Document:

Exhibit 4.11-A

                               GUARANTEE AGREEMENT

                                     Between

                              Georgia Power Company

                                 (as Guarantor)

                                       and

                               JPMorgan Chase Bank

                                  (as Trustee)

                                   dated as of

                                November 1, 2002

                        (Georgia Power Capital Trust VI)

<PAGE>
<TABLE>
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                                                                                 CROSS-REFERENCE TABLE1

Section of Trust Indenture Act                                                                  Section of
of 1939, as amended                                                                             Guarantee Agreement

<S>                                                                                                        <C>
310(a)......................................................................................................4.01(a)
310(b)................................................................................................4.01(c),2.08
310(c).................................................................................................Inapplicable
311(a)......................................................................................................2.02(b)
311(b)......................................................................................................2.02(b)
311(c).................................................................................................Inapplicable
312(a)......................................................................................................2.02(a)
312(b)......................................................................................................2.02(b)
313............................................................................................................2.03
314(a).........................................................................................................2.04
314(b).................................................................................................Inapplicable
314(c).........................................................................................................2.05
314(d).................................................................................................Inapplicable
314(e).............................................................................................1.01,2.05, 3.02
314(f)...................................................................................................2.01,3.02
315(a)......................................................................................................3.01(d)
315(b).........................................................................................................2.07
315(c).........................................................................................................3.01
315(d)......................................................................................................3.01(d)
315(e).................................................................................................Inapplicable
316(a)................................................................................................5.04(i),2.06
316(b).........................................................................................................5.03
316(c).........................................................................................................2.02
317(a)................................................................................................Inapplicable
317(b).................................................................................................Inapplicable
318(a)......................................................................................................2.01(b)
318(b).........................................................................................................2.01
318(c)......................................................................................................2.01(a)

______________________
1   This Cross-Reference Table does not constitute part of the Guarantee Agreement and shall not
    affect the interpretation of any of its terms or provisions.
</TABLE>

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<TABLE>
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                                TABLE OF CONTENTS
ARTICLE I DEFINITIONS.............................................................................................1
---------------------
<S>                                                                                                            <C>
   SECTION 1.01.         Definitions..............................................................................1
   -------------         -----------

ARTICLE II TRUST INDENTURE ACT....................................................................................4
------------------------------
   SECTION 2.01.         Trust Indenture Act; Application.........................................................4
   -------------         --------------------------------
   SECTION 2.02.         Lists of Holders of Securities...........................................................4
   -------------         ------------------------------
   SECTION 2.03.         Reports by the Trustee...................................................................4
   -------------         ----------------------
   SECTION 2.04.         Periodic Reports to Trustee..............................................................4
   -------------         ---------------------------
   SECTION 2.05.         Evidence of Compliance with Conditions Precedent.........................................5
   -------------         ------------------------------------------------
   SECTION 2.06.         Events of Default; Waiver................................................................5
   -------------         -------------------------
   SECTION 2.07.         Event of Default; Notice.................................................................5
   -------------         ------------------------
   SECTION 2.08.         Conflicting Interests....................................................................5
   -------------         ---------------------

ARTICLE III POWERS, DUTIES AND RIGHTS OF TRUSTEE..................................................................6
------------------------------------------------
   SECTION 3.01.         Powers and Duties of the Trustee.........................................................6
   -------------         --------------------------------
   SECTION 3.02.         Certain Rights of Trustee................................................................7
   -------------         -------------------------
   SECTION 3.03.         Compensation; Fees; Indemnity............................................................9
   -------------         -----------------------------

ARTICLE IV TRUSTEE...............................................................................................10
------------------
   SECTION 4.01.         Trustee; Eligibility....................................................................10
   -------------         --------------------
   SECTION 4.02.         Appointment, Removal and Resignation of Trustee.........................................10
   -------------         -----------------------------------------------

ARTICLE V GUARANTEE..............................................................................................11
-------------------
   SECTION 5.01.         Guarantee...............................................................................11
   -------------         ---------
   SECTION 5.02.         Waiver of Notice and Demand.............................................................11
   -------------         ---------------------------
   SECTION 5.03.         Obligations Not Affected................................................................11
   -------------         ------------------------
   SECTION 5.04.         Rights of Holders.......................................................................12
   -------------         -----------------
   SECTION 5.05.         Guarantee of Payment....................................................................13
   -------------         --------------------
   SECTION 5.06.         Subrogation.............................................................................13
   -------------         -----------
   SECTION 5.07.         Independent Obligations.................................................................13
   -------------         -----------------------

ARTICLE VI SUBORDINATION.........................................................................................13
------------------------
   SECTION 6.01.         Subordination...........................................................................13
   -------------         -------------

ARTICLE VII TERMINATION..........................................................................................13
-----------------------
   SECTION 7.01.         Termination.............................................................................13
   -------------         -----------

ARTICLE VIII MISCELLANEOUS.......................................................................................14
--------------------------
   SECTION 8.01.         Successors and Assigns..................................................................14
   -------------         ----------------------
   SECTION 8.02.         Amendments..............................................................................14
   -------------         ----------
   SECTION 8.03.         Notices.................................................................................14
   -------------         -------
   SECTION 8.04.         Benefit.................................................................................15
   -------------         -------
   SECTION 8.05.         Interpretation..........................................................................15
   -------------         --------------
   SECTION 8.06.         Governing Law...........................................................................16
   -------------         -------------

</TABLE>

<PAGE>

                               GUARANTEE AGREEMENT

         This GUARANTEE AGREEMENT ("Guarantee Agreement"), dated as of November
1, 2002, between GEORGIA POWER COMPANY, a Georgia corporation (the "Guarantor"),
and JPMORGAN CHASE BANK, a New York banking corporation, as trustee (the
"Trustee"), for the benefit of the Holders (as defined herein) from time to time
of the Preferred Securities (as defined herein) of GEORGIA POWER CAPITAL TRUST
VI, a Delaware statutory trust (the "Trust").
`
         WHEREAS, pursuant to an Amended and Restated Trust Agreement (the
"Trust Agreement"), dated as of November 1, 2002, among the Trustee, the other
Trustees named therein, Georgia Power Company, as Depositor, and the holders of
undivided beneficial interests in the assets of the Trust, the Trust is issuing
as of November 6, 2002 $300,000,000 aggregate liquidation amount of its Flexible
Trust Preferred Securities (the "Preferred Securities") representing preferred
undivided beneficial interests in the assets of the Trust and having the terms
set forth in the Trust Agreement;

         WHEREAS, the Preferred Securities will be issued by the Trust and the
proceeds thereof will be used to purchase the Junior Subordinated Notes (as
defined in the Trust Agreement) of the Guarantor, which will be held by the
Trust as trust assets; and

         WHEREAS, as incentive for the Holders to purchase the Preferred
Securities, the Guarantor desires to irrevocably and unconditionally agree, to
the extent set forth herein, to pay to the Holders the Guarantee Payments (as
defined herein) and to make certain other payments on the terms and conditions
set forth herein.

         NOW, THEREFORE, in consideration of the payment for Preferred
Securities by each Holder (as defined herein) thereof, which payment the
Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and
delivers this Guarantee Agreement for the benefit of the Holders from time to
time of the Preferred Securities.

