Document:

EXHIBIT 4.1

                         TECHNOLOGY RESEARCH CORPORATION
                       1996 STOCK OPTION PERFORMANCE PLAN

     TECHNOLOGY  RESEARCH  CORPORATION  (the  "Company")  hereby  adopts  this
Technology  Research  Corporation  1996  Stock  Option  Performance  Plan.

     1.  Purpose.  The purpose of the Technology Research Corporation 1996 Stock
Option  Performance  Plan (the "Plan") is to further the long term stability and
financial  success  of the Company by retaining key management employees who can
contribute  to  the  financial  success  of the Company through the use of stock
incentives.  It  is  believed that ownership of Company Stock will stimulate the
efforts of those employees upon whose judgment, interest and efforts the Company
will be largely dependent for the successful conduct of its business. It is also
believed that awards granted to such employees under this Plan will also further
the  identification  of  those  employees' interests with those of the Company's
shareholders.  It  is  intended  that  each  option granted under the Plan shall
constitute  an  "incentive  stock  option"  within  the  meaning of that term as
contained in Section 422 of the Internal Revenue Code of 1986.

     The Plan has been adopted by the Board of Directors of the Company, subject
to  the  approval  of  the  Company's shareholders at its 1996 Annual Meeting of
Shareholders.  The  Plan  is intended to conform to the provisions of Securities
and Exchange Commission Rule 16b-3 ("Rule 16b-3").

     2.  Definitions. As used in the Plan, the following terms have the meanings
indicated:

          (a) "Act" means the Securities Exchange Act of 1934, as amended.

          (b)  "Applicable  Withholding  Taxes"  means  the  aggregate amount of
     federal,  state  and  local  income  and  payroll taxes that the Company is
     required  to  withhold  in  connection  with  any  exercise of an Option or
     payment with respect to Incentive Stock.

          (c)  "Award"  means  the  award  of  an  Incentive  Stock  Option  or
     Nonstatutory Option under the Plan.

          (d)  "Beneficiary"  means  the person or persons entitled to receive a
     benefit pursuant to an Award upon the death of a Participant.

          (e) "Board" means the Board of Directors of the Company.

          (f) "Change of Control" means:

               (1)  The  acquisition  by  any  unrelated  person  of  beneficial
                    ownership  (as that term is used for purposes of the Act) of
                    51%  or  more of the then outstanding shares of common stock
                    of  the  Company  or  the  combined voting power of the then
                    outstanding  voting  securities  of  the Company entitled to
                    vote  generally  in  the  election  of  directors.  The term

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                    "unrelated  person"  means  any  person  other  than (1) the
                    Company,  (2)  an  employee  benefit  plan  or  trust of the
                    Company,  or  (3) a person who acquires stock of the Company
                    pursuant  to  an agreement with the Company that is approved
                    by  the  Board  in  advance  of  the acquisition, unless the
                    acquisition  results  in  a  Change  of  Control pursuant to
                    subsection  (ii)  below.  For purposes of this subsection, a
                    "person"  means an individual, entity or group, as that term
                    is used for purposes of the Act.

               (2)  Any  tender  or  exchange  offer,  merger  or other business
                    combination,  sale  of  assets or contested election, or any
                    combination of the foregoing transactions, pursuant to which
                    the  persons  who  were directors of the Company before such
                    transaction  cease  to constitute a majority of the Board of
                    Directors of the Company or any successor to the Company.

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

          (h) "Committee" means the committee appointed to administer the Plan.

          (i) "Company" means Technology Research Corporation.

          (j) "Company Stock" means common stock of the Company. In the event of
     a change in the capital structure of the Company, the shares resulting from
     such a change shall be deemed to be Company Stock within the meaning of the
     Plan.

          (k)  "Corporate  Change" means a consolidation, merger, dissolution or
     liquidation  of  the  Company, or a sale or distribution of assets or stock
     (other than in the ordinary course of business) of the Company,

          (l) "Date of Grant" means the date as of which an Award is made by the
     Committee.

          (m) "Disability" or "Disabled" means, as to an Incentive Stock Option,
     a Disability within the meaning of Section 22(e)(3) of the Code.

          (n) "Fair Market Value" means (i) if the Company Stock is traded on an
     exchange, the mean of the highest and lowest registered sales prices of the
     Company  Stock on the exchange on which the Company Stock generally has the
     greatest  trading  volume,  or  (ii)  if the Company Stock is traded in the
     over-the-counter  market, the mean between the closing bid and asked prices
     as  reported  by  NASDAQ.  Fair  Market Value shall be determined as of the
     applicable  date  specified  in the Plan or, if there are no trades on such
     date,  the  value shall be determined as of the last preceding day on which
     the Company Stock is traded.

          (o)  "Incentive  Stock  Option"  means  an Option intended to meet the
     requirements  of,  and  qualify  for favorable Federal income tax treatment
     under Section 422 of the Code.

          (p) "Insider" means a person subject to Section 16(b) of the Act.

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          (q) "Nonstatutory Stock Option" means an Option that does not meet the
     requirements  of Section 422 of the Code, or that is otherwise not intended
     to be an Incentive Stock Option and is so designated.

          (r) "Option" means a right to purchase Company Stock granted under the
     Plan, at a price determined in accordance with the Plan.

          (s)  "Participant"  means  an employee who receives an Award under the
     Plan.

          (t)  "Rule 16b-3" means Rule 16b-3 of the Act. A reference in the Plan
     to  Rule  16b-3  shall  include a reference to any corresponding subsequent
     rule  or  any  amendments to Rule 16b-3 enacted after the effective date of
     the Plan.

          (u) "10% Shareholder" means a person who owns, directly or indirectly,
     stock  possessing  more  than 10% of the total combined voting power of all
     classes  of  stock  of  the  Company.  Indirect ownership of stock shall be
     determined in accordance with Code section 424(d).

          (v) "Vested Option" means an option which a Participant is entitled to
     exercise after holding such option for a period of ten years, less one day,
     unless  he  is  entitled  to  accelerate  the  exercise  of  such option in
     accordance with the terms of an applicable Stock Option Agreement.

     3.  Stock.  The  shares  which may be issued and delivered upon exercise of
options  granted  under the Plan shall be shares of the Company's authorized but
unissued  or  issued  and reacquired common stock, $.51 par value per share (the
"Shares"). The aggregate number of Shares which may be issued on exercise of all
options granted under the Plan shall not exceed 400,000 Shares. Shares allocable
to Options granted under the Plan that expire or otherwise terminate unexercised
and  shares  that  are  forfeited  pursuant  to  vesting restrictions on Options
awarded  under  the Plan may again be subjected to an Award under this Plan. For
purposes of determining the number of shares that are available for Awards under
the Plan, such number shall, if permissible under Rule 16b-3, include the number
of  shares surrendered by a Participant or retained by the Company in payment of
Applicable Withholding Taxes.

     4.  Shareholder Approval. Subject to the approval of the holders of Company
Stock  voted,  in person or by proxy, at the 1996 Annual Meeting of Shareholders
of the Company, this Plan shall be effective as of July 1, 1996.

     5.  Eligibility. Any member of senior management of the Company who, in the
judgment  of  the Committee, has contributed or can be expected to contribute to
the  profits  or growth of the Company shall be eligible to receive awards under
the  Plan.  The Committee shall have the power and complete discretion to select
eligible  employees  to  receive  Awards  and to determine for each employee the
terms,  conditions  and  nature  of  the  Award  and  the number of shares to be
allocated to each employee as part of the Award.

