Document:

SUPPLEMENTAL
INDENTURE

     

    dated as
of May 12, 2008

     

    to

     

    INDENTURE

     

    dated as
of July 30, 2007

     

    between

     

    COCA-COLA
ENTERPRISES INC.

    as
Issuer

     

    and

     

    DEUTSCHE
BANK TRUST COMPANY AMERICAS

    as
Trustee, Registrar, Transfer Agent and Paying Agent

     

    FLOATING
RATE NOTES DUE 2011

     

     

    
      

      

    

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    SUPPLEMENTAL
INDENTURE (this “Supplemental
Indenture”), dated as of May 12, 2008, between Coca-Cola Enterprises
Inc., a corporation organized and existing under the laws of the State of
Delaware (the “Company”), and
Deutsche Bank Trust Company Americas, a New York banking corporation, as Trustee
(the “Trustee”), Registrar,
Transfer Agent and Paying Agent.

     

    RECITALS

     

    WHEREAS,
the Company is authorized and empowered to borrow money for its purposes and to
issue its bonds, debentures, notes and other obligations for money so
borrowed.

     

    WHEREAS,
the Company and the Trustee executed and delivered an Indenture, dated as of
July 30, 2007 (the “Base Indenture” and
as supplemented by this Supplemental Indenture, the “Indenture”), to
provide for the issuance by the Company from time to time of the Company’s
unsecured bonds, debentures, notes or other evidences of indebtedness, to be
issued in one or more series as provided in the Indenture.

     

    WHEREAS,
the Company has duly authorized the issue, in one or more series as in the
Indenture provided, from time to time of its debt securities (the “Securities”).

     

    WHEREAS,
Section 14.01 of the Base Indenture provides that the Company (when authorized
by resolution of its Board of Directors) and the Trustee may, at any time and
from time to time, enter into one or more indentures supplemental to the Base
Indenture, in form satisfactory to the Trustee, for purposes of (i) establishing
the forms and terms of Securities of a new series and (ii) amending certain
provisions of the Indenture that the Board of Directors of the Company deem
desirable and which shall not affect the interests of the holders of the
Outstanding Securities or Coupons.

     

    WHEREAS,
Section 3.01 of the Base Indenture provides that the Company may enter into
supplemental indentures to establish the terms and provisions of a new series of
Securities issued pursuant to the Base Indenture.

     

    WHEREAS,
the Board of Directors of the Company and the Trustee desire to (i) modify,
alter, supplement and change certain provisions of the Base Indenture with
respect to all series of Securities or Coupons to be issued after the date
hereof (except as may be provided in a future supplemental indenture to the
Indenture) and (ii) to supplement the Base Indenture in so far as it will apply
to a new series of Securities to be known as the Company’s “Floating Rate Notes
due 2011” (the “Notes”) issued
hereunder.

     

    WHEREAS,
the Company has duly authorized the execution and delivery of this Supplemental
Indenture and all things necessary to make this Supplemental Indenture a valid
and binding obligation of the Company and to constitute a valid agreement of the
Company, in accordance with its terms, have been done.

     

    WHEREAS,
the Trustee has power to enter into this Supplemental Indenture.

     

    WHEREAS,
all things necessary have been done to make the Notes, when executed by the
Company and authenticated and delivered hereunder duly issued by
the

     

    
      
        
        

      

      
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    Company,
the valid obligations of the Company and to make this Supplemental Indenture a
valid supplement to the Indenture, in accordance with their and its
terms.

     

    NOW,
THEREFORE, for and in consideration of the premises and the purchase and
acceptance of the Notes by the holders thereof, the Company agrees with the
Trustee, for the equal and proportionate benefit of all future holders of the
Securities, as follows:

     

     

    ARTICLE
I

    DEFINITIONS

     

    Section
1.1.  Definitions.

     

    (a) For
purposes of this Supplemental Indenture only with respect to the Floating Rate
Notes due 2011 as created in Article III hereof, except as otherwise expressly
provided for or unless the context otherwise requires:

     

    “Business Day” shall
mean any day that is not a Saturday or Sunday and that, in The City of New York,
is not a day on which banking institutions are generally authorized or obligated
by law to close;

     

    “Designated LIBOR
Page” means the display on Page LIBOR01 of Reuters (or any successor
service) for the purpose of displaying the London interbank offered rates of
major banks for U.S. dollars (or such other page as may replace that page on
that service (or any successor service) for the purpose of displaying such
rates).

     

    “interest” means, when
used with reference to the Notes, any interest payable under the terms of the
Notes.

     

    “Interest Determination
Date” means the second London Business Day immediately preceding the
first day of the relevant Interest Period.

     

    “Interest Payment
Date” means February 6, May 6, August 6 and November 6 of each year,
beginning on August 6, 2008.

     

    “Interest Period”
means the period commencing on any Interest Payment Date for the Notes (or, with
respect to the initial Interest Period only, commencing on May 12, 2008) to, but
excluding, the next succeeding Interest Payment Date for the Notes, and in the
case of the last such period, from and including the Interest Payment Date
immediately preceding the Stated Maturity to but not including such Stated
Maturity.  If the Stated Maturity is not a LIBOR Business Day, then
the principal amount of the Notes plus accrued and unpaid interest thereon shall
be paid on the next succeeding LIBOR Business Day and no interest shall accrue
for the Stated Maturity, or any day thereafter.

     

    “LIBOR Business Day”
means any Business Day that is also a day on which dealings in deposits in U.S.
dollars are transacted in the London interbank market.

     

    “London Business Day”
means any day on which dealings in U.S. dollars are transacted in the London
interbank market.

     

    
      
        
        

      

      
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    “Stated Maturity” means May
6, 2011.

     

    “three-month LIBOR”
means, with respect to any Interest Determination Date, the offered rate for
deposits in the London interbank market in U.S. dollars having an index maturity
of three months for a period commencing on the second London Business Day
immediately following such Interest Determination Date in amounts of not less
than $1,000,000, as such rate appears on the Designated LIBOR Page at
approximately 11:00 a.m., London time, on such Interest Determination
Date.

     

    (b)
Capitalized terms used in this Supplemental Indenture and not otherwise defined
herein shall have the meanings assigned to such terms in the Base
Indenture.

     

     

    ARTICLE
II

    AMENDMENTS

     

    Section
2.1.  Amendments to Section
1.01(b).

     

    (a) The
definition of “Code” in Section 1.01(b) of the Base Indenture is hereby amended
and restated in its entirety to read as follows:

     

    “Code:  The
term “Code” shall mean the Internal Revenue Code of 1986, as
amended.”

     

    (b)
Section 1.01(b) of the Base Indenture is amended by adding a new definition of
“Euro” to read as follows:

     

    “Euro:  The
term “Euro” shall mean the basic unit of currency among participating European
Union countries, as revised or replaced from time to time.”

     

    (c) The
definition of “Foreign Currency” in Section 1.01(b) of the Base Indenture is
hereby amended and restated in its entirety to read as follows:

     

    “Foreign
Currency:  The term “Foreign Currency” shall mean a currency
issued by the government of any country other than the United States, including,
without limitation, the Euro, or a composite currency, the value of which is
determined by reference to the values of the currencies of any group of
countries.”

     

    (d) The
definition of “Maturity” in Section 1.01(b) of the Base Indenture is hereby
amended and restated in its entirety to read as follows:

     

    “Maturity: The term
“Maturity,” with respect to any Security, shall mean the date on which the
principal of such Security shall become due and payable as therein and herein
provided, whether by acceleration, call for redemption or
otherwise.”

     

    (e) The
definition of “Outstanding” in Section 1.01(b) of the Base Indenture is hereby
amended and restated in its entirety to read as follows:

     

    
      
        
        

      

      
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    “Outstanding:  The
term “Outstanding,” when used with respect to Securities shall mean, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:

     

    (i)
Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     

    (ii)
Securities or portions thereof for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee or any Paying
Agent (other than the Company) in trust or set aside and segregated in trust by
the Company (if the Company shall act as its own Paying Agent) for the holders
of such Securities or from its obligations with respect to which the Company
shall have been Discharged; provided, however, that if such Securities or
portions thereof are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made;

     

    (iii)
Securities, except to the extent provided in Section 12.03, with respect to
which the Company has effected defeasance as provided in Article XII;
and

     

    (iv)
Securities that have been paid pursuant to Section 3.07 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such Securities
are held by a protected purchaser in whose hands such Securities are valid
obligations of the Company;

     

    provided, however, that in
determining whether the holders of the requisite principal amount of Securities
Outstanding have performed any action hereunder, Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any
such action, only Securities that a Responsible Officer of the Trustee knows to
be so owned shall be so disregarded. Securities so owned that have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor. In
determining whether the holders of the requisite principal amount of Outstanding
Securities have performed any action hereunder, the principal amount of an
Original Issue Discount Security that shall be deemed to be Outstanding for such
purpose shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon a declaration of acceleration
of the Maturity thereof pursuant to Section 7.02 and the principal amount of a
Security denominated in a Foreign Currency that shall be deemed to be
Outstanding for such purpose shall be the amount calculated pursuant to Section
3.11(c).”

     

    
      
        
        

      

      
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    (f) The
definition of “Restricted Subsidiary” in Section 1.01(b) of the Base Indenture
is hereby amended and restated in its entirety to read as follows:

     

    “Restricted
Subsidiary:  The term “Restricted Subsidiary” shall mean any
Subsidiary of the Company:

     

    (i)
substantially all of the property of which is located, or substantially all of
the business of which is carried on, within the fifty states of the United
States of America, the District of Columbia, or Puerto Rico, and

     

    (ii)
which owns or is the lessee of any Principal Property.”

     

    (g) The
definition of “United States” in Section 1.01(b) of the Base Indenture is hereby
amended and restated in its entirety to read as follows:

     

    “United States: The
term “United States” shall mean the United States of America (including the
States and District of Columbia) and its possessions.”

     

    (h) The
definition of “United States Alien” in Section 1.01(b) of the Base Indenture is
hereby deleted in its entirety and replaced by the definition of “United States
Person” as follows:

     

    “United States Person:
The term “United States Person” shall have the meaning given to such term in
Section 7701(a)(30) of the Code.”

     

    (i) The
definition of “U.S. Government Obligations” in Section 1.01(b) is hereby deleted
in its entirety.

     

    Section
2.2.  Amendments of Certain
Provisions in Article I.  Article I of the Base Indenture is
amended by adding a new Section 1.03 “Incorporation by Reference of Trust
Indenture Act” to read as follows:

     

    “SECTION
1.03.  Incorporation by Reference
of Trust Indenture Act.  Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a
part of this Indenture.

     

    The
following TIA terms used in this Indenture have the following
meanings:

     

    (i)           “indenture
securities” means the Securities;

     

    (ii)           “indenture
security Holder” means a Holder of a Security;

     

    (iii)           “indenture
to be qualified” means this Indenture;

     

    (iv)           “indenture
trustee” or “institutional trustee” means the Trustee; and

     

    (v)           “obligor”
on the Securities means the Company in respect of the Securities and any
successor obligor upon the Securities.

     

    
      
        
        

      

      
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    All other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA have the
meanings so assigned to them.”