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.01. Definitions. As used in this Guarantee Agreement, the
terms set forth below shall, unless the context otherwise requires, have the
following meanings. Capitalized or otherwise defined terms used but not
otherwise defined herein shall have the meanings assigned to such terms in the
Trust Agreement as in effect on the date hereof.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified 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.

         "Chase Manhattan Bank USA" means Chase Manhattan Bank USA, National
Association (successor to Chase Manhattan Bank Delaware), a national banking
association.

         "Common Securities" means the securities representing common undivided
beneficial interests in the assets of the Trust.

         "Event of Default" means a failure by the Guarantor to perform any of
its payment obligations under this Guarantee Agreement.

         "Guarantee Payments" shall mean the following payments or
distributions, without duplication, with respect to the Preferred Securities, to
the extent not paid or made by or on behalf of the Trust: (i) any accrued and
unpaid distributions that are required to be paid on such Preferred Securities
but if and only if and to the extent the Trust has funds legally and immediately
available therefor to make such payment; (ii) the redemption price, including
all accrued and unpaid distributions to the date of redemption (the "Redemption
Price"), with respect to the Preferred Securities called for redemption by the
Trust but if and only if and to the extent that the Trust has funds legally and
immediately available therefor sufficient to make such payment; and (iii) upon a
voluntary or involuntary dissolution, winding-up or termination of the Trust
(other than in connection with the distribution of Junior Subordinated Notes to
the holders of Trust Securities or the redemption of all of the Preferred
Securities), the lesser of (a) the aggregate of the liquidation amount and all
accrued and unpaid distributions on the Preferred Securities to the date of
payment, to the extent the Trust has funds legally and immediately available
therefor, and (b) the amount of assets of the Trust remaining available for
distribution to Holders in liquidation of the Trust (in either case, the
"Liquidation Distribution").

         "Holder" shall mean any holder, as registered on the books and records
of the Trust, of any Preferred Securities; provided, however, that in
determining whether the holders of the requisite percentage of Preferred
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor or any Affiliate of the Guarantor.

         "Indenture" means the Subordinated Note Indenture dated as of June 1,
1997, between the Guarantor, as Subordinated Note Issuer, and JPMorgan Chase
Bank (formerly known as The Chase Manhattan Bank), as trustee, as heretofore
supplemented and as further supplemented by the Fourth Supplemental Indenture
dated as of November 6, 2002, by and between the Guarantor and JPMorgan Chase
Bank, as trustee.

         "JPMorgan Chase Bank" means JPMorgan Chase Bank (formerly known as The
Chase Manhattan Bank), a New York banking corporation.

         "Majority in liquidation amount of Preferred Securities" means a vote
by Holder(s) of Preferred Securities, voting separately as a class, of more than
50% of the liquidation amount of all Preferred Securities outstanding at the
time of determination.

         "Officers' Certificate" means a certificate signed by the Chairman of
the Board, the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Guarantor, and
delivered to the Trustee. Any Officers' Certificate delivered with respect to
compliance with a condition or covenant provided for in this Guarantee Agreement
shall include:

                  (a) a statement that each officer signing the Officers'
         Certificate has read the covenant or condition and the definitions
         relating thereto;

                  (b) a brief statement of the nature and scope of the
         examination or investigation undertaken by each officer in rendering
         the Officers' Certificate;

                  (c) a statement that each such officer has made such
         examination or investigation as, in such officer's opinion, is
         necessary to enable such officer to express an informed opinion as to
         whether or not such covenant or condition has been complied with; and

                  (d) a statement as to whether, in the opinion of each such
         officer, such condition or covenant has been complied with.

         "Person" means any individual, corporation, partnership, limited
liability company, joint venture, trust, unincorporated organization or
government or any agency or political subdivision thereof.

         "Responsible Officer" means, with respect to the Trustee, any vice
president, any assistant vice president, the secretary, any assistant secretary,
the treasurer, any assistant treasurer, any senior trust officer, trust officer
or assistant trust officer or any other officer of the Corporate Trust
Department of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of that officer's knowledge of and familiarity with the
particular subject.

         "Successor Trustee" means a successor Trustee possessing the
qualifications to act as Trustee under Section 4.01.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended.

         "Trustee" means JPMorgan Chase Bank until a Successor Trustee has been
appointed and has accepted such appointment pursuant to the terms of this
Guarantee Agreement and thereafter means each such Successor Trustee.

         SECTION 2.01.     Trust Indenture Act; Application.
                           --------------------------------

         (a) This Guarantee Agreement is subject to the provisions of the Trust
Indenture Act that are required to be part of this Guarantee Agreement and
shall, to the extent applicable, be governed by such provisions; and

         (b) If and to the extent that any provision of this Guarantee Agreement
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

         SECTION 2.02.     Lists of Holders of Securities.
                           ------------------------------

         (a) The Guarantor shall furnish or cause to be furnished to the Trustee
(a) semiannually, not later than May 1 and November 1 in each year, a list, in
such form as the Trustee may reasonably require, of the names and addresses of
the Holders ("List of Holders") as of a date not more than 15 days prior to the
time such list is furnished, and (b) at such other times as the Trustee may
request in writing, within 30 days after the receipt by the Guarantor of any
such request, a List of Holders as of a date not more than 15 days prior to the
time such list is furnished; provided that, the Guarantor shall not be obligated
to provide such List of Holders at any time the List of Holders does not differ
from the most recent List of Holders given to the Trustee by the Guarantor or at
any time the Trustee is the Securities Registrar under the Trust Agreement. The
Trustee may destroy any List of Holders previously given to it on receipt of a
new List of Holders.

         (b) The Trustee shall comply with its obligations under Sections
311(a), 311(b) and 312(b) of the Trust Indenture Act.

         SECTION 2.03. Reports by the Trustee. Within 60 days after May 15 of
each year commencing May 15, 2003, the Trustee shall provide to the Holders of
the Preferred Securities such reports as are required by Section 313(a) of the
Trust Indenture Act, if any, in the form and in the manner provided by Section
313 of the Trust Indenture Act. The Trustee shall also comply with the other
requirements of Section 313 of the Trust Indenture Act.

         SECTION 2.04. Periodic Reports to Trustee. The Guarantor shall provide
to the Trustee such documents, reports and information as required by Section
314 of the Trust Indenture Act (if any) in the form, in the manner and at the
times required by Section 314 of the Trust Indenture Act, and shall provide,
within 120 days after the end of each of its fiscal years, the compliance
certificate required by Section 314(a)(4) of the Trust Indenture Act in the form
and in the manner required by such Section.

         SECTION 2.05. Evidence of Compliance with Conditions Precedent. The
Guarantor shall provide to the Trustee such evidence of compliance with any
conditions precedent, if any, provided for in this Guarantee Agreement that
relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given by an officer pursuant to
Section 314(c)(1) may be given in the form of an Officers' Certificate.

         SECTION 2.06. Events of Default; Waiver. The Holders of a Majority in
liquidation amount of Preferred Securities may, by vote, on behalf of all of the
Holders, waive any past Event of Default and its consequences. Upon such waiver,
any such Event of Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Guarantee Agreement, but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

         SECTION 2.07.     Event of Default; Notice.
                           ------------------------

         (a) The Trustee shall, within 90 days after the occurrence of an Event
of Default, transmit by mail, first class postage prepaid, to the Holders,
notices of all Events of Default known to the Trustee, unless such defaults have
been cured before the giving of such notice, provided that the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee, or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders.

