fixtures and apparatus.

                                     THIRD.

     Also all franchises and all permits, ordinances, easements, privileges and
immunities and licenses, all rights to construct, maintain and operate overhead,
surface and underground systems for the distribution and transmission of
electricity, gas, water or steam for the supply to itself or others of light,
heat, cold or power or any other purpose whatsoever, all rights-of-way, all
waters, water rights and flowage rights and all grants and consents, now owned
by the Company or, subject to the provisions of Article XII of the Original
Indenture, which it may hereafter acquire.

     Also all inventions, patent rights and licenses of every kind now owned by
the Company or, subject to the provisions of Article XII of the Original
Indenture, which it may hereafter acquire.

                                     FOURTH.

     Also, subject to the provisions of Article XII of the Original Indenture,
all other property, real, personal and mixed (except as therein or herein
expressly excepted) of every nature and kind and wheresoever situated now or
hereafter possessed by or belonging to the Company, or to which it is now, or
may at any time hereafter be, in any manner entitled at law or in equity.

                                     FIFTH.

     Also any and all property of any kind or description which may from time to
time after the date of the Original Indenture by delivery or by writing of any
kind be conveyed, mortgaged, pledged, assigned or transferred to the Trustee by
the Company or by any person, copartnership or corporation, with the consent of
the Company or otherwise, and accepted by the Trustee, to be held as part of the
mortgaged property; and the Trustee is hereby authorized to accept and receive
any such property and any such conveyance, mortgage, pledge, assignment and
transfer, as and for additional security hereunder, and to hold and apply any
and all such property subject to and in accordance with the terms and provisions
upon which such conveyance, mortgage, pledge, assignment or transfer shall be
made.

                                     SIXTH.

     Together with all and singular, the tenements, hereditaments and
appurtenances belonging or in any wise appertaining to the aforesaid property or
any part thereof, with the reversion and reversions, remainder and remainders,
tolls, rents, revenues, issues, income, products and profits thereof, and all
the estate, right, title, interest and claim whatsoever, at law and in equity,
which the Company now has or may hereafter acquire in and to the aforesaid
property and franchises and every part and parcel thereof.

<PAGE>

                                       -6-

     EXPRESSLY EXCEPTING AND EXCLUDING, HOWEVER, all properties of the character
excepted from the lien of the Original Indenture.

     TO HAVE AND TO HOLD all said properties, real, personal and mixed,
mortgaged, pledged and conveyed by the Company as aforesaid, or intended so to
be, unto the Trustee and its successors and assigns forever;

     SUBJECT, HOWEVER, to the exceptions and reservations hereinabove referred
to, to existing leases other than leases which by their terms are subordinate to
the lien of the Indenture, to existing liens upon rights-of-way for transmission
or distribution line purposes, as defined in Article I of the Original
Indenture; and any extensions thereof, and subject to existing easements for
streets, alleys, highways, rights-of-way and railroad purposes over, upon and
across certain of the property herein before described and subject also to all
the terms, conditions, agreements, covenants, exceptions and reservations
expressed or provided in the deeds or other instruments respectively under and
by virtue of which the Company acquired the properties hereinabove described and
to undetermined liens and charges, if any, incidental to construction or other
existing permitted liens as defined in Article I of the Original Indenture;

     IN TRUST, NEVERTHELESS, upon the terms and trusts in the Original
Indenture, and the indentures supplemental thereto, including this Supplemental
Indenture, set forth, for the equal and proportionate benefit and security of
all present and future holders of the Bonds and coupons issued and to be issued
thereunder, or any of them, without preference of any of said Bonds and coupons
of any particular series over the Bonds and coupons of any other series by
reason of priority in the time of issue, sale or negotiation thereof, or by
reason of the purpose of issue or otherwise howsoever, except as otherwise
provided in Section 2 of Article IV of the Original Indenture.

     AND IT IS HEREBY COVENANTED, DECLARED AND AGREED, by and between the
parties hereto for the benefit of those who shall hold the Bonds and coupons, or
any of them, to the be issued under the Indenture as follows:

                                    ARTICLE I

                           DESCRIPTION OF BONDS OF THE
                                   2007 SERIES

     SECTION 1. The 2007 series of Bonds to be executed, authenticated and
delivered under and secured by the Original Indenture shall be designated as
"First Mortgage Bonds, 7 7/8% Series Due 2007" of the Company (herein called
"Bonds of the 2007 Series"). The Bonds of the 2007 Series shall be executed,
authenticated and delivered in accordance with the provisions of, and shall in
all respects be subject to, all of the terms, conditions and covenants of the
Indenture and subject to all the terms, conditions and covenants of this
Supplemental Indenture.

     Bonds of the 2007 Series shall mature May 1, 2007 and shall bear interest
at the rate of seven and seven-eighths percent (7 7/8%) per annum payable
semi-annually on the first day of May and November in each year, commencing
November 1, 2002. Every Bond of the 2007 Series shall be

<PAGE>

                                       -7-

dated the date of authentication except that, notwithstanding the provisions of
Section 6 of Article II of the Original Indenture, if any Bond of the 2007
Series shall be authenticated at any time subsequent to the record date (as
hereinafter in this Section defined) for any interest payment date but prior to
the day following such interest payment date, it shall be dated as of the day
following such interest payment date, provided, however, if at the time of
authentication of any Bond of the 2007 Series interest shall be in default on
any Bonds of the 2007 Series, such Bond shall be dated as of the day following
the interest payment date to which interest has previously been paid in full or
made available for payment in full on outstanding Bonds of the 2007 Series, as
the case may be, or, if no interest has been paid or made available for payment,
as of the date of initial authentication and delivery of such Bond. Every Bond
of the 2007 Series shall bear interest from the May 1, or November 1, next
preceding the date thereof, unless such Bond shall be dated prior to November 1,
2002, in which case it shall bear interest from May 10, 2002.

     The person in whose name any Bond of the 2007 Series is registered at the
close of business on any record date with regard to any interest payment date
shall be entitled to receive the interest payable thereon on such interest
payment date notwithstanding the cancellation of such Bond upon the transfer or
exchange thereof subsequent to such record date and prior to the day following
such interest payment date, unless the Company shall default in the payment of
the interest due on such interest payment date, in which case such defaulted
interest shall be paid to the person in whose name such Bond is registered on
the date of payment of such defaulted interest. The term "record date" as used
in this Section with regard to any semiannual interest payment date shall mean
the close of business on the tenth day next preceding such interest payment
date, or if such tenth day is not a business day, the business day next
preceding such tenth day. The Bonds of the 2007 Series shall be payable as to
principal, premium, if any, and interest, in any coin or currency of the United
States of America which at the time of payment is legal tender for public and
private debts, at the agency of the Company in the City of Chicago, Illinois, or
at the option of the holder thereof at the agency of the Company in the Borough
of Manhattan, The City of New York, provided that at the option of the Company
interest may be paid by check mailed to the holder at such holder's registered
address.

     SECTION 2. The Bonds of the 2007 Series shall be registered bonds without
coupons of the denominations of $1,000 and of any multiples of $1,000, numbered
consecutively from R 1 upwards. Bonds of the 2007 Series may each be
interchanged for other bonds within the same Series in authorized denominations
and in the same aggregate principal amounts, without charge, except for any tax
or governmental charge imposed in connection with such interchange.

     SECTION 3. The Bonds of the 2007 Series, and the Trustee's Certificate with
respect thereto, shall be substantially in the following forms, respectively:

<PAGE>

                                       -8-

                        [FORM OF BOND OF THE 2007 SERIES]

                                                                       CUSIP
                                                                            ----

                             WESTERN RESOURCES, INC.

              (Incorporated under the laws of the State of Kansas)

                   FIRST MORTGAGE BOND, 7 7/8% SERIES DUE 2007

                                DUE May 10, 2007

No.                                                          $
    -----                                                     ------------------

     WESTERN RESOURCES, INC., a corporation organized and existing under the
laws of the State of Kansas (hereinafter called the "Company", which term shall
include any successor corporation as defined in the Indenture hereinafter
referred to), for value received, hereby promises to pay to                or
                                                            --------------
registered assigns, on the 1st day of May, 2007, the sum of
                                                            --------------
Dollars in any coin or currency of the United States of America which at the
time of payment is legal tender for public and private debts, and to pay
interest thereon in like coin or currency from the first day of May or November
next preceding the date of this Bond (the "Bonds") next preceding the date
thereof, unless no interest has been paid on this Bond, in which case from May
10, 2002, at the rate of seven and seven-eighths percent (7 7/8%) per annum,
payable semiannually, on the first days of May and November in each year,
commencing November 1, 2002, until maturity, or, if this Bond shall be duly
called for redemption or submitted for repurchase, until the redemption date or
repurchase date, as the case may be, or, if the Company shall default in the
payment of the principal or premium hereof, until the Company's obligation with
respect to the payment of such principal or premium shall be discharged as
provided in the Indenture hereinafter mentioned. The interest payable on any
interest payment date as aforesaid will be paid to the person in whose name this
Bond is registered on any at the close of business on the tenth day next
preceding such interest payment date, or if such tenth day is not a business
day, the business day next preceding such tenth day (the "record date"), unless
the Company shall default in the payment of the interest due on such interest
payment date, in which case such defaulted interest shall be paid to the person
in whose name this Bond is registered on the date of payment of such defaulted
interest. Principal of, premium, if any, and interest on, this Bond are payable
at the agency of the Company in the City of Chicago, Illinois in immediately
available funds, or at the option of the holder thereof at the agency of the
Company in the Borough of Manhattan, The City of New York, provided that at the
option of the Company interest may be paid by check mailed to the holder at such
holder's registered address.

     The person in whose name this Bond is registered is entitled to the
benefits of a Registration Rights Agreement, dated as of May 10, 2002, among the
Company and the Initial Purchasers named therein (the "Registration Agreement").
Capitalized terms used in this paragraph but not defined herein have the
meanings assigned to them in the Registration Agreement. In the event that (i)

<PAGE>

                                       -9-

neither the Exchange Offer Registration Statement nor the Shelf Registration
Statement has been filed with the Commission on or prior to the 180th day
following the date of the original issuance of the Bond, (ii) the Exchange Offer
Registration Statement has not been declared effective on or prior to the 270th
day following the date of the original issuance of the Bond, (iii) neither the
Registered Exchange Offer has been consummated nor the Shelf Registration
Statement has been declared effective on or prior to the 315th day following the
date of the original issuance of the Bond, or (iv) after either the Exchange
Offer Registration Statement or the Shelf Registration Statement has been
declared effective, such Registration Statement thereafter ceases to be
effective or usable (subject to certain exceptions) in connection with resales
of the Bond in accordance with and during the periods specified in Registration
Agreement (each such event referred to in clauses (i) through (iv) above being
referred to herein as "Registration Default"), interest (the "Special Interest")
shall accrue (in addition to stated interest on the Bonds from and including the
date on which the first such Registration Default shall occur to but excluding
the date on which all Registration Defaults have been cured, at a rate per annum
equal to 0.50% of the principal amount of the Bonds. Special Interest, if any,
will be payable in cash on each interest payment date to the persons in whose
name this Bond is registered on the applicable record date as provided above.

     This Bond is one of a duly authorized issue of Bonds of the Company (herein
called the "Bonds"), in unlimited aggregate principal amount, of the series
hereinafter specified, all issued and to be issued under and equally secured by
a Mortgage and Deed of Trust, dated July 1, 1939, executed by the Company to BNY
Midwest Trust Company (herein called the "Trustee"), as Trustee (as successor to
Harris Trust and Savings Bank), as amended by the indentures supplemental
thereto including the thirty-fifth indenture supplemental thereto dated as of
May 10, 2002 (herein called the "Supplemental Indenture"), between the Company
and the Trustee (said Mortgage and Deed of Trust, as so amended, being herein
called the "Indenture"), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the properties mortgaged
and pledged, the nature and extent of the security, the rights of the bearers or
registered owners of the Bonds and of the Trustee in respect thereto, and the
terms and conditions upon which the Bonds are, and are to be, secured. The Bonds
may be issued in series, for various principal sums, may mature at different
times, may bear interest at different rates and may otherwise vary as in the
Indenture provided. This Bond is one of a series designated as the "First
Mortgage Bonds, 7 7/8% Series Due 2007" (herein called "Bonds of the 2007
Series") of the Company, issued under and secured by the Indenture executed by
the Company to the Trustee.

     To the extent permitted by, and as provided in the Indenture, modifications
or alterations of the Indenture or of any indenture supplemental thereto, and of
the rights and obligations of the Company and of the holders of the Bonds and
coupons, may be made with the consent of the Company by an affirmative vote of
not less than 60% in principal amount of the Bonds entitled to vote then
outstanding, at a meeting of Bondholders called and held as provided in the
Indenture, and by an affirmative vote of not less than 60% in principal amount
of the Bonds of any series entitled to vote then outstanding and affected by
such modification or alteration, in case one or more but less than all of the
series of Bonds then outstanding under the Indenture are so affected. No
modification or alteration shall be made which will affect the terms of payment
of the principal of or premium, if any, or interest on, this Bond, which are
unconditional. The Company has reserved the right to make certain amendments to
the Indenture, without any consent or other action by holders of the Bonds of

<PAGE>

                                      -10-

this series (i) to the extent necessary from time to time to qualify the
Indenture under the Trust Indenture Act of 1939, (ii) to delete the requirement
that the Company meet a net earnings test as a condition to authenticating
additional Bonds or merging into another company and (iii) to make certain other
amendments which make the provisions for the release of mortgaged property less
restrictive, all as more fully provided in the Indenture and in the Supplemental
Indenture. In addition, once all Bonds issued prior to January 1, 1997 are no
longer outstanding, the Company will be permitted to issue additional Bonds in
an amount equal to 70% of the value of net bondable property additions not
subject to an unfunded prior lien, as provided in the Original Indenture.

     This Bond is subject to redemption at any time and from time to time prior
to maturity at the option of the Company at a price determined as provided in
the Supplemental Indenture. Such redemption in every case shall be effected upon
notice given by: (1) first class mail, postage prepaid, at least thirty days and
not more than sixty days prior to the redemption date, to the registered owners
of such Bonds at their addresses as the same shall appear on the transfer
register of the Company; and (2) stating, among other things, the redemption
price and date, in each case, subject to the conditions of and as more fully set
forth in the Indenture.

     Upon the occurrence of a Change of Control (as defined in the Supplemental
Indenture), each holder of this Bond shall have the right to require the Company
to repurchase all or any part of such holder's Bonds at a purchase price equal
to 101% of the principal, plus accrued and unpaid interest, if any, to the
purchase date as provided in the Supplemental Indenture. Within 30 days
following any Change of Control, the Company shall cause a notice of the Change
of Control Offer to be delivered in accordance with the procedures set forth in
the Supplemental Indenture.

     In case an event of default, as defined in the Indenture, shall occur, the
principal of all of the Bonds at any such time outstanding under the Indenture
may be declared or may become due and payable, upon the conditions and in the
manner and with the effect provided in the Indenture. The Indenture provides
that such declaration may in certain events be waived by the holders of a
majority in principal amount of the Bonds outstanding.

     This Bond is transferable by the registered owner hereof, in person or by
duly authorized attorney, on the books of the Company to be kept for that
purpose at the agency of the Company in the City of Chicago, Illinois, and at
the agency of the Company in the Borough of Manhattan, The City of New York,
upon surrender and cancellation of this Bond and on presentation of a duly
executed written instrument of transfer, and thereupon a new registered Bond or
Bonds of the same series, of the same aggregate principal amount and in
authorized denominations will be issued to the transferee or transferees in
exchange herefor; and this Bond, with or without others of like form and series,
may in like manner be exchanged for one or more new registered Bonds of the same
series of other authorized denominations but of the same aggregate principal
amount; all upon payment of the charges and subject to the terms and conditions
set forth in the Indenture.

     No recourse shall be had for the payment of the principal of or premium, if
any, or interest on this Bond, or for any claim based hereon or on the Indenture
or any indenture supplemental thereto, against any incorporator, or against any
stockholder, director or officer, past, present or future, of the Company, or of
any predecessor or successor corporation, as such, either directly or

<PAGE>

                                      -11-

through the Company or any such predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability, whether at common law,
in equity, by any constitution, statute or otherwise, of incorporators,
stockholders, directors or officers being released by every owner hereof by the
acceptance of this Bond and as part of the consideration for the issue hereof,
and being likewise released by the terms of the Indenture.

     No director, officer, employee or stockholder of the Company will have any
liability for any obligations of the Company under the Bonds or Indenture or for
any claim based on, in respect of, or by reason of, such obligations or their
creation. Each holder by accepting a Bond waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Bonds. The waiver may not be effective to waive liabilities under the
federal securities laws. It is the view of the Securities and Exchange
Commission that this type of waiver is against public policy.

     This Bond shall not be entitled to any benefit under the Indenture or any
indenture supplemental thereto, or become valid or obligatory for any purpose,
until BNY Midwest Trust Company, the Trustee (as successor to Harris Trust and
Savings Bank) under the Indenture, or a successor trustee thereto under the
Indenture, shall have signed the form of certificate endorsed hereon.

     IN WITNESS WHEREOF, WESTERN RESOURCES, INC. has caused this Bond to be
signed in its name by its Chairman of the Board, President and Chief Executive
Officer or a Vice President, manually or by facsimile, and its corporate seal
(or a facsimile thereof) to be hereto affixed and attested by its Secretary or
an Assistant Secretary, manually or by facsimile.

Dated:

                                        WESTERN RESOURCES, INC.

                                        By
                                           -------------------------------------

Attest:

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

<PAGE>

                                      -12-

         [FORM OF PRIVATE PLACEMENT LEGEND FOR BOND OF THE 2007 SERIES]

     [THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL
OR OTHERWISE TRANSFER SUCH SECURITY, BEFORE THE DATE (THE "RESALE RESTRICTION
TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY
WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A)
TO THE COMPANY, (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE BONDS OF THE 2007
SERIES ARE ELIGIBLE FOR RESALE UNDER RULE 144A UNDER THE SECURITIES ACT ("RULE
144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) UNDER OFFERS AND SALES THAT OCCUR
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, OR (E) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S
RIGHT BEFORE ANY SUCH OFFER, SALE OR TRANSFER UNDER CLAUSES (D) OR (E) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO IT. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF
THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.]/a/

----------
/a/  The above restrictions will not apply to any Bond of the 2007 Series on or
     after the "Resale Restriction Termination Date" applicable to such Bond, or
     with respect to any Bond which have been sold or otherwise transferred
     pursuant to Rule 144A or a registration statement which has been declared
     effective under the Securities Act. "Resale Restriction Termination Date"
     shall mean the date on which the holding period under Rule 144(k) under the
     Securities Act expires with respect to such Bond. Any Bond issued on or
     after the Resale Restriction Termination Date need not contain this legend.

<PAGE>

                                      -13-

                      [FORM OF LEGEND FOR GLOBAL SECURITY]

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF, THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY SECURITY
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
HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

<PAGE>

                                      -14-

                         [FORM OF TRUSTEE'S CERTIFICATE]

     This Bond is one of the Bonds, of the series designated herein, described
in the within-mentioned Mortgage and Deed of Trust of July 1, 1939 and
Supplemental Indenture dated as of May 10, 2002.

                                        BNY MIDWEST TRUST COMPANY
                                           As Trustee

                                        By
                                           -------------------------------------

     SECTION 4. Until Bonds of the 2007 Series in definitive form are ready for
delivery, the Company may execute, and upon its request in writing the Trustee
shall authenticate and deliver, in lieu thereof, Bonds of the 2007 Series in
temporary form, as provided in Section 9 of Article II of the Original
Indenture.

                                   ARTICLE II

                        ISSUE OF BONDS OF THE 2007 SERIES

     SECTION 1. The total principal amount of Bonds of the 2007 Series which may
be authenticated and delivered hereunder is not limited except as the Original
Indenture and this Supplemental Indenture limit the principal amount of Bonds
which may be issued thereunder.

     SECTION 2. Bonds of the 2007 Series for the aggregate principal amount of
$365,000,000 may forthwith be executed by the Company and delivered to the
Trustee and shall be authenticated by the Trustee and delivered (either before
or after the filing or recording hereof) to or upon the order of the Company,
upon receipt by the Trustee of the resolutions, certificates, instruments and
opinions required by Article III and Article XVIII of the Indenture.

                                   ARTICLE III

                REDEMPTION AND REPURCHASE UPON CHANGE OF CONTROL

     SECTION 1. Optional Redemption.

     (1) Optional Redemption. At any time, and from time to time, the Company
may redeem all or any portion of the Bonds of the 2007 Series, after giving the
required notice under the Indenture, at a redemption price equal to the greater
of:

          (a) 100% of the principal amount of the Bonds of the 2007 Series to be
     redeemed, or

<PAGE>

                                      -15-

          (b) the sum of the present values of the remaining scheduled payments
     of principal and interest thereon discounted to the date of redemption on a
     semi-annual basis (assuming a 360-day year consisting of twelve 30-day
     months) at the Treasury Rate plus 50 basis points,

plus, in either case, accrued and unpaid interest, if any, to the redemption
date (subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

     "Treasury Rate" means, as of any redemption date, the yield to maturity as
of such redemption date of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) that has become publicly available at least two
business days prior to the redemption date (or, if such statistical release is
no longer published, any publicly available source of similar market data)) most
nearly equal to the period from the redemption date to May 1, 2007; provided,
however, that if the period from the redemption date to May 1, 2007 is less than
one year, the weekly average yield on actively traded United States Treasury
securities adjusted to a constant maturity of one year shall be used.