     

    Section
2.3.  Amendments of Certain
Provisions in Article II.  Article II of the Base Indenture is
amended by adding a new Section 2.05 “Securities Issuable in Global Form” to
read as follows:

     

    “SECTION
2.05.  Securities Issuable in
Global Form.  If Securities of or within a series are issuable
in global form, as specified as contemplated by Section 3.01, then,
notwithstanding clause (k) of Section 3.01, any such Security shall represent
such of the Outstanding Securities of such series as shall be specified therein
and may provide that it shall represent the aggregate amount of Outstanding
Securities of such series from time to time endorsed thereon and that the
aggregate amount of Outstanding Securities of such series represented thereby
may from time to time be increased or decreased to reflect
exchanges.  Any endorsement of a Security in global form to reflect
the amount, or any increase or decrease in the amount, of Outstanding Securities
represented thereby shall be made by the Trustee in such manner and upon
instructions given by such Person or Persons as shall be specified therein or in
the Company Order to be delivered to the Trustee pursuant to Section 3.03 or
Section 3.04.  Subject to the provisions of Section 3.03 and, if
applicable, Section 3.04, the Trustee shall deliver and redeliver any Security
in permanent global form in the manner and upon instructions given by the Person
or Persons specified therein or in the applicable Company Order.  If a
Company Order pursuant to Section 3.03 or Section 3.04 has been, or
simultaneously is, delivered, any instructions by the Company with respect to
endorsement or delivery or redelivery of a Security in global form shall be in
writing but need not comply with Section 15.02 and need not be accompanied by an
Opinion of Counsel.

     

    The
provisions of Section 3.03(k) shall apply to any Security represented by a
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions (which need not comply with Section 15.02 and
need not be accompanied by an Opinion of Counsel) with regard to the reduction
in the principal amount of Securities represented thereby, together with the
written statement contemplated by Section 3.03(k).

     

    Notwithstanding
any provisions of Section 3.08 to the contrary, unless otherwise specified as
contemplated by Section 3.01, payment of principal of (and premium, if any) and
interest, if any, on any Security in permanent global form shall be made to the
Person or Persons specified therein.

     

    Notwithstanding
the provisions of Section 8.03 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company shall treat as
the Holder of such principal amount of Outstanding Securities represented by a
permanent global Security (i), in the case of a permanent global Security in
registered form, the Holder of such permanent global Security in registered
form, or (ii) in the case of a permanent global Security in bearer form,
Euroclear or Clearstream.

     

    
      
        
        

      

      
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    Section
2.4.  Amendments of Certain
Provisions in Article III.  Article III of the Base Indenture
is amended as follows:

     

    (a)
Section 3.01(n) of the Base Indenture is hereby amended and restated to read in
its entirety as follows:

     

    “(n)           if
Section 12.03 is not applicable to the Securities of the series and any
provisions in modification of, in addition to or in lieu of any of the
provisions of Article XII that shall be applicable to the Securities of the
series;”

     

    (b)
Section 3.01(t) of the Base Indenture is hereby amended and restated to read in
its entirety as follows:

     

    “(t) any
other terms of the Securities of the series, including Events of Default and/or
additional covenants of the Company (which terms shall not be inconsistent with
the requirements of the Trust Indenture Act).”

     

    (c)
Section 3.03 of the Base Indenture is hereby amended by adding a new clause (k)
to read as follows:

     

    “(k) If
any Security shall have been authenticated and delivered hereunder but never
issued and sold by the Company, and the Company shall deliver such Security to
the Trustee for cancellation as provided in Section 3.10 together with a written
statement (which need not comply with Section 15.02 and need not be accompanied
by an Opinion of Counsel) stating that such Security has never been issued and
sold by the Company, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never
be entitled to the benefits of this Indenture.”

     

    (d)
Section 3.06(c)(vi) of the Base Indenture is hereby amended and restated to read
in its entirety as follows:

     

    “(vi)
Upon the exchange in full of a Global Security for individual Securities, such
Global Security shall be canceled by the Trustee.  Individual
Registered Securities issued in exchange for a Global Security pursuant to this
Section shall be registered in such names and in such authorized denominations
as the Depositary for such Global Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee. The
Trustee shall deliver such Registered Securities to the Persons in whose names
such Registered Securities are so registered.  The Trustee shall
deliver individual Bearer Securities issued in exchange for a Global Security
pursuant to this Section to the Persons and in such authorized denominations as
the Depositary for such Global Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee;
provided, however, that individual Bearer Securities shall be delivered in
exchange for a Global Security only outside the United States in accordance with
the procedures as may be specified pursuant to Section 3.01.”

     

    (e)
Section 3.06(h) of the Base Indenture is hereby amended and restated to read in
its entirety as follows:

     

    
      
        
        

      

      
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    “(h) The
Company shall not be required to (i) register, transfer or exchange Securities
of any series during a period beginning at the opening of business 15 days
before the day of the transmission of a notice of redemption of Securities of
such series selected for redemption under Section 4.03 and ending at the close
of business on the day of such transmission, or (ii) register, transfer or
exchange any Security so selected for redemption in whole or in part, except the
unredeemed portion of any Security being redeemed in part; provided, however,
that, if specified pursuant to Section 4.02, any Bearer Securities of any series
that are exchangeable for Registered Securities and that are called for
redemption pursuant to Section 4.02 may, to the extent permitted by applicable
law, be exchanged for one or more Registered Securities of such series during
the period preceding the Redemption Date, or (iii) register, transfer or
exchange any Security which has been surrendered for repayment at the option of
the holder, except the portion, if any, of such Security not to be so
repaid.”

     

    (f)
Section 3.08 of the Base Indenture is hereby amended by adding a new clause (h)
to read as follows:

     

    “(h) The
provisions of this Section 3.08(h) may be made applicable to any series of
Securities pursuant to Section 3.01 (with such modifications, additions or
substitutions as may be specified pursuant to such Section 3.01).  The
interest rate (or the spread or spread multiplier used to calculate such
interest rate, if applicable) on any Security of such series may be reset by the
Company on the date or dates specified on the face of such Security (each, an
“Optional Reset
Date”).  The Company may exercise such option with respect to
such Security by notifying the Trustee of such exercise at least 50 but not more
than 60 days prior to an Optional Reset Date for such Security.  Not
later than 40 days prior to each Optional Reset Date, the Trustee shall
transmit, in the manner provided for in Section 15.06, to the Holder of any such
Security a notice (the “Reset Notice”)
indicating whether the Company has elected to reset the interest rate (or the
spread or spread multiplier used to calculate such interest rate, if
applicable), and if so (i) such new interest rate (or such new spread or spread
multiplier, if applicable) and (ii) the provisions, if any, for redemption
during the period from such Optional Reset Date to the next Optional Reset Date
or if there is no such next Optional Reset Date, to the date of Maturity of such
Security (each such period, a “Subsequent Interest
Period”), including the date or dates on which or the period or periods
during which and the price or prices at which such redemption may occur during
the Subsequent Interest Period.

     

    Notwithstanding
the foregoing, not later than 20 days prior to the Optional Reset Date, the
Company may, at its option, revoke the interest rate (or the spread or spread
multiplier used to calculate such interest rate, if applicable) provided for in
the Reset Notice and establish an interest rate (or a spread or spread
multiplier used to calculate such interest rate, if applicable) that is higher
than the interest rate (or the spread or spread multiplier, if applicable)
provided for in the Reset Notice, for the Subsequent Interest Period by causing
the Trustee to transmit, in the manner provided for in Section 15.06, notice of
such higher interest rate (or such higher spread or spread multiplier, if
applicable) to the Holder of such Security.  Such notice shall be
irrevocable.  All Securities with respect to which the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable) is reset on an Optional Reset Date, and with respect to which the
Holders of such Securities have not tendered such Securities for repayment (or
have validly revoked any such tender) pursuant to the next succeeding paragraph,
will bear such higher interest rate (or such higher spread or spread multiplier,
if applicable).

     

    
      
        
        

      

      
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    The
Holder of any such Security will have the option to elect repayment by the
Company of the principal of such Security on each Optional Reset Date at a price
equal to the principal amount thereof plus interest accrued to such Optional
Reset Date.  In order to obtain repayment on an Optional Reset Date,
the Holder must follow the procedures set forth in Article Thirteen for
repayment at the option of Holders except that the period for delivery or
notification to the Trustee shall be at least 25 but not more than 35 days prior
to such Optional Reset Date and except that, if the Holder has tendered any
Security for repayment pursuant to the Reset Notice, the Holder may, by written
notice to the Trustee, revoke such tender or repayment until the close of
business on the tenth day before such Optional Reset Date.

     

    Subject
to the foregoing provisions of this Section and Section 3.06, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security pursuant to
Section 3.01 if and when relevant.”]

     

    Section
2.5.  Amendments to Section
4.02.  Section 4.02 of the Base Indenture is hereby amended and
restated in its entirety as follows:

     

    “SECTION
4.02.  Tax
Redemption; Special Tax Redemption.

     

    (a) All
Securities of the same series that are entitled to the payment of Additional
Amounts may be redeemed in whole but not in part, at the option of the Company
at any time prior to maturity, upon the giving of a notice of redemption, at a
redemption price equal to 100 percent of the principal amount thereof, together
with accrued interest to the date fixed for redemption, if the Company
determines that, (i) as a result of any change in or amendment to the laws
(including any regulation or ruling promulgated thereunder) of the United States
or of any political subdivision or taxing authority thereof or therein affecting
taxation, or any change in official position regarding the application or
interpretation of such laws, regulations or ruling, which change or amendment
becomes effective on or after the date on which any Person (including any Person
acting as underwriter, broker or dealer) agrees to purchase any of such
Securities pursuant to their original issuance, the Company has or will become
obligated to pay Additional Amounts with respect to such Security or (ii) any
such change, amendment, application or interpretation shall be formally
announced as officially proposed, which in the written opinion of independent
legal counsel of recognized standing to the Company will result in a material
probability that the Company will, on the occasion of the next payment due under
such Securities, become obligated to pay Additional Amounts which obligation
cannot be avoided by the Company taking reasonable measures available to it.
Prior to the giving of any notice of redemption pursuant to this paragraph, the
Company shall deliver to the Trustee (i) a certificate stating that the Company
is entitled to effect such redemption and setting forth a statement of facts
showing that the conditions precedent to the right of the Company to so redeem
have occurred and (ii) an opinion of counsel satisfactory to the Trustee to such
effect based on such statement of facts; provided, however, that no such notice
of redemption shall be given earlier than 90 days prior to the earliest date on
which the Company would be obligated to pay such Additional Amounts if a payment
in respect of such Securities were then due. Notice of redemption will be given
not less than 30 nor more than 60 days prior to the date fixed for redemption,
which date and the applicable redemption price will be specified in the
notice.