         (b) The Trustee shall not be deemed to have knowledge of any Event of
Default unless the Trustee shall have received written notice, or a Responsible
Officer charged with the administration of the Trust Agreement shall have
obtained written notice, of such Event of Default.

         SECTION 2.08. Conflicting Interests. The Trust Agreement, the amended
and restated trust agreement dated as of August 1, 1996, among the Guarantor, as
Depositor, Chase Manhattan Bank USA, as Delaware Trustee, the Administrative
Trustees named therein and JPMorgan Chase Bank, as Property Trustee, relating to
Georgia Power Capital Trust I, the guarantee agreement dated as of August 1,
1996, between the Guarantor, as guarantor, and JPMorgan Chase Bank, as trustee,
relating to Georgia Power Capital Trust I, the amended and restated trust
agreement dated as of January 1, 1997, among the Guarantor, as Depositor, Chase
Manhattan Bank USA, as Delaware Trustee, the Administrative Trustees named
therein and JPMorgan Chase Bank, as Property Trustee, relating to Georgia Power
Capital Trust II, the guarantee agreement dated as of January 1, 1997, between
the Guarantor, as guarantor, and JPMorgan Chase Bank, as trustee, relating to
Georgia Power Capital Trust II, the amended and restated trust agreement dated
as of June 1, 1997, among the Guarantor, as Depositor, Chase Manhattan Bank USA,
as Delaware Trustee, the Administrative Trustees named therein and JPMorgan
Chase Bank, as Property Trustee, relating to Georgia Power Capital Trust III,
the guarantee agreement dated as of June 1, 1997, between the Guarantor, as
guarantor, and JPMorgan Chase Bank, as trustee, relating to Georgia Power
Capital Trust III, the amended and restated trust agreement dated as of February
1, 1999, among the Guarantor, as Depositor, Chase Manhattan Bank USA, as
Delaware Trustee, the Administrative Trustees named therein and JPMorgan Chase
Bank, as Property Trustee, relating to Georgia Power Capital Trust IV, the
guarantee agreement dated as of February 1, 1999, between the Guarantor, as
guarantor, and JPMorgan Chase Bank, as trustee, relating to Georgia Power
Capital Trust IV, the amended and restated trust agreement dated as of June 1,
2002, among the Guarantor, as Depositor, Chase Manhattan Bank USA, as Delaware
Trustee, the Administrative Trustees named therein and JPMorgan Chase Bank, as
Property Trustee, relating to Georgia Power Capital Trust V, and the guarantee
agreement dated as of June 1, 2002, between the Guarantor, as guarantor, and
JPMorgan Chase Bank, as trustee, relating to Georgia Power Capital Trust V shall
be deemed to be specifically described in this Guarantee Agreement for the
purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.

                                   ARTICLE III

                      POWERS, DUTIES AND RIGHTS OF TRUSTEE

         SECTION 3.01.     Powers and Duties of the Trustee.
                           --------------------------------

         (a) This Guarantee Agreement shall be held by the Trustee for the
benefit of the Holders, and the Trustee shall not transfer this Guarantee
Agreement to any Person except the Trustee shall assign rights hereunder to a
Holder to the extent such assignment is necessary to exercise such Holder's
rights pursuant to Section 5.04 or to a Successor Trustee upon acceptance by
such Successor Trustee of its appointment to act as Successor Trustee. The
right, title and interest of the Trustee shall automatically vest in any
Successor Trustee, and such vesting and cessation of title shall be effective
whether or not conveyancing documents have been executed and delivered pursuant
to the appointment of such Successor Trustee.

         (b) If an Event of Default has occurred and is continuing, the Trustee
shall enforce this Guarantee Agreement for the benefit of the Holders.

         (c) The Trustee, before the occurrence of any Event of Default and
after the curing or waiving of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Guarantee Agreement, and no implied covenants shall be read into this
Guarantee Agreement against the Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.06), the
Trustee shall exercise such of the rights and powers vested in it by this
Guarantee Agreement, and use the same degree of care and skill in its exercise
thereof, as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.

         (d) No provision of this Guarantee Agreement shall be construed to
relieve the Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

                  (i) prior to the occurrence of any Event of Default and after
         the curing or waiving of all such Events of Default that may have
         occurred:

                           (A) the duties and obligations of the Trustee shall
                  be determined solely by the express provisions of this
                  Guarantee Agreement, and the Trustee shall not be liable
                  except for the performance of such duties and obligations as
                  are specifically set forth in this Guarantee Agreement; and

                           (B) in the absence of bad faith on the part of the
                  Trustee, the Trustee may conclusively rely, as to the truth of
                  the statements and the correctness of the opinions expressed
                  therein, upon any certificates or opinions furnished to the
                  Trustee and conforming to the requirements of this Guarantee
                  Agreement; but in the case of any such certificates or
                  opinions that by any provision hereof are specifically
                  required to be furnished to the Trustee, the Trustee shall be
                  under a duty to examine the same to determine whether or not
                  they conform to the requirements of this Guarantee Agreement;

                  (ii) the Trustee shall not be liable for any error of judgment
         made in good faith by a Responsible Officer of the Trustee, unless it
         shall be proved that the Trustee was negligent in ascertaining the
         pertinent facts upon which such judgment was made;

                  (iii) the Trustee shall not be liable with respect to any
         action taken or omitted to be taken by it in good faith in accordance
         with the direction of the Holders of a Majority in liquidation amount
         of the Preferred Securities relating to the time, method and place of
         conducting any proceeding for any remedy available to the Trustee, or
         exercising any trust or power conferred upon the Trustee under this
         Guarantee Agreement; and

                  (iv) no provision of this Guarantee Agreement shall require
         the Trustee to expend or risk its own funds or otherwise incur personal
         financial liability in the performance of any of its duties or in the
         exercise of any of its rights or powers, if the Trustee shall have
         reasonable grounds for believing that the repayment of such funds or
         liability is not reasonably assured to it under the terms of this
         Guarantee Agreement or adequate indemnity against such risk or
         liability is not reasonably assured to it.