     (2) Notice of Redemption. Subject to the provisions of Article V of the
Original Indenture, the Company shall cause notice of redemption to be given by
(1) first class mail, postage prepaid, at least thirty days and not more than
sixty days prior to the date of redemption, to the registered owners of such
Bonds of the 2007 Series at their addresses as the same shall appear on the
transfer register of the Company; and (2) stating, among other things, the
redemption price and date. No such redemption may be conditional once notice of
redemption is given.

     SECTION 2. Repurchase at the Option of Holders Upon a Change of Control.

     (1) Repurchase at the Option of Holders Upon a Change of Control. Upon the
occurrence of a Change of Control (as defined below), each holder of Bonds of
the 2007 Series shall have the right to require the Company to repurchase all or
any part of such holder's Bonds of the 2007 Series pursuant to the offer
described below (the "Change of Control") at a purchase price (the "Change of
Control Purchase Price") equal to 101% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the purchase date. Capitalized terms
used in the definition of "Change of Control" used but not defined herein have
the meanings assigned to them in the Securities Resolution dated as of May 10,
2002 relating to the issuance of the Company's $400,000,000 Senior Notes 9 3/4%
Due 2007, a copy of which has been filed with the Trustee and is available upon
request.

     "Change of Control" means the occurrence of any of the following events:

          (a) if any "person" or "group" (as such terms are used in Sections
     13(d) and 14(d) of the Exchange Act or any successor provisions to either
     of the foregoing), other than Wester Industries, Inc., including any group
     acting for the purpose of acquiring, holding, voting or disposing of
     securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act,
     becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
     Act, except that a person will be deemed to have "beneficial ownership" of
     all shares that any such

<PAGE>

                                      -16-

     person has the right to acquire, whether such right is exercisable
     immediately or only after the passage of time), directly or indirectly, of
     35% or more of the total voting power of the Voting Stock of the Company
     (for purposes of this clause (a), such person or group shall be deemed to
     beneficially own any Voting Stock of a corporation held by any other
     corporation (the "parent corporation") so long as such person or group
     beneficially owns, directly or indirectly, in the aggregate a majority of
     the total voting power of the Voting Stock of such parent corporation); or

          (b) the sale, transfer, assignment, lease, conveyance or other
     disposition, directly or indirectly, of all or substantially all the assets
     of the Company and any Restricted Subsidiary, considered as a whole (other
     than a disposition of such assets as an entirety or virtually as an
     entirety to a Wholly Owned Restricted Subsidiary), shall have occurred, or
     the Company merges, consolidates or amalgamates with or into any other
     Person or any other Person merges, consolidates or amalgamates with or into
     the Company, in any such event pursuant to a transaction in which the
     outstanding Voting Stock of the Company is reclassified into or exchanged
     for cash, securities or other Property, other than any such transaction
     where:

               (1) the outstanding Voting Stock of the Company is reclassified
          into or exchanged for other Voting Stock of the Company or for Voting
          Stock of the surviving corporation, and

               (2) the holders of the Voting Stock of the Company immediately
          prior to such transaction own, directly or indirectly, not less than a
          majority of the Voting Stock of the Company or the surviving
          corporation immediately after such transaction and in substantially
          the same proportion as before the transaction; or

          (c) during any period of two consecutive years, individuals who at the
     beginning of such period constituted the Board of Directors of the Company
     (together with any new directors whose election or appointment by such
     Board of Directors or whose nomination for election by the shareholders of
     the Company was approved by a vote of not less than three-fourths of the
     directors then still in office who were either directors at the beginning
     of such period or whose election or nomination for election was previously
     so approved) cease for any reason to constitute a majority of the Board of
     Directors of the Company then in office; or

          (d) the shareholders of the Company shall have approved any plan of
     liquidation or dissolution of the Company.

     Notwithstanding the above, the proposed merger of the Company with Public
Service Company of New Mexico shall not be deemed a Change of Control.

     (2) Notice of Repurchase. Within 30 days following any Change of Control,
the Company shall:

<PAGE>

                                      -17-

          (a) cause a notice of the Change of Control Offer to be sent at least
     once to the Dow Jones News Service or similar business news service in the
     United States; and

          (b) send, by first-class mail, with a copy to the Trustee, to each
     holder of Bonds of the 2007 Series, at such holder's address appearing in
     the security register, a notice stating:

               (1) that a Change of Control has occurred and a Change of Control
          Offer is being made pursuant to Article III, Section 2 of this
          Supplemental Indenture, and that all Bonds of the 2007 Series timely
          tendered will be accepted for payment;

               (2) the Change of Control Purchase Price and the purchase date,
          which shall, subject to any contrary requirements of applicable law,
          be a business day no earlier than 30 days nor later than 60 days from
          the date such notice is mailed;

               (3) the circumstances and relevant facts regarding the Change of
          Control; and

               (4) the procedures that holders of Bonds of the 2007 Series must
          follow in order to tender their Bonds of the 2007 Series (or portions
          thereof) for payment, and the procedures that holders of Bonds of the
          2007 Series must follow in order to withdraw an election to tender
          Bonds of the 2007 Series (or portions thereof) for payment.

     (3) Compliance with Law. The Company will comply, to the extent applicable,
with the requirements of Section 14(e) of the Securities Exchange Act of 1934
and any other securities laws or regulations in connection with the repurchase
of Bonds of the 2007 Series pursuant to a Change of Control Offer. To the extent
that the provisions of any securities laws or regulations conflict with the
provisions of the covenant set forth in Article III, Section 2 of this
Supplemental Indenture, the Company will comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations
under the covenant set forth therein by virtue of such compliance.

                                   ARTICLE IV

                              ADDITIONAL COVENANTS

     The Company hereby covenants, warrants and agrees:

     SECTION 1. That the Company is lawfully seized and possessed of all of the
mortgaged property described in the granting clauses of this Supplemental
Indenture; that it has good, right and lawful authority to mortgage the same as
provided in this Supplemental Indenture; and that such mortgaged property is, at
the actual date of the initial issue of the Bonds of the 2007 Series, free and
clear of any deed of trust, mortgage, lien, charge or encumbrance thereon or
affecting the title thereto prior to the Indenture, except as set forth in the
granting clauses of the Original Indenture, the

<PAGE>

                                      -18-

Twenty-Eighth Supplemental Indenture, the Thirtieth Supplemental Indenture, the
Thirty-First Supplemental Indenture, the Thirty-Second Supplemental Indenture or
this Supplemental Indenture.

     SECTION 2. So long as any Bonds of any series originally issued prior to
January 1, 1997 are outstanding, in the event all or substantially all of the
electric properties shall have been released as an entirety from the lien of the
Original Indenture, the Company will, at any time or from time to time within
six months after the date of such release, retire Bonds outstanding under the
Original Indenture in an aggregate principal amount equal to the fair value of
the electric properties so released pursuant to Section 3 of Article VII of the
Original Indenture, as stated in the engineer's certificate required by Section
3(b) of said Article VII, and the proceeds of the electric properties so
released pursuant to Section 5 of said Article VII. Such retirement of Bonds
shall be effected in either one or both of the following methods:

          (a) By the withdrawal pursuant to Section 2 of Article VIII of the
     Original Indenture of any moneys deposited with the Trustee pursuant to
     Sections 3(d), 4(d) and 5 of Article VII of the Original Indenture upon
     such release; or

          (b) By causing the Trustee to purchase or redeem bonds, pursuant to
     Section 8 of Article VIII of the Original Indenture, out of any moneys
     deposited with the Trustee pursuant to Sections 3(d), 4(d) and 5 of Article
     VII of the Original Indenture upon such release.

     The Bonds to be so retired pursuant to this Section 3 shall include a
principal amount of Bonds of each Series then outstanding in the same ratio to
the aggregate principal amount of all Bonds so retired as the aggregate
principal amount of all Bonds of each Series outstanding immediately prior to
such release bears to the total principal amount of all Bonds then outstanding.

                                    ARTICLE V

           AMENDMENTS TO RATIO OF BONDS ISSUABLE TO PROPERTY ADDITIONS
             AND OF CERTAIN OTHER RATIOS. AMENDMENT TO NET EARNINGS
             TEST. USE OF FACSIMILE SIGNATURES. AMENDMENT OF ARTICLE
                  XV. RESERVATION OF RIGHT TO AMEND ARTICLE VII

     SECTION 1. So long as any of the Bonds of any series originally issued
prior to January 1, 1997 shall remain outstanding:

          (a) Notwithstanding the provisions of Section 4 of Article III of the
     Original Indenture, no Bonds shall be authenticated and delivered pursuant
     to the provisions of Article III of the Original Indenture and issued upon
     the basis of net bondable value of property additions for an aggregate
     principal amount in excess of sixty percent (60%) of the net bondable value
     of property additions not subject to an unfunded prior lien.

          For the purposes of Subsections (e) and (f) of the definition of "net
     bondable value of property additions not subject to an unfunded prior
     lien," contained in Article I of the Original Indenture, and Subdivisions 8
     and 9 of clause (a) of Section 4 of Article III of the Original

<PAGE>

                                      -19-

     Indenture, in all computations made with respect to a period subsequent to
     April 1, 1949, the deductions therein referred to shall in each case be
     ten-sixths (10/6ths) of the respective amounts mentioned, in lieu of
     ten-sevenths (10/7ths).

          (b) Notwithstanding the provisions of Section 3(a) of Article VIII of
     the Original Indenture, no moneys received by the Trustee pursuant to
     Section 5(a) of Article III of the Original Indenture shall be paid over by
     the Trustee in an amount in excess of sixty percent (60%) of the net
     bondable value of property additions not subject to an unfunded prior lien,
     and for the purposes of Section 3 of Article VII of the Original Indenture,
     the amount of cash required to be deposited by the Company pursuant to
     Subsection (d) of said Section 3 of Article VII shall not be reduced in an
     amount in excess of sixty percent (60%) of the net bondable value of
     property additions not subject to an unfunded prior lien.

          (c) For the purposes of clauses (c) and (d) of the definition of "net
     bondable value of property additions subject to an unfunded prior lien,"
     contained in Article I of the Original Indenture, and Subsection 7 of
     clause (a) of Section 4 of Article III of the Original Indenture, in all
     computations made with respect to a period subsequent to April 1, 1949, the
     deductions therein referred to shall in each case be ten-sixths (10/6ths)
     of the respective amounts mentioned, in lieu of ten-sevenths (10/7ths).

          (d) Subsection (a) of Section 14, clauses (1) and (2) of Subsection
     (a) of Section 16 of Article IV and clause (1) of Subsection (b) of Section
     1 of Article XII of the Original Indenture shall be deemed amended by
     substituting the words "sixty percent (60%)" for "seventy percent (70%)"
     where they appear in said provisions of the Original Indenture.

          (e) The definition of the term "net earnings available for interest,
     depreciation and property retirement," as contained in Article I of the
     Original Indenture, shall be deemed to mean the net earnings of the Company
     ascertained as follows:

               1. The total operating revenues of the Company and the net
          non-operating revenues of the properties of the Company shall be
          ascertained.

               2. From the total, determined as provided in Subsection (a),
          there shall be deducted all operating expenses, including all
          salaries, rentals, insurance, license and franchise fees, expenditures
          for repairs and maintenance, taxes (other than income, excess profits
          and other taxes measured by or dependent on net taxable income),
          depreciation as shown on the books of the Company or an amount equal
          to the minimum provision for depreciation as hereinafter defined,
          whichever is greater, but excluding all property retirement
          appropriations, all interest and sinking fund charges, amortization of
          stock and debt discount and expense or premium and further excluding
          any charges to income or otherwise for the amortization of plant or
          property accounts or of amounts transferred therefrom.

               3. The balance remaining after the deduction of the total amount
          computed pursuant to Subsection (b) from the total amount computed

<PAGE>

                                      -20-

          pursuant to Subsection (a) shall constitute the "net earnings of the
          Company available for interest," provided that not more than fifteen
          percent (15%) of the net earnings of the Company available for
          interest may consist of the aggregate of (i) net non-operating income,
          (ii) net earnings from mortgaged property other than property of the
          character of property additions and (iii) net earnings from property
          not subject to the lien of this Indenture.

               4. No income received or accrued by the Company from securities
          and no profits or losses of capital assets shall be included in making
          the computations aforesaid.

               5. In case the Company shall have acquired any acquired plant or
          systems or shall have been consolidated or merged with any other
          corporation, within or after the particular period for which the
          calculation of net earnings of the Company available for interest,
          depreciation and property retirement is made, then, in computing the
          net earnings of the Company available for interest, depreciation and
          property retirement, there may be included, to the extent they may not
          have been otherwise included, the net earnings or net losses of such
          acquired plant or system or of such other corporation, as the case may
          be, for the whole of such period. The net earnings or net losses of
          such property additions, or of such other corporation for the period
          preceding such acquisition or such consolidation or merger, shall be
          ascertained and computed as provided in the foregoing subsections of
          this definition as if such acquired plant or system had been owned by
          the Company during the whole of such period, or as if such other
          corporation had been consolidated or merged with the Company prior to
          the first day of such period.

               6. In case the Company shall have obtained the release of any
          property pursuant to Section 3 of Article VII of the Original
          Indenture, of a fair value in excess of Five Hundred Thousand Dollars
          ($500,000), as shown by the engineer's certificate required by said
          Section 3, or shall have obtained the release of any property pursuant
          to Section 5 of Article VII of the Original Indenture, the proceeds of
          which shall have exceeded Five Hundred Thousand Dollars ($500,000),
          within or after the particular period for which the calculation of net
          earnings of the Company available for interest, depreciation and
          property retirement is made, then, in computing the net earnings of
          the Company available for interest, depreciation and property
          retirement, the net earnings or net losses of such property for the
          whole of such period shall be excluded to the extent practicable on
          the basis of actual earnings and expenses of such property or on the
          basis of such estimates of the earnings and expenses of such property
          as the signers of an officers' certificate filed with the Trustee
          pursuant to Section 3(b) of Article III or Section 16 of Article IV of
          the Original Indenture shall deem proper.

          The term "minimum charge for depreciation" as used herein shall mean
     an amount equal to (a) fifteen percent (15%) of the total operating
     revenues of the Company after deducting therefrom an amount equal to the
     aggregate cost to the Company of electric energy, gas and water purchased
     for resale to others and rentals paid for, or other payments made for the
     use of, property owned by others and leased to or operated by the Company,

<PAGE>

                                      -21-

     the maintenance of which and depreciation on which are borne by the owners,
     less (b) an amount equal to the expenditures for maintenance and repairs to
     the plants and property of the Company and included or reflected in its
     operating expense accounts.

          The terms "net earnings available for interest, depreciation and
     property retirement" and "net earnings of another corporation available for
     interest, depreciation and property retirement" as contained in Article I
     of the Original Indenture, when used with respect to any property or with
     respect to another corporation, shall mean the net earnings of such
     property or the net earnings of such other corporation, as the case may be,
     computed in the manner provided in Subsections (a), (b), (c) and (d)
     hereof.

          (f) Notwithstanding the provisions of clauses (1) and (2) of
     subsection (b) of Article III, and Subsection (b) of Section 14 of Article
     IV, and Subsection (b) of Section 16 of Article IV and clause (2) of
     Subsection (b) of Section 1 of Article XII of the Original Indenture, the
     computation of net earnings required therein shall be made as provided in
     Subsection (e) of this Section 1, and the net earnings tests required in
     said mentioned provisions of Articles III, IV and XII of the Original
     Indenture shall be based on two times the annual interest charges described
     in such provisions, instead of two and one-half times such charges, but
     shall not otherwise affect such provisions or relieve from the requirements
     therein pertaining to ten percent (10%) of the principal amount of Bonds
     therein described.

     SECTION 2. All of the Bonds of the 2007 Series and of any series initially
issued after the initial issuance of Bonds of the 2007 Series shall, from time
to time, be executed on behalf of the Company by its Chairman of the Board,
Chief Executive Officer, President or one of its Vice Presidents whose
signature, notwithstanding the provisions of Section 12 of Article II of the
Original Indenture, may be by facsimile, and its corporate seal (which may be in
facsimile) shall be thereunto affixed and attested by its Secretary or one of
its Assistant Secretaries whose signature, notwithstanding the provisions of the
aforesaid Section 12, may be by facsimile.

     In case any of the officers who have signed or sealed any of the Bonds of
the 2007 Series or of any series initially issued after the initial issuance of
Bonds of the 2007 Series manually or by facsimile shall cease to be such
officers of the Company before such Bonds so signed and sealed shall have been
actually authenticated by the Trustee or delivered by the Company, such Bonds
nevertheless may be authenticated, issued and delivered with the same force and
effect as though the person or persons who so signed or sealed such Bonds had
not ceased to be such officer or officers of the Company; and also any such
Bonds may be signed or sealed by manual or facsimile signature on behalf of the
Company by such persons as at the actual date of the execution of any of such
Bonds shall be the proper officers of the Company, although at the nominal date
of any such Bond any such person shall not have been such officer of the
Company.

     SECTION 3. The Company reserves the right subject to appropriate corporate
action, but without the consent or other action of holders of bonds of any
series created after January 1, 1997, to make such amendments to the Original
Indenture, as supplemented, as shall be necessary in order to amend Article VII
thereof by adding thereto a Section 8 and a Section 9 to read as follows:

<PAGE>

                                      -22-

     "SECTION 8. Notwithstanding any other provision of this Indenture, unless
an event of default shall have happened and be continuing, or shall happen as a
result of the making or granting of an application to release mortgaged property
permitted by this Section 8, the Trustee shall release from the lien of this
Indenture any mortgaged property if the fair value to the Company of all of the
property constituting the trust estate (excluding the mortgaged property to be
released but including any mortgaged property to be acquired by the Company with
the proceeds of, or otherwise in connection with, such release) equals or
exceeds an amount equal to 10/7ths of the aggregate principal amount of
outstanding Bonds and prior lien bonds outstanding at the time of such release,
upon receipt by the Trustee of:

          "(a) an officers' certificate dated the date of such release,
     requesting such release, describing in reasonable detail the mortgaged
     property to be released and stating the reason for such release;

          "(b) an engineer's certificate, dated the date of such release,
     stating (i) that the signer of such engineer's certificate has examined
     such officers' certificate in connection with such release, (ii) the fair
     value to the Company, in the opinion of the signer of such engineer's
     certificate, of (A) all of the property constituting the trust estate, and
     (B) the mortgaged property to be released, in each case as of a date not
     more than 90 days prior to the date of such release, and (iii) that in the
     opinion of such signer, such release will not impair the security under
     this Indenture in contravention of the provisions hereof;

          "(c) in case any bondable property is being acquired by the Company
     with the proceeds of, or otherwise in connection with, such release, an
     engineer's certificate, dated the date of such release, as to the fair
     value to the Company, as of the date not more than 90 days prior to the
     date of such release, of the bondable property being so acquired (and if
     within six months prior to the date of acquisition by the Company of the
     bondable property being so acquired, such bondable property has been used
     or operated by a person or persons other than the Company in a business
     similar to that in which it has been or is to be used or operated by the
     Company, and the fair value to the Company of such bondable property, as
     set forth in such certificate, is not less than $25,000 and not less than
     1% of the aggregate principal amount of Bonds at the time outstanding, such
     certificate shall be an independent appraiser's certificate);

          "(d) an officer's certificate, dated the date of such release, stating
     the aggregate principal amount of outstanding Bonds and prior lien bonds
     outstanding at the time of such release, and stating that the fair value to
     the Company of all of the property constituting the trust estate (excluding
     the mortgaged property to be released but including any bondable property
     to be acquired by the Company with the proceeds of, or otherwise in
     connection

<PAGE>

                                      -23-

     with, such release) stated on the independent appraiser's certificate filed
     pursuant to Section 8(c) equals or exceeds an amount equal to 10/7ths of
     such aggregate principal amount;

          "(e) an officers' certificate, dated the date of such release, stating
     that, the Company is not, and by the making or granting of the application
     will not be, in default in the performance of any of the terms and
     covenants of this Indenture;

          "(f) an opinion of counsel, dated the date of such release, as to
     compliance with conditions precedent.