     

    
      
        
        

      

      
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    (b)
Unless otherwise specified pursuant to Section 3.01, if the Company shall
determine that any payment made outside the United States by the Company or any
of its Paying Agents in respect of any Bearer Security or Coupon, if any, that
is not a Floating Rate Security (an “Affected Security”) would, under any
present or future laws or regulations in the United States, be subject to any
certification, documentation, information or other reporting requirement of any
kind, the effect of which requirement is the disclosure to the Company, any
Paying Agent or any governmental authority of the nationality, residence or
identity of a beneficial owner of such Affected Security that is not a United
States Person (other than such a requirement (i) that would not be applicable to
a payment made by the Company or any one of its Paying Agents (A) directly to
the beneficial owner or (B) to a custodian, nominee or other agent of the
beneficial owner, or (ii) that can be satisfied by such custodian, nominee or
other agent certifying to the effect that the beneficial owner is not a United
States Person; provided that, in any case referred to in clause (i)(B) or (ii),
payment by the custodian, nominee or agent to the beneficial owner is not
otherwise subject to any such requirement), then the Company shall elect either
(x) to redeem such Affected Securities in whole, but not in part, at the
Redemption Price thereof (calculated without premium) or (y) if the conditions
of the next succeeding paragraph are satisfied, to pay the Additional Amounts
specified in such paragraph. The Company shall make such determination as soon
as practicable and publish prompt notice thereof (the “Determination Notice”),
stating the effective date of such certification, documentation, information or
other reporting requirement, whether the Company elects to redeem the Affected
Securities or to pay the Additional Amounts specified in the next succeeding
paragraph and (if applicable) the last date by which the redemption of the
Affected Securities must take place, as provided in the next succeeding
sentence. If any Affected Securities are to be redeemed pursuant to this
paragraph, the redemption shall take place on such date, not later than one year
after the publication of the Determination Notice, as the Company shall specify
by notice given to the Trustee and the holders of the Affected Securities in
accordance with Sections 4.03 and 4.04. Notwithstanding the foregoing, the
Company shall not so redeem the Affected Securities if the Company shall
subsequently determine, not less than 30 days prior to the Redemption Date, that
subsequent payments on the Affected Securities would not be subject to any such
certification, documentation, information or other reporting requirement, in
which case the Company shall publish prompt notice of such subsequent
determination, and any earlier redemption notice given pursuant to this
paragraph shall be revoked and of no further effect. Prior to the publication of
any Determination Notice pursuant to this paragraph, the Company shall deliver
to the Trustee (i) an Officers’ Certificate stating that the Company is entitled
to make such determination and setting forth a statement of facts showing that
the conditions precedent to the obligation of the Company to redeem the Affected
Securities or to pay the Additional Amounts specified in the next succeeding
paragraph have occurred and (ii) an Opinion of Counsel to the effect that such
conditions have occurred.

     

    (c) If
and so long as the certification, documentation, information or other reporting
requirements referred to in the preceding paragraph would be fully satisfied by
payment of a backup withholding tax or similar charge, the Company may in its
sole discretion elect to pay as Additional Amounts such amounts as may be
necessary so that every net payment made outside the United States following the
effective date of such requirement by the Company or any of its Paying Agents in
respect of any Affected Security of which the beneficial owner is not a United
States Person (but without any requirement that the nationality, residence or
identity of such beneficial owner be disclosed to the Company, any Paying Agent
or any governmental

     

    
      
        
        

      

      
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    authority),
after deduction or withholding for or on account of such backup withholding tax
or similar charge (other than a backup withholding tax or similar charge that
(i) would not be applicable in the circumstances referred to in the
parenthetical clause of the first sentence of the preceding paragraph or (ii) is
imposed as a result of presentation of any such Affected Security for payment
more than 15 days after the date on which such payment became due and payable or
on which payment thereof was duly provided for, whichever occurred later), will
not be less than the amount provided in any such Affected Security to be then
due and payable. If the Company elects to pay Additional Amounts pursuant to
this paragraph, then the Company shall have the right, but shall not be
required, to redeem the Affected Securities at any time in whole, but not in
part, at the Redemption Price thereof (calculated without premium), subject to
the provisions of the last three sentences of the immediately preceding
paragraph. If the Company elects to pay Additional Amounts pursuant to this
paragraph and the condition specified in the first sentence of this paragraph
should no longer be satisfied, then the Company shall redeem the Affected
Securities in whole, but not in part, at the Redemption Price thereof
(calculated without premium), subject to the provisions of the last three
sentences of the immediately preceding paragraph.  Any redemption
payments made by the Company pursuant to the two immediately preceding sentences
shall be subject to the continuing obligation of the Company to pay Additional
Amounts pursuant to this paragraph. If the Company elects to, or is required to,
redeem the Affected Securities pursuant to this paragraph, it shall notify the
Trustee and the holders of the Affected Securities thereof in accordance with
Sections 4.03 and 4.04.”

     

    Section
2.6.  Amendments to Section
6.02.  Section 6.02 of the Base Indenture is hereby amended and
restated in its entirety as follows:

     

    “SECTION
6.02.  Payment of Additional
Amounts.

     

    (a) If
the Securities of a series provide for the payment of Additional Amounts, the
Company will pay to the holder of any Security of any such series or any related
Coupon who is a not a United States Person such Additional Amounts as may be
necessary in order that every net payment of the principal of and interest on
any Security of any series, after deduction or withholding for or on account of
any present or future tax assessment or governmental charge imposed upon or as a
result of such payment by the United States or any political subdivision or
taxing authority thereof or therein, will be not less than the amount provided
for in any Security of any series or any related Coupon to be then due and
payable; provided, however, that the foregoing obligation to pay Additional
Amounts shall not apply to:

     

    (i) any
tax, assessment or other governmental charge that would not have been imposed
but for the existence of any present or former connection between the holder or
beneficial owner of a Security, or between a fiduciary, settlor, beneficiary,
member or shareholder of, or possessor of power over, such holder or beneficial
owner, if such holder or beneficial owner is an estate, trust, partnership,
limited liability company or corporation and the relevant tax jurisdiction
including where such holder or beneficial owner (or such fiduciary, settlor,
beneficiary, partner, member, shareholder or possessor):

     

    
      	
               
      

            	
              ·

            	
              is
      or was present or engaged in, or is or was treated as present or engaged
      in, a trade or business in the taxing jurisdiction or has or had a
      permanent establishment in the taxing
  jurisdiction;

            

    

     

    
      
        
        

      

      
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              ·

            	
              has
      or had any present or former connection (other than the mere fact of
      ownership of a Security or the receipt of payment thereon) with the taxing
      jurisdiction imposing such tax, assessment or other governmental charge,
      including being or having been a citizen or resident thereof or being
      treated as having been a resident
thereof;

            

    

     

    (ii) any
tax, assessment or other governmental charge which is imposed or levied by
reason of the presentation (where presentation is required to receive payment)
of a Security for payment on a date more than 30 days after the date on which
such payment becomes due or is duly provided for, whichever occurs later, except
to the extent that the holder thereof would have been entitled to Additional
Amounts on presenting the same for payment on such thirtieth day;

     

    (iii) any
estate, inheritance, excise, gift, sales, transfer, personal property or any
similar tax, assessment or other governmental charge;

     

    (iv) any
tax, assessment or other governmental charge which would not have been imposed
but for a failure to comply with any certification, identification or other
reporting requirements concerning the nationality, residence, identity or
connection with the United States of the holder or beneficial owner of any
Security of any series or any related Coupon, if compliance is required by
statute or by regulation of the United States or any political subdivision or
taxing authority thereof or by an applicable income tax treaty as a precondition
to relief or exemption from such tax, assessment or other governmental
charge;

     

    (v) any
tax, assessment or other governmental charge which is payable otherwise than by
deduction or withholding from payments of principal of or interest on the
Security held by the holder;

     

    (vi) any
tax, assessment or other governmental charge imposed by reason of the past or
present status of a holder or beneficial owner of a Security as a passive
foreign investment company, a controlled foreign corporation or a personal
holding company with respect to the United States, as a private foundation or
other tax exempt organization for United States federal income tax purposes, or
as a corporation which accumulates earnings to avoid United States federal
income tax;

     

    (vii) any
tax, assessment or other governmental charge imposed on interest received by a
Person holding, actually or constructively, 10% or more of the total combined
voting power of all classes of stock of the Company entitled to vote or a bank
receiving interest described in Section 881(c)(3)(A) of the Code;

     

    (viii)
any tax, assessment or other governmental charge any paying agent (which term
may include the Company) must withhold from any payment of principal of or
interest on any Security, if such payment can be made without such withholding
by any other paying agent;

     

    
      
        
        

      

      
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    (ix) any
withholding, deduction, tax, assessment or governmental charge required to be
made pursuant to European Union Council Directive 2003/48/EC of June 3, 2003 on
the taxation of savings income in the form of interest payments, or any law
implementing or complying with, or introduced in order to conform to that
Directive or any other Directive implementing the conclusions of the ECOFIN
Council meeting of November 26-27, 2000 on the taxation of savings income or any
law implementing or complying with, or introduced to comply with, such
Directive; or

     

    (x) any
combination of any of the above items;

     

    nor will
Additional Amounts be paid with respect to any payment of principal of or
interest on any Security to any Person who is not a United States Person who is
a fiduciary or partnership or other than the sole beneficial owner of any such
payment, to the extent that a beneficiary or settlor with respect to such
fiduciary, a member of such partnership or the beneficial owner would not have
been entitled to the Additional Amounts had such beneficiary, settlor, member or
beneficial owner been the Holder of any Security of any series.

     

    (b)
Except as specifically provided in this Indenture, the Company shall not be
required to make any payment with respect to any tax, assessment or other
governmental charge imposed by any government or any political subdivision or
taxing authority thereof or therein. Whenever in any Security of any series
there is a reference, in any context, to the payment of the principal of or
interest on, or in respect of, any Security or any related Coupon, such mention
shall be deemed to include mention of the payment of Additional Amounts provided
for herein to the extent that, in such context, Additional Amounts are, were or
would be payable in respect thereof pursuant to the provisions hereof and
express mention of the payment of Additional Amounts (if applicable) in any
provisions hereof shall not be construed as excluding Additional Amounts in
those provisions hereof where such express mention is not made.

     

    (c) If
the payment of Additional Amounts becomes required in respect of the Securities
of a series, at least ten days prior to the first Interest Payment Date with
respect to which such Additional Amounts will be payable (or if the Securities
of that series will not bear interest prior to Maturity, the first day on which
a payment of principal and premium, if any, is made and on which such Additional
Amounts will be payable), and at least ten days prior to each date of payment of
principal and premium, if any, or interest if there has been any change with
respect to the matters set forth in the below mentioned Officers’ Certificate,
the Company will furnish the Trustee and each Paying Agent with an Officers’
Certificate that shall specify by country the amount, if any, required to be
withheld on such payments to holders of Securities or Coupons that are not
United States Persons, and the Company will pay to the Trustee or such Paying
Agent the Additional Amounts, if any, required by the terms of such Securities
and this Section. The Company covenants to indemnify the Trustee and any Paying
Agent for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without negligence or bad faith on their part arising out of
or in connection with actions taken or omitted by any of them in reliance on any
Officers’ Certificate furnished pursuant to this Section 6.02.”

