Document:

exhibit102.htm

    Exhibit
      10.2

    
 

    LOWE’S
      COMPANIES

    

    BENEFIT
      RESTORATION PLAN

    

    AMENDED
      AND RESTATED AS OF JANUARY 1, 2008

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LOWE’S
      COMPANIES

    

    BENEFIT
      RESTORATION PLAN

    

    AMENDED
      AND RESTATED AS OF JANUARY 1, 2008

    

    
 

    
      
        	 	
                Table
                  of Contents

                 

              	 
	 	 	
                Page
                  No.

              
	
                SECTION
                  1.

              	
                Nature
                  of the Plan

              	
                1

              
	
                SECTION
                  2.

              	
                Definitions

              	
                1

              
	
                SECTION
                  3.

              	
                Eligibility
                  and Participation

              	
                3

              
	
                SECTION
                  4.

              	
                Funding

              	
                4

              
	
                SECTION
                  5.

              	
                Employee
                  Deferrals

              	
                4

              
	
                SECTION
                  6.

              	
                Company
                  Matching Contributions

              	
                5

              
	
                SECTION
                  7.

              	
                Deemed
                  Investment of Account

              	
                5

              
	
                SECTION
                  8.

              	
                Vesting

              	
                6

              
	
                SECTION
                  9.

              	
                Payment
                  of Account

              	
                6

              
	
                SECTION
                  10

              	
                Administration

              	
                7

              
	
                SECTION
                  11.

              	
                Claims
                  Procedure

              	
                8

              
	
                SECTION
                  12.

              	
                Limitation
                  on Participants’ Rights

              	
                8

              
	
                SECTION
                  13.

              	
                Rights
                  of Participants and Beneficiaries

              	
                9

              
	
                SECTION
                  14.

              	
                Plan
                  Binding

              	
                9

              
	
                SECTION
                  15.

              	
                Future
                  of the Plan

              	
                9

              
	
                SECTION
                  16.

              	
                Governing
                  Law

              	
                10

              
	
                SECTION
                  17.

              	
                Compliance
                  with Code Section 409A

              	
                10

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      LOWE’S
        COMPANIES

       

      BENEFIT
        RESTORATION PLAN

       

      AMENDED
        AND RESTATED AS OF JANUARY 1, 2008

       

      

      

      SECTION
        1.    Nature of the
        Plan.

      

      The
        purpose of this Plan is to provide benefits in addition to those provided
        under
        the Lowe’s 401(k) Plan to a select group of management and highly compensated
        employees, within the meaning of Title I of ERISA.  The Plan is
        intended to be non-qualified and unfunded.  The Plan, originally
        adopted effective February 1, 1990, is hereby amended and restated, effective
        as
        of January 1, 2008.

      

      SECTION
        2.    Definitions.

      

      In
        this
        Plan, whenever the context so indicates, the singular or plural number and
        the
        masculine, feminine or neuter gender shall be deemed to include the other
        and
        the terms “he,” “his” and “him” shall refer to a Participant. Unless otherwise
        indicated, section references shall be to this Plan. Where the following
        terms
        appear hereafter in this Plan, they shall have the meanings indicated
        below:

      

      
        	
                401(k)
                  Plan

              	
                The
                  Lowe’s Companies 401(k) Plan, a stock bonus and profit sharing plan
                  that
                  includes a cash or deferred arrangement under Section 401(k) of
                  the
                  Code.

              

      

       

      
        	
                Account

              	
                The
                  account established and maintained for bookkeeping purposes to
                  reflect the
                  interest of a Participant in the Plan.  Each Account shall
                  reflect Employee Deferrals by the Participants and Company Matching
                  Contributions, as well as additions, withdrawals, and adjustments
                  to the
                  Account (including adjustments for appreciation and depreciation
                  in the
                  deemed investments).  Each Account shall include one sub-account
                  for Employee Deferrals and one sub-Account for Company Matching
                  Contributions.  The Account shall be a bookkeeping entry only
                  and shall be utilized solely as a device for the measurement and
                  determination of the amounts to be paid to a Participant or Beneficiary
                  under the Plan.

              

      

       

      
        	
                Base
                  Pay

              	
                The
                  base pay paid to a Participant by the Company in the Plan Year,
                  plus the
                  amount (if any) of (i) Salary Deferral Contributions made on his
                  behalf
                  under the 401(k) Plan, (ii) salary reductions under Section 125
                  of the
                  Code and (iii) any base pay that is deferred under this or any
                  other plan
                  of non-qualified deferred compensation that is adopted and maintained
                  by
                  the Company.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Beneficiary

              	
                The
                  person (or persons) designated by a Participant to receive benefits
                  under
                  the Plan in the event of the Participant’s death. If a Participant fails
                  to make such designation, the Participant’s Beneficiary shall be deemed to
                  be his surviving spouse, or if none, his
                  estate.

              

      

      

      
        	
                Code

              	
                The
                  Internal Revenue Code of 1986, as
                  amended.

              

      

      

      
        	
                Committee

              	
                The
                  Administrative Committee of the 401(k) Plan appointed by the Board
                  of
                  Directors of the Company, which has been given authority by the
                  Board of
                  Directors to designate Participants and to administer the
                  Plan.

              

      

      

      
        	
                Company

              	
                Lowe’s
                  Companies, Inc, a North Carolina corporation, and its direct or
                  indirect
                  wholly-owned subsidiaries (including wholly-owned limited liability
                  companies).