     "SECTION 9. If the Company is unable to obtain, in accordance with any
other Section of this Article VII, the release from the lien of this Indenture
of any property constituting part of the trust estate, unless an event of
default shall have happened and be continuing, or shall happen as a result of
the making or granting of an application to release mortgaged property permitted
by this Section 9, the Trustee shall release from the lien of this Indenture any
mortgaged property if the fair value to the Company thereof, as shown by the
engineer's certificate filed pursuant to Section 9(b), is less than 1/2 of 1% of
the aggregate principal amount of outstanding Bonds and prior lien bonds
outstanding at the time of such release, provided that the aggregate fair value
to the Company of all mortgaged property released pursuant to this Section 9, as
shown by all engineer's certificates filed pursuant to Section 9(b) in any
period of 12 consecutive calendar months which includes the date of such
engineer's certificate, shall not exceed 1% of the aggregate principal amount of
the outstanding Bonds and prior lien bonds outstanding at the time of such
release, upon receipt by the Trustee of:

          "(a) an officers' certificate, dated the date of such release,
     requesting such release, describing in reasonable detail the mortgaged
     property to be released and stating the reason for such release;

          "(b) an engineer's certificate, dated the date of such release,
     stating (A) that the signer of such engineer's certificate has examined
     such officers' certificate in connection with such release, (B) the fair
     value to the Company, in the opinion of the signer of such engineer's
     certificate, of such mortgaged property to be released as of a date not
     more than 90 days prior to the date of such release, and (C) that in the
     opinion of such signer such release will not impair the security under this
     Indenture in contravention of the provisions hereof;

          "(c) an officers' certificate, dated the date of such release, stating
     the aggregate principal amount of outstanding Bonds and prior lien bonds
     outstanding at the time of such release, that 1/2 of 1% of such aggregate
     principal amount does not exceed the fair value to the Company of the
     mortgaged

<PAGE>

                                      -24-

     property for which such release is applied for as shown by the engineer's
     certificate referred to in Section 9(b), and that 1% of such aggregate
     principal amount does not exceed the aggregate fair value to the Company of
     all mortgaged property released from the lien of this Indenture pursuant to
     this Section 9 as shown by all engineer's certificates filed pursuant to
     Section 9(b) in such period of 12 consecutive calendar months;

          "(d) an officers' certificate, dated the date of such release, stating
     that, the Company is not, and by the making or granting of the application
     will not be, in default in the performance of any of the terms and
     covenants of this Indenture; and

          "(e) an opinion of counsel, dated the date of such release, as to
     compliance with conditions precedent."

     The Company also reserves the right subject to appropriate corporate
action, but without the consent or other action of holders of Bonds of any
series created after January 1, 1997 to amend, modify or delete any other
provision of the Original Indenture, as supplemented, as may be necessary in
order to effectuate the intents and purposes contemplated by the foregoing
Sections 8 and 9.

     SECTION 4. The Company reserves the right subject to appropriate corporate
action, but without the consent or other action of holders of Bonds of any
series created after January 1, 1997 to:

          (a) delete as a condition to the authentication of additional Bonds
     pursuant to Sections 4, 5 or 6 of Article III of the Original Indenture the
     requirement to file or deposit with the Trustee the officers' certificate
     described in Section 3(b) of Article III of the Original Indenture;

          (b) delete as a condition to the consolidation or merger of the
     Company into, or sale by the Company of its property as an entirety or
     substantially as an entirety to another corporation the requirement set
     forth in Section 1(b)(2) of Article XII of the Original Indenture;

          (c) delete as a condition to the release of property pursuant to
     Section 3 of Article VII of the Original Indenture, the requirement to
     obtain an independent engineer's certificate under the circumstances set
     forth in Section 3(c) of Article VII; and

          (d) amend, modify or delete any other provision of the Original
     Indenture, as supplemented, as may be necessary in order to effectuate the
     intents and purposes contemplated by this Section 4.

<PAGE>

                                      -25-

                                   ARTICLE VI

                            MISCELLANEOUS PROVISIONS

     SECTION 1. The Trustee accepts the trusts herein declared, provided,
created or supplemented and agrees to perform the same upon the terms and
conditions herein and in the Original Indenture, as amended, set forth and upon
the following terms and conditions.

     SECTION 2. The Trustee shall not be responsible in any manner whatsoever
for or in respect of the validity or sufficiency of this Supplemental Indenture
or for or in respect of the recitals contained herein, all of which recitals are
made by the Company solely. In general each and every term and condition
contained in Article XIII of the Original Indenture, as amended by the Second
Supplemental Indenture, shall apply to and form part of this Supplemental
Indenture with the same force and effect as if the same were herein set forth in
full with such omissions, variations and insertions, if any, as may be
appropriate to make the same conform to the provisions of this Supplemental
Indenture.

     SECTION 3. Whenever in this Supplemental Indenture either of the parties
hereto is named or referred to, such reference shall, subject to the provisions
of Articles XII and XIII of the Original Indenture, be deemed to include the
successors and 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, subject as aforesaid, bind and inure to the
respective benefits of the respective successors and assigns of such parties,
whether so expressed or not.

     SECTION 4. Nothing in this Supplemental Indenture, expressed or implied, is
intended or shall be construed, to confer upon, or to give to, any person, firm
or corporation, other than the parties hereto and the holders of the Bonds and
coupons outstanding under the Indenture, any right, remedy or claim under or by
reason of this Supplemental Indenture or any covenant, condition, stipulation,
promise or agreement hereof, and all the covenants, conditions, stipulations,
promises and agreements in this Supplemental Indenture contained by and on
behalf of the Company shall be for the sole and exclusive benefit of the parties
hereto, and of the holders of the Bonds and of the coupons outstanding under the
Indenture.

     SECTION 5. This Supplemental Indenture may be executed in several
counterparts, and all such counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.

     SECTION 6. The Titles of the several Articles of this Supplemental
Indenture shall not be deemed to be any part thereof.

<PAGE>

                                      S-1

     IN WITNESS HEREOF, WESTERN RESOURCES, INC., party hereto of the first part,
has caused its corporate name to be hereunto affixed, and this instrument to be
signed and sealed by its Chairman of the Board, President, Chief Executive
Officer or a Vice President, and its corporate seal to be attested by its
Secretary or an Assistant Secretary for and in its behalf, and BNY MIDWEST TRUST
COMPANY, party hereto of the second part, has caused its corporate name to be
hereunto affixed, and this instrument to be signed and sealed by its duly
authorized officer and its corporate seal to be attested by its duly authorized
officer, all as of the day and year first above written.

(CORPORATE SEAL)                                  WESTERN RESOURCES, INC.

                                                  By: /s/ Paul R. Geist
                                                     ---------------------------
                                                      Paul R. Geist

ATTEST:

By:  /s/ Larry D. Irick
    ------------------------------
     Larry D. Irick

Executed, sealed and delivered by
  WESTERN RESOURCES, INC.
  in the presence of:

By:  /s/ Nancy A. Fienhage
    ------------------------------
     Nancy A. Fienhage

By:  /s/ Kathy J. Beach
    ------------------------------
     Kathy J. Beach

                                                  BNY MIDWEST TRUST COMPANY
                                                     As Trustee

                                                  By:  /s/ J. Bartolini
                                                      --------------------------
                                                       J. Bartolini

ATTEST:

By:  /s/ D. G. Donovan
    ------------------------------
     D. G. Donovan

Executed, sealed and delivered by
  BNY MIDWEST TRUST COMPANY
  in the presence of:

By:  /s/ M. Callahan
    ------------------------------
     Mary Callahan

By:  /s/ C. Potter
    ------------------------------
     Carolyn Potter

<PAGE>

                                      S-2

STATE OF KANSAS     )
                    :  ss.:
COUNTY OF SHAWNEE   )

     BE IT REMEMBERED, that on this 10th day of May, 2002, before me, the
undersigned, a Notary Public within and for the County and State aforesaid,
personally came Paul R. Geist and Larry D. Irick, of Western Resources, Inc., a
corporation duly organized, incorporated and existing under the laws of the
State of Kansas, who are personally known to me to be such officers, and who are
personally known to me to be the same persons who executed as such officers the
within instrument of writing, and such persons duly acknowledged the execution
of the same to be the act and deed of said corporation.

     IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my
official seal on the day and year last above written.

                                                        /s/ Patti Beasley
                                                  ------------------------------
                                                          Patti Beasley
                                                          Notary Public
                                                       My Commission Expires
                                                             11-18-04

<PAGE>

                                      S-3

STATE OF ILLINOIS   )
                    :  ss.:
COUNTY OF COOK      )

     BE IT REMEMBERED, that on this 26 day of April, before me, the undersigned,
a Notary Public within and for the County and State aforesaid, personally came
J. Bartolini and D. G. Donovan, of BNY Midwest Trust Company, an Illinois trust
company, who are personally known to me to be such officers, and who are
personally known to me to be the same persons who executed as such officers the
within instrument of writing, and such persons duly acknowledged the execution
of the same to be the act and deed of said corporation.

                                                      /s/ Linda Ellen Garcia
                                                  ------------------------------
                                                          Linda E. Garcia
                                                           Notary Public
                                                       My Commission Expires
                                                             9-23-02

<PAGE>

                                      S-4

STATE OF KANSAS     )
                    :  ss.:
COUNTY OF SHAWNEE   )

     BE IT REMEMBERED, that on this 10th day of May, 2002, before me, the
undersigned, a Notary Public within and for the County and State aforesaid,
personally came Paul R. Geist and Larry D. Irick, of Western Resources, Inc., a
corporation duly organized, incorporated and existing under the laws of the
State of Kansas, who are personally known to me to be such officers, being by me
respectively duly sworn, did each say that the said Paul R. Geist is Senior Vice
President, Chief Financial Officer and Treasurer and that the said Larry D.
Irick is Vice President and Corporate Secretary of said corporation, that the
consideration of and for the foregoing instrument was actual and adequate, that
the same was made and given in good faith, for the uses and purposes therein set
forth and without any intent to hinder, delay, or defraud creditors or
purchasers.

     IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my
official seal on the day and year last above written.

                                                       /s/ Patti Beasley
                                                  ------------------------------
                                                           Patti Beasley
                                                           Notary Public
                                                       My Commission Expires
                                                             11-18-04

<PAGE>

                                   APPENDIX A

                                       to

                       THIRTY-FIFTH SUPPLEMENTAL INDENTURE

                            Dated as of May 10, 2002

                             Western Resources, Inc.

                                       to

                            BNY Midwest Trust Company

                                (as successor to
                         Harris Trust and Savings Bank)

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

                            DESCRIPTION OF PROPERTIES
                         LOCATED IN THE STATE OF KANSAS

                                      FIRST

                             PARCELS OF REAL ESTATE

                                DICKINSON COUNTY

Beginning at point 560 feet south of the Northeast corner of the Southwest
Quarter Section 21, Township 13 South, Range 2 east of the 6th P.M., thence West
371 feet more or less, to the center of Spruce Street in Chicago Addition,
thence South 211 feet on the center line of Spruce Street to the North line of
Augustine Avenue in Chicago Addition to the City of Abilene, according to the
recorded plat prior to vacation, thence west 331 feet to the East line of Cedar
Street; thence North 386 feet; thence East 702 feet, thence South 175 feet to
the point of beginning;

Also to be known as Lot One (1), Nemechek Addition, Abilene, Dickinson County,
Kansas.

A parcel of land located in the Southwest Quarter of Section Two (2), Township
16 South, Range 3 East of the 6th Principal Meridian, Dickinson county, Kansas,
more particularly described as follows:

Commencing at the Southwest corner of said Southwest Quarter; thence on an
assumed bearing of North 89 degrees 46 feet 21 inches East along the South line
of said Southwest Quarter a distance of 1219.55 feet; thence North 00 degrees 7
feet 17 inches West a distance of 1774.70 feet to the PONT OF BEGINNING of the
parcel to be described; thence continuing North 00 degrees 7 feet 17 inches West
a distance of 100.00 feet; thence North 89 degrees 39 feet 48 inches East a
distance of 264.00

<PAGE>

                                      A-2

feet; thence South 00 degrees 7 feet 17 inches East a distance of 100.00 feet;
thence South 89 degrees 39 feet 48 inches West a distance of 264.00 feet to the
point of beginning, Containing 0.61 acres, more or less.

                                 JOHNSON COUNTY

The South 50 feet of Lot 3, Monticello Business Park, a subdivision in Shawnee,
Johnson County, Kansas, according to the recorded plat thereof.

Lot 2, Monticello Business Park, Second Plat, a subdivision in the City of
Shawnee, Johnson County, Kansas.

                                 LABETTE COUNTY

Lot 2, Block 2 Flynn Industrial Park and a portion of Lot 3, Block 2, Flynn
Industrial Park, said portion being more particularly described as follows:
Beginning at the Northwest Corner of Lot 3, Block 2, Flynn Industrial Park;
thence S 90 degrees E along the North Line of Lot 3 a distance of 515.57 feet to
the Northeast Corner of said Lot 2; thence S 23 degrees, 30 minutes W along the
East line of said Lot 3 a distance of 428.40 feet to a deflection point in said
East line; thence N 88 degrees 01 minutes 26 seconds W a distance of 358.07 feet
to the W line of said Lot 3; thence N 1 degrees 58 minutes 34 seconds E along
said West Lie a distance of 380.79 feet to the point of beginning. A total
acreage of 8.94 acres, more or less,

                               LEAVENWORTH COUNTY

A tract of land in the Southwest Quarter of Section 36, Township 10 South, Range
22 East of the 6th P.M. in Leavenworth County, Kansas, Being More Particularly
Described as Follows: Commencing at the Southwest corner of said Quarter
section; Thence North along the west line of said Quarter Section on an assumed
bearing of North 100 degrees 00 feet 00 inches East. A distance of 1828.83 feet
deed, (182.7.38 feet measured) to the true point of beginning of land being
described; Thence continuing North 00 degrees 00 feet inches East, along said
West line, a distance of 570.00 feet; Thence South 89 degrees 48 feet 56 inches
East 720.00 feet; Thence South 00 degrees 00 feet 00 inches West parallel to
said West line, a distance of 570.00 feet; Thence North 89 degrees 46 feet 56
inches West 720.00 feet to the place of beginning; in Leavenworth County,
Kansas.

                                  MORRIS COUNTY

TR BEG 200' N OF SW COR NW 1/4, TH N500', E550', S500', W550' TO POB

                                   RENO COUNTY

A tract of land in the Southwest Quarter of Section 7, Township 23 South, Range
6 West described as follows: BEGINNING at the Southeast corner of said quarter
Section; thence North along the East line of said Quarter Section 380 feet;
thence West parallel to South line of said Quarter Section 460 feet; thence
south 380 feet to a point on said South line 460 feet West of the place of
beginning;

<PAGE>

                                      A-3

thence East 460 feet along said South line to the place of beginning. The above
contains 3.68 acres, more or less, exclusive of the existing highway.

                                 SHAWNEE COUNTY

A tract of land located in the Northeast Quarter (NE1/4) of Section 20, Township
12 South, Range 16 East of the 6th P.M., more particularly described as follows:
Beginning on the South line of said Northeast Quarter, at a point located 260
feet West of the Southeast Corner of said Northeast Quarter; thence continuing
West along said South line, a distance of 210 feet; thence North parallel with
the East lien of said Northeast Quarter, a distance of 197 feet; thence East
parallel with said South line, a distance of 470 feet; thence South along said
East line, a distance of 32 feet; thence West parallel with said South line, a
distance of 260 feet; thence South parallel with said East line, a distance of
165 feet to the Point of Beginning.<PAGE>

                                                                     EXHIBIT 4.2

                $400,000,000 SENIOR NOTES, 9 3/4% SERIES DUE 2007

                           SECURITIES RESOLUTION NO. 2
                                       OF
                             WESTERN RESOURCES, INC.

         The actions described below are taken by the duly authorized officers
of WESTERN RESOURCES, INC. (the "Company"), pursuant to delegation, in
accordance with resolutions adopted by the Board of Directors of the Company on
April 17, 2002, and Section 2.01 of the Indenture dated as of August 1, 1998
(the "Indenture") between the Company and Deutsche Bank Trust Company Americas,
formerly known as Bankers Trust Company (the "Trustee"). Capitalized terms used
herein and not defined have the same meaning given such terms in the Indenture.

         RESOLVED, that a new series of Securities in the aggregate principal
amount of $400,000,000 is authorized as follows:

         1.       The title of the series is Senior Notes, 9 3/4% Series Due
                  2007 (the "Securities").

         2.       The form of the Securities shall be substantially in the form
                  of Exhibit 1 hereto.

         3.       The Securities shall have the terms set forth in Exhibit 1.

         This Securities Resolution is adopted as of May 10, 2002.

                                         /s/ Paul R. Geist
                                         ---------------------------------------
                                            Paul R. Geist
                                            Senior Vice President and
                                            Chief Financial Officer

                                         /s/ Larry D. Irick
                                         ---------------------------------------
                                            Larry D. Irick
                                            Vice President, Corporate Secretary

<PAGE>

                                                                       EXHIBIT I

                               [FACE OF SECURITY]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, BEFORE THE DATE (THE "RESALE RESTRICTION
TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY
WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A)
TO THE COMPANY, (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE UNDER RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) UNDER OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) UNDER
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT BEFORE ANY SUCH
OFFER, SALE OR TRANSFER UNDER CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT.
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE./1/

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED IN

--------
/1/      The above restrictions will not apply to any security on or after the
"Resale Restriction Termination Date" applicable to such security, or with
respect to any security which have been sold or otherwise transferred pursuant
to Rule 144A or a registration statement which has been declared effective under
the Securities Act. "Resale Restriction Termination Date" shall mean the date on
which the holding period under Rule 144(k) under the Securities Act expires with
respect to such security. Any security issued on or after the Resale Restriction
Termination Date need not contain this legend.

<PAGE>

THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY SECURITY
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
HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

                                       2

<PAGE>

No. 1                                                               $399,330,000
                                                            CUSIP No. 959425 AU3

                             WESTERN RESOURCES, INC.
                $400,000,000 Senior Notes, 9 3/4% Series Due 2007

Western Resources, Inc. promises to pay to CEDE & CO. or registered assigns the
principal sum of $399,330,000 on May 1, 2007.

Interest Payment Dates:       May 1 and November 1 commencing November 1, 2002

Record Dates:                 April 15 and October 15

Dated:                        May 10, 2002

Deutsche Bank Trust Company Americas,
Transfer Agent

                                         WESTERN RESOURCES, INC.

                                         By:  /s/ Paul R. Geist
                                            ------------------------------------
                                             Paul R. Geist
                                             Senior Vice President and Chief
                                             Financial Officer

                                         By:  /s/ Larry D. Irick
                                            ------------------------------------
                                             Larry D. Irick
                                             Vice President, Corporate Secretary

Authenticated:      Deutsche Bank Trust Company Americas,
                    Registrar

                   By:/s/ Susan Johnson
                      ----------------------------------------
                         Authorized Signature

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                             WESTERN RESOURCES, INC.
                $400,000,000 Senior Notes, 9 3/4% Series Due 2007

1.       Interest.

         Western Resources, Inc. ("Company"), a corporation organized and
         existing under the laws of the State of Kansas, promises to pay
         interest on the principal amount of the Securities (as defined in
         Section 5) at the rate per annum described below. The Company will pay
         interest semi-annually on May 1 and November 1 of each year, commencing
         November 1, 2002. Interest on the Securities will accrue from the most
         recent date to which interest has been paid or, if no interest has been
         paid, from May 10, 2002. Interest will be computed on the basis of a
         360-day year consisting of twelve 30-day months.

         The Securities will bear interest at the rate of 9 3/4% per annum from
         the date of issuance to May 1, 2007 unless redeemed pursuant to
         Sections 9 and 10 below.

2.       Registration Rights.

         Securityholders are entitled to the benefits of a Registration Rights
         Agreement, dated as of May 10, 2002, among the Company and the Initial
         Purchasers named therein (the "Registration Agreement"). Capitalized
         terms used in this Section 2 but not defined herein have the meanings
         assigned to them in the Registration Agreement.

         In the event that (i) neither the Exchange Offer Registration Statement
         nor the Shelf Registration Statement has been filed with the Commission
         on or prior to the 180th day following the date of the original
         issuance of the Securities, (ii) the Exchange Offer Registration
         Statement has not been declared effective on or prior to the 270th day
         following the date of the original issuance of the Securities, (iii)
         neither the Registered Exchange Offer has been consummated nor the
         Shelf Registration Statement has been declared effective on or prior to
         the 315th day following the date of the original issuance of the
         Securities, or (iv) after the Exchange Offer Registration Statement or
         the Shelf Registration Statement has been declared effective, such
         Registration Statement thereafter ceases to be effective or usable in
         connection with resales of the Security at any time that the Company is
         obligated to maintain the effectiveness thereof pursuant to the
         Registration Agreement (each such event referred to in clauses (i)
         through (iv) above being referred to herein as "Registration Default"),
         Special interest shall accrue (in addition to stated interest on the
         Securities from and including the date on which the first such
         Registration Default shall occur to but excluding the date on which all
         Registration Defaults have been cured, at a rate per annum equal to
         0.50% of the principal amount of the Securities). Special interest, if
         any, will be payable in cash on each interest payment date to the
         person in whose name this Security is registered on the applicable
         record date. The term "interest "shall include special interest, if
         any, as well as the stated interest.

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3.       Method of Payment.

         The Company will pay interest on the Securities to the persons who are
         registered Holders of Securities at the close of business on the record
         date for (the "record date") each interest payment date, except as
         otherwise provided in the Indenture (as defined in Section 5). The
         Company will pay principal and interest in money of the United States
         that at the time of payment is legal tender for the payment of public
         and private debts. The Company may pay principal and interest by check
         payable in such money and it may mail an interest check to a Holder's
         registered address.

4.       Agents.

         Initially, Deutsche Bank Trust Company Americas, 60 Wall Street, New
         York, NY 10005, Attention: Corporate Trust and Agency
         Services/Corporate Debt Administration, will act as Trustee, Paying
         Agent, Transfer Agent and Registrar. The Company may change any Paying
         Agent, Transfer Agent or Registrar without notice or provide for more
         than one such agent. The Company or any Affiliate may act in any such
         capacity. Subject to certain conditions, the Company may change the
         Trustee.