     

    Section
2.7.  Amendments to Section
6.12.  Section 6.12 of the Base Indenture is hereby amended and
restated in its entirety as follows:

     

    
      
        
        

      

      
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    “SECTION
6.12. Payment of Taxes
and Other Claims.  The Company will pay or discharge or cause
to be paid or discharged, as and when the same shall become due and payable, (1)
all material taxes, assessments and governmental charges levied or imposed upon
it or any Subsidiary or upon the income, profits or property of it or any
Subsidiary, and (2) all lawful material claims for labor, materials and supplies
which, if unpaid, might by law become a lien upon the property of it or any
Subsidiary; provided, however, that they shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith
by appropriate proceedings and for which adequate provision has been made on the
financial statements of the Company or the relevant Subsidiary.”

     

    Section
2.8.  Amendments to Section
7.01.

     

    (a)
Section 7.01(b) of the Base Indenture is hereby amended and restated in its
entirety as follows:

     

    “(b) the
Company defaults in the payment of the principal of (or premium, if any, on) any
Security of that series when the same becomes due and payable at maturity, upon
redemption or otherwise, or in the deposit of any sinking fund payment when and
as due by the terms of a Security of that series;”

     

    (b)
Section 7.01(d) of the Base Indenture is hereby amended and restated in its
entirety as follows:

     

    “(d)
there shall be a Default under any bond, debenture, note or other evidence of
Indebtedness for borrowed money or under any mortgage, indenture or other
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or under any
Guarantee of payment by the Company of Indebtedness for money borrowed, whether
such Indebtedness or Guarantee now exists or shall hereafter be incurred or
created, and as a result of such Default such Indebtedness has, by acceleration
under the terms of such bond, debenture, note, mortgage, indenture, Guarantee of
payment or such other evidence of Indebtedness, becomes due prior to its stated
maturity; provided, however, that no Default under this Section 7.01(d) shall
exist if all such Defaults do not relate to such Indebtedness or such Guarantees
with an aggregate principal amount in excess of $100,000,000;”

     

    Section
2.9.  Amendments to Section
10.02(a).  Section 10.02(a) of the Base Indenture is hereby
amended and restated in its entirety as follows:

     

    “(a)
Unless available on EDGAR (in which case the Company shall notify the Trustee of
such availability) the Company shall file with the Trustee, within 30 days after
it files such annual and quarterly reports, information, documents and other
reports with the SEC, copies of its annual report and of the information,
documents and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations prescribe) which the
Company  is required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act.”

     

    Section
2.10.  Amendments to Section
12.02.  The first paragraph of Section 12.02 of the Base
Indenture is hereby amended and restated in its entirety as
follows:

     

    
      
        
        

      

      
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    “SECTION
12.02. Satisfaction
and Discharge of Indenture.  This Indenture, with respect to
the Securities of any series (if all series issued under this Indenture are not
to be affected), shall, upon Company Request, cease to be of further effect
(except as to (A) the rights of holders of Securities of such series to receive
payment of the principal of and premium, if any, and interest on such Securities
when such payments are due, (B) the Company’s obligations with respect to
Securities of such series under Sections 3.04, 3.06, 3.07, 6.03, 12.06 and 12.07
and (C) the rights, powers, trusts, duties and immunities of the Trustee under
Section 12.03) and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture,
when,”.

     

    Section
2.11.  Amendments to Section
12.03(c).  Section 12.03(c) of the Base Indenture is hereby
amended and restated in its entirety as follows:

     

    “(c) No
Event of Default or event (including such deposit) that, with notice or lapse of
time, or both, would become an Event of Default with respect to the Securities
of such series shall have occurred and be continuing on the date of such deposit
or, insofar as Sections 7.01(e) and (f) are concerned, at any time during the
period ending on the 91st day
after the date of such deposit (it being understood that this condition shall
not be satisfied until the expiration of such period); and”

     

    Section
2.12.  Amendments to Section
14.02(a).  Section 14.02(a) of the Base Indenture is hereby
amended and restated in its entirety as follows:

     

    “(a) With
the consent (evidenced as provided in Article Eight) of the holders of a
majority in aggregate principal amount of the Outstanding Securities, the
Company (when authorized by a resolution of the Board of Directors) and the
Trustee may, from time to time and at any time, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any provisions of this Indenture or of
modifying in any manner the rights of the holders of the Securities of such
series to be affected; provided, however, that no such supplemental indenture
shall, without the consent of the holder of each Outstanding Security of each
such series affected thereby,

     

    (i)
extend the Stated Maturity of the principal of, or any installment of interest
on, any Security, or reduce the principal amount thereof or change the rate (or
manner of calculation thereof) of interest thereon or any premium payable upon
redemption thereof, or extend the Stated Maturity of or reduce the amount of any
payment to be made with respect to any Coupon, or change the Currency in which
the principal of and premium, if any, or interest on such Security is
denominated or payable, or reduce the amount of the principal of an Original
Issue Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 7.02, or impair the
right to institute suit for the enforcement of any payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or change any obligation of the Company to pay Additional
Amounts pursuant to Section 6.02 (except as contemplated by Section 6.05(b) and
permitted by Section 14.01), or limit the obligation of the Company to maintain
a paying agency outside the United States for payment on Bearer Securities as
provided in Section 6.03, or limit the obligation of the Company to redeem an
Affected Security as provided in Section 4.02(b); or

     

    
      
        
        

      

      
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    (ii)
reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose holders is required for any supplemental indenture,
or the consent of whose holders is required for any waiver of compliance with
certain provisions of this Indenture or certain Defaults hereunder and their
consequences provided for in this Indenture; or

     

    (iii)
modify any of the provisions of this Section, Section 7.02 or Section 6.06,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of
the holder of each Outstanding Security affected thereby; provided, however,
that this clause shall not be deemed to require the consent of any holder with
respect to changes in the references to “the Trustee” and concomitant changes in
this Section and Section 6.06, or the deletion of this proviso, in accordance
with the requirements of Sections 11.06 and 14.01(f); or

     

    (iv)
modify, without the written consent of the Trustee, the rights, duties or
immunities of the Trustee.”

     

    Section
2.13.  Amendments to Section
15.01(b).  Section 15.01(b) of the Base Indenture is hereby
amended and restated in its entirety as follows:

     

    “(b) Upon
any consolidation or merger, or any sale or lease of all or substantially all of
the assets of the Company, the entity formed by such consolidation or into which
the Company shall have been merged or to which such sale or lease shall have
been made shall succeed to and be substituted for the Company with the same
effect as if it had been named herein as a party hereto, and thereafter from
time to time such entity may exercise each and every right and power of the
Company under this Indenture, in the name of the Company; and any act or
proceeding by any provision of this Indenture required or permitted to be done
by the Board of Directors or any officer of the Company may be done with like
force and effect by the like board or officer of any entity that shall at the
time be the successor of the Company hereunder. In the event of any such sale or
conveyance, but not any such lease, the Company shall be discharged from all
obligations and covenants under this Indenture and the Securities.”

     

     

    ARTICLE
III

    GENERAL
TERMS AND CONDITIONS OF THE NOTES

     

    Section
3.1.  Creation of Series:
Establishment of Form.  In accordance with Section 3.01 of the
Base Indenture, there is hereby created a series of Securities under the
Indenture entitled “Floating Rate Notes Due 2011” (the “Notes”).

     

    (a) The
form of the Notes, including the certificate of authentication is attached
hereto as Exhibit A.

     

    (b) The
Trustee shall authenticate and deliver the Notes for original issue in an
initial aggregate principal amount of $275,000,000 upon a Company Order for the
authentication and delivery of the Notes.  The Company may from time
to time, without notice to or consent of the holders or beneficial owners of the
Notes issue additional notes having the same ranking, interest rate, maturity
and other terms as the Notes in accordance with Section 3.01 of the
Base

     

    
      
        
        

      

      
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    Indenture.  The
Notes issued originally hereunder, together with any additional notes
subsequently issued, shall be treated as a single series for purposes of the
Indenture.

     

    (c) The
aggregate principal amount of the Notes shall be due and payable at the Stated
Maturity therefor on May 6, 2011.

     

    (d) The
per annum rate at which interest on the Notes will be payable during each
Interest Period will be equal to three-month LIBOR, determined on the Interest
Determination Date for that Interest Period, plus 0.60% to Persons in whose
names the Notes are registered at the close of business on the 15th
calendar day preceding the respective Interest Payment Date (the “Record Date”), until
the principal thereof is paid or made available for payment.  If any
Interest Payment Date for the Notes would otherwise be a day that is not a LIBOR
Business Day, such Interest Payment Date shall be the next succeeding LIBOR
Business Day, unless the next succeeding LIBOR Business Day is in the next
succeeding calendar month, in which case such Interest Payment Date shall be the
immediately preceding LIBOR Business Day.

     

    (e) The
amount of interest for each day that the Notes are outstanding (the “Daily Interest
Amount”) will be calculated by dividing the interest rate in effect for
such day by 360 and multiplying the result by the principal amount of the
Notes.  The amount of interest to be paid on the Notes for any
Interest Period will be calculated by adding the Daily Interest Amount for each
day in such Interest Period.

     

    (f) The
interest rate and amount of interest to be paid on the Notes for each Interest
Period will be calculated by the calculation agent.  The Company
hereby appoints the Trustee to act as calculation agent.  All
calculations made by the calculation agent shall in the absence of manifest
error be conclusive for all purposes and binding on the Company and the holders
of the Notes.  So long as three-month LIBOR is required to be
determined with respect to the Notes, there will at all times be a calculation
agent. In the event that any then acting calculation agent shall be unable or
unwilling to act, or that such calculation agent shall fail duly to establish
LIBOR for any Interest Period, or that the Company proposes to remove such
calculation agent, the Company shall appoint itself or another person which is a
bank, trust company, investment banking firm or other financial institution to
act as the calculation agent.

     

    (g) All
amounts payable in connection with the Notes shall be denominated and payable in
the lawful currency of the United States.

     

    (h) The
Notes shall be payable and may be presented for registration of transfer and
exchange, without service charge, at the office of the Company maintained for
such purpose in the State of New York, City of New York, Borough of Manhattan,
which shall initially be the office or agency of the Trustee.

     

    (i) The
Notes may not be redeemed by the Company prior to the Stated
Maturity.

     

    (j) There
shall be no sinking fund provided for the Notes.

     

    (k) The
Notes will be unsecured and unsubordinated obligations and will rank equally in
right of payment to all of the other existing and future unsecured senior
indebtedness of the Company.

     

    
      
        
        

      

      
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    (l) The
Notes are issuable only in registered form without coupons in minimum
denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

     

    (m) The
Notes are subject to the defeasance provisions of the Indenture.

     

     

    ARTICLE
IV

    GLOBAL
SECURITIES

     

    Section
4.1.  Form.  The
Notes shall initially be issued in the form of one or more Global
Securities.  The Company shall execute and the Trustee or the
Authenticating Agent shall authenticate and deliver such Global Security or
Securities in the manner provided for in Article II of the
Indenture.

     

    Section
4.2.  Transfer.  Notwithstanding
any other provisions herein, unless the terms of a Global Security expressly
permit such Global Security to be exchanged in whole or in part for Notes in
certificated form, a Global Security may be transferred, in whole but not in
part and in the manner provided in Section 3.06 of the Base Indenture, only to a
nominee of the Depositary for such Global Security, or to the Depositary, or a
successor Depositary for such Global Security selected or approved by the
Company, or to a nominee of such successor Depositary.