              

      

      

      
        	
                Compensation

              	
                The
                  salary or wages, overtime premium pay, bonuses, commissions and
                  all other
                  pay considered to be “Deferral Compensation” under the 401(k) Plan but
                  without regard to the Code Section 401(a)(17) limit on
                  compensation.

              

      

       

      
        	
                
                  Company
                    Matching Contributions

                   

                

              	
                The
                  Company matching contributions made under this Plan pursuant to
                  Section
                  6.

              

      

      
        	
                Election
                  Date

              	
                The
                  date by which a Participant must make a Participation Election
                  to
                  participate in the Plan for a Plan Year.  Effective for Plan
                  Years beginning on and after January 1, 2008, the Election Date
                  shall be
                  no later than six months preceding the end of the fiscal year that
                  ends
                  during such Plan Year.

              

      

      

      
        	
                Employee
                  Deferral

              	
                The
                  employee pre-tax deferrals made under this Plan pursuant to Section
                  5.

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      
        	
                ERISA

              	
                Public
                  Law 93-406, popularly known as the “Employee Retirement Income Security
                  Act of 1974,” as amended.

              

      

      

      
        	
                Participant

              	
                Any
                  employee or former employee who has met the applicable eligibility
                  requirements of Section 3 and who has not yet received a complete
                  distribution of his Account.

              

      

      

      
        	
                Participation
                  Election

              	
                A
                  Participant’s irrevocable election under the Plan to participate in the
                  Plan for a given Plan Year.

              

      

      

      
        	
                Plan

              	
                The
                  Lowe’s Companies Benefit Restoration Plan, as set forth herein, and
                  as it
                  may be amended from time to time.

              

      

      

      
        	
                Plan
                  Year

              	
                Effective
                  February 3, 2007, the calendar year.  The period February 3,
                  2007 through December 31, 2007 shall be a short Plan
                  Year.  Prior to February 3, 2007, the Plan Year was the
                  52/53-week period ending on the Friday closest to January 31 of
                  each year
                  (and coinciding with the fiscal year of the
                  Company).

              

      

      

      
        	
                Salary
                  Deferral Contributions

              	
                The
                  contributions made to the 401(k) Plan pursuant to the elections
                  of the
                  Participants as described in Section 4(a) of the 401(k)
                  Plan.

              

      

      

      SECTION
        3.    Eligibility and
        Participation.

      

      An
        employee shall be eligible to participate in the Plan as of the date he is
        designated by the Committee for eligibility, either individually or as a
        member
        of a class of employees.  For Plan Years that begin on and after
        January 1, 2008, until determined otherwise by the Committee, the employees
        who
        are eligible to become Participants for a given Plan Year are those employees
        of
        the Company (i) who are participating in the 401(k) Plan as of the first
        day of
        such Plan Year, and (ii) whose Base Pay as of May 31 immediately preceding
        the
        beginning of such Plan Year, plus target annual bonus for the fiscal year
        that
        ends during such Plan Year, exceeds the Code Section 401(a)(17) annual
        compensation limit for the immediately preceding Plan Year.

      

      Only
        employees who are members of a select group of management and highly compensated
        employees (within the meaning of Title I of ERISA) are eligible to participate
        in the Plan.  Notwithstanding anything to the contrary in the Plan,
        the Committee shall be authorized to modify the eligibility requirements
        and
        rescind the eligibility of any Participant if necessary to ensure that the
        Plan
        is maintained primarily

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      for
        the
        purpose of providing additional benefits to a select group of management
        or
        highly compensated employees under ERISA.

      

      SECTION
        4.    Funding.

      

      The
        Company has established in connection with the Plan a “rabbi trust”
substantially in accordance with the model rabbi trust agreement published
        by
        the Internal Revenue Service in Revenue Procedure 92-64.  Regardless
        of the extent to which the Company chooses to fund its obligations under
        the
        Plan by transferring cash or property to such rabbi trust, the Plan shall
        at all
        times be “unfunded” within the meaning of ERISA and the Code.  When a
        Participant (or Beneficiary) is entitled to a distribution under Section 8,
        such distribution will be paid either by the Company or from assets held
        in the
        rabbi trust, as further described in the trust agreement that established
        such
        rabbi trust.

      

      SECTION
        5.    Employee
        Deferrals.

      

      (a)           Compensation
        Which May Be Deferred.  To participate in the Plan for a Plan
        Year, a Participant must elect to do so for the entire Plan Year by executing
        a
        Participation Election form on a timely basis, as provided
        herein.   If a Participant elects to participate in the Plan and
        make Employee Deferrals for a Plan Year, each payroll period during such
        Plan
        Year, there shall be deducted from the Participant’s Compensation a percentage
        of Compensation equal to the difference between (1) and (2) (but not less
        than
        zero), where

      

      (1)           is
        the lesser of :

      

      (A)           6%;
        or

      

      
        	
                 

              	
                (B)

              	
                the
                  percentage of Compensation the Participant irrevocably elected
                  to defer to
                  the 401(k) Plan for each payroll period during such Plan Year (without
                  regard to any “catch up” deferrals elected to be made to the 401(k) Plan);
                  and

              

      

      

      
        	
                 

              	
                (2)

              	
                the
                  percentage of such Participant’s Compensation credited to the
                  Participant’s account under the 401(k) Plan as a Salary Deferral
                  Contribution for such payroll
                  period.

              

      

      

      (b)           The
        Form of the Participation Election.  A Participation Election
        shall be made in a manner prescribed by the Committee.