         SECTION 3.02.     Certain Rights of Trustee.
                           -------------------------

         (a) Subject to the provisions of Section 3.01:

                  (i) the Trustee may rely and shall be fully protected in
         acting or refraining from acting upon any resolution, certificate,
         statement, instrument, opinion, report, notice, request, direction,
         consent, order, bond, debenture, note, other evidence of indebtedness
         or other paper or document believed by it to be genuine and to have
         been signed, sent or presented by the proper party or parties;

                  (ii) any direction or act of the Guarantor contemplated by
         this Guarantee Agreement shall be sufficiently evidenced by an
         Officers' Certificate;

                  (iii) whenever, in the administration of this Guarantee
         Agreement, the Trustee shall deem it desirable that a matter be proved
         or established before taking, suffering or omitting any action
         hereunder, the Trustee (unless other evidence is herein specifically
         prescribed) may, in the absence of bad faith on its part, request and
         rely upon an Officers' Certificate which, upon receipt of such request,
         shall be promptly delivered by the Guarantor;

                  (iv) the Trustee may consult with counsel of its choice, and
         the written advice or opinion of such counsel with respect to legal
         matters shall be full and complete authorization and protection in
         respect of any action taken, suffered or omitted by it hereunder in
         good faith and in accordance with such advice or opinion; such counsel
         may be counsel to the Guarantor or any of its Affiliates and may
         include any of its employees; the Trustee shall have the right at any
         time to seek instructions concerning the administration of this
         Guarantee Agreement from any court of competent jurisdiction;

                  (v) the Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Guarantee Agreement at the
         request or direction of any Holder, unless such Holder shall have
         provided to the Trustee such adequate security and indemnity as would
         satisfy a reasonable person in the position of the Trustee against the
         costs, expenses (including attorneys' fees and expenses) and
         liabilities that might be incurred by it in complying with such request
         or direction, including such reasonable advances as may be requested by
         the Trustee; provided that nothing contained in this Section 3.02(a)(v)
         shall be taken to relieve the Trustee, upon the occurrence of an Event
         of Default, of its obligation to exercise the rights and powers vested
         in it by this Guarantee Agreement;

                  (vi) the Trustee shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, direction,
         consent, order, bond, debenture, note, other evidence of indebtedness
         or other paper or document, but the Trustee, in its discretion, may
         make such further inquiry or investigation into such facts or matters
         as it may see fit;

                  (vii) the Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys, and the Trustee shall not be responsible
         for any misconduct or negligence on the part of any agent or attorney
         appointed with due care by it hereunder; and

                  (viii) whenever in the administration of this Guarantee
         Agreement the Trustee shall deem it desirable to receive instructions
         with respect to enforcing any remedy or right or taking any other
         action hereunder, the Trustee (i) may request instructions from the
         Holders, (ii) may refrain from enforcing such remedy or right or taking
         such other action until such instructions are received, and (iii) shall
         be protected in acting in accordance with such instructions.

         (b) No provision of this Guarantee Agreement shall be deemed to impose
any duty or obligation on the Trustee to perform any act or acts or exercise any
right, power, duty or obligation conferred or imposed on it in any jurisdiction
in which it shall be illegal, or in which the Trustee shall be unqualified or
incompetent in accordance with applicable law, to perform any such act or acts
or to exercise any such right, power, duty or obligation. No permissive power or
authority available to the Trustee shall be construed to be a duty.

         SECTION 3.03.     Compensation; Fees; Indemnity.
                           -----------------------------

         The Guarantor agrees:

         (a) to pay to the Trustee from time to time reasonable compensation for
all services rendered by the Trustee hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust);

         (b) except as otherwise expressly provided herein, to reimburse the
Trustee upon request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Guarantee Agreement (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or bad faith; and

         (c) to indemnify the Trustee for, and to hold the Trustee harmless
against, any and all loss, damage, claims, liability or expense incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of this Guarantee Agreement, including the costs
and expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder.

The provisions of this Section 3.03 shall survive the termination of this
Guarantee Agreement.

                                   ARTICLE IV

                                     TRUSTEE

         SECTION 4.01.     Trustee; Eligibility.
                           --------------------

         (a) There shall at all times be a Trustee which shall:

                  (i) not be an Affiliate of the Guarantor; and

                  (ii) be a corporation organized and doing business under the
         laws of the United States of America or any State or Territory thereof
         or of the District of Columbia, or a corporation or Person permitted by
         the Securities and Exchange Commission to act as an institutional
         trustee under the Trust Indenture Act, authorized under such laws to
         exercise corporate trust powers, having a combined capital and surplus
         of at least 50 million U.S. dollars ($50,000,000), and subject to
         supervision or examination by Federal, State, Territorial or District
         of Columbia authority. If such corporation publishes reports of
         condition at least annually, pursuant to law or to the requirements of
         the supervising or examining authority referred to above, then, for the
         purposes of this Section 4.01(a)(ii), the combined capital and surplus
         of such corporation shall be deemed to be its combined capital and
         surplus as set forth in its most recent report of condition so
         published.

         (b) If at any time the Trustee shall cease to be eligible to so act
under Section 4.01(a), the Trustee shall immediately resign in the manner and
with the effect set out in Section 4.02(c).

         (c) If the Trustee has or shall acquire any "conflicting interest"
within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and
Guarantor shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act, subject to the rights of the Trustee under the
penultimate paragraph thereof.

         SECTION 4.02.     Appointment, Removal and Resignation of Trustee.
                           -----------------------------------------------

         (a) Subject to Section 4.02(b), the Trustee may be appointed or removed
without cause at any time by the Guarantor.

         (b) The Trustee shall not be removed until a Successor Trustee has been
appointed and has accepted such appointment by written instrument executed by
such Successor Trustee and delivered to the Guarantor.

         (c) The Trustee appointed to office shall hold office until a Successor
Trustee shall have been appointed or until its removal or resignation. The
Trustee may resign from office (without need for prior or subsequent accounting)
by an instrument in writing executed by the Trustee and delivered to the
Guarantor, which resignation shall not take effect until a Successor Trustee has
been appointed and has accepted such appointment by instrument in writing
executed by such Successor Trustee and delivered to the Guarantor and the
resigning Trustee.

         (d) If no Successor Trustee shall have been appointed and accepted
appointment as provided in this Section 4.02 within 60 days after delivery to
the Guarantor of an instrument of resignation, the resigning Trustee may
petition any court of competent jurisdiction for appointment of a Successor
Trustee. Such court may thereupon, after prescribing such notice, if any, as it
may deem proper, appoint a Successor Trustee.

                                    ARTICLE V

                                    GUARANTEE

         SECTION 5.01. Guarantee. The Guarantor irrevocably and unconditionally
agrees to pay in full to the Holders the Guarantee Payments (without duplication
of amounts theretofore paid by or on behalf of the Trust), as and when due,
regardless of any defense, right of set-off or counterclaim which the Guarantor
may have or assert against any Person. The Guarantor's obligation to make a
Guarantee Payment may be satisfied by direct payment of the required amounts by
the Guarantor to the Holders or by causing the Trust to pay such amounts to the
Holders.

         SECTION 5.02. Waiver of Notice and Demand. The Guarantor hereby waives
notice of acceptance of this Guarantee Agreement and of any liability to which
it applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Trust or any other Person before proceeding against
the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
redemption and all other notices and demands.

         SECTION 5.03. Obligations Not Affected. The obligation of the Guarantor
to make the Guarantee Payments under this Guarantee Agreement shall in no way be
affected or impaired by reason of the happening from time to time of any of the
following:

         (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Trust of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be performed
or observed by the Trust;

         (b) the extension of time for the payment by the Trust of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Preferred Securities or the extension
of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Junior Subordinated Notes permitted by the Indenture);

         (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Preferred Securities, or
any action on the part of the Trust granting indulgence or extension of any
kind;

         (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Trust or any of the assets of the
Trust;

         (e) any invalidity of, or defect or deficiency in, the Preferred
Securities;

         (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

         (g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.03 that the obligations of the Guarantor hereunder shall be
absolute and unconditional under any and all circumstances.