5.       Indenture.

         The Company issued the securities of this series ("Securities") under
         an Indenture dated as of August 1, 1998 (the "Indenture") between the
         Company and Deutsche Bank Trust Company Americas, formerly known as
         Bankers Trust Company (the "Trustee"). The terms of the Securities
         include those stated in the Indenture and in the Securities Resolution
         creating the Securities and those made part of the Indenture by the
         Trust Indenture Act of 1939 (15 U.S. Code ss.ss. 77aaa-77bbbb) (the
         "Trust Indenture Act"). All capitalized terms used herein but not
         defined shall have the meanings ascribed to such terms in the
         Indenture. Securityholders are referred to the Indenture, the
         Securities Resolution and the Trust Indenture Act for a statement of
         such terms.

6.       Denominations, Transfer, Exchange.

         The Securities are in registered form without coupons in denominations
         of $1,000 and whole multiples of $1,000. The transfer of Securities may
         be registered and Securities may be exchanged as provided in the
         Indenture. The Transfer Agent may require a Holder, among other things,
         to furnish appropriate endorsements and transfer documents and to pay
         any taxes and fees required by law or the Indenture.

7.       Persons Deemed Owners.

         The registered Securityholder may be treated as its owner for all
         purposes.

8.       Amendments and Waivers.

         Subject to certain exceptions, the Indenture may be amended with the
         consent of the registered holders of a majority in aggregate principal
         amount of the Securities then outstanding (including consents obtained
         in connection with a tender offer or exchange

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         offer for the Securities) and any past default or compliance with any
         provisions may also be waived (except a default in the payment of
         principal, premium or interest and certain covenants and provisions of
         the Indenture which cannot be amended without the consent of each
         holder of an outstanding Security) with the consent of the registered
         holders of at least a majority in aggregate principal amount of the
         Securities then outstanding. However, without the consent of each
         holder of an outstanding Security, no amendment may, among other
         things,

                  (1) reduce the amount of Securities whose holders must consent
                  to an amendment or waiver,

                  (2) reduce the rate of or extend the time for payment of
                  interest on any Security,

                  (3) reduce the principal of or premium, if any, or extend the
                  Stated Maturity of any Security,

                  (4) make any Security payable in money other than U.S.
                  dollars,

                  (5) impair the right of any Securityholders to receive payment
                  of principal of premium, if any, and interest on such Holder's
                  Securities on or after the due dates therefor or to institute
                  suit for the enforcement of any payment on or with respect to
                  such Holder's Securities,

                  (6) subordinate the Securities to any other obligation of the
                  Company,

                  (7) reduce the Change of Control Purchase Price or, at any
                  time after a Change of Control has occurred, change the time
                  at which the Change of Control Offer relating thereto must be
                  made or at which the Securities must be repurchased pursuant
                  to such Change of Control Offer, and

                  (8) at any time after the Company is obligated to make a
                  Prepayment Offer with the Excess Proceeds from Asset Sales,
                  change the time at which such Prepayment Offer must be made or
                  at which the Securities must be repurchased pursuant thereto.

         Without the consent of any Securityholder, the Company and the Trustee
         may amend the Indenture to:

                  (1) cure any ambiguity, omission, defect or inconsistency in
                  any manner that is not adverse in any material respect to any
                  Securityholder,

                  (2) provide for the assumption by a successor corporation of
                  the obligations of the Company under the Indenture,

                  (3) provide for uncertificated Securities in addition to or in
                  place of certificated Securities,

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                  (4) secure the Securities, to add to the covenants of the
                  Company for the benefit of the Securityholders or to surrender
                  any right or power conferred upon the Company,

                  (5) make any change that does not adversely affect the rights
                  of any Securityholders,

                  (6) make any change to the subordination provisions of the
                  Indenture that would not limit or terminate the benefits
                  available to any holder of Senior Debt under such provisions
                  or to comply with any requirement of the Securities and
                  Exchange Commission in connection with the qualification of
                  the Indenture under the Trust Indenture Act, and

                  (7) provide for the issuance of additional Securities in
                  accordance with the Indenture.

         No amendment may be made to the subordination provisions of the
         Indenture that adversely affects the rights of any holder of Senior
         Debt then outstanding unless the holders of such Senior Debt (or their
         representative) consent to such change. The consent of the
         Securityholders is not necessary to approve the particular form of any
         proposed amendment. It is sufficient if such consent approves the
         substance of the proposed amendment. After an amendment becomes
         effective, the Company is required to mail to each Securityholder at
         such holder's address appearing in the security register a notice
         briefly describing such amendment. However, the failure to give such
         notice to all Securityholders, or any defect therein, will not impair
         or affect the validity of the amendment.

9.       Optional Redemption.

         At any time and from time to time, the Company may redeem all or any
         portion of the Securities, after giving the required notice under the
         Indenture at a redemption price equal to the greater of:

                  (a) 100% of the principal amount of the Securities to be
                  redeemed, or

                  (b) the sum of the present values of the remaining scheduled
                  payments of principal and interest thereon discounted to the
                  date of redemption on a semi-annual basis (assuming a 360-day
                  year consisting of twelve 30-day months) at the Treasury Rate
                  plus 75 basis points,

         plus, in either case, accrued and unpaid interest, if any, to the
         redemption date (subject to the right of holders of record on the
         relevant record date to receive interest due on the relevant interest
         payment date).

         At any time and from time to time prior to May 1, 2004, the Company may
         redeem up to a maximum of 35% of the original aggregate principal
         amount of the Securities with the

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         proceeds of one or more Public Equity Offerings at a redemption price
         equal to 109.75% of the principal amount thereof, plus accrued and
         unpaid interest, if any, to the redemption date (subject to the right
         of holders of record on the relevant record date to receive interest
         due on the relevant interest payment date); provided, however, that
         after giving effect to any such redemption, at least 65% of the
         original aggregate principal amount of the Securities remains
         outstanding. Any such redemption shall be made within 75 days of such
         Public Equity Offering upon not less than 30 nor more than 60 days'
         prior notice.

         Subject to the provisions of Article 3 of the Indenture, the Company
         shall cause notice of redemption to be given by (1) first-class mail,
         postage prepaid, at least thirty days and not more than sixty days
         prior to the date of redemption, to the registered owners of such
         Securities at their addresses as the same shall appear on the transfer
         register of the Company; and (2) stating, among other things, the
         redemption price and date. No such redemptions may be conditional once
         notice of redemption is given.

10.      Repurchase at the Option of Holders Upon a Change of Control.

         Upon the occurrence of a Change of Control, each Securityholder shall
         have the right to require the Company to repurchase all or any part of
         such Holder's Securities pursuant to the offer described below (the
         "Change of Control Offer") at a purchase price (the "Change of Control
         Purchase Price") equal to 101% of the principal amount thereof, plus
         accrued and unpaid interest, if any, to the purchase date.

         Within 30 days following any Change of Control, the Company shall:

                  (a) cause a notice of the Change of Control Offer to be sent
                  at least once to the Dow Jones News Service or similar
                  business news service in the United States; and

                  (b) send, by first-class mail, with a copy to the Trustee, to
                  each Securityholder, at such Holder's address appearing in the
                  security register, a notice stating:

                           (1) that a Change of Control has occurred and a
                           Change of Control Offer is being made pursuant to the
                           Indenture and that all Securities timely tendered
                           will be accepted for payment;

                           (2) the Change of Control Purchase Price and the
                           purchase date, which shall be, subject to any
                           contrary requirements of applicable law, a business
                           day no earlier than 30 days nor later than 60 days
                           from the date such notice is mailed;

                           (3) the circumstances and relevant facts regarding
                           the Change of Control; and

                           (4) the procedures that Securityholders must follow
                           in order to tender their Securities (or portions
                           thereof) for payment, and the procedures that

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                           Securityholders must follow in order to withdraw an
                           election to tender Securities (or portions thereof)
                           for payment.

         The Company will comply, to the extent applicable, with the
         requirements of Section 14(e) of the Exchange Act and any other
         securities laws or regulations in connection with the repurchase of the
         Securities pursuant to a Change of Control Offer. To the extent that
         the provisions of any securities laws or regulations conflict with the
         provisions of the covenant set forth in this Section 10, the Company
         will comply with the applicable securities laws and regulations and
         will not be deemed to have breached its obligations under the this
         Section 10 by virtue of such compliance.

         The Company's obligation to make an offer to repurchase the Securities
         as a result of a Change of Control may be waived or modified at any
         time prior to the occurrence of such Change of Control with the written
         consent of the holders of a majority in principal amount of the
         Securities.

11.      Restrictive Covenants.

         (A) Covenant Suspension. Set forth below are summaries of certain
         covenants applicable to the Securities. During any period of time that
         the Securities have Investment Grade Ratings from the Required Rating
         Agencies, the Company and any Restricted Subsidiary will not be subject
         to the following covenants in the Indenture:

         .        subsection (B), Limitation on Debt,

         .        subsection (C), Limitation on Restricted Payments,

         .        subsection (E), Limitation on Asset Sales,

         .        subsection (F), Limitation on Restrictions on Distributions
         from any Restricted Subsidiary,

         .        subsection (G), Limitation on Transactions with Affiliates,

         .        clause (x) of the fourth paragraph (and such clause (x) as
         referred to in the second paragraph) of subsection (I), Designation of
         Restricted and Unrestricted Subsidiaries,

         .        subsection (J), Limitation on Company's Business,

         .        Section 10, Repurchase at the Option of Holders Upon a Change
         of Control, and

         .        clauses (e) and (f) of the first paragraph of Section 12,
         Merger, Consolidation and Sale of Property.

         (collectively, the "Suspended Covenants"). In the event that the
         Company and any Restricted Subsidiary are not subject to the Suspended
         Covenants for any period of time as a result of the preceding sentence
         and, subsequently, a Rating Agency withdraws its

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         rating or downgrades the rating assigned to the Securities so that the
         Securities no longer have Investment Grade Ratings from the Required
         Rating Agencies or a Default or Event of Default occurs and is
         continuing, then the Company and any Restricted Subsidiary will
         thereafter again be subject to the Suspended Covenants and compliance
         with the Suspended Covenants with respect to Restricted Payments made
         after the time of such withdrawal, downgrade, Default or Event of
         Default will be calculated in accordance with the terms of the covenant
         set forth below under subsection (c), Limitation on Restricted
         Payments, as though such covenant had been in effect during the entire
         period of time from the Issue Date.

         (B) Limitation on Debt. The Company shall not, and shall not permit any
         Restricted Subsidiary to, Incur, directly or indirectly, any Debt
         unless, after giving effect to the application of the proceeds thereof,
         no Default or Event of Default would occur as a consequence of such
         Incurrence or be continuing following such Incurrence and either:

                  (1) if such Debt is Debt of the Company or any Restricted
                  Subsidiary, after giving effect to the Incurrence of such Debt
                  and the application of the proceeds thereof, the Consolidated
                  Interest Coverage Ratio would be greater than 2.00 to 1.00, or

                  (2) such Debt is Permitted Debt.

         The term "Permitted Debt" is defined to include the following:

                  (a) Debt of the Company evidenced by the Securities and the
                  bonds (including bonds pledged to secure Debt under clause (b)
                  below);

                  (b) Debt of the Company under the Credit Facilities, provided
                  that the aggregate principal amount of all such Debt under the
                  Credit Facilities at any one time outstanding shall not exceed
                  $1.3 billion, which amount shall be permanently reduced by the
                  amount of Net Available Cash used to Repay Debt under the
                  Credit Facilities, and not subsequently reinvested in
                  Additional Assets or used to purchase Securities or Repay
                  other Debt, pursuant to subsection (E), Limitation on Asset
                  Sales;

                  (c) Capital Expenditure Debt, provided that:

                           (i) the aggregate principal amount of such Debt does
                           not exceed the Fair Market Value (on the date of the
                           Incurrence thereof) of the Property acquired,
                           constructed or leased, and

                           (ii) the aggregate principal amount of all Debt
                           Incurred pursuant to this clause (c) during any
                           calendar year does not exceed $150 million;

                  (d) Debt of the Company owing to and held by any Wholly Owned
                  Restricted Subsidiary and Debt of a Restricted Subsidiary
                  owing to and held by the Company or any Wholly Owned
                  Restricted Subsidiary; provided, however, that

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                  any subsequent issue or transfer of Capital Stock or other
                  event that results in any such Wholly Owned Restricted
                  Subsidiary ceasing to be a Wholly Owned Restricted Subsidiary
                  or any subsequent transfer of any such Debt (except to the
                  Company or a Wholly Owned Restricted Subsidiary) shall be
                  deemed, in each case, to constitute the Incurrence of such
                  Debt by the issuer thereof;

                  (e) Debt under Interest Rate Agreements entered into by the
                  Company or any Restricted Subsidiary for the purpose of
                  limiting interest rate risk in the ordinary course of the
                  financial management of the Company or such Restricted
                  Subsidiary and not for speculative purposes, provided that the
                  obligations under such Agreements are directly related to
                  payment obligations on Debt otherwise permitted by the terms
                  of this covenant;

                  (f) Debt under Currency Exchange Protection Agreements entered
                  into by the Company or any Restricted Subsidiary for the
                  purpose of limiting currency exchange rate risks directly
                  related to transactions entered into by the Company or such
                  Restricted Subsidiary in the ordinary course of business and
                  not for speculative purposes;

                  (g) Debt under Commodity Price Protection Agreements entered
                  into by the Company or any Restricted Subsidiary in the
                  ordinary course of the financial management of the Company or
                  such Restricted Subsidiary and not for speculative purposes;

                  (h) Debt in connection with one or more standby letters of
                  credit, performance bonds and/or collateral margin accounts
                  issued or opened by the Company or any Restricted Subsidiary
                  (but not including any Guarantees) in the ordinary course of
                  business or pursuant to self-insurance obligations and not in
                  connection with the borrowing of money or the obtaining of
                  advances or credit;

                  (i) Debt outstanding on the Issue Date not otherwise set forth
                  in clauses (a) through (h) above;

                  (j) Debt of the Company and the Restricted Subsidiaries in an
                  aggregate principal amount outstanding at any one time not to
                  exceed $100 million; and

                  (k) Permitted Refinancing Debt Incurred in respect of Debt
                  Incurred pursuant to clauses (a), (c) and (i) of clause (2) of
                  this covenant.

         Notwithstanding anything to the contrary contained in this covenant,

                  (a) accrual of interest, accretion or amortization of original
                  issue discount and the payment of interest or dividends in the
                  form of additional Debt will be deemed not to be an incurrence
                  of Debt for purposes of this covenant; and

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                  (b) for purposes of determining compliance with this covenant,
                  in the event that an item of Debt (including Acquired Debt)
                  meets the criteria of more than one of the categories of
                  Permitted Debt set forth in clauses (a) through (k) of clause
                  (2) of this covenant or is entitled to be incurred pursuant to
                  clause (l) of the first paragraph of this covenant, the
                  Company will, in its sole discretion, classify (or later
                  reclassify in whole or in part, in its sole discretion) such
                  item of Debt in any manner that complies with this covenant.

         (C) Limitation on Restricted Payments. The Company shall not make, and
         shall not permit any Restricted Subsidiary to make, directly or
         indirectly, any Restricted Payment if at the time of, and after giving
         effect to, such proposed Restricted Payment,

                  (a) a Default or Event of Default shall have occurred and be
                  continuing,

                  (b) the Company could not Incur at least $1.00 of additional
                  Debt pursuant to clause (1) of the first paragraph of
                  subsection (B), Limitation on Debt or

                  (c) the aggregate amount of such Restricted Payment and all
                  other Restricted Payments declared or made since the Issue
                  Date (the amount of any Restricted Payment, if made other than
                  in cash, to be based upon Fair Market Value) would exceed an
                  amount equal to the sum of:

                           (1) 50% of the aggregate amount of Consolidated Net
                           Income accrued during the period (treated as one
                           accounting period) from the beginning of the first
                           fiscal quarter during which the Issue Date occurs to
                           the end of the most recent fiscal quarter for which
                           financial statements are available prior to the date
                           of such Restricted Payment (or if the aggregate
                           amount of Consolidated Net Income for such period
                           shall be a deficit, minus 100% of such deficit), plus

                           (2) Capital Stock Sale Proceeds, plus

                           (3) the sum of:

                                    (A) the aggregate net cash proceeds received
                                    by the Company or any Restricted Subsidiary
                                    from the issuance or sale after the Issue
                                    Date of convertible or exchangeable Debt
                                    that has been converted into or exchanged
                                    for Capital Stock (other than Disqualified
                                    Stock) of the Company, and

                                    (B) the aggregate amount by which Debt
                                    (other than Subordinated Obligations) of the
                                    Company or any Restricted Subsidiary is
                                    reduced on the Company's consolidated
                                    balance sheet on or after the Issue Date
                                    upon the conversion or exchange of any Debt
                                    issued or sold on or prior to the Issue Date
                                    that is convertible or

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                                    exchangeable for Capital Stock (other than
                                    Disqualified Stock) of the Company,

                                    excluding, in the case of clause (A) or (B):

                                    (x) any such Debt issued or sold to the
                                    Company or any Restricted Subsidiary of the
                                    Company, and

                                    (y) the aggregate amount of any cash or
                                    other Property distributed by the Company or
                                    such Restricted Subsidiary upon any such
                                    conversion or exchange,

                           plus

                           (4) an amount equal to the sum of:

                                    (A) the net reduction in Investments in any
                                    Person other than the Company or a
                                    Restricted Subsidiary resulting from
                                    dividends, repayments of loans or advances
                                    or other transfers of Property, in each case
                                    to the Company or any Restricted Subsidiary
                                    from such Person, and

                                    (B) the portion (proportionate to the
                                    Company's equity interest in such
                                    Unrestricted Subsidiary) of the Fair Market
                                    Value of the net assets of an Unrestricted
                                    Subsidiary at the time such Unrestricted
                                    Subsidiary is designated a Restricted
                                    Subsidiary; provided, however, that the
                                    foregoing sum shall not exceed, in the case
                                    of any Person, the amount of Investments
                                    previously made (and treated as a Restricted
                                    Payment) by the Company or any Restricted
                                    Subsidiary in such Person.

         Notwithstanding the foregoing limitation, the Company may:

                  (a) pay dividends on its Capital Stock within 75 days of the
                  declaration thereof if, on said declaration date, such
                  dividends could have been paid in compliance with the
                  Indenture and this subsection (C); provided, however, that at
                  the time of such payment of such dividend, no other Default or
                  Event of Default shall have occurred and be continuing (or
                  result therefrom); provided further, however, that such
                  dividends shall be included in the calculation of the amount
                  of Restricted Payments;

                  (b) purchase, repurchase, redeem, legally defease, acquire or
                  retire for value Capital Stock of the Company or Subordinated
                  Obligations in exchange for, or out of the proceeds of the
                  substantially concurrent sale of, Capital Stock of the Company
                  (other than Disqualified Stock and other than Capital Stock
                  issued or sold to a Subsidiary of the Company); provided,
                  however, that

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                           (1) such purchase, repurchase, redemption, legal
                           defeasance, acquisition or retirement shall be
                           excluded in the calculation of the amount of
                           Restricted Payments, and

                           (2) the Capital Stock Sale Proceeds from such
                           exchange or sale shall be excluded from the
                           calculation pursuant to clause (c)(2) above; and

               (c) purchase, repurchase, redeem, legally defease, acquire or
               retire for value any Subordinated Obligations in exchange for, or
               out of the proceeds of the substantially concurrent sale of,
               Permitted Refinancing Debt; provided, however, that such
               purchase, repurchase, redemption, legal defeasance, acquisition
               or retirement shall be excluded in the calculation of the amount
               of Restricted Payments;

               (d) repurchase shares of, or options to purchase shares of,
               common stock of the Company or any of its Subsidiaries from
               current or former officers, directors or employees of the Company
               or any of its Subsidiaries (or permitted transferees of such
               current or former officers, directors or employees), pursuant to
               the terms of agreements (including employment agreements) or
               plans (or amendments thereto) approved by the Board of Directors
               under which such individuals purchase or sell, or are granted the
               option to purchase or sell, shares of such common stock;
               provided, however, that at the time of such repurchase, no other
               Default or Event of Default shall have occurred and be continuing
               (or result therefrom); provided further, however, that such
               repurchases shall be excluded in the calculation of the amount of
               Restricted Payments;

               (e) make a Restricted Payment, if at the time the Company or any
               Restricted Subsidiary first Incurred a commitment for such
               Restricted Payment, such Restricted Payment could have been made;
               provided, however, that all commitments Incurred and outstanding
               shall be treated as if such commitments were Restricted Payments
               expended by the Company or such Restricted Subsidiary at the time
               the commitments were Incurred, except that commitments Incurred
               and outstanding that are treated as the Restricted Payment
               expended by the Company or such Restricted Subsidiary and that
               are terminated shall no longer be treated as a Restricted Payment
               expended by the Company or such Restricted Subsidiary upon the
               termination of such commitment;

               (f) pay scheduled dividends on Preferred Stock of the Company or
               any Restricted Subsidiary or on Disqualified Stock of the Company
               issued pursuant to and in compliance with subsection (B),
               Limitation on Debt, provided; however, that any such dividends
               shall be included in the calculation of the amount of Restricted
               Payments;

               (g) pay scheduled cash dividends on the Company's common stock
               and Restricted Share Units at an annual rate not in excess of
               $1.20 per share,

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               provided, however, that any such cash dividends shall be included
               in the calculation of the amount of Restricted Payments;

               (h) make distributions of part or all of the businesses of
               Protection One, Inc. or Protection One Europe to holders of the
               Company's Capital Stock;

               (i) repurchase the Cumulative Preferred Stock outstanding as of
               the Issue Date; and

               (j) make Restricted Payments not otherwise permitted hereunder in
               an aggregate amount not in excess of $50 million.