      

      (c)           Timing
        of Participation Election.  To participate in the Plan for a Plan
        Year beginning on or after January 1, 2008, a Participant must submit a
        Participation Election form in the manner prescribed by the Committee by
        the
        Election Date.  A Participation Election shall continue for each
        future Plan Year in which the employee remains a Participant, unless and
        until
        the Participant makes a new Participation Election

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      on
        a
        timely basis as provided herein.   Any revocation of the most
        recent Participation Election shall be made in a form prescribed by the
        Committee and shall be effective for a Plan Year only if made by the Election
        Date applicable to such Plan Year.  In the event the Committee
        designates an employee as a Participant in the Plan for a Plan Year and such
        Participant is first hired after the Election Date applicable to such Plan
        Year,
        the initial Participation Election for a such new Participant shall be made
        in a
        form acceptable to the Committee, not later than thirty (30) days after the
        date
        the Participant is eligible to participate in the Plan.

      

      SECTION
        6.     Company
        Matching Contributions.

      

      (a)           Company
        Matching Contributions.  If a Participant elects to participate in
        the Plan for a Plan Year, then each payroll period during such Plan Year,
        the
        Company shall credit to such Participant’s Account under this Plan a Company
        Matching Contribution in an amount equal to (i) 100% of the first 3% of
        Compensation contributed to the Plan on his behalf as an Employee Deferral
        for
        the payroll period, plus (ii) 50% of the next 2% of Compensation contributed
        to
        the Plan on his behalf as an Employee Deferral for the payroll period, plus
        (iii) 25% of the next 1% of Compensation contributed to the Plan on his behalf
        as an Employee Deferral for the payroll period.

      

      (b)           Allocation
        Dates.  The Company Matching Contribution shall be credited to the
        Participant’s Account on the date that the corresponding Company Match
        Contribution under the 401(k) Plan is (or would have been) allocated to the
        Participant’s account under the 401(k) Plan.

      

      SECTION
        7.    Deemed Investment
        of Account.

      

      (a)           Deemed
        Investment of Accounts.  The Committee shall have the authority in
        its discretion to establish from time to time one or more investment options,
        which may be in the form of mutual funds or otherwise, for the deemed investment
        of Participant Accounts.  A Participant may elect to have the
        Participant’s Account deemed to be invested in one or more of such investment
        options.  Any such election by the Participant shall be made and filed
        with the Committee in accordance with procedures established by the Committee
        for such purpose.  The Committee shall also adopt such rules and
        procedures as may be necessary or appropriate to provide for the roper crediting
        of returns from the deemed investment of Participant
        Accounts.  Notwithstanding the foregoing, the Company intends that the
        Plan shall be “unfunded” within the meaning of ERISA and the Code, and the
        provisions in this Section providing for employee deemed investment directions
        shall not require the Company or any other party to make any specific actual
        investments to reflect such directions.

      

      (b)           Annual
        Statement.  At least once each Plan Year, each Participant shall
        be furnished with a statement reflecting the following information:

      

      
        	
                 

              	
                (1)

              	
                The
                  balance (if any) in his Account (including sub-accounts) as of
                  the
                  beginning of the Plan Year.

              

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

              	
                (2)

              	
                The
                  amount allocated to his Account (including sub-accounts) for the
                  Plan
                  Year.

              

      

      

      
        	
                 

              	
                (3)

              	
                The
                  new balance in his Account (including
                  sub-accounts).

              

      

      

      SECTION
        8.    Vesting.

      

      Except
        as
        otherwise provided in this Plan, a Participant’s interest in his Account shall
        be 100% vested at all times.

      

      SECTION
        9.    Payment of
        Account.

      

      (a)           Time
        of Payment.  Between 60 and 120 days following a Participant’s
“separation from service” (within the meaning of Code Section 409A and the
        regulations thereunder), the Participant shall receive (or begin to receive)
        payment of the balance of his Account (including any deemed appreciation
        and
        depreciation through the date of distribution).  Notwithstanding the
        foregoing, in no event will distribution be made to a Participant who is
        a
“specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) and the
        regulations thereunder, prior to the date which is six months after such
        Participant’s separation from service.

      

      (b)           Form
        of Payment.  In accordance with procedures established by the
        Committee, but in no event later than the later of (i) December 31, 2007
        and
        (ii) thirty days after the date an individual initially becomes a Participant
        under the Plan, the Participant shall make an irrevocable election to have
        his
        Account paid by one of the following three methods:

      

      (1)           Single
        lump sum payment;

      

      (2)           Installments
        payable annually over a period of five (5) years; or

      

      (3)           Installments
        payable annually over a period of ten (10) years,

      

      as
        specified by the Participant on forms made available by the
        Committee.  Notwithstanding the foregoing, a lump sum distribution
        will be paid to a Participant in lieu of installments if as of the date of
        such
        Participant’s separation from service, the Participant’s Account balance is
        $25,000 or less.  If the Participant fails to timely elect a method of
        payment, his Account shall be distributed in a single lump sum
        payment.

      

      In
        the
        event payment is made in installments, the Participant’s Account shall continue
        to be adjusted for additions, withdrawals, deemed appreciation and depreciation
        as provided herein, and the amount of the payment to be made in a given year
        shall be equal to (i) times (ii), where (i) equals the value of the
        Participant’s Account as of the most recent valuation date, and (ii) equals a
        fraction, the numerator of which is one, and 

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      the
        denominator of which is the number of installments remaining to be paid to
        the
        Participant (including the current installment).

      

      All
        payments shall be made in cash.

      

      (c)           No
        Change to Form of Distribution.  The form of payment of a
        Participant’s Account cannot be changed after the deadline for making a form of
        payment election.