     6.  Stock  Options.  Incentive Stock Options and Nonstatutory Stock Options
may  be granted under the Plan in such numbers, at such prices and on such terms
and  conditions  as  the  Committee  shall determine, provided that such options
shall comply with and be subject to the following terms and conditions:

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     (a) Annual Grant Limitation.
     -------------------------

     No  employee  shall be granted an Incentive Stock Option to the extent that
the  aggregate  Fair  Market  Value  of  Shares  made  subject  to  such  option
(determined as of the date such option is granted) which are exercisable for the
first  time  by  a  key employee during any one calendar year exceeds the sum of
$100,000  (the  "Limitation Amount").  Incentive Stock Options granted under the
Plan  and  all  other  plans  of the Company or affiliated entity of the Company
shall  be  aggregated  for purposes of determining whether the Limitation Amount
has  been  exceeded.  The  Committee  may  impose  such  conditions  as it deems
appropriate  on  an  Incentive  Stock  Option  to  ensure  that  the  foregoing
requirement  is  met.  If any Incentive Stock Options that are granted under the
Plan have an aggregate Fair Market Value that exceeds the Limitation Amount, the
excess  Options  will  be  treated  as  Nonstatutory Stock Options to the extent
permitted  by  law.

     (b) Option Agreement.
         -----------------

     All  options  granted under the Plan shall be evidenced by a written option
agreement  stating  the  number  of  shares  capable of being purchased upon its
exercise  and  otherwise  in such form as the Committee may periodically approve
and  containing  such terms and conditions, including the period of exercise and
whether  in installments or otherwise, as shall be contained therein, which need
not  be  the  same  for  all  options.

     (c) Date of Grant.
         ---------------

     The  date  on  which  an option grant is approved by the Committee shall be
considered  the  date on which such option is granted (the "Date of Grant"), and
shall  be  reflected in the option agreement.  All options under this Plan shall
be  granted  within  10  years  of  the  date  this  Plan  is  adopted.

     (d) Option Price.
         -------------

     Each  option agreement shall state the purchase price of each Share capable
of  being  acquired upon exercise of the option, which price shall be determined
by  the Committee with respect to each option granted but shall not be less than
ONE  HUNDRED  PERCENT  (100%) of the fair market value of each such Share on the
Date  of Grant (or, in the case of any optionholder owning more than ten percent
of  the  voting  power of all classes of stock of the Company, not less than ONE
HUNDRED  AND  TEN  PERCENT  (110%) of the Fair Market Value of the Shares on the
Date  of  Grant).  In the event that Share prices are not published for the Date
of  Grant, such value shall be determined by calculating the weighted average of
the closing prices or the mean between such bid and asked prices, as applicable,
on  the  nearest trading dates occurring before and after the valuation date, in
accordance  with  such  rules  as  may  be  established  by  the  Committee.

     (e) Option Exercise.
         ----------------

     All  options  granted  under  the Plan shall be deemed to be Vested Options
after  the  holder has held such option for a period of ten years, less one day,
and  shall  become exercisable at such times and in such installments (which may
be  cumulative)  as  the Committee shall provide in the terms of each individual
option.  No option may be exercised until such Option has been held for at least

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one  year;  subject, however, to the right to accelerate the exercise thereof in
accordance  with  the terms of an applicable Stock Option Agreement.  All Vested
Options  and  Options  that  have  become  exercisable  from time to time may be
exercised  in  whole  or  in part in accordance with the terms of the applicable
Stock  Option  Agreement;  provided,  however,  that  the  Committee  shall  be
authorized  to  require  that  any partial exercise be with respect to a minimum
number  of  Shares.

     (f) Forfeiture or Exercise of Option.

     In  the  event  that  a Participant ceases employment with the Company, all
options shall be forfeited, or be exercised, as follows:

          (1)  In  the  event  of a Participant's termination of employment, the
     Participant's  Vested  Options  shall  be forfeited immediately unless such
     options are exercised on the date of termination.

          (2)  Upon  the  disability  of a Participant, the Participant's Vested
     Options  shall  be exercisable within twelve months (or such shorter period
     as the Code may require) of the Participant's date of disability.

          (3)  If  the  Participant dies while in the employment of the Company,
     the  Participant's  estate,  personal  representative,  or  designated
     beneficiary shall have the right to exercise such Vested Options within one
     year  of the Participant's death (or such shorter period as the Code or the
     terms of the applicable Stock Option Agreement may require).

          (4) All non-vested Options shall be forfeited effective as of the date
     of termination of employment.

     (g) Mechanics of Exercise.
         -----------------------

     A  person  entitled  to exercise any portion of an option granted under the
Plan may exercise the same at anytime, either in whole or in part, by delivering
written  notice  of exercise to the office of the Secretary of the Company or to
such  other  location  as may be designated by the Committee, specifying therein
the  number of Shares with respect to which the option is being exercised, which
notice  shall  be  accompanied  by  payment in full of the purchase price of the
Shares  being  acquired.  Payment  may  be  made  wholly or partly in cash or in
shares  of Company Stock already owned by the optionholder or by authorizing the
Company  to  retain  a  sufficient  number  of  Shares  which would otherwise be
issuable  upon exercise of the option, valued for purposes of such payment as of
the  date  of  exercise.  Subject  to the optionholder's compliance with Section
16(b)  of  the  Exchange  Act,  the  Committee  may  also  permit  the holder to
simultaneously  exercise an option and sell the Shares thereby acquired pursuant
to  a  "cashless  exercise"  arrangement and accept payment from a broker-dealer
selected  by  and  approved  of  in  all  respects by the Committee, and use the
proceeds  from  such  sale as payment of the exercise price of such options.  No
Shares  shall be issued until full payment therefore has been made in the manner
set  forth  above  or in any combination of the methods set forth above, in each
case  to  the  extent  approved  by  the  Committee.  If any adjustment has been
effected  so  as to establish a right by an optionholder to acquire a fractional

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share,  such  fraction  shall  be  rounded  upward  to  the  next  whole number.

     (h) Expiration of Option.
         ---------------------

     Each  option granted under the Plan shall expire and all rights to purchase
Shares thereunder shall cease ten years after the Date of Grant or on such prior
date  as  may  be  fixed  by  the  Committee and specified in the subject option
agreement;  provided  that  any option granted to a key employee owing more than
ten  percent  of  the  voting power of all classes of stock of the Company shall
similarly  expire  five  years  after  the  Date  of  Grant.

     (i) Investment Purpose.
         -------------------

     Unless  the  Committee  chooses to register or qualify the Shares under the
Securities  Act  of 1933, as amended (the "Act"), pursuant to the provisions set
forth  in  Section  11(g) below, each option is granted on the express condition
that  the  purchase  of  Shares  upon  an  exercise  thereof  shall  be made for
investment  purposes  only  and  not  with  a  view  to  their resale or further
distribution unless such Shares, at the time of their issuance and delivery, are
registered  under  the Securities Act, or, alternatively, at some time following
such issuance their resale is determined by counsel for the Company to be exempt
from  the  registration requirements of the Act and of any other applicable law,
regulation  or  ruling.  Any  Shares so registered shall be promptly listed with
each  securities exchange through which any class of the Company's capital stock
or  other  securities  are  traded.

     (j) Compliance with Exchange Act.
         -----------------------------

     With  respect  to  Insiders  that  are subject to the Act, all transactions
under  this  Plan,  including  the  exercise  of  Options, delivery of Shares in
payment  of  the  exercise prior to sale of the Company Stock purchased upon the
exercise  of  such Options are intended to comply with all applicable conditions
of Rule 16b-3 or its successors under the Act. The Committee shall be authorized
to  monitor  all  such transactions by Insiders to ensure such compliance and to
the  extent  any  provision  of  the Plan or action by the Committee fails to so
comply, it shall be deemed null and void to the extent permitted by law.

     7.  Applicable  Withholding  Taxes.  Each  Participant  shall  agree,  as a
condition  of  receiving  an  Award, to pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, all Applicable Withholding
Taxes  with  respect  to  the Award. Until the Applicable Withholding Taxes have
been  paid  or arrangements satisfactory to the Company have been made, no stock
certificates  shall  be issued to the Participant. As an alternative to making a
cash  payment  to the Company to satisfy Applicable Withholding Tax obligations,
the  Committee  may  establish procedures permitting the Participant to elect to
(a) deliver shares of already owned Company Stock or (b) have the Company retain
that  number  of  shares  of Company Stock that would satisfy all or a specified
portion  of  the  Applicable  Withholding Taxes. Any such election shall be made
only in accordance with procedures established by the Committee and, in the case
of an Insider, in accordance with Rule 16b-3.