          (D) Limitation on Liens. So long as any of the Securities are
          outstanding, the Company shall not, and shall not permit any
          Restricted Subsidiary to, directly or indirectly, Incur or suffer to
          exist, any Lien (other than Permitted Liens) upon or with respect to
          any of its Property of any character, including without limitation any
          shares of Capital Stock of any Restricted Subsidiary, without making
          effective provision whereby the Securities shall (so long as any such
          other creditor shall be so secured) be equally and ratably secured
          (along with any other creditor similarly entitled to be secured) by a
          direct Lien on all property subject to such Lien (for the avoidance of
          doubt, the foregoing restriction shall not apply to Permitted Liens
          securing Debt of the Company).

          (E) Limitation on Asset Sales. The Company shall not, and shall not
          permit any Restricted Subsidiary to, directly or indirectly,
          consummate any Asset Sale unless:

               (a) the Company or such Restricted Subsidiary receives
               consideration at the time of such Asset Sale at least equal to
               the Fair Market Value of the Property subject to such Asset Sale;

               (b) at least 75% of the consideration paid to the Company or such
               Restricted Subsidiary in connection with such Asset Sale is in
               the form of cash or Cash Equivalents or the assumption by the
               purchaser of liabilities of the Company or such Restricted
               Subsidiary (other than liabilities that are by their terms
               subordinated to the Securities) as a result of which the Company
               and such Restricted Subsidiary are no longer obligated with
               respect to such liabilities, provided, however, that the
               foregoing shall not prohibit the Company or such Restricted
               Subsidiary from transferring assets in consideration of receipt
               of Additional Assets and other cash or Cash Equivalents; and

               (c) the Company delivers an Officers' Certificate to the Trustee
               certifying that such Asset Sale complies with the foregoing
               clauses (a) and (b).

          The Net Available Cash (or any portion thereof) from Asset Sales may
          be applied by the Company or any Restricted Subsidiary, to the extent
          the Company or any Restricted Subsidiary elects (or is required by the
          terms of any Debt):

                                       13

<PAGE>

               (a) to Repay Senior Debt of the Company or Debt of any Restricted
               Subsidiary (excluding, in any such case, any Debt owed to the
               Company or an Unregulated Affiliate of the Company); or

               (b) to reinvest in Additional Assets (including by means of an
               Investment in Additional Assets by such Restricted Subsidiary
               with Net Available Cash received by the Company or another
               Restricted Subsidiary).

          Any Net Available Cash from an Asset Sale not applied in accordance
          with the preceding paragraph within one year from the date of the
          receipt of such Net Available Cash or that is not segregated from the
          general funds of the Company for investment in identified Additional
          Assets in respect of a project that shall have been commenced, and for
          which binding contractual commitments have been entered into, prior to
          the end of such one-year period and that shall not have been completed
          or abandoned shall constitute "Excess Proceeds."

          When the aggregate amount of Excess Proceeds exceeds $25 million
          (taking into account income earned on such Excess Proceeds, if any),
          the Company will be required to make an offer to purchase (the
          "Prepayment Offer") the Securities, which offer shall be in the amount
          of the Allocable Excess Proceeds, on a pro rata basis according to the
          principal amount of the Securities, at a purchase price equal to 100%
          of the principal amount thereof, plus accrued and unpaid interest, if
          any, to the purchase date, in accordance with the procedures
          (including prorating in the event of oversubscription) set forth in
          the Indenture. To the extent that any portion of the amount of Net
          Available Cash remains after compliance with the preceding sentence
          and provided that all Securityholders have been given the opportunity
          to tender their Securities for purchase in accordance with the
          Indenture, the Company or any Restricted Subsidiary may use such
          remaining amount for any purpose permitted by the Indenture and the
          amount of Excess Proceeds will be reset to zero.

          The term "Allocable Excess Proceeds" will mean the product of:

               (a) the Excess Proceeds, and

               (b) a fraction,

                  (1) the numerator of which is the aggregate principal amount
                  of the Securities outstanding on the date of the Prepayment
                  Offer, and

                  (2) the denominator of which is the sum of the aggregate
                  principal amount of the Securities outstanding on the date of
                  the Prepayment Offer and the aggregate principal amount of
                  other Debt of the Company outstanding on the date of the
                  Prepayment Offer that is pari passu in right of payment with
                  the Securities and subject to terms and conditions in respect
                  of Asset Sales similar in all material respects to the
                  covenant set

                                       14

<PAGE>

                  forth herein and requiring the Company to make an offer to
                  purchase such Debt at substantially the same time as the
                  Prepayment Offer.

          Within five business days after the Company is obligated to make a
          Prepayment Offer as set forth in the second preceding paragraph, the
          Company shall send a written notice, by first-class mail, to the
          Securityholders, accompanied by such information as the Company in
          good faith believes will enable such holders to make an informed
          decision with respect to such Prepayment Offer. Such notice shall
          state, among other things, the purchase price and the purchase date,
          which shall be, subject to any contrary requirements of applicable
          law, a business day no earlier than 30 days nor later than 60 days
          from the date such notice is mailed.

          The Company will comply, to the extent applicable, with the
          requirements of Section 14(e) of the Exchange Act and any other
          securities laws or regulations in connection with the repurchase of
          Securities pursuant to the covenant set forth herein. To the extent
          that the provisions of any securities laws or regulations conflict
          with provisions of the covenant set forth herein, the Company will
          comply with the applicable securities laws and regulations and will
          not be deemed to have breached its obligations under the covenant set
          forth herein by virtue thereof.

          (F) Limitation on Restrictions on Distributions from any Restricted
          Subsidiary. The Company shall not, and shall not permit any Restricted
          Subsidiary to, directly or indirectly, create or otherwise cause or
          suffer to exist any consensual restriction on the right of such
          Restricted Subsidiary to:

               (a) pay dividends, in cash or otherwise, or make any other
               distributions on or in respect of its Capital Stock, or pay any
               Debt or other obligation owed, to the Company or any other
               Restricted Subsidiary;

               (b) make any loans or advances to the Company or any other
               Restricted Subsidiary; or

               (c) transfer any of its Property to the Company or any other
               Restricted Subsidiary.

          The foregoing limitations shall not apply:

               (1) to restrictions:

                           (A) in effect on the Issue Date,

                           (B) relating to Debt of any Restricted Subsidiary and
                           existing at the time it became a Restricted
                           Subsidiary, or

                           (C) that result from the Refinancing of Debt Incurred
                           pursuant to an agreement referred to in clause (1)(A)
                           or (B) above or in clause

                                       15

<PAGE>

                           (2)(A) or (B) below, provided that such restriction
                           is no less favorable to the Securityholders than
                           those under the agreement evidencing the Debt so
                           Refinanced, and

               (2) with respect to clause (c) only, to restrictions:

                           (A) relating to Debt (that is permitted to be
                           Incurred and secured without also securing the
                           Securities) pursuant to subsection (B), Limitation on
                           Debt and subsection (D), Limitation on Liens, that
                           limit the right of the debtor to dispose of the
                           Property securing such Debt,

                           (B) encumbering Property at the time such Property
                           was acquired by the Company or any Restricted
                           Subsidiary, so long as such restriction relates
                           solely to the Property so acquired,

                           (C) resulting from customary provisions restricting
                           subletting or assignment of leases or customary
                           provisions in other agreements that restrict
                           assignment of such agreements or rights thereunder,
                           or

                           (D) customary restrictions contained in asset sale
                           agreements limiting the transfer of such Property
                           pending the closing of such sale.

          (G) Limitation on Transactions with Affiliates. The Company shall not,
          and shall not permit any Restricted Subsidiary to, directly or
          indirectly, conduct any business or enter into or suffer to exist any
          transaction or series of transactions (including the purchase, sale,
          transfer, assignment, lease, conveyance or exchange of any Property or
          the rendering of any service) with, or for the benefit of, any
          Affiliate of the Company (an "Affiliate Transaction"), unless:

               (a) the terms of such Affiliate Transaction are:

                  (1) set forth in writing, and

                  (2) in the best interest of the Company or such Restricted
                  Subsidiary, as the case may be, and

                  (3) no less favorable to the Company or such Restricted
                  Subsidiary, as the case may be, than those that could be
                  obtained in a comparable arm's-length transaction with a
                  Person that is not an Affiliate of the Company;

               (b) if such Affiliate Transaction involves aggregate payments or
               value in excess of $10 million, the Board of Directors approves
               such Affiliate Transaction and, in its good faith judgment,
               believes that such Affiliate Transaction complies with

                                       16

<PAGE>

               clauses (a)(2) and (a)(3) of this paragraph as evidenced by a
               Board resolution promptly delivered to the Trustee;

               (c) if such Affiliate Transaction involves aggregate payments or
               value in excess of $50 million, the Company obtains a written
               opinion from an Independent Financial Advisor to the effect that
               the consideration to be paid or received in connection with such
               Affiliate Transaction is fair, from a financial point of view, to
               the Company and such Restricted Subsidiary; or

               (d) if such Affiliate Transaction involves or arises out of
               contracts or agreements (1) in existence on the Issue Date and
               any amendments, modifications or extensions thereof not
               materially disadvantageous to the Company, or (2) ordered or
               required by the KCC.

          (H) Limitation on Sale and Leaseback Transactions. The Company shall
          not, and shall not permit any Restricted Subsidiary to, enter into any
          Sale and Leaseback Transaction with respect to any Property unless:

               (a) the Company or such Restricted Subsidiary would be entitled
               to:

                  (1) Incur Debt in an amount equal to the Attributable Debt
                  with respect to such Sale and Leaseback Transaction pursuant
                  to subsection (B), Limitation on Debt, and

                  (2) create a Lien on such Property securing such Attributable
                  Debt without also securing the Securities pursuant to
                  subsection (D), Limitation on Liens, and

               (b) such Sale and Leaseback Transaction is effected in compliance
               with subsection (E), Limitation on Asset Sales.

          (I) Designation of Restricted and Unrestricted Subsidiaries. Subject
          to the relevant provisions of subsection (J), Limitation on Company's
          Business, the Board of Directors may designate any Restricted
          Subsidiary (including any newly acquired or newly formed Subsidiary of
          the Company), other than KGE, to be an Unrestricted Subsidiary if such
          Subsidiary to be so designated does not own any Capital Stock or Debt
          of, or own or hold any Lien on any Property of, the Company or any
          other Restricted Subsidiary; provided that: (A) any Guarantee by the
          Company or any Restricted Subsidiary of any Debt of the Subsidiary
          being so designated shall be deemed an "Incurrence" of such Debt and
          an "Investment" by the Company or such Restricted Subsidiary at the
          time of such designation; (B) either the Subsidiary to be so
          designated has total assets of $1,000 or less or if such Subsidiary
          has assets of greater than $1,000, such designation would be permitted
          under subsection (C), Limitation on Restricted Payments; and (C) if
          applicable, the Incurrence of Indebtedness and the Investment referred
          to in clause (A) of this covenant would be permitted under subsection
          (B), Limitation on Debt and subsection (C), Limitation on Restricted
          Payments.

                                       17

<PAGE>

          Unless so designated as an Unrestricted Subsidiary, any Person that
          becomes a Subsidiary of the Company will be classified as a Restricted
          Subsidiary; provided, however, that such Subsidiary shall not be
          designated a Restricted Subsidiary and shall be automatically
          classified as an Unrestricted Subsidiary if either of the requirements
          set forth in clauses (x) and (y) of the second immediately following
          paragraph will not be satisfied after giving pro forma effect to such
          classification or if such Person is a Subsidiary of an Unrestricted
          Subsidiary.

          In addition, neither the Company nor any Restricted Subsidiary shall
          be directly or indirectly liable for any Debt incurred after the Issue
          Date that provides that the holder thereof may (with the passage of
          time or notice or both) declare a default thereon or cause the payment
          thereof to be accelerated or payable prior to its Stated Maturity upon
          the occurrence of a default with respect to any Debt, Lien or other
          obligation of any Unrestricted Subsidiary (including any right to take
          enforcement action against such Unrestricted Subsidiary).

          The Board of Directors may designate any Unrestricted Subsidiary to be
          a Restricted Subsidiary if, immediately after giving pro forma effect
          to such designation,

          (x) the Company could Incur at least $1.00 of additional Debt pursuant
          to clause (1) of the first paragraph of subsection (B), Limitation on
          Debt, and

          (y) no Default or Event of Default shall have occurred and be
          continuing or would result therefrom.

          Any such designation or redesignation by the Board of Directors will
          be evidenced to the Trustee by filing with the Trustee a Board
          Resolution giving effect to such designation or redesignation and an
          Officers' Certificate that:

               (a) certifies that such designation or redesignation complies
               with the foregoing provisions, and

               (b) gives the effective date of such designation or
               redesignation,

          such filing with the Trustee to occur within 45 days after the end of
          the fiscal quarter of the Company in which such designation or
          redesignation is made (or, in the case of a designation or
          redesignation made during the last fiscal quarter of the Company's
          fiscal year, within 90 days after the end of such fiscal year).

          (J) Limitation on Company's Business. The Company shall not, directly
          or indirectly through Restricted Subsidiaries, engage primarily in any
          business other than the Regulated Utility Business. For the avoidance
          of doubt, the Company may not transfer any material portion of the
          assets used by the Company in its Regulated Utility Business to any
          Affiliate and may not do so to any Subsidiary unless (i) such
          Subsidiary is designated as a Restricted Subsidiary and (ii) such
          Subsidiary unconditionally

                                       18

<PAGE>

         Guarantees the Company's obligations under the Securities; provided,
         however, this covenant shall not limit the businesses engaged in by
         the Unrestricted Subsidiaries or their Subsidiaries or successors.

12.      Merger, Consolidation and Sale of Property.

         The Company shall not merge, consolidate or amalgamate with or into any
         other Person (other than a merger of any Restricted Subsidiary into the
         Company) or sell, transfer, assign, lease, convey or otherwise dispose
         of all or substantially all its Property, excluding the Unrestricted
         Subsidiaries, in any one transaction or series of transactions unless:

                  (a) the Company shall be the surviving Person (the "Surviving
                  Person") or the Surviving Person (if other than the Company)
                  formed by such merger, consolidation or amalgamation or to
                  which such sale, transfer, assignment, lease, conveyance or
                  disposition is made shall be a corporation organized and
                  existing under the laws of the United States of America, any
                  State thereof or the District of Columbia and which is engaged
                  primarily, directly or indirectly through Subsidiaries, in the
                  Regulated Utility Business;

                  (b) the Surviving Person (if other than the Company) expressly
                  assumes, by supplemental indenture in form satisfactory to the
                  Trustee, executed and delivered to the Trustee by such
                  Surviving Person, the due and punctual payment of the
                  principal of, and premium, if any, and interest on, all the
                  Securities, according to their tenor, and the due and punctual
                  performance and observance of all the covenants and conditions
                  of the Indenture to be performed by the Company;

                  (c) in the case of a sale, transfer, assignment, lease,
                  conveyance or other disposition of all or substantially all
                  the Property of the Company, excluding the Unrestricted
                  Subsidiaries, such Property shall have been transferred as an
                  entirety or virtually as an entirety to one Person;

                  (d) immediately before and after giving effect to such
                  transaction or series of transactions on a pro forma basis
                  (and treating, for purposes of this clause (d) and clauses (e)
                  and (f) below, any Debt that becomes, or is anticipated to
                  become, an obligation of the Surviving Person or a Restricted
                  Subsidiary as a result of such transaction or series of
                  transactions as having been Incurred by the Surviving Person
                  or the Restricted Subsidiary at the time of such transaction
                  or series of transactions), no Default or Event of Default
                  shall have occurred and be continuing;

                  (e) immediately after giving effect to such transaction or
                  series of transactions on a pro forma basis, the Company or
                  the Surviving Person, as the case may be, would be able to
                  Incur at least $1.00 of additional Debt under clause (1) of
                  the first paragraph of subsection (B), Limitation on Debt;

                                       19

<PAGE>

                  (f) immediately after giving effect to such transaction or
                  series of transactions on a pro forma basis, the Surviving
                  Person shall have a Consolidated Net Worth in an amount which
                  is not less than the Consolidated Net Worth of the Company
                  immediately prior to such transaction or series of
                  transactions; and

                  (g) the Company shall deliver, or cause to be delivered, to
                  the Trustee, in form and substance reasonably satisfactory to
                  the Trustee, an Officers' Certificate and an Opinion of
                  Counsel, each stating that such transaction and the
                  supplemental indenture, if any, in respect thereto comply with
                  this covenant and that all conditions precedent herein set
                  forth relating to such transaction have been satisfied.

         The Surviving Person shall succeed to, and be substituted for, and may
         exercise every right and power of the Company under the Indenture, but
         the predecessor Company in the case of:

                  (a) a sale, transfer, assignment, conveyance or other
                  disposition (unless such sale, transfer, assignment,
                  conveyance or other disposition is of all the assets of the
                  Company as an entirety or virtually as an entirety), or

                  (b) a lease,

         shall not be released from any of the obligations or covenants under
         the Indenture, including with respect to the payment of the Securities.

13.      Successors.

         When a successor assumes all the obligations of the Company under the
         Securities and the Indenture, the Company shall be released from those
         obligations. Section 5.01 of the Indenture shall apply to the
         Securities.

14.      Global Securities.

         The Company may at any time and in its sole discretion determine that
         the Securities shall no longer be represented by a Global Security. In
         such event the Company will execute, and the Trustee, upon receipt of a
         company order for the authentication and delivery of definitive
         Securities, will authenticate and deliver Securities in definitive form
         in an aggregate principal amount equal to the principal amount of this
         Global Security representing such Securities in exchange for this
         Global Security.

         The Depository Trust Company, ("DTC") may surrender this Global
         Security for such Securities in exchange in whole or in part for
         Securities in definitive form on such terms as are acceptable to the
         Company and DTC. Thereupon, the Company shall execute, and the Trustee
         shall authenticate and deliver, without service charge:

                                       20

<PAGE>

         (i) to each Person specified by DTC a new Security or Securities, of
         any authorized denomination as requested by such Person in aggregate
         principal amount equal to and in exchange for such Person's beneficial
         interest in this Global Security; and

         (ii) to DTC a new Global Security in a denomination equal to the
         difference, if any, between the principal amount of the surrendered
         Global Security and the aggregate principal amount of Securities in
         definitive form delivered to Holders thereof.

         In any exchange provided for in this Section, the Company will execute
         and the Trustee will authenticate and deliver Securities in definitive
         registered form in authorized denominations.

         Upon the exchange of a Global Security for Securities in definitive
         form, such Global Security shall be cancelled by the Trustee.
         Securities in definitive form issued in exchange for a Global Security
         pursuant to this Section shall be registered in such names and in such
         authorized denominations as DTC for such Global Security, pursuant to
         instructions from its direct or indirect participants or otherwise,
         shall instruct the Trustee. The Trustee shall deliver such Securities
         to the persons in whose names such Securities are so registered.

         If at any time DTC is unwilling or unable to continue as Depositary for
         the Securities, the Company shall appoint a successor Depositary with
         respect to the Securities. If a successor Depositary for the Securities
         is not appointed by the Company by the earlier of (i) 90 days from the
         date the Company receives notice to the effect that DTC is unwilling or
         unable to act, or the Company determines that DTC is unable to act or
         (ii) the effectiveness of DTC's resignation or failure to fulfill its
         duties as Depositary, the Company will execute, and the Trustee, upon
         receipt of a Company order for the authentication and delivery of
         definitive Securities, will authenticate and deliver Securities in
         definitive form in an aggregate principal amount equal to the principal
         amount of this Global Security representing such Securities in exchange
         for this Global Security.

15.      Defeasance.

         The Company at any time may terminate all its obligations under the
         Securities and the Indenture ("legal defeasance"), except for certain
         obligations, including those respecting the defeasance trust and
         obligations to register the transfer or exchange of the Securities, to
         replace mutilated, destroyed, lost or stolen Securities and to maintain
         a registrar and paying agent in respect of the Securities.

         The Company at any time may terminate:

                  (1) its obligations under the covenants set forth under
                  Section 10, Repurchase at the Option of Holders Upon a Change
                  of Control, and Section 11, Restrictive Covenants,

                                       21

<PAGE>

                  (2) the operation of the cross acceleration provisions, the
                  judgment default provisions, and the bankruptcy provisions set
                  forth under Section 16, Events of Default, and

                  (3) the limitations contained in clauses (e) and (f) under the
                  first paragraph of Section 12, Merger, Consolidation and Sale
                  of Property ("covenant defeasance").

         The Company may exercise its legal defeasance option notwithstanding
         its prior exercise of its covenant defeasance option.