      

      (d)           Payment
        to Beneficiary.  In the event a Participant dies before his
        Account has been fully paid to him, his remaining Account will be paid to
        his
        Beneficiary in a single lump sum within 90 days following the Participant’s
        death.

      

      (e)           Withholding.  The
        Company shall withhold from any payment the amount of all applicable federal
        and
        state income and other taxes. In addition, the Company may reduce the amount
        otherwise payable under this Section 8 by any amounts owed by the Participant
        to
        the Company.

      

      SECTION
        10.    Administration.

      

      (a)           In
        General.  The Plan shall be administered by the
        Committee.  The members of the Committee shall be appointed by and may
        be removed by the Board of Directors of the Company, in each case by written
        notice delivered to the Committee member.  A majority of the members
        of the Committee shall constitute a quorum for the transaction of business
        at
        any meeting. Any determination or action of the Committee may be made or
        taken
        by a majority of the members present at any meeting thereof, or without a
        meeting by resolution or written memorandum concurred in by a majority of
        members.  Meetings may be held by telephone or video
        conference.

      

      (b)           Powers
        of the Committee.  The Committee shall administer the Plan in
        accordance with its terms and shall have all powers necessary to carry out
        the
        provisions of the Plan. It shall interpret the Plan and shall determine all
        questions arising in the administration, interpretation and application of
        the
        Plan. It shall determine the eligibility for benefits, the amount of any
        benefit
        due and the manner in which any benefit is to be paid by the Plan. It will
        construe the Plan, supplying any omissions, reconciling any differences and
        determining factual issues relating to the Plan.  The Committee may
        adopt such rules as it deems desirable for the conduct of its affairs. It
        may
        appoint such accountants, counsel, actuaries, specialists and other persons
        as
        it deems necessary or desirable in connection with the administration of
        this
        Plan, and shall be the agent for the service of process.  All powers
        of the Committee shall be exercised in its discretion, and the Committee
        shall
        be given the greatest possible deference permitted by law in the exercise
        of
        such authority.

      

      (c)    
             Electronic
        Administration.  Notwithstanding anything to the contrary in the
        Plan, the Committee may announce from time to time that Participant enrollments,
        Participant elections, annual Participant Account statements and any other
        aspect of 

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      Plan
        administration may be made by telephonic or other electronic means rather
        than
        in paper form.

      

      SECTION
        11.    Claims
        Procedure.

      

      A
        Participant (or Beneficiary) who does not receive a distribution of benefits
        to
        which he believes he is entitled may present a claim to the Company’s Manager of
        Benefits, or his delegate (such manager and his delegate(s) are referred
        to
        hereafter as the “Manager”). The claim for benefits must be in writing and
        addressed to the Manager or to the Company. If the claim for benefits is
        denied,
        the Manager shall notify the Participant (or Beneficiary) in writing within
        90
        days after the Manager initially received the benefit claim. Any notice of
        a
        denial of benefits shall advise the Participant (or Beneficiary) of the basis
        for the denial, any additional material or information necessary for the
        Participant (or Beneficiary) to perfect his claim and the steps which the
        Participant (or Beneficiary) must take to have his claim for benefits
        reviewed.

      

      Each
        Participant (or Beneficiary) whose claim for benefits has been denied may
        file a
        written request for a review of his claim by the Committee. The request for
        review must be filed by the Participant (or Beneficiary) within 60 days after
        he
        receives the written notice denying his claim. The decision of the Committee
        will be made within 60 days after receipt of a request for review and shall
        be
        communicated in writing to the claimant. Such written notice shall set forth
        the
        basis for the Committee’s decision. If there are special circumstances (such as
        the need to hold a hearing) which require an extension of time for completing
        the review, the Committee’s decision shall be rendered not later than 120 days
        after receipt of a request for review. All decisions and interpretations
        of the
        Committee under this Section 11 shall be conclusive and binding upon all
        persons
        with an interest in the Plan and shall be given the greatest deference permitted
        by law.

      

      SECTION
        12.    Limitation on
        Participants’ Rights.

      

      (a)           Non-Guarantee
        of Employment.  The adoption and maintenance of the Plan shall not
        be deemed to constitute a contract of employment or otherwise between the
        Company and any employee, or to be a consideration for, or an inducement
        or
        condition of, any employment. Nothing contained in this Plan shall be deemed
        to
        give an employee the right to be retained in the service of the Company or
        to
        interfere with the right of the Company to discharge, with or without cause,
        any
        employee at any time.

      

      (b)           No
        Assignment of Benefits.  Except as provided in Section 8(d), a
        Participant’s interest in his Account may not be anticipated, assigned (either
        at law or in equity), alienated or subject to attachment, garnishment, levy,
        execution or other legal or equitable process; provided, however, that a
        Participant may designate one or more Beneficiaries.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      (c)           Distributions
        Not Compensation for Purposes of Any Other Plan.  Distributions
        from a Participant’s Account shall not be considered wages, salaries or
        compensation under any other employee benefit plan.

      

      SECTION
        13.    Rights of
        Participants and Beneficiaries.

      

      The
        rights of a Participant or any Beneficiary of the Participant shall be solely
        those of an unsecured general creditor of the Company. A Participant or
        Beneficiary of the Participant shall have the right to receive those payments
        specified under this Plan only from the Company. These parties have no right
        to
        look to any specific or special property separate from the Company to satisfy
        a
        claim for benefit payments.