     8.  Termination,  Modification,  Change.  If  not  sooner terminated by the
Board,  this  Plan shall terminate at the close of business on June 30, 2006. No

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Awards  shall  be  made  under  the  Plan  after  its termination. The Board may
terminate  the  Plan  or  may  amend  the Plan in such respects as it shall deem
advisable;  provided,  that,  if  and  to  the extent required by Rule 16b-3, no
change  shall be made that increases the total number of shares of Company Stock
reserved  for  issuance  pursuant  to Awards granted under the Plan, expands the
class  of  persons  eligible  to  receive  Awards,  or  materially increases the
benefits  accruing  to  Participants  under  the  Plan,  unless  such  change is
authorized  by  the  shareholders of the Company. Notwithstanding the foregoing,
the  Board may unilaterally amend the Plan and Awards as it deems appropriate to
ensure  compliance  with Rule 16b-3 and to cause Incentive Stock Options to meet
the  requirements  of the Code and regulations thereunder. Except as provided in
the  preceding  sentence,  a  termination  or  amendment  of the Plan shall not,
without  the consent of the Participant, adversely affect a Participant's rights
under an Award previously granted to him.

     9. Change in Capital Structure.

     (a) Adjustments to Capital Structure.
         --------------------------------

     In  the  event  of  a stock dividend, stock split or combination of shares,
spin-off,  reclassification,  recapitalization,  merger  or  other change in the
Company's capital stock (including, but not limited to, the creation or issuance
to  shareholders  generally  of  rights, options or warrants for the purchase of
common  stock  or preferred stock of the Company), the number and kind of shares
of  stock  or  securities  of  the  Company  to  be issued under the Plan (under
outstanding  Awards  and Awards to be granted in the future), the exercise price
of Options, and other relevant provisions shall be appropriately adjusted by the
Committee,  whose  determination  shall  be  binding  on  all  persons.  If  the
adjustment  would  produce  fractional  shares  with  respect  to any Award, the
Committee  may adjust appropriately the number of shares covered by the Award so
as to eliminate the fractional shares.

     (b) Change of Control.
         ------------------

     If  a  Change of Control or Corporate Change occurs, the Committee may take
such  actions  with  respect  to  outstanding  Awards  as  the  Committee  deems
appropriate.  These  actions  may  include,  but  shall  not  be  limited  to,
accelerating  the vesting and expiration dates of Options.  The effectiveness of
such  acceleration  or  release  of  restrictions  shall be conditioned upon the
consummation  of  the  applicable  Change  of  Control  or  Corporate  Change.

     10. Administration of the Plan.

     (a) Disinterested Persons on Committee.
         -----------------------------------

     The  Plan  shall  be  administered by a Committee consisting of two or more
outside  directors  of  the  Company,  who shall be appointed by the Board.  The
Board  may designate the Compensation Committee of the Board to be the Committee
for  purposes  of  the Plan.  If and to the extent required by Rule 16b-3 of the
Act,  all members of the Committee shall be "disinterested persons" as that term
is  defined in Rule 16b-3.  If any member of the Committee fails to qualify as a
"disinterested  person,"  such  person shall immediately cease to be a member of
the  Committee  and  shall  not  take  part  in  future Committee deliberations.
Committee  members  may  resign  at any time by delivering written notice to the
Board.  Vacancies  in  the  Committee  shall  be  filled  by  the  Board.

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     (b) Conditions of Option Grants.
         ----------------------------

     The  Committee  shall  have  the  authority  to  impose such limitations or
conditions  upon  an  Award  as  the  Committee deems appropriate to achieve the
objectives  of  the  Award  and the Plan.  Without limiting the foregoing and in
addition to the powers set forth elsewhere in the Plan, the Committee shall have
the  power  and  complete  discretion  to determine (i) which eligible employees
shall receive an Award and the nature of the Award; (ii) the number of shares of
Company  Stock  to  be  covered  by  each  Award; (iii) the Fair Market Value of
Company  Stock;  (iv)  the  time  or  times  when an Award shall be granted; (v)
whether  an  Award  shall  become  vested  over a period of time, according to a
performance-based  vesting  schedule  or  otherwise,  and when it shall be fully
vested;  (vi)  whether a Change of Control or Corporate Change exists; (vii) the
performance  criteria  and other factors relevant to the acceleration of vesting
dates  for  such  Options; (viii) when Options may be exercised; (ix) whether to
approve  a  Participant's election with respect to Applicable Withholding Taxes;
(x)  conditions  relating  to  the  length of time before disposition of Company
Stock  received in connection with an Award is permitted; (xi) notice provisions
relating  to  the  sale  of Company Stock acquired under the Plan; and (xii) any
additional requirements relating to Awards that the Committee deems appropriate.

     (c) Technical Amendments.
         ---------------------

     The  Committee  shall  have  the  power  to  correct any defect, supply any
omission  or  reconcile  any inconsistency in the Plan of a procedural nature in
such  manner  and to such extent as it shall deem advisable to maintain the Plan
in  the  manner intended; but it shall have no power to add to, subtract from or
modify  any  of the substantive terms of the Plan, change or add to any benefits
provided  hereby,  or  waive  or  fail  to  apply any requirements existing as a
condition  precedent  to  the  actual  award  of  such  benefits

     (d) Plan Regulations.
         -----------------

     The  Committee  may  adopt rules and regulations for carrying out the Plan.
The  Committee  shall  have  the express discretionary authority to construe and
interpret  the  Plan  and  the  Award agreements, to resolve any ambiguities, to
define  any  terms, and to make any other determinations required by the Plan or
an  Award  agreement.  The  interpretation and construction of any provisions of
the Plan or an Award agreement by the Committee in good faith shall be final and
conclusive.  The  Committee  may  consult with counsel, accountants, brokers, or
consultants who may be counsel to the Company, and shall not incur any liability
for  any  action  taken  in  good  faith in reliance upon the advice of counsel.

     (e) Committee Action.
         -----------------

     A  majority  of the members of the Committee shall constitute a quorum, and
all  actions  of  the  Committee  shall  be  taken  by a majority of the members
present.  Notwithstanding  the preceding sentence, the Committee shall initially
have  two  members  and  any  action  taken by such members must be by unanimous
consent  until  such time as one or more additional members are appointed to the
committee.  Any  action  may  be taken by a written instrument signed by, all of
the  members, by vote at a telephonic or other meeting or by memorandum or other

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written instrument signed by the Committee members and any action so taken shall
be  fully  effective  as  if  it  had  been  taken  at  a  meeting.

     (f) Compensation of Committee Members.
         ----------------------------------

     The  members  of  the  Committee shall receive no special compensation as a
result  of the rendition of their services to the Plan, but shall be entitled to
receive  reimbursement  for  any  reasonable  expenses  actually  incurred  in
administering  the Plan, as long as the same are substantiated in such manner as
the  Board  may  require.  All such expenses as authorized by the Board shall be
paid  by the Company.  No member of the Committee shall be personally liable for
any  action,  determination or interpretation made in good faith with respect to
the  Plan  or  the  Options,  and  all  members  of the Committee shall be fully
protected  by  the  Company  in  respect  of  any  such action, determination or
interpretation.

     (g) Participant Information.
         ------------------------

     The  Company  shall furnish to the Committee in writing such information as
the  Committee  may  request  in  the  exercise  of its powers and duties in the
administration  of  the  Plan,  which  information may include, but shall not be
limited  to,  the  name  of  each employee of the Company and his or her date of
birth,  employment,  and,  if  known,  probable  termination  of  service.