         There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

         SECTION 5.04. Rights of Holders. The Guarantor expressly acknowledges
that: (i) this Guarantee Agreement will be deposited with the Trustee to be held
for the benefit of the Holders; (ii) the Trustee has the right to enforce this
Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority in
liquidation amount of the Preferred Securities have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee in respect of this Guarantee Agreement or exercising any trust or
power conferred upon the Trustee under this Guarantee Agreement, provided that
such direction shall not be in conflict with any rule of law or with this
Guarantee Agreement, and could not involve the Trustee in personal liability in
circumstances where reasonable indemnity would not be adequate; and (iv) any
Holder may institute a legal proceeding directly against the Guarantor to
enforce its rights under this Guarantee Agreement, without first instituting a
legal proceeding against or requesting or directing that action be taken by the
Trustee or any other Person; it being understood and intended that no one or
more of such Holders shall have any right in any manner whatsoever by virtue of,
or by availing of, any provision of this Guarantee Agreement to affect, disturb
or prejudice the rights of any other of such Holders or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any
right under this Guarantee Agreement, except in the manner herein provided and
for the equal and ratable benefit of all of such Holders.

         SECTION 5.05. Guarantee of Payment. This Guarantee Agreement creates a
guarantee of payment and not of collection. This Guarantee Agreement will not be
discharged except by payment of the Guarantee Payments in full (without
duplication) or upon the distribution of Junior Subordinated Notes to the
Holders in exchange for all of the Preferred Securities.

         SECTION 5.06. Subrogation. The Guarantor shall be subrogated to all (if
any) rights of the Holders against the Trust in respect of any amounts paid to
the Holders by the Guarantor under this Guarantee Agreement; provided, however,
that the Guarantor shall not (except to the extent required by mandatory
provisions of law) be entitled to enforce or exercise any rights which it may
acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Guarantee Agreement,
if, at the time of any such payment, any amounts of Guarantee Payments are due
and unpaid under this Guarantee Agreement. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the Holders.

         SECTION 5.07. Independent Obligations. The Guarantor acknowledges that
its obligations hereunder are independent of the obligations of the Trust with
respect to the Preferred Securities and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Guarantee Agreement notwithstanding the occurrence of any event
referred to in subsections (a) through (g), inclusive, of Section 5.03 hereof.

                                   ARTICLE VI

                                  SUBORDINATION

         SECTION 6.01. Subordination. This Guarantee Agreement will constitute
an unsecured obligation of the Guarantor and will rank (i) subordinate and
junior in right of payment to all other liabilities of the Guarantor, including
the Junior Subordinated Notes, except those obligations or liabilities made pari
passu or subordinate by their terms, (ii) pari passu with the most senior
preferred or preference stock now or hereafter issued by the Guarantor and with
any guarantee now or hereafter entered into by the Guarantor in respect of any
preferred or preference securities of any Affiliate of the Guarantor, and (iii)
senior to all common stock of the Guarantor.

                                   ARTICLE VII

                                   TERMINATION

         SECTION 7.01. Termination. This Guarantee Agreement shall terminate and
be of no further force and effect upon: (i) full payment of the Redemption Price
of all Preferred Securities, (ii) the distribution of Junior Subordinated Notes
to the Holders in exchange for all of the Preferred Securities, or (iii) full
payment of the amounts payable in accordance with the Trust Agreement upon
liquidation of the Trust. Notwithstanding the foregoing, this Guarantee
Agreement will continue to be effective or will be reinstated, as the case may
be, if at any time any Holder must restore payment of any sums paid with respect
to Preferred Securities or under this Guarantee Agreement.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         SECTION 8.01. Successors and Assigns. All guarantees and agreements
contained in this Guarantee Agreement shall bind the successors, assigns,
receivers, trustees and representatives of the Guarantor and shall inure to the
benefit of the Holders of the Preferred Securities then outstanding. Except in
connection with a consolidation, merger, conveyance, transfer, or lease
involving the Guarantor that is permitted under Article Eight of the Indenture,
the Guarantor shall not assign its obligations hereunder.

         SECTION 8.02. Amendments. Except with respect to any changes which do
not materially and adversely affect the rights of Holders (in which case no
consent of Holders will be required), this Guarantee Agreement may only be
amended with the prior approval of the Holders of not less than 66-2/3% in
liquidation amount of all the outstanding Preferred Securities. The provisions
of Article VI of the Trust Agreement concerning meetings of Holders shall apply
to the giving of such approval.

         SECTION 8.03. Notices. Any notice, request or other communication
required or permitted to be given hereunder shall be in writing, duly signed by
the party giving such notice, and delivered, telecopied or mailed by first class
mail as follows:

         (a) if given to the Guarantor, to the address set forth below or such
other address as the Guarantor may give notice of to the Trustee and the
Holders:

                           Georgia Power Company
                           241 Ralph McGill Boulevard, N.E.
                           Atlanta, Georgia 30308-3374
                           Facsimile No.: (404) 506-2945
                           Attn:  Corporate Secretary

                           with copy to:

                           Southern Company Services, Inc.
                           270 Peachtree Street, N.W.
                           Atlanta, Georgia  30303
                           Facsimile No.:   (404) 506-0674
                           Attention:       Corporate Finance Department

         (b) if given to the Trust, in care of the Trustee, or to the Trustee at
the Trust's (and the Trustee's) address set forth below or such other address as
the Trustee on behalf of the Trust may give notice to the Holders:

                           Georgia Power Capital Trust VI
                           c/o  JPMorgan Chase Bank
                           450 W. 33rd Street
                           New York, New York 10001
                           Attn:  Institutional Trust Services

         (c) if given to any Holder, at the address set forth on the books and
         records of the Trust. All notices hereunder shall be deemed to have
         been given when received in person, telecopied with
receipt confirmed, or mailed by first class mail, postage prepaid except that if
a notice or other document is refused delivery or cannot be delivered because of
a changed address of which no notice was given, such notice or other document
shall be deemed to have been delivered on the date of such refusal or inability
to deliver.

         SECTION 8.04. Benefit. This Guarantee Agreement is solely for the
benefit of the Holders and, subject to Section 3.01(a), is not separately
transferable from the Preferred Securities.

         SECTION 8.05.     Interpretation.  In this Guarantee Agreement, unless
the context otherwise requires:

         (a) capitalized terms used in this Guarantee Agreement but not defined
in the preamble hereto have the respective meanings assigned to them in Section
1.01;

         (b) a term defined anywhere in this Guarantee Agreement has the same
meaning throughout;

         (c) all references to "the Guarantee Agreement" or "this Guarantee
Agreement" are to this Guarantee Agreement as modified, supplemented or amended
from time to time;

         (d) all references in this Guarantee Agreement to Articles and Sections
are to Articles and Sections of this Guarantee Agreement unless otherwise
specified;

         (e) a term defined in the Trust Indenture Act has the same meaning when
used in this Guarantee Agreement unless otherwise defined in this Guarantee
Agreement or unless the context otherwise requires;

         (f) a reference to the singular includes the plural and vice versa; and

         (g) the masculine, feminine or neuter genders used herein shall include
the masculine, feminine and neuter genders.