      

      A
        Participant agrees that he or his
        Beneficiary shall have no right, claim, security interest, or any beneficial
        ownership interest whatsoever in any general asset that the Company may acquire
        or use to help support its financial obligations under this Plan. Any general
        asset used or acquired by the Company in connection with the liabilities
        it has
        assumed under this Plan shall not be deemed to be held under any trust for
        the
        benefit of the Participant or his Beneficiary, and no general asset shall
        be
        considered security for the performance of the obligations of the
        Company.

      

      A
        Participant also understands and agrees that his participation in the
        acquisition of any general asset for the Company shall not constitute a
        representation to the Participant or his Beneficiary that any of them has
        a
        special or beneficial interest in any general asset.

      

      The
        Company’s obligation under this Plan shall be an unfunded and unsecured promise
        to pay. The Company shall not be obligated under any circumstances to fund
        its
        financial obligations under this Plan. All assets which the Company may acquire
        to help cover its financial liabilities are and remain general assets of
        the
        Company subject to the claims of its creditors. The Company does not give,
        and
        the Plan does not give, any beneficial ownership interest in any asset of
        the
        Company to a Participant or his Beneficiary. All rights of ownership in any
        assets are and remain in the Company. The Company’s liability for payment of
        benefits shall be determined only under the provisions of this Plan as it
        may be
        amended from time to time.

      

      SECTION
        14.    Plan
        Binding.

      

      The
        Plan
        shall be binding upon the Company and any successor company through merger,
        acquisition or consolidation, and upon a Participant, his Beneficiary, heirs,
        executors and administrators.

      

      SECTION
        15.    Future of the
        Plan.

      

      The
        Company reserves the right to amend or terminate the Plan (in whole or in
        part)
        at any time, by action of the Company’s Board of
        Directors.  Notwithstanding the foregoing, the Committee may amend the
        Plan without approval of the Board provided

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      that
        the
        Committee determines in good faith that such amendment (i) will not result
        in a
        significant cost increase to the Company; (ii) will not result in the issuance
        of Lowe’s Companies common stock; and (iii) is not limited in impact to only
        officers of the Company.

      

      Any
        termination of the Plan includes the right to pay to Participants upon Plan
        termination the full value of their Accounts in a lump sum, regardless of
        the
        prior elections made by the Participants.  If this Plan is terminated,
        the Committee shall determine how and when amounts credited to affected
        Participant’s Accounts under the Plan will be distributed which distribution
        shall be made only in compliance with Code Section 409A and the regulations
        promulgated thereunder.  The Company intends to have the maximum
        discretionary authority to terminate the Plan and make distributions in
        connection with a “change in control” (as defined in Treasury Regulation Section
        1.409A-3(g)(5)), as is permissible under Code Section 409A and the regulations
        promulgated thereunder.

      

      No
        amendment, modification, or termination of the Plan shall reduce the value
        of
        benefits credited under the Plan prior to such amendment, modification or
        termination.

      

      SECTION
        16.    Governing
        Law.

      

      The
        provisions of this Plan shall be construed and interpreted in accordance
        with
        the laws of the State of North Carolina, except to the extent such laws are
        superseded by ERISA.

      

      SECTION
        17.    Compliance with
        Code Section 409A.

      

      Nothing
        in this Plan shall operate or be construed to cause the Plan to fail to comply
        with the requirements of Code Section 409A and, to the extent applicable,
        it is
        intended that the Plan comply with the provisions of Code Section 409A and
        shall
        be administered in a manner consistent with that intent.  Any
        provision of this Plan that would cause the Plan or any payment made hereunder
        to fail to satisfy Code Section 409A shall have no force and effect until
        amended by the Company to comply with Code Section 409A (which amendment
        may be
        retroactive to the extent permitted by Code Section 409(A)) and may be made
        by
        the Company without the consent of any Participant.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      SECTION
        18.    Execution.

      

      To
        record
        the amendment and restatement of this Plan, the Company has caused this document
        to be executed on this   25 day of  
        November   , 2007.

      

      

      LOWE’S
        COMPANIES, INC.

      
 

      By:        /s/
        Maureen
        Ausura                                                
 

      

      Title:     SVP
        HR                                                         
                                                                         

      

      Date:     11/25/07                                                                      
                                                                   

      
        
          
          

        

        
          11Exhibit 4.2

                              ALABAMA POWER COMPANY

                                       TO

                              THE BANK OF NEW YORK
                                     TRUSTEE

                         FORTIETH SUPPLEMENTAL INDENTURE

                          DATED AS OF DECEMBER 12, 2007

                            SERIES 2007D SENIOR NOTES

                              DUE DECEMBER 15, 2012

<PAGE>

                              TABLE OF CONTENTS(1)
                                                                        PAGE

ARTICLE 1  Series 2007D Senior Notes......................................2

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

ARTICLE 2  Miscellaneous Provisions.......................................6

SECTION 201.  Recitals by Company.........................................6
SECTION 202.  Ratification and Incorporation of Original Indenture........6
SECTION 203.  Executed in Counterparts....................................6

EXHIBIT A  FORM OF SERIES 2007D NOTE ....................................A-1

EXHIBIT B  CERTIFICATE OF AUTHENTICATION.................................B-1

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

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

<PAGE>

     THIS FORTIETH SUPPLEMENTAL INDENTURE is made as of the 12th day of
December, 2007, by and between ALABAMA POWER COMPANY, an Alabama corporation,
600 North 18th Street, Birmingham, Alabama 35291 (the "Company"), and THE BANK
OF NEW YORK, a New York banking corporation, 101 Barclay Street, New York, New
York 10286 (the "Trustee").