     11. Miscellaneous Provisions.

     (a) Interpretation.
         --------------

     The  terms of this Plan and Awards granted pursuant to the Plan are subject
to  all  present  and  future  regulations  and  rulings of the Secretary of the
Treasury  or  his  delegate  relating  to  the  qualification of Incentive Stock
Options under the Code and they are subject to all present and future rulings of
the Securities Exchange Commission with respect to Rule 16b-3.  If any provision
of  the  Plan  or  an Award conflicts with any such regulation or ruling, to the
extent  applicable,  the Committee shall cause the Plan to be amended, and shall
modify  the  Award,  so  as to comply, or if for any reason amendments cannot be
made,  that  provision  of  the  Plan  and/or  the Award shall be void and of no
effect.

     (b) Tax Withholding.
         ----------------

     The  Company  shall have the right to deduct from any payment or settlement
under the Plan, including, without limitation, the exercise of any stock option,
or  the  delivery of any Shares, any federal, state, local or other taxes of any
kind which the Committee, in its sole discretion, deems necessary to be withheld
to comply with the Code and/or any other applicable law, rule or regulation.  In
addition,  in  the event that the optionholder disposes of any Shares within the
two  year  period  following  the grant, or within the one year period following
exercise  of an incentive stock option (each a "Disqualifying Disposition"), the
Company shall have the right to require the optionholder to remit to the Company
an  amount  sufficient  to satisfy all federal, state, and local withholding tax
requirements  as  a  condition to registering the transfer of such Shares on its
books.  If  the  Committee,  in  its  sole  discretion,  permits  Shares  of the
Company's  common  stock  to  be  used to satisfy any such tax withholding, such

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Shares  shall  be valued based on the fair market value of such Shares as of the
date the tax withholding is required to be made, as determined by the Committee.

     (c) No Right to Employment.
         -----------------------

     Neither  the  adoption  of  the  Plan,  the granting of any option, nor the
execution of any option agreement, shall confer upon any employee of the Company
any  right  to  continued  employment  with the Company, as the case may be, nor
shall  it  interfere  in  any  way  with  the  right,  if any, of the Company to
terminate the employment of any employee at any time for any reason.

     (d) Unfunded Plan.
         --------------

     The  Plan  shall  be  unfunded  and  the  Company  shall not be required to
segregate any assets in connection with any options awarded under the Plan.  Any
liability of the Company to any person with respect to any options awarded under
the  Plan  shall  be  based  solely upon the contractual obligations that may be
created  as  a  result  of  the  Plan  or  any such award or agreement.  No such
obligation  of  the  Company  shall  be  deemed  to be secured by any pledge of,
encumbrance  on,  or  other  interest  in, any property or asset of the Company.
Nothing  contained  in  the  Plan  or any option agreement shall be construed as
creating  in  respect  of  any  Participant (or beneficiary thereof or any other
person) any equity or other interest of any kind in any assets of the Company or
creating a trust of any kind or a fiduciary relationship of any kind between the
Company,  and/or  any  such  Participant,  any  beneficiary or any other person.

     (e) Fringe Benefit and Compensation Programs.
         -----------------------------------------

Payments  and other benefits received by a Participant under an option agreement
made  pursuant  to  the  Plan  shall  not  be  deemed a part of a optionholder's
compensation  for  purposes  of  the  determination  of benefits under any other
employee  welfare  or  benefit  plans  or  arrangements, if any, provided by the
Company unless expressly provided in such other plans or arrangements, or except
where the Committee expressly determines in writing that inclusion of any option
or  portion  of  an  option should be included to accurately reflect competitive
compensation  practices or to recognize that any option has been made in lieu of
a  portion  of  a  competitive  annual  base  salary or other cash compensation.
Options  granted under the Plan may be made in addition to, in combination with,
or  as  alternatives  to,  grants,  awards  or payments under any other plans or
arrangements  of  the  Company.  The  existence of the Plan notwithstanding, the
Company  may  adopt  such  other  compensation  plans or programs and additional
compensation  arrangements as it deems necessary to attract, retain and motivate
its  employees.

     (f) Other Legal Compliance.
         -----------------------

     The Committee may require, as a condition of any payment or share issuance,
that  certain  agreements,  undertakings,  representations,  certificates and/or
information,  as  the  Committee may deem necessary or advisable, be executed or
provided  to  the  Company to assure compliance with all such applicable laws or
regulations.  Any certificate for Shares delivered under the Plan may be subject
to  such  stock-transfer orders and such other restrictions as the Committee may
deem  advisable  under  the  rules,  regulations,  or  other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Shares are

                                      -10-
<PAGE>

then  listed,  and any applicable federal or state securities law. The Committee
may  cause  a legend or legends to be put on any such share certificates to make
appropriate reference to such restrictions.

     If  at any time and from time to time the Committee determines, in its sole
discretion,  that  the  listing, registration or qualification of any option, or
any Shares or property covered by or subject to such option, upon any securities
exchange  or under any foreign, federal, state or local securities or other law,
rule  or regulation is necessary or desirable as a condition to or in connection
with  the  granting  or  such  option  or  the issuance or delivery of Shares or
otherwise,  no such award may be exercised, or paid in Shares or other property,
unless such listing, registration or qualification shall have been effected free
of any conditions that are not acceptable to the Committee.

     (g) Registration of Shares.
         -----------------------

     The  Committee may determine, in its sole discretion, that the registration
or  qualification  under  any  federal  or state law of any Shares to be granted
pursuant to the Plan (whether to permit the grant of stock options or the resale
or  other  disposition  of  any such Shares by or on behalf of the key employees
receiving  such Shares) may be necessary or desirable and, in any such event, if
the  Committee  so  determines, delivery of the certificates of the Shares shall
not  be made until such registration or qualification shall have been completed.
In  that  connection,  the  Company  agrees that it will use its best efforts to
effect such registration or qualification when it deems such action to be in the
best  interests of the Company, provided, however, that the Company shall not be
required  to  use  its  best  efforts  to  effect  such  registration  under the
Securities  Act,  as  amended,  other  than  to file a Form S-8, as presently in
effect, or other such forms as may be in effect from time to time.

     (h) Compliance with the Exchange Act.
         ---------------------------------

     All transactions under this Plan that involve persons subject to Section 16
of  the  Exchange  Act  are intended to comply with all applicable conditions of
Rule 16b-3 or its successors under the Exchange Act. To the extent any provision
of  the  Plan  or action by the Committee fails to so comply, it shall be deemed
null  and  void  to  the  extend  permitted  by  law and deemed advisable by the
Committee.

     (i) Leaves of Absence/Transfers.
         ----------------------------

     The  Committee shall have the power to promulgate rules and regulations and
to  make  determinations,  as it deems appropriate, under the Plan in respect of
any  leave  of  absence  from  the  Company  granted to an optionholder. Without
limiting  the  generality  of the foregoing, the Committee may determine whether
any such leave of absence shall be treated as if the optionholder has terminated
employment with the Company.

     (j) No Assignment of Benefits.
         --------------------------

     No  option  grant or other benefit payable under this Plan shall, except as
otherwise  specifically  provided by this Plan or by law, be transferable in any
manner  other  than  by  will  or  the laws of descent and distribution, and any
attempt  to  transfer any such benefit shall be void. All benefits payable under
this  Plan  shall  not  in  any  manner  be  subject  to  the  debts, contracts,

                                      -11-
<PAGE>

liabilities,  engagements,  or torts of any person who shall be entitled to such
benefit,  nor  shall it be subject to attachment or legal process for or against
such person.

     (k) Notices.
         -------

     Every  direction,  revocation  or notice authorized or required by the Plan
shall  be  deemed  delivered  to  the  Company  (i) on the date it is personally
delivered  to the Secretary of the Company at its principal executive offices or
(ii)  three  business  days  after  it  is sent by registered or certified mail,
postage prepaid, addressed to the Secretary at such offices, and shall be deemed
delivered  to  an  optionee (i) on the date it is personally delivered to him or
her  or  (ii)  three  business  days after it is sent by registered or certified
mail, postage prepaid, addressed to him or her at the last address shown for him
or  her  on  the  records  of  the  Company.