     

    Section
4.3.  Notes
in Certificated Form.

     

    (a) If at
any time the Depositary for a Global Security notifies the Company that it is
unwilling or unable to continue as Depositary for such Global Security or if at
any time the Depositary for the Notes ceases to be a clearing agency registered
under the Exchange Act or other applicable statute or regulation, the Company
shall appoint a successor Depositary with respect to such Global
Security.  If a successor Depositary for such Global Security is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such ineligibility, the Company shall execute, and the
Trustee or the Authenticating Agent, upon receipt of a written request by the
Company for the authentication and delivery of Notes in certificated form in
exchange for such Global Security, shall authenticate and deliver, Notes in
certificated form in an aggregate Principal Amount equal to the outstanding
Principal Amount of the Global Security in exchange for such Global
Security.

     

    (b) The
Company may at any time and in its sole discretion determine that the Notes or
portion thereof issued or issuable in the form of one or more Global Securities
shall no longer be represented by such Global Security or
Securities.  In such event the Company shall execute, and the Trustee
or the Authenticating Agent, upon receipt of a written request by the Company
for the authentication and delivery of Notes in certificated form in exchange in
whole or in part for such Global Security, shall authenticate and deliver Notes
in certificated form in an aggregate Principal Amount equal to the outstanding
Principal Amount of such Global Security or Securities representing such series
or portion thereof in exchange for such Global Security or
Securities.

     

    (c) If
specified by the Company with respect to Notes issued or issuable in the form of
a Global Security, the Depositary for such Global Security may surrender such
Global Security in exchange in whole or in part for Notes in certificated form
on such terms as are

     

    
      
        
        

      

      
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    acceptable
to the Company and such Depositary.  Thereupon the Company shall
execute, and the Trustee or the Authenticating Agent shall authenticate and
deliver, without service-charge, (1) to each Person specified by such Depositary
a new Note or Notes of any authorized denomination as requested by such Person
in an aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the Global Security; and (2) to such Depositary a new
Global Security in an authorized denomination equal to the difference, if any,
between the Principal Amount of the surrendered Global Security and the
aggregate Principal Amount of Notes delivered to the holders
thereof.

     

    In any
exchange provided for in any of the preceding three paragraphs, the Company
shall execute and the Trustee or the Authenticating Agent shall authenticate and
deliver Notes in certificated form in authorized denominations.  Upon
the exchange of the entire principal amount of a Global Security for Notes in
certificated form, such Global Security shall be canceled by the Trustee or the
Registrar.  Except as provided in the preceding paragraph, Notes
issued in exchange for a Global Security pursuant to this Section shall be
registered in such names and in such authorized denominations as the Depositary
for such Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee or the
Registrar.  The Trustee or the Registrar shall deliver such Notes to
the Persons in whose names such Notes are so registered.

     

     

    ARTICLE
V

    MISCELLANEOUS

     

    Section
5.1.  Effectiveness of Amendments
to Indenture.  This Supplemental Indenture shall become
effective as of the date hereof; provided, however, that it shall have no effect
on any series of Securities or Coupons that have already been issued under the
Base Indenture prior to the date hereof, whether or not
Outstanding.

     

    Section
5.2.  Indenture to Remain in Full
Force and Effect.  Except as hereby expressly provided, the
Indenture, as supplemented and amended by this Supplemental Indenture, is in all
respects ratified and confirmed and all its terms, provisions and conditions
shall be and remain in full force and effect.

     

    Section
5.3.  Application of Supplemental
Indenture.  Notwithstanding anything else to the contrary
herein, the terms and provisions of this Supplemental Indenture shall apply only
to future series of Securities issued under the Indenture and shall not apply to
any other series of Securities that have been issued under the Indenture prior
to the date hereof and this Supplemental Indenture shall not and does not
otherwise affect, modify, alter, supplement or change the terms and provisions
of any such previously issued series of Securities or Coupons under the Base
Indenture, whether or not Outstanding.

     

    Section
5.4.  Trust
Indenture Act Controls. The Indenture is subject to the provisions of the
Trust Indenture Act which are required to be part of the Indenture, and shall,
to the extent applicable, be governed by such provisions.  If and to
the extent that any provision of this Supplemental Indenture limits, qualifies
or conflicts with the duties imposed by, or another provision included in this
Supplemental Indenture which is required to be included in this

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Supplemental
Indenture by any of the provisions of Sections 310 to 318, inclusive, of the
Trust Indenture Act, such imposed duties or incorporated provision shall
control.

     

    Section
5.5.  Governing
Law.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THE APPLICATION OF THE
LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     

    Section
5.6.  Severability.  In
case any provision in this Supplemental Indenture is invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     

    Section
5.7.  Counterparts.  This
Supplemental Indenture may be executed in one or more counterparts, each of
which shall be deemed an original, but all such counterparts together constitute
but one and the same instrument.

     

    Section
5.8.  No
Representation and Indemnification.  The recitals contained
herein are made by the Company and not by the Trustee, and the Trustee assumes
no responsibility for the correctness thereof.  The Trustee makes no
representation as to the validity or sufficiency of this Supplemental
Indenture.  All rights, protections, privileges, indemnities and
benefits granted or afforded to the Trustee (including, without limitation its
right to be indemnified)  under the Base Indenture shall be deemed
incorporated herein by this reference and shall be deemed applicable to all
actions taken, suffered or omitted by the Trustee in each of its capacities
under this Supplemental Indenture, including Calculation Agent.

    

     

    [Remainder of page intentionally left
blank.]

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to
be duly executed as of the date and year first above written.

     

    
      
        	 	COCA-COLA ENTERPRISES INC.,	 
	 	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	S/
      JOYCE KING-LAVINDER	 
	 	 	Name: 	Joyce
      King-Lavinder	 
	 	 	Title: 	Vice
      President and Treasurer	 
	 	 	 	 

      

    

     

     

     

     

     

     

     

     

     

    
      
        Supplemental
Indenture

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        
          	 	DEUTSCHE BANK TRUST COMPANY
	 	AMERICAS	 
	 	 	 	 
	 	 	 	 
	
                   

                	
                  By:
      

                	S/
      RICHARD L. BUCKWATER	 
	 	 	Name: 	Richard
      L. Buckwater	 
	 	 	Title: 	Director	 
	 	 	 	 

        

      

      
         

        
          
            	
                     

                  	
                    By:
      

                  	S/
      ANNIE JAGHATSPANYAN	 
	 	 	Name: 	Annie
      Jaghatspanyan	 
	 	 	Title: 	Assistant
      Vice President	 
	 	 	 	 

          

        

         

         

         

         

         

         

         

        
          
            Supplemental
Indenture

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

    EXHIBIT
AExhibit 10-1

                THIS CONTRACT IS SUBJECT TO ARBITRATION PURSUANT
                  TO THE SOUTH CAROLINA UNIFORM ARBITRATION ACT

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

         This  Amended and Restated  Agreement  (as amended and  restated,  this
"Agreement") is entered into as of the 7th day of December, 2007, by and between
COMMUNITY   BANKSHARES,   INC.  (the  "Company"),   and  SAMUEL  L.  ERWIN  (the
"Employee").

                                    RECITALS:

         A. The Company and the Employee entered into an Employment Agreement as
of January 1, 2005 (the "Original Agreement").

         B. The Company  wishes to continue to employ  Employee as an  executive
officer and to assure the Employee's  continued employment with the Company, and
the Employee has agreed to continue to accept such employment.

         C. The Company and the Employee  continue to mutually desire that their
employment  relationship  be set forth  under the terms of a written  employment
agreement.

         D. The Company and the Employee desire to amend the Original  Agreement
in compliance  with Internal  Revenue Code Section 409A and  associated  federal
regulations.

         In  consideration  of the  foregoing  and of the  promises  and  mutual
agreements  set forth  below,  and other good and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged,  the parties hereto do
hereby agree to amend and restate the Original Agreement as follows:

         1.  Employment.  The  Company  agrees to employ the  Employee,  and the
Employee agrees to accept employment and to serve the Company,  on the terms and
conditions set forth herein.

         2. Term of  Employment.  The employment of the Employee by the Company,
as  provided  under  Section  1,  commenced  on January 1, 2005 and shall end on
January 1, 2008 (the "Term of  Employment")  unless further  extended in writing
with express  reference to this  Agreement or sooner  terminated as  hereinafter
provided.  Commencing  on  January  1,  2008,  and on  each  annual  anniversary
thereafter,  the Term of  Employment  shall  automatically  be  extended  for an
additional year unless 90 days prior to the anniversary the Company gives notice
to the Employee  that the Term of  Employment  will not be  extended.  Except as
otherwise provided expressly herein, the provisions of this Agreement related to
Employee's  employment  will not apply after the Term of Employment  has expired
and any continuing employment of the Employee thereafter will be at-will and not
subject to the terms and conditions of this Agreement.

<PAGE>

         3. Position and Duties.  The Employee shall serve on a full-time  basis
as Chief  Executive  Officer of the Company and shall have the  authority and be
responsible  for all duties and  responsibilities  as set forth in Appendix A to
this Agreement and shall assume such additional  responsibilities  and authority
as may from time to time be  assigned  to him by the Board of  Directors  of the
Company.  The Employee shall perform his responsibilities and duties in the best
interests of the Company.

         4. Place of Performance.  In connection with the Employee's  employment
hereunder,  the Employee  shall be based  initially at the  Company's  corporate
headquarters located in Orangeburg, South Carolina, subject to reasonable travel
or  relocation  as  necessary  to carry out the  business of the Company and his
duties hereunder.

         5.  Compensation  and  Benefits.  In  consideration  of the  Employee's
performance of his duties hereunder, the Company shall provide the Employee with
the following compensation and benefits during the Term of Employment hereunder.

                  a. Base Salary.  During  2007,  Employee  shall  receive a per
         annum base  salary of  $204,250.00;  and during  2008,  Employee  shall
         receive a per annum base salary of  $219,570.00.  After the first three
         years of his employment,  and during the Term of Employment  under this
         Agreement,  the Company's Board of Directors  periodically  will review
         and may increase (but not decrease)  the  Employee's  base salary rate,
         all in accordance with the Company's salary administration policies and
         procedures  in effect  from time to time,  and each  change in the base
         salary  amount  listed in this Section shall become the new base salary
         amount.  Base salary shall be payable in equal  installments in arrears
         on the last day of the month or on such other  payroll  schedule  as is
         used by the Company  for other  employees.  The  Company  shall have no
         obligation  to  increase  the  Employee's   base  salary  rate  at  any
         particular  time or in any  particular  amount,  and any such  increase
         shall be in the sole and absolute  discretion of the Board of Directors
         of the Company.

                  b. Bonus and Incentive  Compensation.  For 2007,  the Employee
         shall be eligible for a potential maximum bonus of $45,750.00;  and for
         2008, the Employee  shall be eligible for a potential  maximum bonus of
         $55, 430.00. The eligibility criteria for such bonuses are set forth in
         Appendix  B hereto.  After his first  three  years of  employment,  the
         Company  shall pay to the  Employee  with  respect  to each  subsequent
         fiscal year during the Term of Employment  hereunder,  such cash bonus,
         if any, as shall be determined  pursuant to a bonus plan adopted by the
         Board of Directors of the Company for key  employees.  Any such bonuses
         shall be paid on the 15th day of the third month  following  the end of
         the  calendar  year in which  such bonus is earned.  In  addition,  and
         without diminution of any other compensation or benefit provided for in
         this   Agreement,   the  Employee  may  be  given  the  opportunity  to
         participate in other incentive  compensation  plans that may be adopted
         by the Company,  which participation  opportunity may be offered to the
         Employee  in the  sole  discretion  of the  Board of  Directors  of the
         Company.