         SECTION 8.06. Governing Law. THIS GUARANTEE AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF NEW YORK. THE GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION
OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND
ANY COURT IN THE STATE OF NEW YORK LOCATED IN THE CITY AND COUNTY OF NEW YORK IN
ANY ACTION, SUIT OR PROCEEDING BROUGHT AGAINST IT AND RELATED TO OR IN
CONNECTION WITH THIS GUARANTEE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
THEREBY, AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE GUARANTOR HEREBY
WAIVES AND AGREES NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE IN
ANY SUCH SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT
TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT, ACTION OR PROCEEDING IS
BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR
PROCEEDING IS IMPROPER, OR THAT THIS GUARANTEE AGREEMENT OR ANY DOCUMENT OR ANY
INSTRUMENT REFERRED TO HEREIN OR THE SUBJECT MATTER HEREOF MAY NOT BE LITIGATED
IN OR BY SUCH COURTS. THE GUARANTOR AGREES THAT SERVICE OF PROCESS MAY BE MADE
UPON IT BY CERTIFIED OR REGISTERED MAIL TO THE ADDRESS FOR NOTICES SET FORTH IN
THIS GUARANTEE AGREEMENT OR ANY METHOD AUTHORIZED BY THE LAWS OF NEW YORK.

         This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

<PAGE>

         THIS GUARANTEE AGREEMENT is executed as of the day and year first above
written.

             GEORGIA POWER COMPANY

            By:
                 -----------------------------------------------------
            Name: Allen L. Leverett
            Title:   Executive Vice President, Treasurer and Chief
                     Financial Officer

            JPMORGAN CHASE BANK

            By:
                 -----------------------------------------------------
            Name:    Carol Ng
            Title: Vice PresidentSEPARATION AGREEMENT

This Separation Agreement is made and entered into this 31 day of July, 2002 by
and between H. Paul Lowber ("Lowber") and SAFECO Corporation (the "Company").

                                    RECITALS

A.       Lowber is employed as a Vice President, Controller and Principal
Accounting Officer of the Company.

B. This Agreement sets forth the complete understanding between Lowber and the
Company regarding Lowber's resignation as an officer of the Company and its
affiliates effective July 8, 2002 and his resignation as an employee effective
December 31, 2002, and the commitments and obligations arising out of the
termination of the employment relationship between Lowber and the Company.

                                    AGREEMENT

1.       Continued Employment.

     1.1  Employment  Transition  Period.  Under the terms  and  subject  to the
conditions of this Agreement,  Lowber's employment status with the Company shall
continue  through  December 31, 2002.  During the period from and after July 22,
2002 Lowber  shall not be required  to report  regularly  to the Company for any
work and shall be  considered  an  "employee"  of the  Company  for the  limited
purposes of the employee  benefit plan  coverages  available to employees of the
Company and under the SAFECO  Incentive Stock Option Plan of 1987 and the SAFECO
Long-Term Incentive Plan of 1997.

     1.2 Group Benefits Coverage. The Company shall continue to provide coverage
under any group  benefits  plan under which Lowber  and/or his  dependents  were
covered on the date hereof,  through and  including  December  31, 2002.  Lowber
shall  be  responsible  to pay  any  amounts  chargeable  as  "employee  premium
contribution" amounts with respect to any such coverage.  From and after January
1, 2003,  the Company  shall  provide  Lowber  and/or his  dependents  with such
benefits  continuation  or  conversion  coverage as may be available or required
under the terms of the Company's  benefits plans or policies,  or required under
the  group  health  plan   provisions  of  the   Consolidated   Omnibus   Budget
Reconciliation Act of 1985, as subsequently amended (COBRA), or other applicable
federal or state law.

     1.3 Payment for Accrued Sick Leave and Vacation Units. On or before January
15,  2003,  the  Company  shall pay Lowber for any vested  sick leave  units and
vacation  pay accrued but unused at December  31,  2002,  but only to the extent
compensable  under the  Company's  normal sick leave and  vacation  policies and
procedures.
<PAGE>

     1.4 Reimbursement for Expenses Incurred. The Company shall reimburse Lowber
for reasonable and necessary business expenses incurred by him on or before July
22,  2002,  but not  submitted  for  reimbursement  at such date,  to the extent
reimbursable  under the  Company's  normal  expense  reimbursement  policies and
procedures and submitted for payment by July 31, 2002.

     1.5 Stock Options and  Restricted  Stock Rights.  Lowber  acknowledges  and
agrees that as a  consequence  of his SAFECO  employment  ending on December 31,
2002,  and  pursuant  to the terms of each stock  option for SAFECO  Corporation
common  stock  ("Stock  Option")  that has been  granted to him under either the
SAFECO Incentive Plan of 1987 or the SAFECO Long-Term Incentive Plan of 1997, he
will have  through  March 31,  2003 or, if sooner,  the stated term of any stock
option, to exercise each Stock Option to the extent each Stock Option was vested
on December  31,  2002,  and after March 31, 2003 he will lose all rights  under
each such Stock Option. Contingent upon Lowber's execution of this Agreement and
the  expiration  of the  Revocation  Period  stated  in  Section  13.3  of  this
Agreement, the Company shall agree to vest each of Lowber's outstanding unvested
stock  options  such that each such stock option  shall be fully  vested,  fully
exercisable,  and wholly non-forfeitable as of December 31, 2002 and to agree to
amend the terms of all Company  unvested stock options that have been granted to
Lowber to so provide.  Lowber acknowledges and agrees that pursuant to the terms
of each  restricted  stock  right  granted  to him  under the  SAFECO  Long-Term
Incentive  Plan of 1997 shall  expire as of December  31, 2002 and that he shall
not be entitled to any payment as respects any RSR that remains unvested at such
date.

2.       Payments; Contributions.

     2.1 Severance  and Release  Payments.  As  compensation  to Lowber,  and in
consideration of his resignation as an employee and resignation as an officer of
the  Company  and its  affiliates,  his  release  granted in Section 5 and other
agreements  made herein,  in addition to the benefits  provided  under Section 1
above and the further consideration  provided under Section 3 below, the Company
agrees to pay  Lowber a total sum of  $95,000.00  plus an amount  equal to 1,235
multiplied  by the closing  price of SAFECO  common  stock on December  31, 2002
("Calculated Amount") in severance and release payments as follows:

     (a)  $70,000.00  of such amount  shall be  allocated  and paid as severance
benefits ("Severance Pay") for lost wages. All Severance Pay shall be subject to
withholding and deduction for payroll taxes and other deductions as are required
by  federal  and  state  law.  The  Severance  Pay  shall  be paid in two  equal
semi-monthly  installment  payments of  $35,000.00  each,  made on the Company's
normal payroll dates beginning January 15, 2003 and ending January 31, 2003.
<PAGE>

     (b) $25,000.00 of such amount shall be allocated and paid as  consideration
for Lowber's  release of claims as set forth in Section 5 of this Agreement (the
"Release  Payment") and shall be paid on or about January 15, 2003.  The Release
Payment  shall be subject to  withholding  and  deduction  for payroll taxes and
other  deductions  as are  required  by federal  and state  law.  Lowber and the
Company agree that the Release Payment represents  sufficient  consideration for
the potential claims being released.

     (c) The Calculated  Amount shall be allocated and paid as  consideration in
consideration of the agreements stated in Section 8 and shall be paid on January
15, 2003.  The Calculated  Amount  payment shall be subject to  withholding  and
deduction for payroll taxes and other  deductions as are required by federal and
state law.