                              W I T N E S S E T H:

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

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

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

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

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

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

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

<PAGE>

                                    ARTICLE 1

                            Series 2007D Senior Notes

         SECTION 101. Establishment. There is hereby established a new series of
Senior Notes to be issued under the Indenture, to be designated as the Company's
Series 2007D 4.85% Senior Notes due December 15, 2012 (the "Series 2007D
Notes").

         There are to be authenticated and delivered $200,000,000 aggregate
principal amount of Series 2007D Notes, and such principal amount of the Series
2007D Notes may be increased from time to time pursuant to Section 301 of the
Original Indenture. All Series 2007D Notes need not be issued at the same time
and such series may be reopened at any time, without the consent of any Holder,
for issuances of additional Series 2007D Notes. Any such additional Series 2007D
Notes will have the same interest rate, maturity and other terms as those
initially issued. No Series 2007D Notes shall be authenticated and delivered in
excess of the principal amount as so increased except as provided by Sections
203, 303, 304, 907 or 1107 of the Original Indenture. The Series 2007D Notes
shall be issued in definitive fully registered form.

         The Series 2007D Notes shall be issued in the form of one or more
Global Securities in substantially the form set out in Exhibit A hereto. The
Depositary with respect to the Series 2007D Notes shall be The Depository Trust
Company.

         The form of the Trustee's Certificate of Authentication for the Series
2007D Notes shall be in substantially the form set forth in Exhibit B hereto.

         Each Series 2007D Note shall be dated the date of authentication
thereof and shall bear interest from the date of original issuance thereof or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for.

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

         "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Series 2007D Notes to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Series 2007D Notes.

         "Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest such Reference Treasury Dealer

                                       2
<PAGE>

Quotations, or (ii) if the Company obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations.

         "Independent Investment Banker" means an independent investment banking
institution of national standing appointed by the Company.

         "Interest Payment Dates" means June 15 and December 15 of each year,
commencing June 15, 2008.

         "Original Issue Date" means December 12, 2007.

         "Redemption Price" has the meaning given to it in Section 107 hereof.

         "Reference Treasury Dealer" means a primary U.S. Government securities
dealer in New York City appointed by the Company.

         "Reference Treasury Dealer Quotation" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Company, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount and quoted in
writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the
third Business Day in New York City preceding such Redemption Date).

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

         "Stated Maturity" means December 15, 2012.

         "Treasury Yield" means, with respect to any Redemption Date, the rate
per annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

         SECTION 103. Payment of Principal and Interest. The principal of the
Series 2007D Notes shall be due at Stated Maturity (unless earlier redeemed).
The unpaid principal amount of the Series 2007D Notes shall bear interest at the
rate of 4.85% per annum until paid or duly provided for. Interest shall be paid
semiannually in arrears on each Interest Payment Date to the Person in whose
name the Series 2007D Notes are registered on the Regular Record Date for such
Interest Payment Date, provided that interest payable at the Stated Maturity of
principal or on a Redemption Date as provided herein will be paid to the Person
to whom principal is payable. Any such interest that is not so punctually paid
or duly provided for will forthwith cease to be payable to the Holders on such
Regular Record Date and may either be paid to the Person or Persons in whose

                                       3
<PAGE>

name the Series 2007D Notes are registered at the close of business on a Special
Record Date for the payment of such defaulted interest to be fixed by the
Trustee, notice whereof shall be given to Holders of the Series 2007D Notes not
less than ten (10) days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange, if any, on which the Series 2007D Notes shall be listed,
and upon such notice as may be required by any such exchange, all as more fully
provided in the Original Indenture.

         Payments of interest on the Series 2007D Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest
payments for the Series 2007D Notes shall be computed and paid on the basis of a
360-day year of twelve 30-day months. In the event that any date on which
interest is payable on the Series 2007D Notes is not a Business Day, then
payment of the interest payable on such date will be made on the next succeeding
day that is a Business Day (and without any interest or other payment in respect
of any such delay), with the same force and effect as if made on the date the
payment was originally payable.

         Payment of the principal and interest due at the Stated Maturity or
earlier redemption of the Series 2007D Notes shall be made upon surrender of the
Series 2007D Notes at the Corporate Trust Office of the Trustee. The principal
of and interest on the Series 2007D Notes shall be paid in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payments of interest (including interest on
any Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer or other electronic transfer at such place and
to such account at a banking institution in the United States as may be
designated in writing to the Trustee at least sixteen (16) days prior to the
date for payment by the Person entitled thereto.

         SECTION 104. Denominations. The Series 2007D Notes may be issued in
denominations of $1,000, or any integral multiple thereof.

         SECTION 105. Global Securities. The Series 2007D Notes will be issued
in the form of one or more Global Securities registered in the name of the
Depositary (which shall be The Depository Trust Company) or its nominee. Except
under the limited circumstances described below, Series 2007D Notes represented
by one or more Global Securities will not be exchangeable for, and will not
otherwise be issuable as, Series 2007D Notes in definitive form. The Global
Securities described above may not be transferred except by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or to a successor Depositary or its nominee.

         Owners of beneficial interests in such a Global Security will not be
considered the Holders thereof for any purpose under the Indenture, and no
Global Security representing a Series 2007D Note shall be exchangeable, except
for another Global Security of like denomination and tenor to be registered in

                                       4
<PAGE>

the name of the Depositary or its nominee or a successor Depositary or its
nominee. The rights of Holders of such Global Security shall be exercised only
through the Depositary.