         If the Company exercises its legal defeasance option, payment of the
         Securities may not be accelerated because of an Event of Default with
         respect thereto. If the Company exercises its covenant defeasance
         option, payment of the Securities may not be accelerated because of an
         Event of Default specified in clause (4) (with respect to the covenants
         set forth under Section 11, Restrictive Covenants), (5), (6), or (7)
         under Section 16, Events of Default, or because of the failure of the
         Company to comply with clauses (e) and (f) under the first paragraph of
         Section 12, Merger, Consolidation and Sale of Property.

         The legal defeasance option or the covenant defeasance option may be
         exercised only if:

                  (a) the Company irrevocably deposits in trust with the Trustee
                  money or U.S. Government Obligations for the payment of
                  principal of, premium, if any, and interest on the Securities
                  to repurchase, redemption or maturity, as the case may be;

                  (b) the Company delivers to the Trustee a certificate from a
                  nationally recognized firm of independent certified public
                  accountants expressing their opinion that the payments of
                  principal and interest when due and without reinvestment on
                  the deposited U.S. Government Obligations plus any deposited
                  money without investment will provide cash at such times and
                  in such amounts as will be sufficient to pay principal,
                  premium, if any, and interest when due on all the Securities
                  to repurchase, redemption or maturity, as the case may be;

                  (c) 91 days pass after the deposit is made and during the
                  91-day period no Default set forth in clause (7) under Section
                  16, Events of Default occurs with respect to the Company or
                  any other Person making such deposit which is continuing at
                  the end of the period;

                  (d) no Default or Event of Default has occurred and is
                  continuing on the date of such deposit and after giving effect
                  thereto;

                  (e) such deposit does not constitute a default under any other
                  agreement or instrument binding on the Company;

                                       22

<PAGE>

                  (f) in the case of the legal defeasance option, the Company
                  delivers to the Trustee an Opinion of Counsel stating that:

                           (1) the Company has received from the Internal
                           Revenue Service, or "IRS," a ruling, or

                           (2) since the date of the Indenture there has been a
                           change in the applicable Federal income tax law, to
                           the effect, in either case, that, and based thereon
                           such Opinion of Counsel shall confirm that, the
                           Securityholders will not recognize income, gain or
                           loss for Federal income tax purposes as a result of
                           such defeasance and will be subject to Federal income
                           tax on the same amounts, in the same manner and at
                           the same time as would have been the case if such
                           legal defeasance had not occurred; and

                  (g) in the case of the covenant defeasance option, the Company
                  delivers to the Trustee an Opinion of Counsel to the effect
                  that the Securityholders will not recognize income, gain or
                  loss for Federal income tax purposes as a result of such
                  covenant defeasance and will be subject to Federal income tax
                  on the same amounts, in the same manner and at the same times
                  as would have been the case if such legal defeasance had not
                  occurred.

16.      Events of Default.

         Events of Default in respect of the Securities include:

                  (1) failure to make the payment of any interest on the
                  Securities when the same becomes due and payable, and such
                  failure continues for a period of 30 days;

                  (2) failure to make the payment of any principal of, or
                  premium, if any, on, any of the Securities when the same
                  becomes due and payable at its Stated Maturity, upon
                  acceleration, redemption, optional redemption, required
                  repurchase or otherwise;

                  (3) failure to comply with Section 12, Merger, Consolidation
                  and Sale of Property;

                  (4) failure to comply with any other covenant or agreement in
                  the Securities or in the Indenture (other than a failure that
                  is the subject of the foregoing clause (1), (2) or (3)) and
                  such failure continues for 90 days after written notice is
                  given to the Company as provided below;

                  (5) a default under any Debt by the Company or any Restricted
                  Subsidiary that results in acceleration of the maturity of
                  such Debt, or failure to pay any such Debt at maturity, in an
                  aggregate amount greater than $25 million (or its foreign
                  currency equivalent at the time), which acceleration has not
                  been rescinded or

                                       23

<PAGE>

                  annulled within 10 days after the period for annulment in the
                  agreement governing such Debt (the "cross acceleration
                  provisions");

                  (6) any judgment or judgments for the payment of money in an
                  aggregate amount in excess of $25 million (or its foreign
                  currency equivalent at the time) that shall be rendered
                  against the Company or any Restricted Subsidiary and that
                  shall not be waived, satisfied or discharged for any period of
                  60 consecutive days during which a stay of enforcement shall
                  not be in effect (the "judgment default provisions"); and

                  (7) certain events involving bankruptcy, insolvency or
                  reorganization of the Company or any Restricted Subsidiary
                  (the "bankruptcy provisions");

         A Default under clause (4) is not an Event of Default until the Trustee
         or the holders of not less than 25% in aggregate principal amount of
         the Securities then outstanding notify the Company of the Default and
         the Company does not cure such Default within the time specified after
         receipt of such notice. Such notice must specify the Default, demand
         that it be remedied and state that such notice is a "Notice of
         Default."

         The Company shall provide an Officers' Certificate to the Trustee
         promptly upon the Company obtaining knowledge of any Default or Event
         of Default that has occurred, and, if applicable, describe such Default
         or Event of Default, the status thereof and what action the Company is
         taking or proposes to take with respect thereto.

         If an Event of Default with respect to the Securities (other than an
         Event of Default resulting from certain events involving bankruptcy,
         insolvency or reorganization with respect to the Company) shall have
         occurred and be continuing, the Trustee or the registered holders of
         not less than 25% in aggregate principal amount of the Securities then
         outstanding may declare to be immediately due and payable the principal
         amount of all the Securities then outstanding, plus accrued but unpaid
         interest to the date of acceleration. In case an Event of Default
         resulting from certain events of bankruptcy, insolvency or
         reorganization with respect to the Company shall occur, such amount
         with respect to all the Securities shall be due and payable immediately
         without any declaration or other act on the part of the Trustee or the
         Securityholders. After any such acceleration, but before a judgment or
         decree based on acceleration is obtained by the Trustee, the registered
         holders of a majority in aggregate principal amount of the Securities
         then outstanding may, under certain circumstances, rescind and annul
         such acceleration if all Events of Default, other than the nonpayment
         of accelerated principal, premium or interest, have been cured or
         waived as provided in the Indenture.

         Subject to the provisions of the Indenture relating to the duties of
         the Trustee, in case an Event of Default shall occur and be continuing,
         the Trustee shall be under no obligation to exercise any of its rights
         or powers under the Indenture at the request or direction of any of the
         Securityholders, unless such Holders shall have offered to the Trustee
         indemnity satisfactory to it. Subject to such provisions for the
         indemnification of the Trustee, the holders of a majority in aggregate
         principal amount of the Securities then

                                       24

<PAGE>

         outstanding shall have the right to direct the time, method and place
         of conducting any proceeding for any remedy available to the Trustee or
         exercising any trust or power conferred on the Trustee with respect to
         the Securities.

         No Securityholder shall have any right to institute any proceeding with
         respect to the Indenture, or for the appointment of a receiver or
         trustee, or for any remedy thereunder, unless:

                  (a) such Holder has previously given to the Trustee written
                  notice of a continuing Event of Default,

                  (b) the registered Holders of at least 25% in aggregate
                  principal amount of the Securities then outstanding have made
                  written request and offered reasonable indemnity to the
                  Trustee to institute such proceeding as trustee, and

                  (c) the Trustee shall not have received from the registered
                  holders of a majority in aggregate principal amount of the
                  Securities then outstanding a direction inconsistent with such
                  request and shall have failed to institute such proceeding
                  within 60 days.

         However, such limitations do not apply to a suit instituted by a holder
         of any Security for enforcement of payment of the principal of, and
         premium, if any, or interest on, such Security on or after the
         respective due dates expressed in such Security.

17.      Trustee Dealings with Company.

         Deutsche Bank Trust Company Americas, the Trustee under the Indenture,
         in its individual or any other capacity, may make loans to, accept
         deposits from, and perform services for the Company or its Affiliates,
         and may otherwise deal with the Company or its Affiliates, as if it
         were not Trustee.

18.      No Recourse Against Others.

         A director, officer, employee or stockholder, as such, of the Company
         shall not have any liability for any obligations of the Company under
         the Securities or the Indenture or for any claim based on, in respect
         of or by reason of such obligations or their creation. Each
         Securityholder by accepting a Security waives and releases all such
         liability. The waiver and release are part of the consideration for the
         issue of the Securities.

19.      Authentication.

         This Security shall not be valid until authenticated by a manual
         signature of the Registrar.

20.      Certain Definitions.

         Set forth below is a summary of certain of the defined terms used in
         the Indenture. Reference is made to the Indenture for the full
         definition of all such terms as well as any

                                       25

<PAGE>

         other capitalized terms used herein for which no definition is
         provided. Unless the context otherwise requires, an accounting term not
         otherwise defined has the meaning assigned to it in accordance with
         GAAP.

         "Additional Assets" means:

         (a) any Property (other than cash, Cash Equivalents and securities) to
         be owned by the Company or any Restricted Subsidiary and used in a
         Regulated Utility Business; or

         (b) Capital Stock of a Person that becomes a Restricted Subsidiary as a
         result of the acquisition of such Capital Stock by the Company or
         another Restricted Subsidiary from any Person other than the Company or
         an Affiliate of the Company, provided, that such Person which becomes a
         Restricted Subsidiary is not engaged primarily in any business other
         than the Regulated Utility Business.

         "Affiliate" of any specified Person means:

         (a) any other Person directly or indirectly controlling or controlled
         by or under direct or indirect common control with such specified
         Person, or

         (b)  any other Person who is a director or officer of:

                  (1)  such specified Person,

                  (2)  any Subsidiary of such specified Person, or

                  (3)  any Person described in clause (a) above.

         For the purposes of this definition, "control" when used with respect
         to any Person means the power to direct the management and policies of
         such Person, directly or indirectly, whether through the ownership of
         voting securities, by contract or otherwise; and the terms
         "controlling" and "controlled" have meanings correlative to the
         foregoing. For purposes of Section 11(E), Limitation on Asset Sales,
         and Section 11(G), Limitation on Transactions with Affiliates, and the
         definition of "Additional Assets" only, "Affiliate" shall also mean any
         beneficial owner of shares representing 10% or more of the total voting
         power of the Voting Stock (on a fully diluted basis) of the Company or
         of rights or warrants to purchase such Voting Stock (whether or not
         currently exercisable) and any Person who would be an Affiliate of any
         such beneficial owner pursuant to the first sentence hereof.

         "Asset Sale" means any sale, lease (other than operating leases entered
         into in the ordinary course of business), transfer, issuance or other
         disposition (or series of related sales, leases, transfers, issuances
         or dispositions) by the Company or any Restricted Subsidiary, including
         any disposition by means of a merger, consolidation or similar
         transaction (each referred to for the purposes of this definition as a
         "disposition"), of

                                       26

<PAGE>

         (a)   any shares of Capital Stock of a Restricted Subsidiary, or

         (b) any other assets of the Company or any Restricted Subsidiary
         outside of the ordinary course of business of the Company or such
         Restricted Subsidiary,

         other than:

                  (1) any disposition by a Restricted Subsidiary to the Company
                  or by the Company or a Restricted Subsidiary to another
                  Restricted Subsidiary,

                  (2) any disposition that constitutes a Permitted Investment or
                  Restricted Payment permitted by Section 11(C), Limitation on
                  Restricted Payments,

                  (3) any disposition effected in compliance with the first
                  paragraph of Section 12, Merger, Consolidation and Sale of
                  Property,

                  (4) any sales of accounts receivable, and

                  (5) any disposition or series of related dispositions the
                  proceeds of which do not exceed $20 million.

         "Attributable Debt" in respect of a Sale and Leaseback Transaction
         means, at any date of determination,

         (a) if such Sale and Leaseback Transaction is a Capital Lease
         Obligation, the amount of Debt represented thereby according to the
         definition of "Capital Lease Obligation," and

         (b) in all other instances the present value (discounted at the
         interest rate borne by the Securities, compounded annually) of the
         total obligations of the lessee for rental payments during the
         remaining term of the lease included in such Sale and Leaseback
         Transaction (including any period for which such lease has been
         extended).

         "Average Life" means, as of any date of determination, with respect to
         any Debt or Preferred Stock, the quotient obtained by dividing: (a) the
         sum of the product of the number of years (rounded to the nearest
         one-twelfth of one year) from the date of determination to the dates of
         each successive scheduled principal payment of such Debt or redemption
         or similar payment with respect to such Preferred Stock multiplied by
         the amount of such payment by (b) the sum of all such payments.

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

         "bonds" means any series of the bonds, including the Bonds.

         "Capital Expenditure Debt" means Debt Incurred by any Person to finance
         a capital expenditure so long as such capital expenditure is or should
         be included as an addition to "Property, Plant and Equipment, Net" in
         accordance with GAAP; provided, that the

                                       27

<PAGE>

         proceeds of such Debt are expressly dedicated to, or segregated for,
         the payment of such capital expenditure or to repay short-term Debt
         incurred to pay part or all of such capital expenditure.

         "Capital Lease Obligations" means any obligation under a lease that is
         required to be capitalized for financial reporting purposes in
         accordance with GAAP; and the amount of Debt represented by such
         obligation shall be the capitalized amount of such obligation
         determined in accordance with GAAP; and the Stated Maturity thereof
         shall be the date of the last payment of rent or any other amount due
         under such lease prior to the first date upon which such lease may be
         terminated by the lessee without payment of a penalty. For purposes of
         Section 11(D), Limitation on Liens, a Capital Lease Obligation shall be
         deemed secured by a Lien on the Property being leased.

         "Capital Stock" means, with respect to any Person, any shares or other
         equivalents (however designated) of any class of corporate stock or
         partnership interests or any other participations, rights, warrants,
         options or other interests in the nature of an equity interest in such
         Person, including Preferred Stock, but excluding any debt security
         convertible or exchangeable into such equity interest.

         "Capital Stock Sale Proceeds" means the aggregate cash proceeds
         received by the Company from the issuance or sale (other than to a
         Subsidiary of the Company) by the Company of its Capital Stock (other
         than Disqualified Stock) after the Issue Date, net of attorneys' fees,
         accountants' fees, underwriters' or placement agents' fees, discounts
         or commissions and brokerage, consultant and other fees actually
         incurred in connection with such issuance or sale and net of taxes paid
         or payable as a result thereof.

         "Cash Equivalents" means any of the following:

         (a) Investments in U.S. Government Obligations maturing within 365 days
         of the date of acquisition thereof;

         (b) Investments in time deposit accounts, certificates of deposit and
         money market deposits maturing within 90 days of the date of
         acquisition thereof issued by a bank or trust company organized under
         the laws of the United States of America or any State thereof having
         capital, surplus and undivided profits aggregating in excess of $500
         million and whose long-term debt is rated "A," "A-3" or "A-" or higher
         according to Fitch Ratings, Moody's or S&P (or such similar equivalent
         rating by at least one "nationally recognized statistical rating
         organization" (as defined in Rule 436 under the Securities Act));

         (c) repurchase obligations with a term of not more than 30 days for
         underlying securities of the types set forth in clause (a) entered into
         with:

                  (1) a bank meeting the qualifications set forth in clause (b)
                  above, or

                                       28

<PAGE>

                  (2) any primary government securities dealer reporting to the
                  Market Reports Division of the Federal Reserve Bank of New
                  York;

         (d) Investments in commercial paper, maturing not more than 90 days
         after the date of acquisition, issued by a corporation (other than an
         Affiliate of the Company) organized and in existence under the laws of
         the United States of America with a rating at the time as of which any
         Investment therein is made of "F1" (or higher) according to Fitch
         Ratings, "P-1" (or higher) according to Moody's or "A-1" (or higher)
         according to S&P (or such similar equivalent rating by at least one
         "nationally recognized statistical rating organization" (as defined in
         Rule 436 under the Securities Act)); and

         (e) direct obligations (or certificates representing an ownership
         interest in such obligations) of any State of the United States of
         America (including any agency or instrumentality thereof) for the
         payment of which the full faith and credit of such State is pledged and
         which are not callable or redeemable at the issuer's option, provided
         that:

                  (1) the long-term debt of such State is rated "A," "A-3" or
                  "A-" or higher according to Fitch Ratings, Moody's or S&P (or
                  such similar equivalent rating by at least one "nationally
                  recognized statistical rating organization" (as defined in
                  Rule 436 under the Securities Act)), and

                  (2) such obligations mature within 180 days of the date of
                  acquisition thereof.

         "Change of Control" means the occurrence of any of the following
         events:

         (a) if any "person" or "group" (as such terms are used in Sections
         13(d) and 14(d) of the Exchange Act or any successor provisions to
         either of the foregoing), other than Westar Industries, Inc., including
         any group acting for the purpose of acquiring, holding, voting or
         disposing of securities within the meaning of Rule 13d-5(b)(1) under
         the Exchange Act, becomes the "beneficial owner" (as defined in Rule
         13d-3 under the Exchange Act, except that a person will be deemed to
         have "beneficial ownership" of all shares that any such person has the
         right to acquire, whether such right is exercisable immediately or only
         after the passage of time), directly or indirectly, of 35% or more of
         the total voting power of the Voting Stock of the Company (for purposes
         of this clause (a), such person or group shall be deemed to
         beneficially own any Voting Stock of a corporation held by any other
         corporation (the "parent corporation") so long as such person or group
         beneficially owns, directly or indirectly, in the aggregate a majority
         of the total voting power of the Voting Stock of such parent
         corporation); or

         (b) the sale, transfer, assignment, lease, conveyance or other
         disposition, directly or indirectly, of all or substantially all the
         assets of the Company and any Restricted Subsidiary, considered as a
         whole (other than a disposition of such assets as an entirety or
         virtually as an entirety to a Wholly Owned Restricted Subsidiary),
         shall have occurred, or the Company merges, consolidates or amalgamates
         with or into any other Person or any other Person merges, consolidates
         or amalgamates with or into the Company, in any such event pursuant to
         a transaction in which the outstanding Voting Stock of the Company is

                                       29

<PAGE>

         reclassified into or exchanged for cash, securities or other Property,
         other than any such transaction where:

                  (1) the outstanding Voting Stock of the Company is
                  reclassified into or exchanged for other Voting Stock of the
                  Company or for Voting Stock of the surviving corporation, and

                  (2) the holders of the Voting Stock of the Company immediately
                  prior to such transaction own, directly or indirectly, not
                  less than a majority of the Voting Stock of the Company or the
                  surviving corporation immediately after such transaction and
                  in substantially the same proportion as before the
                  transaction; or

         (c) during any period of two consecutive years, individuals who at the
         beginning of such period constituted the Board of Directors (together
         with any new directors whose election or appointment by such Board or
         whose nomination for election by the shareholders of the Company was
         approved by a vote of not less than three-fourths of the directors then
         still in office who were either directors at the beginning of such
         period or whose election or nomination for election was previously so
         approved) cease for any reason to constitute a majority of the Board of
         Directors then in office; or

         (d) the shareholders of the Company shall have approved any plan of
         liquidation or dissolution of the Company.

         Notwithstanding the above, the proposed merger of the Company with
         Public Service Company of New Mexico shall not be deemed a Change of
         Control.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Commodity Price Protection Agreement" means, in respect of a Person,
         any forward contract, commodity swap agreement, commodity option
         agreement or other similar agreement or arrangement designed to protect
         such Person against fluctuations in commodity prices.

         "Consolidated Current Liabilities" means, as of any date of
         determination, the aggregate amount of liabilities of the Company and
         any Restricted Subsidiary which may properly be classified as current
         liabilities (including taxes accrued as estimated), after eliminating:

         (a) all intercompany items between the Company and any Restricted
         Subsidiary or between two or more Restricted Subsidiaries, and

         (b) all current maturities of long-term Debt.

         "Consolidated Interest Coverage Ratio" means, as of any date of
         determination, the ratio of:

                                       30

<PAGE>

         (a) the aggregate amount of EBITDA for the most recent four consecutive
         fiscal quarters for which financial statements are available prior to
         such determination date to

         (b)  Consolidated Interest Expense for such four fiscal quarters;

         provided, however, that:

         (1)  if

                  (A) since the beginning of such period the Company or any
                  Restricted Subsidiary has Incurred any Debt that remains
                  outstanding or Repaid any Debt, or

                  (B) the transaction giving rise to the need to calculate the
                  Consolidated Interest Coverage Ratio is an Incurrence or
                  Repayment of Debt,

         Consolidated Interest Expense for such period shall be calculated after
         giving effect on a pro forma basis to such Incurrence or Repayment as
         if such Debt was Incurred or Repaid on the first day of such period,
         provided that, in the event of any such Repayment of Debt, EBITDA for
         such period shall be calculated as if the Company or any Restricted
         Subsidiary had not earned any interest income actually earned during
         such period in respect of the funds used to Repay such Debt, and

         (2)  if

                  (A) since the beginning of such period the Company or any
                  Restricted Subsidiary shall have made any Asset Sale or an
                  Investment (by merger or otherwise) in any Restricted
                  Subsidiary (or any Person which becomes a Restricted
                  Subsidiary) or an acquisition of Property which constitutes
                  all or substantially all of an operating unit of a business,

                  (B) the transaction giving rise to the need to calculate the
                  Consolidated Interest Coverage Ratio is such an Asset Sale,
                  Investment or acquisition, or

                  (C) since the beginning of such period any Person (that
                  subsequently became a Restricted Subsidiary or was merged with
                  or into the Company or any Restricted Subsidiary since the
                  beginning of such period) shall have made such an Asset Sale,
                  Investment or acquisition,

         then EBITDA for such period shall be calculated after giving pro forma
         effect to such Asset Sale, Investment or acquisition as if such Asset
         Sale, Investment or acquisition had occurred on the first day of such
         period.