     (l)     Governing  Law.
             --------------

     The  Plan  and  all  actions  taken  thereunder  shall  be  governed by and
construed in accordance with the laws of the State of Florida, without regard to
principles  of  conflict  of  laws.  Any  titles  and  headings  herein  are for
reference  purposes  only, and shall in no way limit, define or otherwise affect
the  meaning,  construction  or  interpretation  of  any provisions of the Plan.

     Dated:  July  1,  1996

                                        Technology  Research  Corporation

                                      -12-
<PAGE>Exhibit 4.2(a)

                              ALABAMA POWER COMPANY

                                       TO

                            JPMORGAN CHASE BANK, N.A.
                                     TRUSTEE

                       THIRTY-THIRD SUPPLEMENTAL INDENTURE

                          DATED AS OF FEBRUARY 8, 2006

                           SERIES GG 5?% SENIOR NOTES

                              DUE FEBRUARY 1, 2046

<PAGE>

<TABLE>
<CAPTION>

                              TABLE OF CONTENTS(1)
                                                                                                                Page

<S>                                                                                                              <C>
ARTICLE 1 Series GG Senior Notes..................................................................................1

SECTION 101.               Establishment..........................................................................1
                           --------------
SECTION 102.               Definitions............................................................................2
                           ------------
SECTION 103.               Payment of Principal and Interest......................................................3
                           ----------------------------------
SECTION 104.               Denominations..........................................................................4
                           --------------
SECTION 105.               Global Securities......................................................................4
                           ------------------
SECTION 106.               Transfer...............................................................................4
                           ---------
SECTION 107.               Redemption at the Company's Option.....................................................5
                           -----------------------------------
SECTION 108.               Mandatory Redemption...................................................................5
                           ---------------------

ARTICLE 2 Special Insurance Provisions............................................................................5

SECTION 201.               Supplemental Indentures................................................................5
                           -----------------------
SECTION 202.               Events of Default and Remedies.........................................................6
                           ------------------------------
SECTION 203.               Insurance Policy Payment Procedures....................................................6
                           -----------------------------------
SECTION 204.               Application of Term "Outstanding" to Series GG Notes...................................7
                           ----------------------------------------------------
SECTION 205.               Insurer as Third Party Beneficiary.....................................................7
                           ----------------------------------
SECTION 206.               Concerning the Special Insurance Provisions............................................8
                           -------------------------------------------
SECTION 207.               Concerning the Policy..................................................................8
                           ---------------------

ARTICLE 3 Miscellaneous Provisions................................................................................8

SECTION 301.               Recitals by Company....................................................................8
                           --------------------
SECTION 302.               Ratification and Incorporation of Original Indenture...................................8
                           -----------------------------------------------------
SECTION 303.               Executed in Counterparts...............................................................8
                           -------------------------

EXHIBIT A  FORM OF SERIES GG NOTE

EXHIBIT B  CERTIFICATE OF AUTHENTICATION
</TABLE>

1 This Table of Contents does not constitute part of the Indenture or have any
bearing upon the interpretation of any of its terms and provisions.

<PAGE>

         THIS THIRTY-THIRD SUPPLEMENTAL INDENTURE is made as of the 8th day of
February, 2006, by and between ALABAMA POWER COMPANY, an Alabama corporation,
600 North 18th Street, Birmingham, Alabama 35291 (the "Company"), and JPMORGAN
CHASE BANK, N.A., a national banking association, 4 New York Plaza, New York,
New York 10004 (the "Trustee").

                              W I T N E S S E T H:

         WHEREAS, the Company has heretofore entered into a Senior Note
Indenture, dated as of December 1, 1997 (the "Original Indenture"), with
JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank), as
heretofore supplemented;

         WHEREAS, the Original Indenture is incorporated herein by this
reference and the Original Indenture, as heretofore supplemented and as further
supplemented by this Thirty-Third Supplemental Indenture, is herein called the
"Indenture";

         WHEREAS, under the Original Indenture, a new series of Senior Notes may
at any time be established pursuant to a supplemental indenture executed by the
Company and the Trustee;

         WHEREAS, the Company proposes to create under the Indenture a new
series of Senior Notes;

         WHEREAS, additional Senior Notes of other series hereafter established,
except as may be limited in the Original Indenture as at the time supplemented
and modified, may be issued from time to time pursuant to the Indenture as at
the time supplemented and modified; and

         WHEREAS, all conditions necessary to authorize the execution and
delivery of this Thirty-Third Supplemental Indenture and to make it a valid and
binding obligation of the Company have been done or performed.

         NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

                                   ARTICLE 1
                             Series GG Senior Notes
SECTION 101.      Establishment.  There is hereby established  a new series of
Senior  Notes to be issued under the Indenture, to be designated as the
Company's Series GG 5?% Senior Notes due February 1, 2046 (the "Series GG
Notes").

         There are to be authenticated and delivered $100,000,000 aggregate
principal amount of Series GG Notes, and such principal amount of the Series GG
Notes may be increased from time to time pursuant to Section 301 of the Original
Indenture. All Series GG Notes need not be issued at the same time and such
series may be reopened at any time, without the consent of any Holder, for
issuances of additional Series GG Notes. Any such additional Series GG Notes
will have the same interest rate, maturity and other terms, including the
benefit of the Policy (appropriately increased to cover the principal amount of
and interest due on the additional Series GG Notes, subject to Section 207
hereof), as those initially issued. No Series GG Notes shall be authenticated
and delivered in excess of the principal amount as so increased except as
provided by Sections 203, 303, 304, 907 or 1107 of the Original Indenture. The
Series GG Notes shall be issued in definitive fully registered form.

         The Series GG Notes shall be issued in the form of one or more Global
Securities in substantially the form set out in Exhibit A hereto. The Depositary
with respect to the Series GG Notes shall be The Depository Trust Company.

         The form of the Trustee's Certificate of Authentication for the Series
GG Notes shall be in substantially the form set forth in Exhibit B hereto.

         Each Series GG Note shall be dated the date of authentication thereof
and shall bear interest from the date of original issuance thereof or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for.

         The Series GG Notes will not have a sinking fund.

SECTION 102. Definitions. The following defined terms used herein shall, unless
the context otherwise requires, have the meanings specified below. Capitalized
terms used herein for which no definition is provided herein shall have the
meanings set forth in the Original Indenture.

         "Insurance Agreement" means that certain Insurance Agreement, dated as
of February 8, 2006, by and between the Company and the Insurer.

         "Insurance Trustee" means The Bank of New York, New York, New York, or
any successor thereto, as the Insurance Trustee under the Policy.

         "Insurer" means Ambac Assurance Corporation, a Wisconsin-domiciled
stock insurance company.

         "Interest Payment Dates" means February 1, May 1, August 1 and November
1 of each year, commencing May 1, 2006.

         "Mandatory Redemption Event" means the Company's failure to comply with
(i) Section 1.02 of the Insurance Agreement, the continuance of such failure for
a period in excess of 10 days after receipt by the Company of written notice
thereof from the Insurer and the receipt by the Trustee of notice thereof in
accordance with Section 108 hereof; or (ii) Section 3.01 or Section 3.02 of the
Insurance Agreement, the continuance of such failure for a period in excess of
30 days after receipt by the Company of written notice thereof from the Insurer
and the receipt by the Trustee of notice thereof in accordance with Section 108
hereof.

         "Original Issue Date" means February 8, 2006.

         "Policy" means the financial guaranty insurance policy issued by the
Insurer with respect to payments due for principal of and interest on the Series
GG Notes (including any additional Series GG Notes referred to in the second
paragraph of Section 101 hereof, subject to Section 207 hereof) as provided in
such policy.

         "Regular Record Date" means, with respect to each Interest Payment
Date, the close of business on the 15th calendar day preceding such Interest
Payment Date (whether or not a Business Day).