         Neither the Company, the Trustee nor any agent of the Company or the
Trustee shall have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in a
Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.

         Subject to the procedures of the Depositary, a Global Security shall be
exchangeable for Series 2007D Notes registered in the names of persons other
than the Depositary or its nominee only if (i) the Depositary notifies the
Company that it is unwilling or unable to continue as a Depositary for such
Global Security and no successor Depositary shall have been appointed by the
Company, or if at any time the Depositary ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, at a time when
the Depositary is required to be so registered to act as such Depositary and no
successor Depositary shall have been appointed by the Company, in each case
within 90 days after the Company receives such notice or becomes aware of such
cessation, (ii) the Company in its sole discretion determines that such Global
Security shall be so exchangeable, or (iii) there shall have occurred an Event
of Default with respect to the Series 2007D Notes. Any Global Security that is
exchangeable pursuant to the preceding sentence shall be exchangeable for Series
2007D Notes registered in such names as the Depositary shall direct.

         SECTION 106. Transfer. No service charge will be made for any transfer
or exchange of Series 2007D Notes, but payment will be required of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith.

         The Company shall not be required (a) to issue, register the transfer
of or exchange any Series 2007D Notes during a period beginning at the opening
of business fifteen (15) days before the date of the mailing of a notice
pursuant to Section 1104 of the Original Indenture identifying the serial
numbers of the Series 2007D Notes to be called for redemption, and ending at the
close of business on the day of the mailing, or (b) to register the transfer of
or exchange any Series 2007D Notes theretofore selected for redemption in whole
or in part, except the unredeemed portion of any Series 2007D Notes redeemed in
part.

         SECTION 107. Redemption at the Company's Option. The Series 2007D Notes
will be subject to redemption at the option of the Company in whole or in part,
at any time and from time to time upon not less than 30 nor more than 60 days'
notice. The Company shall have the right to redeem the Series 2007D Notes in
whole or in part at a redemption price (the "Redemption Price") equal to the
greater of (i) 100% of the principal amount of the Series 2007D Notes to be
redeemed, or (ii) the sum of the present values of the remaining scheduled
payments of principal and interest on the Series 2007D Notes being redeemed (not
including any portion of such payments of interest accrued to the Redemption
Date), discounted (for purposes of determining present value) to the Redemption

                                       5
<PAGE>

Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at a discount rate equal to the Treasury Yield plus 25 basis points,
plus, in each case, accrued interest thereon to the Redemption Date.

         In the event of redemption of the Series 2007D Notes in part only, a
new Series 2007D Note or Notes for the unredeemed portion will be issued in the
name or names of the Holders thereof upon the surrender thereof.

         The Series 2007D Notes will not have a sinking fund.

         Notice of redemption shall be given as provided in Section 1104 of the
Original Indenture except that any notice of redemption shall not specify the
Redemption Price but only the manner of calculation thereof. The Trustee shall
not be responsible for the calculation of the Redemption Price. The Company
shall calculate the Redemption Price and promptly notify the Trustee thereof.

         Any redemption of less than all of the Series 2007D Notes shall, with
respect to the principal thereof, be divisible by $1,000.

                                    ARTICLE 2

                            Miscellaneous Provisions

         SECTION 201. Recitals by Company. The recitals in this Fortieth
Supplemental Indenture are made by the Company only and not by the Trustee, and
all of the provisions contained in the Original Indenture in respect of the
rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of Series 2007D Notes and of this Fortieth Supplemental
Indenture as fully and with like effect as if set forth herein in full.

         SECTION 202. Ratification and Incorporation of Original Indenture. As
heretofore supplemented and as supplemented hereby, the Original Indenture is in
all respects ratified and confirmed, and the Original Indenture as heretofore
supplemented and as supplemented by this Fortieth Supplemental Indenture shall
be read, taken and construed as one and the same instrument.

         SECTION 203. Executed in Counterparts. This Fortieth Supplemental
Indenture may be simultaneously executed in several counterparts, each of which
shall be deemed to be an original, and such counterparts shall together
constitute but one and the same instrument.

                                       6
<PAGE>

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

ATTEST:                                   ALABAMA POWER COMPANY

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

ATTEST:                                   THE BANK OF NEW YORK,
                                          as Trustee

By:      /s/ Francine Kincaid             By:      /s/ Geovanni Barris
   -----------------------------------       -----------------------------------
          Francine Kincaid                          Geovanni Barris
          Vice President                            Vice President

                                       7
<PAGE>

                                    EXHIBIT A

                            FORM OF SERIES 2007D NOTE

NO. __                                                      CUSIP NO. 010392EY0

                              ALABAMA POWER COMPANY

                         SERIES 2007D 4.85% SENIOR NOTE

                              DUE DECEMBER 15, 2012

       Principal Amount:          $__________________

       Regular Record Date:       15th calendar day prior to Interest Payment
                                  Date (whether or not a Business Day)