     2.2 Benefit Plan Contributions.  Lowber shall continue to be eligible as an
"employee" of the Company through  December 31, 2002 for employer  contributions
paid under the Company's  employee  benefit  plans.  Lowber shall be eligible to
participate  in  and  shall  receive  pro  rata   contributions  to  the  SAFECO
401(k)/Profit  Sharing  Retirement  Plan,  as the same may be available to other
employees of the Company.  Lowber  acknowledges that any employer  contributions
to, or interest or other  income  credited  to, any of the SAFECO  401(k)/Profit
Sharing  Retirement  Plan or  SAFECO  Employees'  Cash  Balance  Plan  shall  be
additional  compensation  to him in  excess of the total  Severance  Pay  amount
described above.

3. Further  Consideration.  As further  consideration  to Lowber for the release
granted under Section 5 of this Agreement,  the Company agrees to provide Lowber
the following:

     3.1 Outplacement  Services.  The Company agrees to provide Lowber up to six
months' outplacement  services through either Lee Hecht Harrison or David Nelson
Associates, as Lowber chooses, at the Company's expense.

     3.2 Attorney's Fees. The Company agrees to pay up to $500 of the attorney's
fees incurred by Lowber for a review of this Agreement.

     3.3 COBRA Benefit.  The Company  agrees to pay on Lowber's  behalf the full
cost  plus the  administrative  fee for the  first six (6)  months  that  Lowber
receives coverage under applicable group benefit plans provided that the Company
receives  notice from Lowber of his  decision to continue  coverage  under COBRA
within 60 days of Lowber's termination date.

4.       Resignation.

     4.1 Resignation.  In  consideration of the payments and other  compensation
described above, Lowber tenders his resignation as an officer of the Company and
its affiliates  effective  July 8, 2002,  and agrees that his  employment  shall
terminate December 31, 2002.

     4.2 No Authority To Act. From and after July 8, 2002,  Lowber shall neither
have  authority to bind the Company to any contract or agreement,  nor to act on
behalf of the Company.  The Company shall have no obligation to reimburse Lowber
for any expenses  incurred by him on or after July 22, 2002, except as expressly
stated in this Agreement.
<PAGE>

     4.3  Return  of  Materials.  By July 31,  2002,  Lowber  shall  return  all
equipment,  devices  and  materials,  including  but not  limited to any and all
documents (whether existing in paper or electronic/digital media),  compilations
of data, files, manuals, letters,  notebooks,  reports,  diskettes and all other
materials  and  records  of any  kind,  and any  copies  or other  reproductions
thereof, owned by the Company or its affiliates and used by Lowber in the course
of his employment.

5.       Release and Settlement.

     5.1 Release Payment.  For the purposes of this Agreement  "Release Payment"
means the payment by the Company of the amounts  referenced in paragraph  2.1(b)
above.

     5.2 Release.  In  consideration  of the  Company's  delivery of the Release
Payment to Lowber under the terms of this Agreement,  Lowber hereby releases the
Company and its  affiliated  companies,  and the  employees,  agents,  officers,
directors and shareholders of any of them, from all claims, demands,  actions or
causes of action of any kind or nature  whatsoever  which Lowber may now have or
may ever have had against any of them, whether such claims are known or unknown,
and  including  but not limited to the Claims  described in paragraph 5.3 below.
However,  nothing in this Separation  Agreement shall create or imply any waiver
by Lowber of any claims (a) with respect to his entitlement to compensation  for
vested benefits arising under any Company pension, retirement or welfare benefit
plan, program or agreement,  in accordance with the terms and conditions of such
plans,  (b) arising  under any insurance or investor  account or similar  client
relationship,  (c) with respect to any breach by the Company of its  obligations
under this  Agreement,  all of which rights shall be preserved and unaffected by
this  release,  or (d) with respect to  indemnification  by the Company,  to the
extent  that such  indemnification  rights  may arise or be  provided  under the
Company's  articles of  incorporation  or bylaws,  in  connection  with Lowber's
official  actions (or  omissions) on behalf of the Company  during the period he
served as an officer of the Company.

     5.3 The Claims. For the purposes of this Agreement, "Claims" shall mean and
include  claims with  respect to any of the  following:  (i) breach of contract;
(ii) discrimination,  retaliation,  or constructive or wrongful discharge; (iii)
lost wages, lost employee benefits, physical and personal injury, stress, mental
distress,   or  impaired   reputation;   (iv)  claims   arising  under  the  Age
Discrimination  in Employment  Act ("ADEA"),  Title VII of the Civil Rights Act,
the Equal Pay Act,  or any other  federal,  state or local  laws or  regulations
prohibiting employment  discrimination;  (v) attorneys' fees; and (vi) any other
claim arising from or relating to Lowber's  employment  with the Company  and/or
his  separation  from  service,  including  claims with respect to the Severance
Agreement  dated  November 7, 2001,  which the Parties  agree is  terminated  by
mutual  consent  as of the date of the  expiration  of the seven day  revocation
period described in Section 13.3 of this Agreement;  provided, however, that the
term  "Claims"  shall not  include  any claims  reserved  by Lowber  pursuant to
Section 5.2 of this Agreement.
<PAGE>

     5.4  Consideration  for  Release.   The  Company  represents,   and  Lowber
acknowledges,  that the Release Payment and the further consideration  described
in Section 3 exceed any amount the Company may arguably be required to pay under
any agreement or arrangement to which Lowber is a party or under which he claims
some benefit, or under the standard policies and procedures of the Company,  and
represents  valuable  consideration to him for the release of his ADEA and other
claims described above.

6.       Confidential Information.

     6.1 Possession of Non-Public Information.  Lowber recognizes that by virtue
of his  employment by the Company,  Lowber has acquired  significant  non-public
information with respect to the Company and its affiliated companies,  and their
operations (the "Confidential Information").  Lowber recognizes and acknowledges
that the  Confidential  Information  constitutes  valuable,  special  and unique
assets of the Company and its affiliates,  access to and knowledge of which were
essential to the performance of Lowber's duties during his employment.

     6.2 Non-Disclosure.  Lowber agrees to hold the Confidential  Information in
trust and  confidence.  Lowber agrees not to (i) directly or indirectly make use
of the Confidential Information, (ii) reveal any Confidential Information to any
other  party,  or (iii)  divulge  or use any  Confidential  Information  for any
purpose  other  than for the  benefit of the  Company,  except and to the extent
Lowber may be required  to  disclose  by lawful  order or process of a court (in
which event Lowber will provide  reasonable advance notice of such disclosure to
the Company and will cooperate with the Company's  efforts to obtain  protective
treatment for such information).

     6.3 Materials. Unless the Company otherwise agrees, Lowber shall not remove
from the Company's premises or possession any documents, compilations of data or
other files or records of any nature, or any copy or reproduction  thereof, that
contain Confidential Information or that belong to the Company.

7. No Admission. Lowber understands and acknowledges that neither the Release
Payment nor the execution and delivery of this Agreement by the Company
constitutes an admission by the Company to (i) any breach of an agreement with
Lowber, (ii) any violation of a federal, state or local statute, regulation or
ordinance, or (iii) any other wrongdoing.

