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Document

Exhibit 10(b)2

DEFERRED COMPENSATION PLAN FOR 
OUTSIDE DIRECTORS OF ALABAMA POWER COMPANY
Amended and Restated Effective June 1, 2021

SECTION 1
Purpose and Adoption of Plan
1.1    Adoption
Alabama Power Company previously established the Deferred Compensation Plan for Outside Directors of Alabama Power Company. The Plan has been amended from time to time including an amendment and restatement dated January 1, 2000, a good faith amendment and restatement effective January 1, 2008 to comply with Code Section 409A and this amendment and restatement effective June 1, 2021. Except as otherwise provided herein and consistent with Section 1.2, the terms of the Plan as in effect prior to January 1, 2008 shall continue to be applicable to deferrals made pursuant to the Plan prior to January 1, 2008.
1.2    Pre-2005 Deferrals
Compensation paid to Directors and deferred under the Plan prior to January 1, 2005 shall be treated by the Company as not subject to Code Section 409A and therefore “grandfathered.” The Account balance (plus earnings thereon) of the “grandfathered” deferrals shall only be subject to the provisions of the Plan in effect prior to January 1, 2005 as set forth in the Provisions for Pre-2005 Deferrals Under the Deferred Compensation Plan for Outside Directors of Alabama Power Company (the “Pre-2005 Terms”). In accordance with transition rules under Code Section 409A, Internal Revenue Service Notice 2005-1, and any other applicable guidance from the Department of Treasury, the provisions of the Pre-2005 Terms are only intended to preserve the rights and features of the “grandfathered” deferrals and are, therefore, not intended to be “materially modified” with respect to any aspect of such rights and features. Provisions of the prior Plan should be so construed whenever necessary or appropriate.
SECTION 2
Purpose
The Plan provides Directors with an opportunity to defer compensation paid to them until a date following their Separation from Service.
SECTION 3
Eligibility
An individual who serves as a Director and is not otherwise actively employed by the Company or any of its subsidiaries or affiliates is eligible to participate in the Plan.
SECTION 4
Plan Periods
Except as pertains to a Director’s initial Plan Period, all Plan Periods shall be on a calendar year basis. The initial Plan Period applicable to any person elected to the Board who 

was not a Director on the preceding December 31, shall begin on the first day of the calendar quarter following the effective date of the Director’s election to the Board.
SECTION 5
Elections
5.1    Cash Compensation
(a)    Prior to the beginning of a Plan Period, a Director may direct that payment of all or any portion of Cash Compensation that otherwise would be paid to the Director for the Plan Period, be deferred in amounts as designated by the Director, and credited to (i) a Prime Rate Investment Account, (ii) a Phantom Stock Investment Account, or (iii) a Deferred Stock Account. With respect to a Director’s initial Plan Period, such deferral election shall be made in a timely manner prior to the commencement of the Plan Period in accordance with requirements established by the Board consistent with Section 4. Upon the Director’s Separation from Service, such deferred compensation and accumulated investment return held in the Director’s Deferred Compensation Accounts shall be distributed to the Director in accordance with the Director’s Distribution Election and the provisions of Section 7.
(b)    An election to defer Cash Compensation is irrevocable for a Plan Period. Such an election shall continue from Plan Period to Plan Period unless the Director timely changes his or her election to defer Cash Compensation payable in a future Plan Period prior to the beginning of such future Plan Period.
(c)    Cash Compensation deferred under this Section 5.1 shall be invested in Deferred Compensation Accounts as directed by the Director prior to the Compensation Payment Date in accordance with procedures established by the Board.
5.2    Stock Retainer
(a)    Prior to the beginning of a Plan Period, a Director may direct that payment of all of the Stock Retainer that otherwise would be paid to the Director for the Plan Period, be deferred by the Director, and credited to the Director’s Deferred Stock Account. Such deferred compensation and accumulated investment return held in the Director’s Deferred Stock Account shall be distributed to the Director in accordance with the Director’s Distribution Election and the provisions of Section 7.
(b)    An election to defer the Stock Retainer is irrevocable for a Plan Period. Such an election shall continue from Plan Period to Plan Period unless the Director timely changes the Director’s election to defer the Director’s Stock Retainer paid in a future Plan Period prior to the beginning of such future Plan Period.
(c)    Any Stock Retainer deferred under this Section 5.2 shall be invested in the Deferred Stock Account.