         If any Debt bears a floating rate of interest and is being given pro
         forma effect, the interest expense on such Debt shall be calculated as
         if the base interest rate in effect for such floating rate of interest
         on the date of determination had been the applicable base interest rate
         for the entire period (taking into account any Interest Rate Agreement

                                       31

<PAGE>

         applicable to such Debt if such Interest Rate Agreement has a remaining
         term in excess of 12 months). In the event the Capital Stock of any
         Restricted Subsidiary is sold during the period, the Company shall be
         deemed, for purposes of clause (1) above, to have Repaid during such
         period the Debt of such Restricted Subsidiary to the extent the Company
         and its continuing Restricted Subsidiary are no longer liable for such
         Debt after such sale.

         "Consolidated Interest Expense" means, for any period, the total
         interest expense of the Company and any Restricted Subsidiary, plus, to
         the extent not included in such total interest expense, and to the
         extent Incurred by the Company or any Restricted Subsidiary,

         (a) interest expense attributable to Capital Lease Obligations,

         (b) amortization of debt discount and debt issuance cost, including
         commitment fees,

         (c) non-cash interest expense,

         (d) capitalized interest,

         (e) commissions, discounts and other fees and charges owed with respect
         to letters of credit and bankers' acceptance financing,

         (f) net costs associated with Hedging Obligations (including
         amortization of fees),

         (g) Disqualified Stock Dividends and Preferred Stock Dividends (not
         including the dividends due in respect of the Preferred Stock of the
         Company or any Restricted Subsidiary outstanding as of the Issue Date),

         (h) interest Incurred in connection with Investments in discontinued
         operations,

         (i) interest accruing on any Debt of any other Person to the extent
         such Debt is Guaranteed by the Company or any Restricted Subsidiary,
         and

         (j) the cash contributions to any employee stock ownership plan or
         similar trust to the extent such contributions are used by such plan or
         trust to pay interest or fees to any Person (other than the Company) in
         connection with Debt Incurred by such plan or trust.

         "Consolidated Net Income" means, for any period, the net income (loss)
         of the Company and any Restricted Subsidiary; provided, however, that
         there shall not be included in such Consolidated Net Income:

         (a) any net income (loss) of any Person (other than the Company) if
         such Person is not a Restricted Subsidiary, except that, the Company's
         and any Restricted Subsidiary's interest in the net income of any such
         Person for such period shall be included in the Consolidated Net Income
         up to the aggregate amount of cash distributed by such Person

                                       32

<PAGE>

         during such period to the Company or any Restricted Subsidiary as a
         dividend or other distribution,

         (b) any extraordinary gain or loss,

         (c) the cumulative effect of a change in accounting principles, and

         (d) any non-cash compensation expense realized for grants of
         performance shares, stock options or other rights to officers,
         directors and employees of the Company or any Restricted Subsidiary,
         provided that such shares, options or other rights can be redeemed at
         the option of the holder only for Capital Stock of the Company (other
         than Disqualified Stock).

         Notwithstanding the foregoing, for purposes of Section 11(C),
         Limitation on Restricted Payments, only, there shall be excluded from
         Consolidated Net Income any dividends, repayments of loans or advances
         or other transfers of Property from Unrestricted Subsidiaries to the
         Company or any Restricted Subsidiary to the extent such dividends,
         repayments or transfers increase the amount of Restricted Payments
         permitted under such covenant pursuant to clause (c)(4) of such
         covenant.

         "Consolidated Net Tangible Assets" means, as of any date of
         determination, the sum of the amounts that would appear on a
         consolidated balance sheet of the Company and its consolidated
         Restricted Subsidiaries as the total assets (less accumulated
         depreciation and amortization, allowances for doubtful receivables,
         other applicable reserves and other properly deductible items) of the
         Company and its Restricted Subsidiaries, after giving effect to
         purchase accounting and after deducting therefrom Consolidated Current
         Liabilities and, to the extent otherwise included, the amounts of
         (without duplication): the excess of cost over Fair Market Value of
         assets or businesses acquired; any revaluation or other write-up in
         book value of assets subsequent to the last day of the fiscal quarter
         of the Company immediately preceding the Issue Date as a result of a
         change in the method of valuation in accordance with GAAP; unamortized
         debt discount and expenses and other unamortized deferred charges,
         goodwill, patents, trademarks, service marks, trade names, copyrights,
         licenses, organization or developmental expenses and other intangible
         items; minority interests in consolidated Subsidiaries held by Persons
         other than the Company or any Restricted Subsidiary; treasury stock;
         cash or securities set aside and held in a sinking or other analogous
         fund established for the purpose of redemption or other retirement of
         Capital Stock to the extent such obligation is not reflected in
         Consolidated Current Liabilities; and investments in and assets of
         Unrestricted Subsidiaries.

         "Consolidated Net Worth" means the total of the amounts shown on the
         consolidated balance sheet of the Company and any Restricted Subsidiary
         as of the end of the most recent fiscal quarter of the Company ending
         prior to the taking of any action for the purpose of which the
         determination is being made, as:

         (a) the par or stated value of all outstanding Capital Stock of the
         Company, plus

                                       33

<PAGE>

         (b) paid-in capital or capital surplus relating to such Capital Stock,
         plus

         (c) any retained earnings or earned surplus, less:

                  (1) any accumulated deficit, and

                  (2) any amounts attributable to Disqualified Stock.

         "Credit Facilities" means, with respect to the Company or any
         Restricted Subsidiary, one or more debt or commercial paper facilities
         with banks or other institutional lenders providing for revolving
         credit loans, term loans, receivables or inventory financing (including
         through the sale of receivables or inventory to such lenders or to
         special purpose, bankruptcy remote entities formed to borrow from such
         lenders against such receivables or inventory) or trade letters of
         credit--including, for the avoidance of doubt and not by way of
         limitation, the Western Resources, Inc. Credit Agreement dated as of
         June 28, 2000, the Western Resources, Inc. Five-Year Competitive
         Advance and Revolving Credit Facility Agreement dated as of March 17,
         1998, the WR Receivables Corporation Purchase and Sale Agreement dated
         as of July 28, 2000 and the WR Receivables Corporation Receivables
         Purchase Agreement dated as of July 28, 2000--in each case together
         with any extensions, revisions, refinancings or replacements thereof by
         a lender or syndicate of lenders.

         "Currency Exchange Protection Agreement" means, in respect of a Person,
         any foreign exchange contract, currency swap agreement, currency option
         or other similar agreement or arrangement designed to protect such
         Person against fluctuations in currency exchange rates.

         "Debt" means, with respect to any Person on any date of determination
         (without duplication):

         (a) the principal of and premium (if any) in respect of:

                  (1) debt of such Person for money borrowed, and

                  (2) debt evidenced by Securities, debentures, secured notes
                  (including the bonds) or other similar instruments for the
                  payment of which such Person is responsible or liable;

         (b) all Capital Lease Obligations of such Person;

         (c) all obligations of such Person issued or assumed as the deferred
         purchase price of Property, all conditional sale obligations of such
         Person and all obligations of such Person under any title retention
         agreement (but excluding trade accounts payable arising in the ordinary
         course of business);

                                       34

<PAGE>
         (d) all obligations of such Person for the reimbursement of any obligor
         on any letter of credit, bankers' acceptance or similar credit
         transaction (other than obligations with respect to letters of credit
         securing obligations, other than obligations set forth in (a) through
         (c), above, entered into in the ordinary course of business of such
         Person to the extent such letters of credit are not drawn upon or, if
         and to the extent drawn upon, such drawing is reimbursed no later than
         the third Business Day following receipt by such Person of a demand for
         reimbursement following payment on the letter of credit);

         (e) the amount of all obligations of such Person with respect to the
         Repayment of any Disqualified Stock or, with respect to any Subsidiary
         of such Person, any Preferred Stock (but excluding, in each case, any
         accrued dividends);

         (f) all obligations of the type referred to in clauses (a) through (e)
         of other Persons and all dividends of other Persons for the payment of
         which, in either case, such Person is responsible or liable, directly
         or indirectly, as obligor, guarantor or otherwise, including by means
         of any Guarantee;

         (g) all obligations of the type referred to in clauses (a) through (f)
         of other Persons secured by any Lien on any Property of such Person
         (whether or not such obligation is assumed by such Person), the amount
         of such obligation being deemed to be the lesser of the value of such
         Property or the amount of the obligation so secured;

         (h) to the extent not otherwise included in this definition, Hedging
         Obligations of such Person; and

         (i) the Mandatorily Redeemable Preferred Securities and any Guarantees
         related thereto.

         The amount of Debt of any Person at any date shall be the outstanding
         balance at such date of all unconditional obligations as set forth
         above and the maximum liability, upon the occurrence of the contingency
         giving rise to the obligation, of any contingent obligation at such
         date. The amount of Debt represented by a Hedging Obligation shall be
         equal to:

                  (1) zero if such Hedging Obligation has been Incurred pursuant
                  to clause (e), (f) or (g) of the second paragraph of Section
                  11(B), Limitation on Debt, or

                  (2) the notional amount of such Hedging Obligation if not
                  Incurred pursuant to such clauses.

         "Default" means any event which is, or after notice or passage of time
         or both would be, an Event of Default.

         "Disqualified Stock" means any Capital Stock of the Company or any
         Restricted Subsidiary that by its terms (or by the terms of any
         security into which it is convertible or for which it is exchangeable,
         in either case at the option of the holder thereof) or otherwise:

                                       35

<PAGE>

         (a) matures or is mandatorily redeemable pursuant to a sinking fund
         obligation or otherwise,

         (b) is or may become redeemable or repurchaseable at the option of the
         holder thereof, in whole or in part, or

         (c) is convertible or exchangeable at the option of the holder thereof
         for Debt or Disqualified Stock,

         on or prior to, in the case of clause (a), (b) or (c), the first
         anniversary of the Stated Maturity of the Securities.

         "Disqualified Stock Dividends" means all dividends with respect to
         Disqualified Stock of the Company held by Persons other than any
         Restricted Subsidiary. The amount of any such dividend shall be equal
         to the quotient of such dividend divided by the difference between one
         and the maximum statutory Federal income tax rate (expressed as a
         decimal number between 1 and 0) then applicable to the Company.

         "EBITDA" means, for any period, an amount equal to, for the Company and
         its consolidated Restricted Subsidiaries:

         (a) the sum of Consolidated Net Income for such period, plus the
         following to the extent that they reduce Consolidated Net Income for
         such period:

                  (1) the provision for taxes based on income or profits or
                  utilized in computing net loss,

                  (2) Consolidated Interest Expense,

                  (3) depreciation,

                  (4) amortization of intangibles,

                  (5) any other non-cash items (other than any such non-cash
                  item to the extent that it represents an accrual of or reserve
                  for cash expenditures in any future period), minus

         (b) all non-cash items increasing Consolidated Net Income for such
         period (other than any such non-cash item to the extent that it will
         result in the receipt of cash payments in any future period), plus

         (c) for the fiscal quarters of the Company ending on December 31, 2001
         and March 31, 2002, (1) up to $36 million in respect of one-time cash
         workforce costs to the extent incurred by the Company and (2) up to $25
         million in respect of a one-time cash charge to the extent such charge
         is taken by the Company with respect to costs incurred in connection
         with repairs necessitated by a January 2002 ice storm.

                                       36

<PAGE>
         Notwithstanding the foregoing clause (a), the provision for taxes and
         the depreciation, amortization and non-cash items of any Restricted
         Subsidiary shall be added to Consolidated Net Income to compute EBITDA
         only to the extent (and in the same proportion) that the net income of
         such Restricted Subsidiary was included in calculating Consolidated Net
         Income and only if a corresponding amount would be permitted at the
         date of determination to be dividended to the Company by such
         Restricted Subsidiary without prior approval (that has not been
         obtained), pursuant to the terms of its charter and all agreements,
         instruments, judgments, decrees, orders, statutes, rules and
         governmental regulations applicable to such Restricted Subsidiary or
         its shareholders.

         "Event of Default" has the meaning set forth under Section 16, Events
         of Default.

         "Exchange Act" means the Securities Exchange Act of 1934.

         "Fair Market Value" means, with respect to any Property, the price that
         could be negotiated in an arm's-length free market transaction, for
         cash, between a willing seller and a willing buyer, neither of whom is
         under undue pressure or compulsion to complete the transaction. Fair
         Market Value shall be determined, except as otherwise provided,

         (a) if such Property has a Fair Market Value equal to or less than $10
         million, by any Officer of the Company, or

         (b) if such Property has a Fair Market Value in excess of $10 million,
         by a majority of the Board of Directors and evidenced by a Board
         resolution, dated within 30 days of the relevant transaction, delivered
         to the Trustee.

         "Fitch Ratings" means Fitch, Inc.

         "GAAP" means United States generally accepted accounting principles as
         in effect on the Issue Date, including those set forth:

         (a) in the opinions and pronouncements of the Accounting Principles
         Board of the American Institute of Certified Public Accountants,

         (b) in the statements and pronouncements of the Financial Accounting
         Standards Board,

         (c) in such other statements by such other entity as may be approved by
         a significant segment of the accounting profession, and

         (d) the rules and regulations of the SEC governing the inclusion of
         financial statements (including pro forma financial statements) in
         periodic reports required to be filed pursuant to Section 13 of the
         Exchange Act, including opinions and pronouncements in staff accounting
         bulletins and similar written statements from the accounting staff of
         the SEC.

                                       37

<PAGE>
         "Guarantee" means any obligation, contingent or otherwise, of any
         Person directly or indirectly guaranteeing any Debt of any other Person
         and any obligation, direct or indirect, contingent or otherwise, of
         such Person:

         (a) to purchase or pay (or advance or supply funds for the purchase or
         payment of) such Debt of such other Person (whether arising by virtue
         of partnership arrangements, or by agreements to keep-well, to purchase
         assets, goods, securities or services, to take-or-pay or to maintain
         financial statement conditions or otherwise), or

         (b) entered into for the purpose of assuring in any other manner the
         obligee against loss in respect thereof (in whole or in part);

         provided, however, that the term "Guarantee" shall not include:

                  (1) endorsements for collection or deposit in the ordinary
                  course of business, or

                  (2) a contractual commitment by one Person to invest in
                  another Person for so long as such Investment is reasonably
                  expected to constitute a Permitted Investment under clause (b)
                  of the definition of "Permitted Investment."

         The term "Guarantee" used as a verb has a corresponding meaning. The
         term "Guarantor" shall mean any Person Guaranteeing any obligation.

         "Hedging Obligation" of any Person means any obligation of such Person
         pursuant to any Interest Rate Agreement, Currency Exchange Protection
         Agreement or any other similar agreement or arrangement, but not
         including a Commodity Price Protection Agreement.

         "Incur" means, with respect to any Debt or other obligation of any
         Person, to create, issue, incur (by merger, conversion, exchange or
         otherwise), extend, assume, Guarantee or become liable in respect of
         such Debt or other obligation or the recording, as required pursuant to
         GAAP or otherwise, of any such Debt or obligation on the balance sheet
         of such Person (and "Incurrence" and "Incurred" shall have meanings
         correlative to the foregoing); provided, however, that a change in GAAP
         that results in an obligation of such Person that exists at such time,
         and is not theretofore classified as Debt, becoming Debt shall not be
         deemed an Incurrence of such Debt; provided further, however, that any
         Debt or other obligations of a Person existing at the time such Person
         becomes a Restricted Subsidiary (whether by merger, consolidation,
         acquisition or otherwise) shall be deemed to be Incurred by such
         Restricted Subsidiary at the time it becomes a Restricted Subsidiary;
         and provided further, however, that solely for purposes of determining
         compliance with Section 11(B), Limitation on Debt, amortization of debt
         discount shall not be deemed to be the Incurrence of Debt, provided
         that in the case of Debt sold at a discount, the amount of such Debt
         Incurred shall at all times be the aggregate principal amount at Stated
         Maturity.

                                       38

<PAGE>
         "Independent Financial Advisor" means an investment banking firm of
         national standing or any third-party appraiser of national standing,
         provided that such firm or appraiser is not an Affiliate of the
         Company.

         "Interest Rate Agreement" means, for any Person, any interest rate swap
         agreement, interest rate cap agreement, interest rate collar agreement
         or other similar agreement designed to protect against fluctuations in
         interest rates.

         "Investment" by any Person means any direct or indirect loan (other
         than advances to customers in the ordinary course of business that are
         recorded as accounts receivable on the balance sheet of such Person),
         advance or other extension of credit or capital contribution (by means
         of transfers of cash or other Property to others or payments for
         Property or services for the account or use of others, or otherwise)
         to, or Incurrence of a Guarantee of any obligation of, or purchase or
         acquisition of Capital Stock, secured notes, notes, debentures or other
         securities or evidence of Debt issued by, any other Person. For
         purposes of Section 11(C), Limitation on Restricted Payments and the
         definition of "Restricted Payment," "Investment" shall include the
         portion (proportionate to the Company's equity interest in such
         Subsidiary) of the Fair Market Value of the net assets of any
         Unrestricted Subsidiary of the Company. In determining the amount of
         any Investment made by transfer of any Property other than cash, such
         Property shall be valued at its Fair Market Value at the time of such
         Investment.

         "Investment Grade Rating" means a rating equal to or higher than BBB-
         (or the equivalent) by Fitch Ratings, Baa3 (or the equivalent) by
         Moody's or BBB- (or the equivalent) by S&P.

         "Investment Grade Status" shall be deemed to have been reached on the
         date that the Securities have an Investment Grade Rating from the
         Required Rating Agencies.

         "Issue Date" means the date on which the Securities are initially
         issued.

         "KCC" means the Kansas Corporation Commission.

         "KGE" means Kansas Gas and Electric Company.

         "Lien" means, with respect to any Property of any Person, any mortgage
         or deed of trust, pledge, hypothecation, assignment, deposit
         arrangement, security interest, lien, charge, easement (other than any
         easement not materially impairing usefulness or marketability),
         encumbrance, preference, priority or other security agreement or
         preferential arrangement of any kind or nature whatsoever on or with
         respect to such Property (including any Capital Lease Obligation,
         conditional sale or other title retention agreement having
         substantially the same economic effect as any of the foregoing or any
         Sale and Leaseback Transaction).

         "Mandatorily Redeemable Preferred Securities" means the 7 7/8%
         Cumulative Quarterly Income Preferred Securities, Series A (QUIPS)
         (related debentures due 2025), the 8 1/2%

                                       39

<PAGE>

         Cumulative Quarterly Income Preferred Securities, Series B (QUIPS)
         (related debentures due 2036) and similar securities issued from time
         to time, the proceeds of which are received by the Company and which
         are treated for accounting and rating agency purposes in a
         substantively similar manner.

         "Moody's" means Moody's Investors Service, Inc. or any successor to the
         rating agency business thereof.

         "Mortgage" means the Mortgage and Deed of Trust, dated July 1, 1939,
         between the Company and BNY Midwest Trust Company, as trustee, by
         successor to Harris Trust and Savings Bank, as amended or to be
         amended.

         "Net Available Cash" from any Asset Sale means cash payments received
         therefrom (including any cash payments received by way of deferred
         payment of principal pursuant to a Security or installment receivable
         or otherwise, but only as and when received, but excluding any other
         consideration received in the form of assumption by the acquiring
         Person of Debt or other obligations relating to the Property that is
         the subject of such Asset Sale or received in any other non-cash form),
         in each case net of:

         (a) all legal, title and recording tax expenses, commissions and other
         fees and expenses incurred (including, without limitation, fees and
         expenses of counsel, accountants and investment bankers), and all taxes
         required to be accrued as a liability under GAAP, as a consequence of
         such Asset Sale,

         (b) all payments made on any Debt that is secured by any Property
         subject to such Asset Sale, in accordance with the terms of any Lien
         upon or other security agreement of any kind with respect to such
         Property, or which must by its terms, or in order to obtain a necessary
         consent to such Asset Sale, or by applicable law, be repaid out of the
         proceeds from such Asset Sale,

         (c) all distributions and other payments required to be made to
         minority interest holders in Subsidiaries or joint ventures as a result
         of such Asset Sale, and

         (d) the deduction of appropriate amounts provided by the seller as a
         reserve, in accordance with GAAP, against any liabilities associated
         with the Property disposed in such Asset Sale and retained by the
         Company or any Restricted Subsidiary after such Asset Sale.

         "Officer" means the Chief Executive Officer, the President, the Chief
         Financial Officer, any Executive Vice President, Senior Vice President
         or Vice President of the Company.

         "Officers' Certificate" means a certificate signed by two Officers of
         the Company, at least one of whom shall be the principal executive
         officer or principal financial officer of the Company, and delivered to
         the Trustee.

                                       40

<PAGE>
         "Opinion of Counsel" means a written opinion from legal counsel who is
         acceptable to the Trustee. The counsel may be an employee of or counsel
         to the Company or the Trustee.