8. No Competing Employment; No Solicitation of Employees; Non-Disparagement.

     8.1 No Competing Employment. Lowber agrees that until July 1, 2003, without
the prior  written  consent of the chief  executive  officer of the Company,  he
shall not work for, or consult with any person or entity that competes  directly
and materially with the Company.
<PAGE>

     8.2 No Solicitation of Employees. Lowber agrees that until July 1,
2003, without the prior written consent of the chief executive officer of the
Company, he shall not solicit, directly or indirectly, any individual who he
knows is then an employee of the Company or any of its affiliates to leave such
employment and/or to become an employee, officer or consultant of or to any
other enterprise. Anything to the contrary notwithstanding, the Company agrees
that neither (a) Lowber's responding to an unsolicited request from an employee
of the Company or any of its affiliates nor (b) Lowber responding to an
unsolicited request for an employment reference regarding an employee of the
Company or any of its affiliates from such employee, or from a third party, by
providing a reference setting forth his personal views about such employee,
shall be deemed a violation of this Section 8.2.

     8.3  Non-Disparagement.  Lowber agrees that he shall not make any statement
that is intended to criticize or disparage the Company, its affiliates or any of
its or their  directors,  officers or  employees.  This Section 8.3 shall not be
construed  to prohibit  Lowber from  responding  publicly  to  incorrect  public
statements or from making truthful statements when required by law or order of a
court or other person or body having jurisdiction.

9.       Legal Action.

     9.1 No Action on Released  Claims.  Lowber  agrees not to sue or pursue any
court or administrative action against the Company or any of its affiliates,  or
any of their employees, agents, officers,  directors or shareholders,  regarding
any Claims  released herein or otherwise  arising from Lowber's  employment with
the Company or his separation from service, except with respect to any breach by
the Company of its obligations under this Agreement.

     9.2 Liability for Defense Costs. If, notwithstanding this Agreement,
Lowber should file any lawsuit or other proceeding based on legal claims that
Lowber has released herein, Lowber agrees that he will pay or reimburse the
Company for all reasonable costs which it, or its employees, agents, officers or
directors, incur in defending against Lowber's claims. This paragraph shall not
apply to any claimed breach by the Company of any of the terms or conditions of
this Agreement.

10.      Arbitration.

     10.1 Notice and Selection of Arbitrator. The parties agree that any dispute
arising  under  this  Agreement,  other  than an action by the  Company  to seek
injunctive  relief against breaches of Sections 6 or 8 of this Agreement,  shall
be submitted  to  arbitration  in Seattle,  Washington,  before a  disinterested
arbitrator.  Arbitration shall be commenced by service on the other party to the
dispute by a written request for arbitration,  containing a brief description of
the matter at issue and the names and addresses of three arbitrators  acceptable
to the  petitioner.  The other party  shall  within  thirty (30) days  following
receipt of such notice either select one of the proposed  arbitrators or provide
the names and addresses of three other  arbitrators  acceptable to the proposing
party.  If the parties are unable to select an arbitrator  from those  proposed,
or, if they are  unable to select a third  arbitrator,  an  arbitrator  shall be
chosen impartially by the American Arbitration Association.
<PAGE>

     10.2 Rules of Proceeding. Arbitration proceedings shall be conducted
under the commercial rules then prevailing of the American Arbitration
Association. The arbitrator shall not be bound to any formal rules of evidence
or procedure, and may consider such matters as a reasonable business person
would take into account in decision-making.

     10.3 Decision Final and Binding.  The decision of the  arbitrator  shall be
final and binding on the  parties,  and may be entered and enforced in any court
of competent jurisdiction.

     10.4  Expenses.  Each  party  shall  share  equally  the  expenses  of  the
arbitrator and other arbitration expenses. Attorney fees, witness fees and other
expenses  incurred  by  a  party  in  preparing  for  the  arbitration  are  not
"arbitration expenses" and shall be paid by the party incurring them.

11.      Agreement Confidential.

     11.1 Terms of Agreement.  Lowber and the Company agree that neither of them
shall publicize the existence of this Agreement or its terms,  including but not
limited to the amount of the Severance Pay or the Release Payment,  except under
compulsion  of law  or as  required  under  the  rules  and  regulations  of the
Securities and Exchange Commission  ("SEC").  Lowber acknowledges that a copy of
this  Agreement will be filed as an exhibit to a filing made by the Company with
the SEC. Further,  the parties agree that they shall not discuss with or make to
the public at large or to any individual  person or persons any statements  with
regard to this Agreement, or matters relating to its terms.  Notwithstanding the
provisions  of this  paragraph  11.1,  the parties may discuss the existence and
terms  of this  Agreement  with  their  respective  attorneys,  accountants  and
financial  advisors to the extent  necessary to obtain their counsel and advice.
Lowber may also disclose the terms of this Agreement in confidence to his spouse
and may discuss the Agreement in confidence with any prospective employer.

     11.2 Employment  References.  In the event a prospective  employer contacts
the Company for an  employment  reference  with  respect to Lowber,  the Company
shall not provide any information  relating to Lowber or his employment  history
or  performance  with the Company  except for Lowber's  dates of employment  and
title and salary at December 31, 2002.

12.  Costs.  Except for the  Company's  agreement  to pay a portion of  Lowber's
attorney's  fees, as stated and limited in paragraph  3.2, each party shall bear
its own costs and expenses  incurred in connection  with the negotiation of this
Agreement and the preparation of this Agreement.

13.      Acknowledgment.

     13.1  Informed  Agreement.  Lowber  declares  that he has  read  and  fully
understands the terms of this Agreement,  and its  significance and consequence.
Lowber  further  declares  that this  Agreement  is the  product  of good  faith
negotiations  between himself and the Company,  and that he voluntarily  accepts
the  same  for  the  purpose  of  resolving  arrangements  with  respect  to his
separation from service.  Lowber  understands and acknowledges  that,  except as
specifically  reserved herein, in exchange for the Release Payment he is waiving
and  giving up every  possible  claim  arising  out of his  employment  with the
Company and/or his separation from service.

     13.2  Attorney.  Lowber  acknowledges  that the  Company has advised him to
review the terms of this Agreement with an attorney of his own choosing and that
he has done so or knowingly waived his right to do so.

     13.3 Review and Revocation  Periods.  Lowber  acknowledges that the Company
has given him at least 21 days during which to consider this Agreement  prior to
signing,  and  understands  that he has seven days after signing in which he may
revoke this Agreement.  This Agreement shall not become effective or enforceable
until such seven-day period has expired.  Lowber  understands that he may revoke
this  Agreement by delivering a written notice to Allie Mysliwy at 4333 Brooklyn
Avenue  N.E.,  SAFECO  Plaza,  Seattle,  WA  98185,  no later  than the close of
business on the seventh day after he signs this  Agreement.  Lowber  understands
and  acknowledges  that if he revokes this Agreement it will not be effective or
enforceable and he will not receive the payments described herein.

14.  Entire  Agreement.  This is the  entire  agreement  between  Lowber and the
Company.  Neither the Company nor any  affiliate has made any promises to Lowber
other than those included within this Agreement.

15. Governing Law. The parties acknowledge that this Settlement  Agreement shall
be interpreted  under and enforced by and consistent  with the laws of the State
of Washington.

/s/ Paul Lowber
H. Paul Lowber

SAFECO Corporation

By /s/ Michael McGavick
     Michael S. McGavick, President

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