         "Stated Maturity" means February 1, 2046.

SECTION 103. Payment of Principal and Interest. The principal of the Series GG
Notes shall be due at Stated Maturity (unless earlier redeemed). The unpaid
principal amount of the Series GG Notes shall bear interest at the rate of 5?%
per annum until paid or duly provided for. Interest shall be paid quarterly in
arrears on each Interest Payment Date to the Person in whose name the Series GG
Notes are registered on the Regular Record Date for such Interest Payment Date,
provided that interest payable at the Stated Maturity of principal or on a
Redemption Date as provided herein will be paid to the Person to whom principal
is payable. Any such interest that is not so punctually paid or duly provided
for will forthwith cease to be payable to the Holders on such Regular Record
Date and may either be paid to the Person or Persons in whose name the Series GG
Notes are registered at the close of business on a Special Record Date for the
payment of such defaulted interest to be fixed by the Trustee, notice whereof
shall be given to Holders of the Series GG Notes not less than ten (10) days
prior to such Special Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange, if
any, on which the Series GG Notes shall be listed, and upon such notice as may
be required by any such exchange, all as more fully provided in the Original
Indenture.

         Payments of interest on the Series GG Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest
payments for the Series GG Notes shall be computed and paid on the basis of a
360-day year of twelve 30-day months. In the event that any date on which
interest is payable on the Series GG Notes is not a Business Day, then payment
of the interest payable on such date will be made on the next succeeding day
that is a Business Day (and without any interest or other payment in respect of
any such delay), with the same force and effect as if made on the date the
payment was originally payable.

         Payment of the principal and interest due at the Stated Maturity or
earlier redemption of the Series GG Notes shall be made upon surrender of the
Series GG Notes at the Corporate Trust Office of the Trustee. The principal of
and interest on the Series GG Notes shall be paid in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payments of interest (including interest on
any Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer or other electronic transfer at such place and
to such account at a banking institution in the United States as may be
designated in writing to the Trustee at least sixteen (16) days prior to the
date for payment by the Person entitled thereto.

SECTION 104.      Denominations.  The Series GG Notes may be issued in
denominations of $25, or any integral multiple thereof.

SECTION 105. Global Securities. The Series GG Notes will be issued in the form
of one or more Global Securities registered in the name of the Depositary (which
shall be The Depository Trust Company) or its nominee. Except under the limited
circumstances described below, Series GG Notes represented by the Global
Security will not be exchangeable for, and will not otherwise be issuable as,
Series GG Notes in definitive form. The Global Securities described above may
not be transferred except by the Depositary to a nominee of the Depositary or by
a nominee of the Depositary to the Depositary or another nominee of the
Depositary or to a successor Depositary or its nominee.

         Owners of beneficial interests in such a Global Security will not be
considered the Holders thereof for any purpose under the Indenture, and no
Global Security representing a Series GG Note shall be exchangeable, except for
another Global Security of like denomination and tenor to be registered in the
name of the Depositary or its nominee or to a successor Depositary or its
nominee. The rights of Holders of such Global Security shall be exercised only
through the Depositary.

         Subject to the procedures of the Depositary, a Global Security shall be
exchangeable for Series GG Notes registered in the names of persons other than
the Depositary or its nominee only if (i) the Depositary notifies the Company
that it is unwilling or unable to continue as a Depositary for such Global
Security and no successor Depositary shall have been appointed by the Company,
or if at any time the Depositary ceases to be a clearing agency registered under
the Securities Exchange Act of 1934, as amended, at a time when the Depositary
is required to be so registered to act as such Depositary and no successor
Depositary shall have been appointed by the Company, in each case within 90 days
after the Company receives such notice or becomes aware of such cessation, (ii)
the Company in its sole discretion determines that such Global Security shall be
so exchangeable, or (iii) there shall have occurred an Event of Default with
respect to the Series GG Notes. Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Series GG Notes
registered in such names as the Depositary shall direct.

SECTION 106. Transfer. No service charge will be made for any transfer or
exchange of Series GG Notes, but payment will be required of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
therewith.

         The Company shall not be required (a) to issue, transfer or exchange
any Series GG Notes, except to the Insurer, during a period beginning at the
opening of business fifteen (15) days before the date of the mailing of a notice
pursuant to Section 1104 of the Original Indenture identifying the serial
numbers of the Series GG Notes to be called for redemption, and ending at the
close of business on the day of the mailing, or (b) to transfer or exchange any
Series GG Notes theretofore selected for redemption in whole or in part, except
the unredeemed portion of any Series GG Notes redeemed in part.

SECTION 107. Redemption at the Company's Option. The Series GG Notes will be
subject to redemption at the option of the Company in whole or in part, without
premium, from time to time, on or after February 1, 2011, upon not less than 30
nor more than 60 days' notice, at a Redemption Price equal to 100% of the
principal amount to be redeemed plus any accrued and unpaid interest thereon to
the Redemption Date.

         In the event of redemption of the Series GG Notes in part only, a new
Series GG Note or Notes for the unredeemed portion will be issued in the name or
names of the Holders thereof upon the surrender thereof.

         Any redemption of less than all of the Series GG Notes shall, with
respect to the principal thereof, be divisible by $25.

         Notice of redemption pursuant to this Section 107 shall be given to
Holders of Series GG Notes as provided in Section 1104 of the Original
Indenture.

SECTION 108. Mandatory Redemption. Upon the occurrence of a Mandatory Redemption
Event, the Company shall redeem the Series GG Notes, in whole but not in part,
prior to the Stated Maturity upon not less than 30 nor more than 60 days' notice
at a Redemption Price equal to (i) 102% of the principal amount to be redeemed
plus accrued and unpaid interest to the Redemption Date if the Redemption Date
is prior to February 1, 2011 or (ii) 100% of the principal amount to be redeemed
plus accrued and unpaid interest to the Redemption Date if the Redemption Date
is on or after February 1, 2011. A Mandatory Redemption Event will be deemed to
have occurred at the time that the Trustee receives written notice from the
Insurer of the occurrence of a Mandatory Redemption Event and such notice shall
constitute the notice required by Section 1102 of the Original Indenture and
shall not be required to be evidenced by a Board Resolution. Subject to the
notice requirements set forth herein, the Company shall redeem the Series GG
Notes on a date fixed by the Company within 60 days after the occurrence of the
Mandatory Redemption Event. Any notice of redemption required to be given by the
Trustee in connection with a redemption required by this Section 108 need not be
given earlier than 15 days after the date the Trustee receives notice of a
Mandatory Redemption Event pursuant to this Section 108.

         Notice of redemption pursuant to this Section 108 shall be given to
Holders of Series GG Notes as provided in Section 1104 of the Original
Indenture.

                                   ARTICLE 2
                          Special Insurance Provisions
SECTION 201. Supplemental Indentures. The consent of the Insurer shall be
required with respect to any indenture or indentures supplemental to the
Original Indenture requiring the consent of the Holders of the Series GG Notes
pursuant to Section 902 of the Original Indenture. Any provision of this
Thirty-Third Supplemental Indenture or the Original Indenture expressly
recognizing or granting rights to the Insurer may not be amended in any manner
which affects the rights of the Insurer without the prior written consent of the
Insurer.

SECTION 202. Events of Default and Remedies. Subject to Section 107 of the
Original Indenture and to the Trust Indenture Act, including, without
limitation, Sections 316(a)(1) and 317(a) thereof, if an Event of Default occurs
with respect to the Series GG Notes and is continuing, the Insurer shall be
entitled to control and direct the enforcement of all rights and remedies
granted to the Holders of the Series GG Notes or the Trustee for the benefit of
the Holders of the Series GG Notes under the Indenture, including, without
limitation, (i) the right to accelerate the principal of the Series GG Notes as
provided in Section 502 of the Original Indenture, and (ii) the right to annul
any such declaration of acceleration, and the Insurer shall also be entitled to
approve any waiver of an Event of Default with respect to the Series GG Notes,
the obligation of the Trustee to comply with any such direction to be subject to
compliance with the conditions set forth in Sections 512 and 603(e) of the
Original Indenture (as if references in those Sections to Holders were
references to the Insurer) and the protections provided to the Trustee by
Section 601(c)(3) of the Original Indenture shall be applicable with respect to
any direction from the Insurer given pursuant hereto (as if references in said
Section to Holders were references to the Insurer).