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5.3    No Transfers Between Deferred Compensation Accounts
A Participant may not transfer any portion of the Participant’s Deferred Compensation Account(s) to another Deferred Compensation Account(s).
5.4    Distribution Election
(a)    Except as set forth in Section 5.4(b), prior to the initial establishment of a Deferred Compensation Account for a Director, the Director must elect that upon Separation from Service the values and quantities held in the Director’s Deferred Compensation Accounts be distributed to the Director, pursuant to the provisions of Section 7 in a single lump sum or in a series of annual or quarterly installments not to exceed fifteen (15) years; provided that the Board may establish in writing alternative installment payment schedules for any or all of the Deferred Compensation Accounts.  In accordance with this Section 5.4(a), distributions from the Prime Rate Investment Account and Phantom Stock Investment Account can be in a lump sum or in annual or quarterly installments. In accordance with this Section 5.4(a), distributions from the Deferred Stock Account can be lump sum or annual installments.  The time for the commencement of distributions shall be elected by the Director and shall not be later than the first of the month coinciding with or next following the second anniversary of the Director’s Separation from Service. Notwithstanding the foregoing, a Director may elect to modify his or her distribution election to delay distribution under this Section 5.4 provided that such modification is subject to the requirements of the Modification Delay.
(b)    In the event a Director has transferred to the Board and has Deferred Compensation Accounts established under Section 6.4, then upon the Director’s Separation from Service the Transferred Amounts and accumulated investment return held in the Deferred Compensation Accounts shall be distributed to the Director in accordance with the Director’s distribution election in effect under the applicable deferred compensation plan for directors of Alabama Power Company, Georgia Power Company, Mississippi Power Company, or Southern Company Gas on the date the Director transferred to the Board, and the provisions of Section 7, unless such distribution election is modified to delay distribution pursuant to Section 5.4(a).
5.5    Beneficiary Designation
A Director or former Director may designate a beneficiary to receive distributions from the Plan in accordance with the provisions of Section 7 upon the death of the Director. The beneficiary designation may be changed by a Director or former Director at any time, and without the consent of the prior beneficiary, except as required under applicable law.
5.6    Form of Election
All elections pursuant to the provisions of this Section 5 of the Plan shall be made in writing to the Secretary of the Company or Assistant Secretary of the Company or such other person designated by the Board on a form or forms available upon request.

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SECTION 6
Accounts
6.1    Prime Rate Investment Account
A Prime Rate Investment Account shall be established for each Director electing deferral of Cash Compensation for investment at the Prime Interest Rate. The amount of Cash Compensation directed by a Director to be credited to the Prime Rate Investment Account shall be credited to it as of the Compensation Payment Date, as applicable, and credited thereafter with interest computed using the Prime Interest Rate. Interest shall be computed from the date such compensation is credited to the account and compounded quarterly at the end of each calendar quarter. The Prime Interest Rate in effect on the first day of a calendar quarter shall be deemed the Prime Interest Rate in effect for that entire quarter. Interest shall accrue and compound on any balance until the amount credited to the account is fully distributed.
6.2    Phantom Stock Investment Account
(a)    If a Director elects to direct deferred amounts into the Phantom Stock Investment Account, then, on the applicable Compensation Payment Date, the Director’s Phantom Stock Investment Account shall be credited with a number of Phantom Stock Units equal to (i) the amount deferred into the Phantom Stock Investment Account, divided by (ii) the Market Value on such date, and rounded to the nearest ten-thousandth.
(b)    On the date of the payment of dividends on the Common Stock, a Director’s Phantom Stock Investment Account shall be credited with additional Phantom Stock Units, as follows:
(i)    In the case of dividends payable in cash or property other than cash or Common Stock, a number of Phantom Stock Units equal to (A) the cash or fair market value of any dividends declared and made with respect to the Common Stock payable in cash or other property which the Director would have received had the Director been the owner on the record dates for the payment of such dividends of the number of shares of Common Stock equal to the number of Phantom Stock Units in the Director’s Phantom Stock Investment Account on such dates, divided by (B) the Market Value on the dividend payment date, rounded to the nearest ten-thousandth; or
(ii)    In the case of dividends payable in Common Stock, a number of Phantom Stock Units equal to the number of shares of Common Stock to which the Director would have been entitled as Common Stock dividends had such Director been the owner on the record dates for the payments of such stock dividends of the number of shares of Common Stock equal to the number of Phantom Stock Units credited to the Director’s Phantom Stock Investment Account on such dates, rounded to the nearest ten-thousandth.
(c)    In the event of (i) a corporate event or transaction involving Southern that results in a change in the Common Stock, or an exchange of Common Stock for cash, securities other than Common Stock, or other property (including, without limitation, any merger, reorganization, recapitalization, combination or exchange of shares), or (ii) any transaction between Southern and 
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the holders of Common Stock that causes the per-share value of the Common Stock to change (including, without limitation, any conversion of shares, share dividend, share split, spin-off, rights offering, or large non-ordinary cash dividend), the Board shall make such equitable adjustments to the Phantom Stock Units as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction.  Notwithstanding the preceding sentence and in any event, any adjustment shall comply with the requirements of Section 409A of the Code.
6.3    Deferred Stock Account
(a)    If a Director elects to direct deferred amounts into the Deferred Stock Account, then, on the applicable Compensation Payment Date, the Director’s Deferred Stock Account shall be credited with a number of Deferred Stock Units equal to (i) the amount deferred into the Deferred Stock Account, divided by (ii) the Market Value on the Compensation Payment Date, and rounded to the nearest ten-thousandth; provided, however, that the Board may adopt another valuation method so long as such method is communicated in writing to Participants prior to the commencement of the Plan Period during which such valuation method will apply.
(b)    If a Director elects to defer a Stock Retainer under Section 5.2, then on the applicable Compensation Payment Date, the Director’s Deferred Stock Account shall be credited with a number of Deferred Stock Units equal to the number of shares of Common Stock the Director would have received for such Stock Retainer if it had not been deferred.
(c)    On the date of the payment of dividends on the Common Stock, a Director’s Deferred Stock Account shall be credited with additional Deferred Stock Units, as follows:
(i)    In the case of dividends payable in cash or property other than cash or Common Stock, a number of Deferred Stock Units equal to (A) the cash or fair market value of any dividends declared and made with respect to the Common Stock payable in cash or other property which the Director would have received had the Director been the owner on the record dates for the payment of such dividends of the number of shares of Common Stock equal to the number of Deferred Stock Units in the Director’s Deferred Stock Account on such dates, divided by (B) the Market Value on the dividend payment date, rounded to the nearest ten-thousandth; provided, however, that the Board may adopt another valuation method so long as such method is communicated in writing to Participants prior to the commencement of the Plan Period during which such valuation method will apply; or
(ii)    In the case of dividends payable in Common Stock, a number of Deferred Stock Units equal to the number of shares of Common Stock to which the Director would have been entitled as Common Stock dividends had such Director been the owner on the record dates for the payments of such stock dividends of the number of shares of Common Stock equal to the number of Deferred Stock Units credited to the Director’s Deferred Stock Account on such dates, rounded to the nearest ten-thousandth.