         "Permitted Investment" means any Investment by the Company or any
         Restricted Subsidiary in:

         (a) any Restricted Subsidiary or any Person that will, upon the making
         of such Investment, become a Restricted Subsidiary;

         (b) any Person if as a result of such Investment such Person is merged
         or consolidated with or into, or transfers or conveys all or
         substantially all its Property to, the Company or any Restricted
         Subsidiary;

         (c) Cash Equivalents;

         (d) receivables owing to the Company or any Restricted Subsidiary, if
         created or acquired in the ordinary course of business and payable or
         dischargeable in accordance with customary trade terms; provided,
         however, that such trade terms may include such concessionary trade
         terms as the Company or any Restricted Subsidiary deem reasonable under
         the circumstances;

         (e) payroll, travel and similar advances to cover matters that are
         expected at the time of such advances ultimately to be treated as
         expenses for accounting purposes and that are made in the ordinary
         course of business;

         (f) loans and advances (other than loans and advances outstanding on
         the Issue Date) to employees made in the ordinary course of business
         consistent with past practices of the Company or any Restricted
         Subsidiary, as the case may be, provided that such loans and advances
         do not exceed $15 million at any one time outstanding;

         (g) stock, obligations or other securities received in settlement of
         debts created in the ordinary course of business and owing to the
         Company or any Restricted Subsidiary or in satisfaction of judgments;

         (h) any Person to the extent such Investment represents the non-cash
         portion of the consideration received in connection with an Asset Sale
         consummated in compliance with Section 11(E), Limitation on Asset
         Sales; and

         (i) other Investments made for Fair Market Value that do not exceed $25
         million outstanding at any one time in the aggregate.

         "Permitted Liens" means:

         (a) Liens to secure Debt permitted to be Incurred under clause (b) of
         the second paragraph of Section 11(B), Limitation on Debt;

                                       41

<PAGE>
         (b) securities issued under the Company's Mortgage, securities issued
         under KGE's original Mortgage and Deed of Trust dated April 1, 1940, as
         amended and to be amended (together with the Mortgage, the "Mortgages
         and Deeds of Trust"), or Liens permitted by the terms of the Mortgages
         and Deeds of Trust;

         (c) Liens to secure Debt permitted to be Incurred under clause (c) of
         the second paragraph of Section 11(B), Limitation on Debt, provided
         that any such Lien may not extend to any Property of the Company or any
         Restricted Subsidiary, other than the Property acquired, constructed or
         leased with the proceeds of such Debt and any improvements or
         accessions to such Property;

         (d) Liens for taxes, assessments or governmental charges or levies on
         the Property of the Company or any Restricted Subsidiary if the same
         shall not at the time be delinquent or thereafter can be paid without
         penalty, or are being contested in good faith and by appropriate
         proceedings promptly instituted and diligently concluded, provided that
         any reserve or other appropriate provision that shall be required in
         conformity with GAAP shall have been made therefor;

         (e) Liens imposed by law, such as carriers', warehousemen's and
         mechanics' Liens and other similar Liens, on the Property of the
         Company or any Restricted Subsidiary arising in the ordinary course of
         business and securing payment of obligations that are not more than 90
         days past due or are being contested in good faith and by appropriate
         proceedings;

         (f) Liens on the Property of the Company or any Restricted Subsidiary
         incurred in the ordinary course of business to secure performance of
         obligations with respect to statutory or regulatory requirements,
         performance or return-of-money bonds, surety bonds or other obligations
         of a like nature and Incurred in a manner consistent with industry
         practice, in each case which are not Incurred in connection with the
         borrowing of money, the obtaining of advances or credit or the payment
         of the deferred purchase price of Property and which do not in the
         aggregate impair in any material respect the use of such Property in
         the operation of the business of the Company and any Restricted
         Subsidiary taken as a whole;

         (g) Liens on Property at the time the Company or any Restricted
         Subsidiary acquired such Property, including any acquisition by means
         of a merger or consolidation with or into the Company or any Restricted
         Subsidiary; provided, however, that any such Lien may not extend to any
         other Property of the Company or any Restricted Subsidiary; provided
         further, however, that such Liens shall not have been Incurred in
         anticipation of or in connection with the transaction or series of
         transactions pursuant to which such Property was acquired by the
         Company or any Restricted Subsidiary;

         (h) Liens on the Property of a Person at the time such Person becomes a
         Restricted Subsidiary; provided, however, that any such Lien may not
         extend to any other Property of the Company or any other Restricted
         Subsidiary that is not a direct Subsidiary of such

                                       42

<PAGE>

         Person; provided further, however, that any such Lien was not Incurred
         in anticipation of or in connection with the transaction or series of
         transactions pursuant to which such Person became a Restricted
         Subsidiary;

         (i) purchase money Liens upon or in Property acquired and held by the
         Company in the ordinary course of business to secure the purchase price
         of such Property or to secure indebtedness incurred solely for the
         purpose of financing the acquisition of any such Property to be subject
         to such Liens, or Liens existing on any such Property at the time of
         acquisition, or extensions, renewals or replacements of any of the
         foregoing for the same or a lesser amount, provided that no such Lien
         shall extend to or cover any Property other than the Property being
         acquired and no such extension, renewal or replacement shall extend to
         or cover Property not theretofore subject to the Lien being extended,
         renewed or replaced;

         (j) pledges or deposits by the Company or any Restricted Subsidiary
         under workmen's compensation laws, unemployment insurance laws or
         similar legislation, or good faith deposits in connection with bids,
         tenders, contracts (other than for the payment of Debt) or leases to
         which the Company or any Restricted Subsidiary is party, or deposits to
         secure public or statutory obligations of the Company, or deposits for
         the payment of rent, in each case incurred in the ordinary course of
         business;

         (k) utility easements, building restrictions and such other
         encumbrances or charges against real Property as are of a nature
         generally existing with respect to properties of a similar character;

         (l) Liens existing on the Issue Date not otherwise set forth in clauses
         (a) through (k) above;

         (m) Liens not otherwise set forth in clauses (a) through (l) above on
         the Property of any Restricted Subsidiary to secure any Debt permitted
         to be Incurred by any Restricted Subsidiary pursuant to Section 11(B),
         Limitation on Debt;

         (n) Liens on the Property of the Company or any Restricted Subsidiary
         to secure any Refinancing, in whole or in part, of any Debt secured by
         Liens referred to in clause (c), (g), (h), (i), (j) or (l) above;
         provided, however, that any such Lien shall be limited to all or part
         of the same Property that secured the original Lien (together with
         improvements and accessions to such Property) and the aggregate
         principal amount of Debt that is secured by such Lien shall not be
         increased to an amount greater than the sum of:

                  (1) the outstanding principal amount, or, if greater, the
                  committed amount, of the Debt secured by Liens being
                  refinanced and fees and expenses incurred in connection
                  therewith, at the time the original Lien became a Permitted
                  Lien under the Indenture, and

                                       43

<PAGE>
                  (2) an amount necessary to pay any fees and expenses,
                  including premiums and defeasance costs, incurred by the
                  Company or any Restricted Subsidiary in connection with such
                  Refinancing; and

         (o) Liens not otherwise permitted by clauses (a) through (n) above
         encumbering Property having an aggregate Fair Market Value not in
         excess of 5% of Consolidated Net Tangible Assets, as determined based
         on the consolidated balance sheet of the Company as of the end of the
         most recent fiscal quarter for which financial statements are
         available.

         "Permitted Refinancing Debt" means any Debt that Refinances any other
         Debt, including any successive Refinancings, so long as:

         (a) such Debt is in an aggregate principal amount (or if Incurred with
         original issue discount, an aggregate issue price) not in excess of the
         sum of:

                  (1) the aggregate principal amount (or if incurred with
                  original issue discount, the aggregate accreted value) then
                  outstanding, plus interest thereon, of the Debt being
                  Refinanced; and

                  (2) an amount necessary to pay any fees and expenses,
                  including premiums and defeasance costs, related to such
                  Refinancing;

         (b) (1) the Average Life of such Debt is equal to or greater than the
         Average Life of the Debt being Refinanced and the Stated Maturity of
         such Debt is no earlier than the Stated Maturity of the Debt being
         Refinanced; or

                  (2) the first mandatory maturity date for any such new Debt is
                  subsequent to May 1, 2007; and

                  (c) the new Debt shall not be senior in right of payment to
                  the Debt that is being Refinanced;

         provided, however, that Permitted Refinancing Debt shall not include
         Debt of the Company or any Restricted Subsidiary that Refinances Debt
         of an Unrestricted Subsidiary.

         "Person" means any individual, corporation, company (including any
         limited liability company), association, partnership, joint venture,
         trust, unincorporated organization, government or any agency or
         political subdivision thereof or any other entity.

         "Preferred Stock" means any Capital Stock of a Person, however
         designated, which entitles the holder thereof to a preference with
         respect to the payment of dividends, or as to the distribution of
         assets upon any voluntary or involuntary liquidation or dissolution of
         such Person, over shares of any other class of Capital Stock issued by
         such Person.

                                       44

<PAGE>
         "Preferred Stock Dividends" means all dividends with respect to
         Preferred Stock of Restricted Subsidiaries held by Persons other than
         the Company or a Restricted Subsidiary. The amount of any such dividend
         shall be equal to the quotient of such dividend divided by the
         difference between one and the maximum statutory Federal income rate
         (expressed as a decimal number between 1 and 0) then applicable to the
         issuer of such Preferred Stock.

         "pro forma" means, with respect to any calculation made or required to
         be made pursuant to the terms hereof, a calculation performed in
         accordance with Article 11 of Regulation S-X promulgated under the
         Securities Act, as interpreted in good faith by the Board of Directors
         after consultation with the independent certified public accountants
         of the Company, or otherwise a calculation made in good faith by the
         Board of Directors after consultation with the independent certified
         public accountants of the Company, as the case may be.

         "Property" means, with respect to any Person, any interest of such
         Person in any kind of property or asset, whether real, personal or
         mixed, or tangible or intangible, including Capital Stock in, and other
         securities of, any other Person. For purposes of any calculation
         required pursuant to the Indenture, the value of any Property shall be
         its Fair Market Value.

         "Public Equity Offering" means an underwritten public offering of
         common stock of the Company.

         provided, however, that such Debt is Incurred within 180 days after the
         acquisition, construction or lease of such Property by the Company or
         such Restricted Subsidiary.

         "Rating Agencies" means Fitch Ratings, Moody's and S&P.

         "Refinance" means, in respect of any Debt, to refinance, extend, renew,
         refund or Repay, or to issue other Debt in exchange or replacement for,
         such Debt. "Refinanced" and "Refinancing" shall have correlative
         meanings.

         "Regulated Utility Business" means any business that is related,
         ancillary or complementary to the businesses of the Company and any
         Restricted Subsidiary on the Issue Date, as well as any other business
         primarily related to the provision of utility services subject to the
         regulations, in any aspect of such business, of any Federal, State,
         municipal or other governmental authority in the United States or
         elsewhere.

         "Repay" means, in respect of any Debt, to repay, prepay, repurchase,
         redeem, legally defease or otherwise retire such Debt. "Repayment" and
         "Repaid" shall have correlative meanings. For purposes of Section
         11(E), Limitation on Asset Sales and the definition of "Consolidated
         Interest Coverage Ratio", Debt in the form of revolving loans shall be
         considered to have been Repaid only to the extent the related loan
         commitment, if any, shall have been permanently reduced in connection
         therewith.

                                       45

<PAGE>
         "Required Rating Agencies" means any two of the Rating Agencies.

         "Restricted Payment" means:

         (a) any dividend or distribution (whether made in cash, securities or
         other Property) declared or paid on or with respect to any shares of
         Capital Stock of the Company or any Restricted Subsidiary (including
         any payment in connection with any merger or consolidation with or into
         the Company or any Restricted Subsidiary), except for any dividend or
         distribution that is made solely to the Company or any Restricted
         Subsidiary or any dividend or distribution payable solely in shares of
         Capital Stock (other than Disqualified Stock) of the Company;

         (b) the purchase, repurchase, redemption, acquisition or retirement for
         value of any Capital Stock of the Company or any Restricted Subsidiary
         (other than from the Company or any Restricted Subsidiary) or any
         securities exchangeable for or convertible into any such Capital Stock,
         including the exercise of any option to exchange any Capital Stock
         (other than for or into Capital Stock of the Company or any Restricted
         Subsidiary that is not Disqualified Stock);

         (c) the purchase, repurchase, redemption, acquisition or retirement for
         value, prior to the date for any scheduled maturity, sinking fund or
         amortization or other installment payment, of any Subordinated
         Obligation (other than (x) the purchase, repurchase or other
         acquisition or retirement for value of any Subordinated Obligation
         purchased in anticipation of satisfying a scheduled maturity, sinking
         fund or amortization or other installment obligation, in each case due
         within two years of the date of purchase, redemption, acquisition or
         retirement and (y) the retirement of Subordinated Obligations issued in
         connection with the Mandatorily Redeemable Preferred Securities); or

         (d) any Investment (other than Permitted Investments) in any Person.

         "Restricted Share Unit" means the restricted share units issued
         pursuant to the Company's 1996 Long Term Incentive and Share Award
         Plan, which allows for the Company's executive officers and other
         employees to receive awards of restricted share units related to the
         common stock of the Company and its Subsidiaries and to receive
         dividend equivalents with respect to such restricted share units.

         "Restricted Subsidiary" means any Subsidiary of the Company other than
         an Unrestricted Subsidiary.

         "S&P" means Standard & Poor's Ratings Service or any successor to the
         rating agency business thereof.

         "Sale and Leaseback Transaction" means any direct or indirect
         arrangement relating to Property now owned or hereafter acquired
         whereby the Company or any Restricted Subsidiary transfers such
         Property to another Person and the Company or any Restricted Subsidiary
         leases it from such Person.

                                       46

<PAGE>
         "Securities Act" means the Securities Act of 1933, as amended.

         "Senior Debt" means:

         (a) all obligations consisting of the principal, premium, if any, and
         accrued and unpaid interest (including interest accruing on or after
         the filing of any petition in bankruptcy or for reorganization relating
         to the Company to the extent post-filing interest is allowed in such
         proceeding) in respect of:

                  (1)  Debt of the Company for borrowed money, and

                  (2) Debt of the Company evidenced by notes, debentures, bonds
                  or other similar instruments permitted under the Mortgage or
                  the Indenture for the payment of which the Company is
                  responsible or liable;

         (b) all Capital Lease Obligations of the Company;

         (c) all obligations of the Company

                  (1) for the reimbursement of any obligor on any letter of
                  credit, bankers' acceptance or similar credit transaction,

                  (2) under Hedging Obligations, or

                  (3) issued or assumed as the deferred purchase price of
                  Property and all conditional sale obligations of the Company
                  and all obligations under any title retention agreement
                  permitted under the Indenture; and

         (d) all obligations of other Persons of the type referred to in clauses
         (a), (b) and (c) for the payment of which the Company is responsible or
         liable as Guarantor;

         provided, however, that Senior Debt shall not include:

         (A) Subordinated Obligations;

         (B) any Debt Incurred in violation of the provisions of the Indenture;

         (C) accounts payable or any other obligations of the Company to trade
         creditors created or assumed by the Company in the ordinary course of
         business in connection with the obtaining of materials or services
         (including Guarantees thereof or instruments evidencing such
         liabilities);

         (D) any liability for taxes owed or owing by the Company;

         (E) any obligation of the Company to any Subsidiary; or

                                       47

<PAGE>

         (F) any obligations with respect to any Capital Stock of the Company.

         "Stated Maturity" means, with respect to any security, the date
         specified in such security as the fixed date on which the payment of
         principal of such security is due and payable, including pursuant to
         any mandatory redemption provision (but excluding any provision
         providing for the repurchase of such security at the option of the
         holder thereof upon the happening of any contingency beyond the control
         of the issuer unless such contingency has occurred).

         "Subordinated Obligation" means any Debt of the Company (whether
         outstanding on the Issue Date or thereafter Incurred) that is
         subordinate or junior in right of payment to the Securities or pursuant
         to a written agreement to that effect.

         "Subsidiary" means, in respect of any Person, any corporation, company
         (including any limited liability company), association, partnership,
         joint venture or other business entity of which a majority of the total
         voting power of the Voting Stock is at the time owned or controlled,
         directly or indirectly, by:

         (a) such Person,

         (b) such Person and one or more Subsidiaries of such Person, or

         (c) one or more Subsidiaries of such Person.

         "Treasury Rate" means, as of any redemption date, the yield to maturity
         as of such redemption date of United States Treasury securities with a
         constant maturity (as compiled and published in the most recent Federal
         Reserve Statistical Release H.15 (519) that has become publicly
         available at least two business days prior to the redemption date (or,
         if such statistical release is no longer published, any publicly
         available source of similar market data)) most nearly equal to the
         period from the redemption date to May 1, 2007; provided, however, that
         if the period from the redemption date to May 1, 2007 is less than one
         year, the weekly average yield on actively traded United States
         Treasury securities adjusted to a constant maturity of one year shall
         be used.

         "Unregulated Affiliate" means any Affiliate that is primarily engaged
         in a business not involving the provision of utility services.

         "Unrestricted Subsidiary" means:

         (a) Westar Industries;

         (b) any Subsidiary of the Company that is designated after the Issue
         Date as an Unrestricted Subsidiary as permitted or required pursuant to
         the covenant set forth under Section 11(I), Designation of Restricted
         and Unrestricted Subsidiaries and is not thereafter redesignated as a
         Restricted Subsidiary as permitted pursuant thereto;

                                       48

<PAGE>

         (c) any Subsidiary of an Unrestricted Subsidiary; and

         (d) any successor corporation to any Unrestricted Subsidiary identified
         in clauses (a) through (c) of this definition.

         "U.S. Government Obligations" means direct obligations (or
         certificates representing an ownership interest in such obligations)
         of the United States of America (including any agency or
         instrumentality thereof) for the payment of which the full faith and
         credit of the United States of America is pledged and which are not
         callable or redeemable at the issuer's option.

         "Voting Stock" of any Person means all classes of Capital Stock or
         other interests (including partnership interests) of such Person then
         outstanding and normally entitled (without regard to the occurrence of
         any contingency) to vote in the election of directors, managers or
         trustees thereof.

         "Wholly Owned Restricted Subsidiary" means, at any time, a Restricted
         Subsidiary all the Voting Stock of which (except directors' qualifying
         shares) is at such time owned, directly or indirectly, by the Company
         and its other Wholly Owned Subsidiaries.

21.      Abbreviations.

         Customary abbreviations may be used in the name of a Securityholder or
         an assignee, such as: TEN COM (=tenants in common), TEN ENT (=tenants
         by the entirety), JT TEN (=joint tenants with right of survivorship and
         not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform
         Gifts to Minors Act).

         The Company will furnish to any Securityholder upon written request and
without charge a copy of the Indenture and the Securities Resolution, which
contains the text of this Security in larger type. Requests may be made to:
Western Resources, Inc., 818 Kansas Avenue, Topeka, Kansas, Attention: Corporate
Secretary.

                                 ASSIGNMENT FORM

                To assign this Security, fill in the form below:

                  I or we assign and transfer this Security to

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

                     ---------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

                                       49

<PAGE>

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint                              agent to transfer this
                        ----------------------------
Security on the books of the Company. The agent may substitute another to act
for him.

Date:                 Your Signature:
     ---------------                 -------------------------------------------

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

     (Sign exactly as your name appears on the other side of this Security)

                                       50

<PAGE>
                  CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR
                 REGISTRATION OF TRANSFER RESTRICTED SECURITIES

This certificate relates to $        principal amount of $400,000,000 Senior
                             -------
Notes, 9 3/4% Series Due 2007 held in (check applicable space)       book-entry
                                                               -----
or     definitive form by the undersigned.
   ---

The undersigned has requested the Trustee by written order to exchange or
register the transfer of a Security or Securities.

In connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act, the undersigned confirms that such Securities
are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

         1. --- to the Company; or

         2. --- to the Securities Registrar for the registration in the name

of the Holder, without transfer; or

         3. --- inside the United States to a "qualified institutional buyer"
(as defined in Rule 144A under the Securities Act of 1933) that purchases for
its own account or for the account of a qualified institutional buyer to whom
notice is given that such transfer is being made in reliance on Rule 144A, in
each case pursuant to and in compliance with Rule 144A under the Securities Act
of 1933; or

         4. --- outside the United States in an offshore transaction within
the meaning of Regulation S under the Securities Act of 1933 in compliance with
Rule 904 under the Securities Act of 1933 and such Security shall be held
immediately after the transfer through Euroclear and Clearstream until the
expiration of the Restricted Period (as defined in the Indenture); or

         5. --- pursuant to another available exemption from registration
provided by Rule 144 under the Securities Act of 1933.

         Unless one of the boxes is checked, the Trustee will refuse to register
         any of the Securities evidenced by this certificate in the name of any
         Person other than the registered holder thereof; provided, however,
         that if box (4) or (5) is checked, the Company and the Trustee may
         require, prior to registering any such transfer of the Securities, such
         legal opinions, certifications and other information as the Company and
         the Trustee have reasonably requested to confirm that such transfer is
         being made pursuant to an exemption from or in a transaction not
         subject to, the registration requirements of the Securities Act of
         1933.

<PAGE>
                                             -----------------------------------
                                             Your Signature

Signature Guarantee:

Date:
     -------------------------------------- ----------------------------
Signature must be guaranteed by a           Signature of Signature
participant in a recognized signature       Guarantor
guaranty medallion program or other
signature guarantor acceptable to the
Trustee

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

              TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED

              The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided Rule 144A.

Dated:
       ---------------------------          ----------------------------------
                               NOTICE:  To be executed by an
                                           executive officer

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