SECTION 203. Insurance Policy Payment Procedures. (a) On each Interest Payment
Date and on the Business Day immediately preceding the Stated Maturity, the
Trustee will determine whether there are sufficient funds to pay the principal
of or interest on the Series GG Notes on such Interest Payment Date or at the
Stated Maturity, as the case may be. If the Trustee determines that there are
insufficient funds available, the Trustee shall so notify the Insurer. Such
notice shall specify the amount of the deficiency and whether the Series GG
Notes are deficient as to principal or interest, or both. The Insurer will make
payments of principal or interest due on the Series GG Notes in accordance with
the Policy on or before the first (1st) Business Day next following the date on
which the Insurer shall have received notice of Nonpayment (as defined in the
Policy) from the Trustee.

         (b) In the event of Nonpayment and notification thereof to the Insurer,
the Trustee shall make available to the Insurer and, at the Insurer's direction,
to the Insurance Trustee, the books kept by the Trustee for the registration and
for the registration of transfer of Series GG Notes as provided in the
Indenture.

         (c) The Trustee shall, at the time it provides notice to the Insurer
pursuant to (a) above, notify Holders of Series GG Notes entitled to receive the
payment of principal or interest thereon from the Insurer (i) as to the fact of
such entitlement, (ii) that the Insurer will remit to them all or a part of the
interest payments next coming due upon proof of Holder entitlement to interest
payments and delivery to the Insurance Trustee, in form satisfactory to the
Insurance Trustee, of an appropriate assignment of the Holder's right to
payment, (iii) that should they be entitled to receive full payment of principal
from the Insurer, they must surrender their Series GG Notes (along with an
appropriate instrument of assignment in form satisfactory to the Insurance
Trustee to permit ownership of such Series GG Notes to be registered in the name
of the Insurer) for payment to the Insurance Trustee, and not the Trustee or any
Paying Agent and (iv) that should they be entitled to receive partial payment of
principal from the Insurer, they must surrender their Series GG Notes for
payment thereon first to the Trustee, who shall note on such Series GG Notes the
portion of the principal paid by the Trustee, and then, along with an
appropriate instrument of assignment in form satisfactory to the Insurance
Trustee, to the Insurance Trustee, which will then pay the unpaid portion of
principal.

         (d) In the event that the Trustee has notice that any payment of
principal of or interest on a Series GG Note which has become Due for Payment
(as defined in the Policy) and which is made to a Holder by or on behalf of the
Company has been deemed a preferential transfer and theretofore recovered from
its Holder pursuant to the United States Bankruptcy Code by a trustee in
bankruptcy in accordance with a final, nonappealable order of a court having
competent jurisdiction, the Trustee shall, at the time the Insurer is notified
pursuant to (a) above, notify all Holders of the Series GG Notes that in the
event that any Holder's payment is so recovered, such Holder will be entitled to
payment from the Insurer to the extent of such recovery if sufficient funds are
not otherwise available, and the Trustee shall furnish to the Insurer its
records evidencing the payments of principal of and interest on the Series GG
Notes which have been made by the Trustee and subsequently recovered from
Holders and the dates on which such payments were made.

         (e) In addition to those rights granted the Insurer under the
Indenture, the Insurer shall, to the extent it makes payment of principal of or
interest on Series GG Notes, become subrogated to the rights of the recipients
of such payments in accordance with the terms of the Policy, and to evidence
such subrogation (i) in the case of subrogation as to claims for past due
interest, the Trustee shall note the Insurer's rights as subrogee on the
registration books of the Company maintained by the Trustee upon receipt from
the Insurer of proof of the payment of interest thereon to the Holders of the
Series GG Notes and (ii) in the case of subrogation as to claims for past due
principal, the Trustee shall note the Insurer's rights as subrogee on the
registration books of the Company maintained by the Trustee upon surrender of
the Series GG Notes by the Holders thereof together with proof of the payment of
principal thereof.

SECTION 204. Application of Term "Outstanding" to Series GG Notes. In the event
that the principal and/or interest due on the Series GG Notes shall be paid by
the Insurer pursuant to the Policy, the Series GG Notes shall remain Outstanding
for all purposes of the Indenture, not be considered defeased or otherwise
satisfied and not be considered paid by the Company, and the assignment and
pledge of the Indenture and all covenants, agreements and other obligations of
the Company to the Holders of the Series GG Notes shall continue to exist and
shall run to the benefit of the Insurer, and the Insurer shall be subrogated to
the rights of such Holders to the extent of each such payment.

SECTION 205. Insurer as Third Party Beneficiary. To the extent that the
Indenture confers upon or gives or grants to the Insurer any right, remedy or
claim under or by reason of the Indenture, the Insurer is hereby explicitly
recognized as being a third-party beneficiary hereunder and may enforce any such
right, remedy or claim conferred, given or granted hereunder.

SECTION 206. Concerning the Special Insurance Provisions. The provisions of this
Article 2 shall apply notwithstanding anything in the Indenture to the contrary,
but only so long as the Policy shall be in full force and effect and the Insurer
is not in default thereunder.

SECTION 207. Concerning the Policy. Should the Company issue additional Series
GG Notes, as contemplated in Section 101 hereof, such additional Series GG Notes
will have the benefit of the Policy upon the endorsement of the Policy by the
Insurer pursuant to a mutually acceptable agreement of the Company and the
Insurer at or prior to the time of such issuance. The Insurer is under no
obligation to endorse the Policy to extend its benefits to any additional Series
GG Notes if it does not reach such an agreement with the Company.

                                   ARTICLE 3
                            Miscellaneous Provisions
SECTION 301. Recitals by Company. The recitals in this Thirty-Third Supplemental
Indenture are made by the Company only and not by the Trustee, and all of the
provisions contained in the Original Indenture in respect of the rights,
privileges, immunities, powers and duties of the Trustee shall be applicable in
respect of Series GG Notes and of this Thirty-Third Supplemental Indenture as
fully and with like effect as if set forth herein in full.

SECTION 302. Ratification and Incorporation of Original Indenture. As heretofore
supplemented and as supplemented hereby, the Original Indenture is in all
respects ratified and confirmed, and the Original Indenture as heretofore
supplemented and as supplemented by this Thirty-Third Supplemental Indenture
shall be read, taken and construed as one and the same instrument.

SECTION 303. Executed in Counterparts. This Thirty-Third Supplemental Indenture
may be simultaneously executed in several counterparts, each of which shall be
deemed to be an original, and such counterparts shall together constitute but
one and the same instrument.

                           [Signature page to follow.]

<PAGE>

         IN WITNESS WHEREOF, each party hereto has caused this instrument to be
signed in its name and behalf by its duly authorized officers, all as of the day
and year first above written.