                                       2
<PAGE>

                  c. Stock Options.  The Company has  previously  granted to the
         Employee  pursuant to the Original  Agreement  nonqualified  options to
         purchase  30,000  shares of the Company's  common  stock.  The exercise
         price of all of the  options is equal to the fair  market  value of the
         Company's  common stock on the dates of grant, as determined  under the
         Company's 1997 Stock Option Plan. Each set of options vested upon grant
         and shall be exercisable  for a period of five years after the dates of
         grant.

                  d.  Automobile  Allowance.   The  Company  shall  provide  the
         Employee with a $9,000.00 annual automobile allowance.

                  e. Life Insurance. The Company shall provide the Employee with
         one or more life insurance  policies  insuring the life of the Employee
         with an aggregate  death  benefit of at least  $1,000,000  payable to a
         beneficiary  or  beneficiaries  designated  by the  Employee  or to the
         estate of the Employee.  Employee  shall  cooperate with the Company in
         obtaining such policy or policies.

                  f.  Country  Club and Civic Club Dues.  The Company  shall pay
         reasonable dues on behalf of the Employee for one country club approved
         by the  Compensation  Committee  of the Board and shall pay  reasonable
         dues for civic  organizations  to which the  Employee  belongs  for the
         benefit of the Company and which have been approved by the Compensation
         Committee of the Board.

                  g. Deferred  Compensation.  The Employee  shall be entitled to
         participate  in the  Company's  401(k) Plan and the Company shall match
         100% of the first 3% of salary that the Employee defers each year.

                  h. Health and Dental  Insurance.  The Company will provide the
         Employee with health and dental insurance coverage on the same basis as
         such coverage is provided for other executive officers of the Company.

                  i. Expenses.  The Company shall reimburse the Employee for all
         proper and reasonable  out-of-pocket  expenses incurred by the Employee
         in his performance of services  hereunder,  including all such expenses
         of travel and living  expense  while away from home on  business of the
         Company and mileage for  out-of-town  business  use of his  automobile,
         provided   that  such  expenses  are  incurred  and  accounted  for  in
         accordance with the regular policies and procedures  established by the
         Company from time to time.

                  j.  Vacations.  The Employee  shall be entitled to 15 vacation
         days in each calendar year, as well as to all paid holidays provided by
         the Company to its employees.  The Employee will not be entitled to any
         additional pay for unused vacation.

                  k. Moving Expenses.  The Company shall either pay directly, or
         reimburse the Employee for, reasonable expenses of moving his residence
         to Orangeburg, South Carolina.

                                       3
<PAGE>

                  l. Other Benefits.  The Employee shall be entitled to share in
         any other employee  benefits  generally  provided by the Company to its
         most highly ranking executives for so long as the Company provides such
         benefits.  The Employee  shall also be entitled to  participate  in all
         other benefits accorded generally to Company employees.

         6. Compensation and Benefits in the Event of Termination.  In the event
of the  termination  of the  Employee's  employment  by  the  Company  or by the
Employee during the term of this Agreement,  compensation  and benefits shall be
paid as set forth below.

                  a. Definitions.  For purposes of this Agreement, the following
         terms shall have the meanings indicated:

                           (i) "Cause" shall mean:

                                    (A) the breach by Employee  of any  material
                           provision of this  Agreement,  provided  that Company
                           gives the Employee  written notice of such breach and
                           such  breach is not  cured  within  thirty  (30) days
                           thereafter;

                                    (B) the willful and continued failure by the
                           Employee to  substantially  perform his duties  under
                           this Agreement  (other than the Employee's  inability
                           to perform, with or without reasonable accommodation,
                           resulting  from his  incapacity  due to  physical  or
                           mental  illness  or  impairment),  after a demand for
                           substantial  performance  is  delivered to him by the
                           Company,  which demand  specifically  identifies  the
                           manner in which the  Employee  is alleged to have not
                           substantially performed his duties;

                                    (C) the willful  engaging by the Employee in
                           misconduct (criminal,  immoral or otherwise) which is
                           materially injurious to the Company, its subsidiaries
                           or    their    respective    officers,     directors,
                           shareholders,  employees, or customers, monetarily or
                           otherwise;

                                    (D) the Employee's conviction of a felony;

                                    (E)  the  commission  in the  course  of the
                           Employee's   employment   of   an   act   of   fraud,
                           embezzlement,  theft  or  proven  dishonesty,  or any
                           other illegal act or practice, which would constitute
                           a  felony,  (whether  or not  resulting  in  criminal
                           prosecution or conviction),  or the commission of any
                           act or  practice  which  resulted  in the  Employee's
                           becoming  unbondable  under the  Company's  "banker's
                           blanket bond;" or

                                    (F)  the   suspension   or  removal  of  the
                           Employee, or the issuance of an order prohibiting the
                           Employee from  associating with the Company or any of
                           its   subsidiaries,   by  federal  or  state  banking
                           regulatory  authorities acting under lawful authority
                           pursuant  to  provisions  of  federal or state law or
                           regulation which may be in effect from time to time.

                                       4
<PAGE>

                           (ii) A "Change of Control"  of the  Company  shall be
                  deemed to have been effected for purposes of this Agreement on
                  the date:

                                    (A) any one person,  or more than one person
                           acting as a group, acquires ownership of stock of the
                           Company that, together with stock held by such person
                           or  group,  constitutes  more  than 50% of the  total
                           voting power of the Company's stock; or

                                    (B) any one person,  or more than one person
                           acting as a group,  acquires within a 12-month period
                           ownership of the Company's stock possessing more than
                           50% of the total voting power of the Company's stock;
                           or

                                    (C) the  Company is merged  with or into any
                           other entity and the persons who were shareholders of
                           the  Company  immediately  prior to the merger do not
                           continue to own stock having voting control over more
                           than 50% of the voting  securities  of the  surviving
                           entity immediately after the merger.

                           (iii) "Date of Termination" shall mean:

                                    (A)  if   the   Employee's   employment   is
                           terminated by reason of his death, his date of death;

                                    (B)  if   the   Employee's   employment   is
                           terminated  for  Disability,  thirty  (30) days after
                           Notice of  Termination  is given  (provided  that the
                           Employee  shall not have returned to the  performance
                           of his duties as provided under sub-paragraph (iv) of
                           this paragraph 6.a); or

                                    (C)  if   the   Employee's   employment   is
                           terminated  for Good Reason,  the 31st day  following
                           the date of  Employee's  notice to the Company of the
                           existence of a condition constituting Good Reason, if
                           the Company shall have failed to remedy the condition
                           by the end of the  30th  day  following  the  date of
                           Employee's notice; or

                                    (D)  if   the   Employee's   employment   is
                           terminated  by action  of either  party for any other
                           reason,   the  date   specified   in  the  Notice  of
                           Termination; provided, however, that if within thirty
                           (30) days after any Notice of  Termination  is given,
                           the  party   receiving  such  Notice  of  Termination
                           notifies  the  other  party  that  a  dispute  exists
                           concerning the  termination,  the Date of Termination
                           shall be the date on which  the  dispute  is  finally
                           resolved,  either by mutual written  agreement of the
                           parties, or by a final arbitration award or judgment,
                           order or decree of a court of competent  jurisdiction
                           (the time for appeal  therefrom having expired and no
                           appeal having been perfected).

                                       5
<PAGE>

                           (iv) "Disability" or "Disabled" shall mean:

                                    (A) the  Employee is unable to engage in any
                           substantial   gainful   activity  by  reason  of  any
                           medically  determinable physical or mental impairment
                           that can be  expected  to  result  in death or can be
                           expected to last for a continuous  period of not less
                           than 12 months; or

                                    (B)  the  Employee  is,  by  reason  of  any
                           medically  determinable physical or mental impairment
                           that can be  expected  to  result  in death or can be
                           expected to last for a continuous  period of not less
                           than 12 months, receiving income replacement benefits
                           for a period of not less than three  months  under an
                           accident  and health plan  covering  employees of the
                           Company; or

                                    (C) the Employee has been  determined  to be
                           totally    disabled    by   the    Social    Security
                           Administration or Railroad Retirement Board; or

                                    (D) the Employee has been  determined  to be
                           disabled in  accordance  with a disability  insurance
                           program provided by the Company and in which Employee
                           participates,   provided   that  the   definition  of
                           disability  applied under such  disability  insurance
                           program  complies with the requirements of (A) or (B)
                           of this subparagraph (iv) listed above.

                           (v) "Good Reason" for termination of employment shall
                  mean, without Employee's consent :

                                    (A)  Failure by the  Company to comply  with
                           any material provision of this Agreement; or

                                    (B) A material  diminution of the Employee's
                           authority and duties hereunder; or

                                    (C) A material  diminution in the Employee's
                           base compensation;

                           provided, however, the Employee must give the Company
                           notice  of  the  existence  of  one  or  more  of the
                           conditions set forth in this subsection 6.a(v) within
                           90 days after the initial existence of the condition,
                           and the  Company  shall  have 30 days to  remedy  the
                           condition.

                           Any  termination  of  employment by Employee for Good
                           Reason shall constitute an involuntary termination of
                           employment.

                           (vi)  "Notice  of  Termination"  shall mean a written
                  notice which shall include the specific termination  provision

                                       6
<PAGE>

                  under  this  Agreement  relied  upon,  and  shall set forth in
                  reasonable  detail  the facts  and  circumstances  claimed  to
                  provide a basis for termination of the Employee's  employment.
                  Any  purported   termination  of  the  Employee's   employment
                  hereunder by action of either party shall be  communicated  by
                  delivery of a Notice of Termination to the other party, except
                  in the event of Employee's  death or termination of employment
                  by the Employee for Good Reason. Any purported  termination of
                  the  Employee's  employment  by action of the Company which is
                  not  effected  pursuant  to  a  Notice  of  Termination  shall
                  constitute a material breach of this Agreement.

                           (vii)  "Retirement"  shall  mean  termination  of the
                  Employee's   employment  pursuant  to  the  Company's  regular
                  retirement  policy  applicable  to the  position  held  by the
                  Employee at the time of such termination.

                           (viii)  "Board of  Directors"  shall include any duly
                  authorized committee of the Board of Directors.

                  b. Termination Within Six Months After a Change of Control.