       Original Issue Date:       December 12, 2007

       Stated Maturity:           December 15, 2012

       Interest Payment Dates:    June 15 and December 15

       Interest Rate:             4.85%

       Authorized Denomination:   $1,000 or any integral multiple thereof

         Alabama Power Company, an Alabama corporation (the "Company", which
term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to
___________________________________________, or registered assigns, the
principal sum of ____________________________________________ DOLLARS
($______________) on the Stated Maturity shown above (or upon earlier
redemption), and to pay interest thereon from the Original Issue Date shown
above, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semiannually in arrears on each Interest Payment Date
as specified above, commencing on June 15, 2008, and on the Stated Maturity (or
upon earlier redemption) at the rate per annum shown above until the principal
hereof is paid or made available for payment and at such rate on any overdue
principal and on any overdue installment of interest. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date (other
than an Interest Payment Date that is the Stated Maturity or on a Redemption
Date) will, as provided in such Indenture, be paid to the Person in whose name
this Note (the "Note") is registered at the close of business on the Regular
Record Date as specified above next preceding such Interest Payment Date,
provided that any interest payable at the Stated Maturity or on any Redemption
Date will be paid to the Person to whom principal is payable. Except as
otherwise provided in the Indenture, any such interest not so punctually paid or

<PAGE>

duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Note
is registered at the close of business on a Special Record Date for the payment
of such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Notes of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange, if any, on which
the Notes of this series shall be listed, and upon such notice as may be
required by any such exchange, all as more fully provided in the Indenture.

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

         Payment of the principal of and interest due at the Stated Maturity or
earlier redemption of the Series 2007D Notes shall be made upon surrender of the
Series 2007D Notes at the Corporate Trust Office of the Trustee. The principal
of and interest on the Series 2007D Notes shall be paid in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payment of interest (including interest on
an Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer or other electronic transfer at such place and
to such account at a banking institution in the United States as may be
designated in writing to the Trustee at least 16 days prior to the date for
payment by the Person entitled thereto.

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

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

<PAGE>

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

Dated:

                                       ALABAMA POWER COMPANY

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

Attest:

---------------------------------------
         Assistant Secretary

                  {Seal of ALABAMA POWER COMPANY appears here}

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                            THE BANK OF NEW YORK
                                            as Trustee

                                            By:
                                               ---------------------------------
                                                    Authorized Signatory

<PAGE>

                             (Reverse Side of Note)

         This Note is one of a duly authorized issue of Senior Notes of the
Company (the "Notes"), issued and issuable in one or more series under a Senior
Note Indenture, dated as of December 1, 1997, as supplemented (the "Indenture"),
between the Company and The Bank of New York (as successor to JPMorgan Chase
Bank, N.A. (formerly known as The Chase Manhattan Bank)), Trustee (the
"Trustee," which term includes any successor trustee under the Indenture), to
which Indenture and all indentures incidental thereto reference is hereby made
for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes
issued thereunder and of the terms upon which said Notes are, and are to be,
authenticated and delivered. This Note is one of the series designated on the
face hereof as Series 2007D 4.85% Senior Notes due December 15, 2012 (the
"Series 2007D Notes") which is unlimited in aggregate principal amount.
Capitalized terms used herein for which no definition is provided herein shall
have the meanings set forth in the Indenture.

         The Series 2007D Notes will be subject to redemption at the option of
the Company in whole or in part at any time and from time to time upon not less
than 30 nor more than 60 days' notice. The Company shall have the right to
redeem the Series 2007D Notes in whole or in part at a redemption price (the
"Redemption Price") equal to the greater of (i) 100% of the principal amount of
the Series 2007D Notes to be redeemed, or (ii) the sum of the present values of
the remaining scheduled payments of principal and interest on the Series 2007D
Notes being redeemed (not including any portion of such payments of interest
accrued to the Redemption Date), discounted (for purposes of determining present
value) to the Redemption Date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at a discount rate equal to the Treasury
Yield (as defined below) plus 25 basis points, plus, in each case, accrued
interest thereon to the Redemption Date.

         "Treasury Yield" means, with respect to any Redemption Date, the rate
per annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

         "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Series 2007D Notes to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Series 2007D Notes.

<PAGE>

         "Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (ii) if the Company obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations.

         "Independent Investment Banker" means an independent investment banking
institution of national standing appointed by the Company.

         "Reference Treasury Dealer" means a primary U.S. Government securities
dealer in New York City appointed by the Company.

         "Reference Treasury Dealer Quotation" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Company, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount and quoted in
writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the
third Business Day in New York City preceding such Redemption Date).

         The Trustee shall not be responsible for the calculation of the
Redemption Price. The Company shall calculate the Redemption Price and promptly
notify the Trustee thereof.

         In the event of redemption of this Note in part only, a new Note or
Notes of this series for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the surrender hereof. The Series 2007D Notes will
not have a sinking fund.

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

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes of each series to be affected
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in principal amount of the Notes at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders of
all Notes of such series, to waive compliance by the Company with certain

<PAGE>

provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

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

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

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

         The Notes of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Notes of this series are exchangeable for a like aggregate principal amount of
Notes of this series of a different authorized denomination, as requested by the
Holder surrendering the same upon surrender of the Note or Notes to be exchanged
at the office or agency of the Company.

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

<PAGE>

                                  ABBREVIATIONS

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

TEN COM- as tenants in            UNIF GIFT MIN ACT-  ______ Custodian_____
         common                                       (Cust)         (Minor)
TEN ENT- as tenants by the
         entireties                                   under Uniform Gifts to
JT TEN-  as joint tenants                             Minors Act
         with right of
         survivorship and                             ____________________
         not as tenants                                     (State)
         in common

                    Additional abbreviations may also be used

                          though not on the above list.

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

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

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

________________________________________________________________________________

________________________________________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________

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

Dated:
       --------------------        ---------------------------------------------

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

<PAGE>

                                    EXHIBIT B

                          CERTIFICATE OF AUTHENTICATION

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

                                           THE BANK OF NEW YORK
                                           as Trustee

                                           By:
                                              ---------------------------------
                                                    Authorized Signatory

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