ATTEST:                                              ALABAMA POWER COMPANY

By:/s/ Ceila H. Shorts                              By:  /s/ Art P. Beattie
        Ceila H. Shorts                             Art P. Beattie
         Assistant Secretary                        Executive Vice President,
                                                    Chief Financial Officer and
                                                            Treasurer

ATTEST:                                     JPMORGAN CHASE BANK, N.A.,
                                             as Trustee

By:Rose Ciaccia                             By:/s/Carol Ng
Trust Officer                                     Carol Ng
                                                Vice President

<PAGE>

                                    EXHIBIT A

                             FORM OF SERIES GG NOTE

NO. __                                                  CUSIP NO. 010392 54 6

                              ALABAMA POWER COMPANY

                            SERIES GG 5?% SENIOR NOTE

                              DUE FEBRUARY 1, 2046

    Principal Amount:               $__________________
    Regular Record Date:            15th  calendar day prior to
                                    Interest  Payment  Date
                                    (whether or not a
                                    Business Day)
    Original Issue Date:            February 8, 2006
    Stated Maturity:                February 1, 2046
    Interest Payment Dates:         February 1, May 1, August 1 and November 1
    Interest Rate:                  5?%
    Authorized Denomination:        $25 or any integral multiple thereof

         Alabama Power Company, an Alabama corporation (the "Company", which
term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to
___________________________________________, or registered assigns, the
principal sum of ____________________________________________ DOLLARS
($______________) on the Stated Maturity shown above (or upon earlier
redemption), and to pay interest thereon from the Original Issue Date shown
above, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, quarterly in arrears on each Interest Payment Date as
specified above, commencing on May 1, 2006, and on the Stated Maturity (or upon
earlier redemption) at the rate per annum shown above until the principal hereof
is paid or made available for payment and on any overdue principal and on any
overdue installment of interest. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date (other than an Interest Payment
Date that is the Stated Maturity or on a Redemption Date) will, as provided in
such Indenture, be paid to the Person in whose name this Note (the "Note") is
registered at the close of business on the Regular Record Date as specified
above next preceding such Interest Payment Date, provided that any interest
payable at the Stated Maturity or on any Redemption Date will be paid to the
Person to whom principal is payable. Except as otherwise provided in the
Indenture, any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Note is registered at the close
of business on a Special Record Date for the payment of such defaulted interest
to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of
this series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange, if any, on which the Notes of this series shall be
listed, and upon such notice as may be required by any such exchange, all as
more fully provided in the Indenture.

         Payments of interest on this Note will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for this Note
shall be computed and paid on the basis of a 360-day year of twelve 30-day
months. In the event that any Interest Payment Date would otherwise be a day
that is not a Business Day, then payment of the interest payable on such date
will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), with the same force and
effect as if made on the date the payment was originally payable. A "Business
Day" shall mean any day other than a Saturday or a Sunday or a day on which
banking institutions in New York City are authorized or required by law or
executive order to remain closed or a day on which the Corporate Trust Office of
the Trustee is closed for business.

         Payment of the principal of and interest due at the Stated Maturity or
earlier redemption of the Series GG Notes shall be made upon surrender of the
Series GG Notes at the Corporate Trust Office of the Trustee. The principal of
and interest on the Series GG Notes shall be paid in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payment of interest (including interest on
an Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer or other electronic transfer at such place and
to such account at a banking institution in the United States as may be
designated in writing to the Trustee at least 16 days prior to the date for
payment by the Person entitled thereto.

         Financial Guaranty Insurance Policy No. 25024BE (the "Policy") with
respect to payments due for principal of and interest on this Note has been
issued by Ambac Assurance Corporation ("Ambac Assurance"). The Policy has been
delivered to The Bank of New York, New York, New York, as the Insurance Trustee
under said Policy and will be held by such Insurance Trustee or any successor
insurance trustee. The Policy is on file and available for inspection at the
principal office of the Insurance Trustee and a copy thereof may be secured from
Ambac Assurance or the Insurance Trustee. All payments required to be made under
the Policy shall be made in accordance with the provisions thereof. The owner of
this Note acknowledges and consents to the subrogation rights of Ambac Assurance
as more fully set forth in the Policy.

         REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

         Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                                                     ALABAMA POWER COMPANY

                                                     By:
                                                        ----------------------
                                                         Vice President

Attest:

         Assistant Secretary

                  {Seal of ALABAMA POWER COMPANY appears here}

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                            JPMORGAN CHASE BANK, N.A.

                                    as Trustee

                                   By:    ---------------------------
Authorized Officer

<PAGE>

                             (Reverse Side of Note)

         This Note is one of a duly authorized issue of Senior Notes of the
Company (the "Notes"), issued and issuable in one or more series under a Senior
Note Indenture, dated as of December 1, 1997, as supplemented (the "Indenture"),
between the Company and JPMorgan Chase Bank, N.A. (formerly known as The Chase
Manhattan Bank), Trustee (the "Trustee," which term includes any successor
trustee under the Indenture), to which Indenture and all indentures incidental
thereto reference is hereby made for a statement of the respective rights,
limitation of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Notes issued thereunder and of the terms upon
which said Notes are, and are to be, authenticated and delivered. This Note is
one of the series designated on the face hereof as Series GG 5?% Senior Notes
due February 1, 2046 (the "Series GG Notes") which is unlimited in aggregate
principal amount. Capitalized terms used herein for which no definition is
provided herein shall have the meanings set forth in the Indenture.

         The Series GG Notes (i) shall, from time to time, on or after February
1, 2011 upon not less than 30 nor more than 60 days' notice to the Holders
thereof, be subject to redemption at the option of the Company, without premium,
in whole or in part, at a Redemption Price equal to 100% of the principal amount
of the Series GG Notes to be redeemed plus accrued and unpaid interest on the
Series GG Notes to the Redemption Date and (ii) upon the occurrence of a
"Mandatory Redemption Event" (as defined below), shall be subject to mandatory
redemption, upon not less than 30 nor more than 60 days' notice, in whole but
not in part, at a Redemption Price equal to (i) 102% of the principal amount of
the Series GG Notes plus accrued and unpaid interest to the Redemption Date if
the Redemption Date is prior to February 1, 2011 or (ii) 100% of the principal
amount of the Series GG Notes plus accrued and unpaid interest to the Redemption
Date if the Redemption Date is on or after February 1, 2011. "Mandatory
Redemption Event" means the Company's failure to comply with (x) Section 1.02 of
the Insurance Agreement, dated as of February 8, 2006 (the "Insurance
Agreement"), by and between the Company and Ambac Assurance Corporation (the
"Insurer"), the continuance of such failure for a period in excess of 10 days
after receipt by the Company of written notice thereof from the Insurer and the
receipt by the Trustee of notice thereof, or (y) Section 3.01 or Section 3.02 of
the Insurance Agreement, the continuance of such failure for a period in excess
of 30 days after receipt by the Company of written notice thereof from the
Insurer and the receipt by the Trustee of notice thereof. Subject to the notice
requirements of the Indenture, the Company shall redeem the Series GG Notes
within 60 days after the occurrence of the Mandatory Redemption Event.

         In the event of redemption of this Note in part only, a new Note or
Notes of this series for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the surrender hereof. The Series GG Notes will
not have a sinking fund.

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

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes of each series to be affected
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in principal amount of the Notes at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders of
all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registerable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency
of the Company for such purpose, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar and duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of this series, of
authorized denominations and of like tenor and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. No service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         The Notes of this series are issuable only in registered form without
coupons in denominations of $25 and any integral multiple thereof. As provided
in the Indenture and subject to certain limitations therein set forth, Notes of
this series are exchangeable for a like aggregate principal amount of Notes of
this series of a different authorized denomination, as requested by the Holder
surrendering the same upon surrender of the Note or Notes to be exchanged at the
office or agency of the Company.

         This Note shall be governed by, and construed in accordance with, the
internal laws of the State of New York.

<PAGE>

                                  ABBREVIATIONS

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

TEN COM- as tenants in              UNIF GIFT MIN ACT- ___ Custodian ________
          common                       (Cust)                    (Minor)
EN ENT- as tenants by the

              entireties                           under Uniform Gifts to

 JT TEN- as joint tenants                                 Minors Act

                  with right of

                  survivorship and                    ________________________

                  not as tenants                                (State)

                  in common

                    Additional abbreviations may also be used

                          though not on the above list.

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

(please insert Social Security or other identifying number of assignee)

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF
 ASSIGNEE

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing

agent to transfer said Note on the books of the Company, with full power of
substitution in the premises.

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

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

<PAGE>

                                    EXHIBIT B

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                            JPMORGAN CHASE BANK, N.A.

                                     as Trustee

                                       By:
                                          ----------------------------------

                                                Authorized Officer

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