                           (i) If (i) within six months  following the effective
                  date of Change of Control, Employee's employment is terminated
                  by the Company,  or (ii) Employee  notifies the Company within
                  six months following the effective date of a Change of Control
                  of the existence of a condition  constituting  Good Reason for
                  termination  of  his  employment,  and  Employee's  employment
                  subsequently  terminates as a result of the Company's  failure
                  to remedy the condition by the end of the cure period provided
                  in the definition of Good Reason,  then upon such  termination
                  Employee  shall be  entitled  to a lump sum  payment  equal to
                  twice the  Employee's  annual base salary  amount in effect at
                  the Date of Termination;  provided, however, if Employee shall
                  have  terminated his employment for Good Reason as a result of
                  a material  diminution in his base  compensation,  his "annual
                  base salary" for purposes of this subsection 6.b(i) shall mean
                  his annual base salary as in effect  immediately prior to such
                  material diminution in base compensation. Any payment pursuant
                  to this Section 6.b(i) shall be made within five business days
                  following  the  Date  of  Termination,  except  to the  extent
                  Section 19 of this Amended Agreement applies. If, however, the
                  amount of any such  lump sum  payment,  plus any other  amount
                  treated  as a  parachute  payment  under  Section  280G of the
                  Internal  Revenue  Code,  as amended,  (the "Code")  equals or
                  exceeds the base amount  described in such Section 280G,  then
                  the amount due hereunder  shall be adjusted to have a value of
                  three times the base amount under Section 280G less $100.

                           (ii) This paragraph 6.b. was initially  effective for
                  a period of five years from the effective date of the Original
                  Agreement;  provided,  however,  that commencing on January 1,
                  2006,  and  on  each  annual   anniversary   thereafter,   the
                  effectiveness  of this paragraph 6.b. shall  automatically  be
                  extended for an additional  year,  unless 30 days prior to the
                  anniversary  the Company gives notice to the Employee that the
                  effectiveness of this paragraph 6.b. will not be extended.

                                       7
<PAGE>

                           (iii) Any amount paid under this  paragraph 6.b. will
                  be deemed  severance pay.  Employee will not be under any duty
                  to  mitigate  damages  and  no  income  received  by  employee
                  thereafter shall reduce the amount due Employee hereunder.

                           (iv) If Employee should die after the occurrence of a
                  Change of Control and while any amount  would still be payable
                  to Employee  hereunder if Employee  had  continued to live but
                  not be in the employ of the Company, all such amounts,  unless
                  otherwise  provided  herein,  shall be paid in accordance with
                  the terms of this  Agreement  to  Employee's  devisee or other
                  designee  or,  if there be no such  devisee  or  designee,  to
                  Employee's estate.

                  c.  Termination  by the Company for Cause,  Termination by the
         Employee  other than for Good  Reason,  or  Termination  as a result of
         Disability,   Death,  or  Retirement.   If  the  Employee's  employment
         hereunder is terminated  during the Term of Employment by action of the
         Company  for  Cause,  by action  of the  Employee  other  than for Good
         Reason, or by reason of the Employee's death,  Disability or Retirement
         and the provisions of paragraph 6.b. above do not apply,  the following
         compensation  and benefits  shall be paid and provided the Employee (or
         his  beneficiary)  within  five  business  days  following  the Date of
         Termination:

                           (i)  The  Employee's   base  salary   provided  under
                  paragraph a. of Section 5 through the last day of the month in
                  which the Date of  Termination  occurs,  at the annual rate in
                  effect at the time  Notice of  Termination  is given (or death
                  occurs),   to  the  extent   unpaid  prior  to  such  Date  of
                  Termination;

                           (ii) Any bonus under  paragraph b. of Section 5 which
                  has been  awarded  prior to the  Date of  Termination,  to the
                  extent unpaid prior to such date;

                           (iii)  Any  benefits  to which the  Employee  (or his
                  beneficiary)  may be entitled as a result of such  termination
                  under the  terms  and  conditions  of the  pertinent  plans or
                  arrangements   in  effect  at  the  time  of  the   Notice  of
                  Termination under Section 5; and

                           (iv) Any amounts  due the  Employee  with  respect to
                  paragraphs  i.  and  k.  of  Section  5  as  of  the  Date  of
                  Termination.

                  d.  Termination by the Employee for Good Reason or Termination
         by the  Company  other  than for  Cause.  In the event  the  Employee's
         employment  hereunder is terminated during the Term of Employment other
         than by reason of the Employee's death,  Disability or Retirement,  and
         by action of the Employee for Good Reason,  or by action of the Company
         other than for Cause, and the provisions of paragraph 6.b. above do not
         apply,  the Company shall pay and provide the Employee the compensation
         and benefits  stipulated under paragraph 6.c.  immediately above within
         five  business  days  following  the  Date  of  Termination;  provided,
         however,   in  addition  thereto  and  without  setoff,  the  following
         compensation shall be paid and provided the Employee:

                                       8
<PAGE>

                           (i)  For the  Term  of  Employment  that  would  have
                  remained  immediately  prior to the Date of Termination  under
                  this Agreement but for the termination,

                                    (A) the Company shall continue to pay to the
                           Employee the base salary provided for in Section 5.a.
                           above (at the  Employee's  base salary rate  provided
                           for in that Section  immediately prior to the Date of
                           Termination;  provided,  however,  if Employee  shall
                           have  terminated  his employment for Good Reason as a
                           result  of  a   material   diminution   in  his  base
                           compensation,  his "annual  base salary" for purposes
                           of this  subsection  6.d(i)(A)  shall mean his annual
                           base  salary as in effect  immediately  prior to such
                           material diminution in base compensation); and

                                    (B)  at  its  sole  cost  and  expense,  the
                           Company will  continue to provide the  Employee  with
                           the  insurance  coverages  he  would  have had had he
                           remained  as an  employee  of  the  Company  or  with
                           insurance coverages substantially equivalent thereto,
                           or,  at the  Company's  request  (and so long as such
                           coverage  reasonably  can be obtained by the Employee
                           himself),  the  Employee  will  obtain  substantially
                           equivalent   insurance   coverages   from   insurance
                           companies chosen by him and the Company promptly will
                           reimburse   Employee  for  premium   costs   actually
                           incurred by him from time to time for the same.

                           (ii) If  termination  pursuant to this paragraph 6.d.
                  shall  occur  during  the last  twelve  months  of the Term of
                  Employment, the Employee shall be entitled to receive the base
                  salary  pursuant to Section  5.a. and the  insurance  benefits
                  discussed  immediately  above for a period  of  twelve  months
                  subsequent to such termination.

                           (iii) The base salary shall continue to be payable in
                  equal installments in arrears on the last day of the month.

         Provided,  however,  if the payment under this paragraph  6.d.,  either
         alone or together with other  payments which the Employee has the right
         to receive from the Company,  would constitute a parachute  payment (as
         defined in Section  280G of the  Code),  then the amount due  hereunder
         shall be adjusted to have a value of three times the base amount  under
         Section 280G less $100.

         7.       Confidentiality.

                  a. The Employee  recognizes  that his  activities on behalf of
         the Company require  considerable  responsibility and trust. Relying on
         the ethical responsibilities and undivided loyalty of the Employee, the
         Company has and will and its  subsidiaries  have and will in the future
         entrust the Employee with highly sensitive confidential, restricted and
         proprietary information involving Confidential  Information (as defined
         below).

                                       9
<PAGE>

                  b.  For  the   purposes  of  this   Agreement,   "Confidential
         Information"  means any data or  information,  that is  material to the
         Company or its subsidiaries,  and not generally known by the public. To
         the  extent  consistent  with the  foregoing  definition,  Confidential
         Information includes (without  limitation):  (i) the financial records,
         marketing,  profit and performance reports,  pricing manuals,  training
         manuals,  marketing and pricing  procedures,  financing  methods of the
         Company  or its  subsidiaries,  and all other  business  records of the
         Company or its  subsidiaries;  (ii) the  identities of the customers of
         the Company or its  subsidiaries,  their  specific  demands,  and their
         current and  anticipated  requirements  for the products or services of
         the Company or its subsidiaries;  (iii) the business plans and internal
         financial   statements   and   projections   of  the   Company  or  its
         subsidiaries;  and (iv) the  specifics of any  specialized  products or
         services the Company or its  subsidiaries may offer or provide to their
         customers.

                  c. The  Employee  recognizes  the  proprietary  and  sensitive
         nature of the Company's and its subsidiaries' Confidential Information.
         The  Employee  agrees  to  abide  by  all  of  the  Company's  and  its
         subsidiaries'   rules  and   procedures   designed  to  protect   their
         Confidential   Information  and  to  preserve  and  maintain  all  such
         information in strict  confidence  during the Employee's  employment by
         the  Company and as long  thereafter  as the  Confidential  Information
         remains,  in the sole  opinion  of the  Company  and its  subsidiaries,
         proprietary and confidential to the Company and its  subsidiaries.  The
         Employee  agrees  not to  use,  disclose  or in any  other  way  use or
         disseminate  any  Confidential  Information  to any person not properly
         authorized by the Company or its subsidiaries.

         8. Return of  Materials.  Upon the request of the  Company,  and in any
event,  upon the  termination  of the Employee's  employment,  the Employee must
return to the  Company or its  subsidiaries,  and leave at the  disposal  of the
Company or its subsidiaries,  all memoranda, notes, records, and other documents
pertaining  to  the  business  of  the  Company  and  its  subsidiaries,  or the
Employee's  specific  duties  for such  entities  (including  all copies of such
materials).  The Employee must also return to the Company and its  subsidiaries,
and leave at the  disposal of the Company and its  subsidiaries,  all  materials
involving any Confidential Information of the respective entities.

         9. Implementation. The covenants contained herein shall be construed as
covenants independent of one another, and as obligations distinct from any other
contract  between the Employee and the Company.  Any claim the Employee may have
against the Company shall not constitute a defense to enforcement by the Company
of this  Agreement.  The  covenants  made by the Employee  herein shall  survive
termination  of  the  Employee's  employment,   regardless  of  who  causes  the
termination and under what circumstances.

         10. Restrictive  Covenant. In consideration of the Company's employment
of the Employee,  the Employee agrees that, in addition to any other limitation,
prior to the end of the Term of Employment hereunder, the Date of Termination or
the completion of base salary payments pursuant to Section 6.d. above, whichever
is later,  he will not,  within a twenty-five  (25) mile radius of any operating

                                       10
<PAGE>

office  of  the  Company,  or any of its  subsidiaries,  manage,  operate  or be
employed by,  participate in, or be connected in any manner with the management,
operation,  or control of any business  engaged in the  businesses  in which the
Company and any or its subsidiaries are engaged on the Date of Termination.  The
Employee further agrees,  regardless of the  circumstances of the termination of
employment, that for a period of twelve (12) months after the termination of his
employment  hereunder,  or the  completion of base salary  payments  pursuant to
section 6.d. above,  he will not solicit the business or patronage,  directly or
indirectly, from any customers of the Company or any of its subsidiaries and the
Employee  will not seek to or assist  others to  persuade  any  employee  of the
Company  engaged in similar work or related to the Company's work to discontinue
employment  with the Company or seek employment or engage in any business of the
Company.  Furthermore,  the Employee will not communicate to any person, firm or
corporation any information related to customer lists, prices,  secrets or other
Confidential  Information  which he might from time to time acquire with respect
to the business of the Company or its subsidiaries,  or any of their affiliates.
The Employee agrees to disclose the contents of this Agreement to any subsequent
employer for a period of twelve (12) months  following the Date of  Termination,
or  completion  of base salary  payments  pursuant to 6.d.  above,  whichever is
later.

         11. Remedies for Breach of Employment Contract.  Irreparable harm shall
be  presumed  if the  Employee  or the  Company  breaches  any  covenant of this
Agreement.  The faithful  observance  of all  covenants in this  Agreement is an
essential condition to the Employee's employment,  and the parties are depending
upon absolute compliance.  Damages would probably be very difficult to ascertain
if any nonmonetary  covenant in this Agreement were breached.  This Agreement is
intended to protect the proprietary  rights of the Company and its  subsidiaries
in many  important  ways.  In light of these facts,  the parties  agree that any
court of competent  jurisdiction  should  immediately  enjoin any breach of this
Agreement,  upon  the  request  of  the  nonbreaching  party,  and  the  parties
specifically  release the other party,  from the requirement to post any bond in
connection with a temporary or interlocutory  injunctive  relief,  to the extent
permitted by law.

         12.  Withholding.  Any  provision  of this  Agreement  to the  contrary
notwithstanding,  all payments made by the Company  hereunder to the Employee or
his estate or beneficiaries shall be subject to the withholding of such amounts,
if  any,  relating  to tax and  other  payroll  deductions  as the  Company  may
reasonably  determine  should be  withheld  pursuant  to any  applicable  law or
regulation.  In lieu of withholding  such amounts,  the Company may accept other
provisions to the end that they have sufficient  funds to pay all taxes required
by law to be withheld in respect of any or all such payments.

         13. Notices.  All notices,  requests,  demands and other communications
provided  for by this  Agreement  shall be in writing and shall be  sufficiently
given if and when  mailed in the  continental  United  States by  registered  or
certified mail, or personally  delivered to the party entitled  thereto,  at the
address stated below or to such changed  address as the addressee may have given
by a similar notice:

         To the Company:  Community Bankshares, Inc.
                          102 Founders Court
                          Orangeburg, South Carolina 29118

                                       11
<PAGE>

         With a copy to:  George S. King, Jr., Esq.
                          Haynsworth Sinkler Boyd, P.A.
                          1201 Main Street, 22nd Floor
                          Columbia, South Carolina 29201

         To the Employee: Samuel L. Erwin
                          102 Founders Court
                          Columbia, South Carolina 29218

         14. Successors;  Binding  Agreement.  This Agreement shall inure to the
benefit  of  and  be   enforceable   by  the   Employee's   personal   or  legal
representatives,  executors,  administrators,  successors,  heirs, distributees,
devisees and legatees.  If the Employee  should die while any amount would still
be payable to him  hereunder  if he had  continued  to live,  all such  amounts,
except to the extent otherwise  provided under this Agreement,  shall be paid in
accordance with the terms of this Agreement to his devisee or other designee, or
if there be no such devisee or designee, to the Employee's estate.

         15. Modification,  Waiver or Discharge.  No provision of this Agreement
may be  modified,  waived or  discharged  unless such  waiver,  modification  or
discharge  is agreed to in  writing  signed by the  Employee  and an  authorized
officer  of the  Company.  No waiver by either  party  hereto at any time of any
breach by the other  party  hereto of, or  compliance  with,  any  condition  or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or  representations,  oral or otherwise,
express or implied,  with respect to the subject matter hereof have been made by
either  party which are not  expressly  set forth in this  Agreement;  provided,
however,  that this Agreement shall not supersede or in any way limit the right,
duties or obligations  that the Employee or the Company may have under any other
written agreement between such parties,  under any employee pension benefit plan
or employee welfare benefit plan as defined under the Employee Retirement Income
Security Act of 1974, as amended,  and  maintained by the Company,  or under any
established personnel practice or policy applicable to the Employee.

         16.  Governing  Law. The  validity,  interpretation,  construction  and
performance  of this  Agreement  shall be  governed  by the laws of the State of
South Carolina  without regard to the laws of such state governing  conflicts of
laws.

         17. Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not effect the  validity or  enforceability  of any other
provision of this Agreement,  which latter  provision shall remain in full force
and effect.

         18. Miscellaneous.

                  (a) No  Right  of  Set-Off,  Etc.  There  shall be no right of
         set-off or  counterclaim  in respect of any claim,  debt or  obligation
         against any  payments to the  Employee,  his  beneficiaries  or estates
         provided for in this Agreement.

                                       12
<PAGE>

                  (b) No Adequate  Remedy At Law.  The Company and the  Employee
         recognize  that  each  party  will have no  adequate  remedy at law for
         breach by the other of any of the agreements  contained  herein and, in
         the event of any such breach, the Company and the Employee hereby agree
         and  consent  that the other  shall be  entitled  to decree of specific
         performance,   mandamus,   or  other  appropriate   remedy  to  enforce
         performance of such agreements.

                  (c)   Non-Assignability.   No  right,   benefit,  or  interest
         hereunder  shall  be  subject  to   anticipation,   alienation,   sale,
         assignment,  encumbrance,  charge, pledge, hypothecation,  or setoff in
         respect of any claim, debt or obligation, or to execution,  attachment,
         levy or  similar  process,  or  assignment  by  operation  of law.  Any
         attempt,  voluntary or involuntary,  to effect any action  specified in
         the immediately  preceding sentence shall, to the full extent permitted
         by law, be null,  void and of no effect.  Any of the  foregoing  to the
         contrary  notwithstanding,   this  provision  shall  not  preclude  the
         Employee  from  designating  one or more  beneficiaries  to receive any
         amount that may be payable after his death,  and shall not preclude the
         legal  representative of the Employee's estate from assigning any right
         hereunder to the person or persons  entitled thereto under his will or,
         in the case of intestacy, under the law applicable to his estate.

                  (d)  Enforcement of Agreement;  Attorneys'  Fees. In the event
         litigation  or  arbitration  is commenced  by the Employee  against the
         Company in seeking to obtain or enforce  any right,  benefit or payment
         under  this  Agreement  or to enforce  any  obligation  of the  Company
         described  herein,  then,  provided the Employee  shall prevail in such
         litigation  or  arbitration,  the Company shall be obligated to pay all
         reasonable   expenses(including   without   limitation  all  reasonable
         attorneys'  fees and court  costs) paid or incurred by the  Employee in
         connection with such litigation.

                  (e)  Arbitration.  Any  controversy or claim arising out of or
         relating  to this  Agreement  shall be settled  by binding  arbitration
         pursuant to the Federal  Arbitration Act or the South Carolina  Uniform
         Arbitration  Act,  as  applicable,  under the  applicable  rules of the
         American Arbitration  Association and judgment on any award rendered by
         the  arbitrator(s)  may be  entered  in any court  having  jurisdiction
         thereof;  provided,  however,  that  either  party may seek  injunctive
         relief to enforce  provisions of this Agreement  without  initiating an
         arbitration  proceeding.  The  location  of any  arbitration  shall  be
         Orangeburg, South Carolina. Any civil action seeking injunctive relief,
         challenging an arbitration  proceeding or award or otherwise related to
         this  Agreement  will be  instituted  and  maintained in the federal or
         state  courts for  Orangeburg  County,  South  Carolina and the parties
         hereby consent to the personal jurisdiction of said courts.

                  (f)  Counterparts.  This  Agreement  may be executed in one or
         more counterparts, each of which shall be deemed to be an original, but
         of which together will constitute one and the same instrument.

                  (g) Survival.  The rights and remedies  provided by Sections 7
         through  18  of  this  Agreement   shall  survive  the  termination  of
         Employee's employment under this Agreement and the Term of Employment.

                                       13
<PAGE>

         19. Section 409A Savings Clause. Despite any contrary provision of this
Agreement,  if when the  Employee's  employment  terminates,  the  Employee is a
"specified  employee," as defined in section 409A of the Internal  Revenue Code,
and if any payments or benefits  under this  Agreement will result in additional
tax or interest to the Employee  because of section 409A, the Employee shall not
be entitled to such payments or benefits until the earliest of (x) the date that
is at least six  months  after  termination  of the  Employee's  employment  for
reasons other than the Employee's  death, (y) the date of the Employee's  death,
or (z) any earlier  date that does not result in  additional  tax or interest to
the Employee  under section  409A. As promptly as possible  after the end of the
period during which payments or benefits are delayed under this  provision,  the
entire  amount of delayed  payments  shall be paid to  Employee in a single lump
sum.  References in this Agreement to section 409A of the Internal  Revenue Code
of 1986 include rules, regulations and guidance of general application issued by
the Department of the Treasury under such section 409A.

         20.  Assumption of Agreement.  Should the Company merge or  consolidate
with another  corporation  and the Company is not the surviving  corporation  in
such a merger or consolidation, the Company will obtain as a condition of merger
or  consolidation  assent to and assumption of this Agreement by the corporation
which will be the surviving  corporate  entity in such merger or  consolidation.
Upon consummation of the consolidation or merger,  the term "Company" shall mean
the corporate entity which is the survivor of the merger or consolidation.

         IN WITNESS WHEREOF, the Employee and the Company (by action of its duly
authorized  officer) have  executed  this Amended and Restated  Agreement on the
date first above written.

                              [SIGNATURES OMITTED]

                                       14
<PAGE>

                                   APPENDIX A
                              AUTHORITY AND DUTIES

         Employee shall serve as the Chief Executive Officer of the Company.  He
shall serve at the  pleasure of the Board of  Directors  and shall report to the
Board of Directors.

         Employee shall exercise the authority and discharge the duties assigned
to the Chief Executive Officer by the bylaws.

         Employee  shall  carry  out  the  policies  approved  by the  Board  of
Directors.

         Employee shall chair an Executive  Management Committee composed of the
presidents of the Company's subsidiaries, the Chief Executive Officer, the Chief
Financial Officer,  the Chief Operating Officer and any other corporate officers
appointed by the Chief Executive Officer.

         Employee  shall have the  authority  and  responsibility  for decisions
regarding the employment,  termination,  performance appraisal and determination
of compensation for all corporate level employees.

         Employee shall have the authority and  responsibility  for creating and
implementing plans for the employment,  termination,  performance  appraisal and
determination of compensation of the presidents of the Company's subsidiaries in
conjunction with the boards of directors of such subsidiaries.

         Employee  shall exercise such  additional  authority and discharge such
additional duties as the Board of Directors shall, from time to time, reasonably
assign to Employee.

                                       15
<PAGE>

                                   APPENDIX B
                           BONUS ELIGIBILITY CRITERIA

         Year One

          1.   High quality  performance  appraisal by Board of Directors of the
               Company.
          2.   Affirmation   or   revision   of   Strategic   Plan  and  initial
               implementation thereof.
          3.   Internal organizational assessment and restructuring.
          4.   Assessment and implementation of actions necessary to comply with
               Sarbanes-Oxley Act.
          5.   Implementation of good governance structure and processes.

         Year Two

          1.   High quality  performance  appraisal by Board of Directors of the
               Company.
          2.   Metrics in alignment with Strategic Plan.

         Year Three

          1.   High quality  performance  appraisal by Board of Directors of the
               Company.
          2.   Metrics in alignment with the Strategic Plan.

                                       16

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