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(d)    Except as expressly provided in this Plan, a Director shall have no rights as a stockholder of Southern with respect to Common Stock credited to the Director’s Deferred Stock Account unless and until such Common Stock is paid to the Director.
(e)    In the event of (i) a corporate event or transaction involving Southern that results in a change in the Common Stock, or an exchange of Common Stock for cash, securities other than Common Stock, or other property (including, without limitation, any merger, reorganization, recapitalization, combination or exchange of shares), or (ii) any transaction between Southern and the holders of Common Stock that causes the per-share value of the Common Stock to change (including, without limitation, any conversion of shares, share dividend, share split, spin-off, rights offering, or large non-ordinary cash dividend), the Board shall make such equitable adjustments to the Deferred Stock Units as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction.  Notwithstanding the preceding sentence and in any event, any adjustment shall comply with the requirements of Section 409A of the Code.
6.4    Transferred Amounts
(a)    As soon as administratively practicable, the Company shall establish for a Director transferring to the Board from the Southern Board or from the board of directors of Georgia Power Company, Mississippi Power Company, or Southern Company Gas such Deferred Compensation Accounts as are necessary to implement Section 6.4(b).
(b)    Any Transferred Amounts will be credited to the Deferred Compensation Account(s) established that are comparable to the deferred compensation accounts to which such amounts were credited under the applicable deferred compensation plan for directors of Southern, Georgia Power Company, Mississippi Power Company, or Southern Company Gas as soon as administratively practicable following the date the Transferred Amounts are transferred to the Plan. Thereafter, the Transferred Amounts shall be credited with investment returns as applicable under this Section 6 of the Plan.
SECTION 7
Distributions
7.1    Manner of Distribution
Upon a Director’s Separation from Service, the amount credited to a Director’s Deferred Compensation Accounts will be paid to the Director or the Director’s beneficiary, as applicable, in the following manner:
(a)    the amount credited to a Director’s Prime Rate Investment Account and Phantom Stock Investment Account shall be paid in cash; and
(b)    the amount credited to a Director’s Deferred Stock Account shall, except as otherwise provided in Section 6.3 and Section 9.5, or to the extent the Company is otherwise, in the reasonable judgment of the Board, precluded from doing so, be paid in shares of Common 
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Stock (with any fractional share interest therein paid in cash to the extent of the then Market Value thereof).
Such payments shall be from the general assets of the Company (including the Deferred Cash Trust and the Deferred Stock Trust) in accordance with this Section 7.
Notwithstanding the foregoing, in the event the Company enters into an agreement described in Section 7.3 with respect to a Director prior to the Director’s Separation from Service, the Company shall have no obligation to make distributions to the Director under this Section 7.1 in connection with such Director’s Separation from Service.
7.2    Timing of Distribution(s)
Subject to Section 5.4, deferred amounts shall be paid in the form of (i) a lump sum payment, or (ii) in approximately equal annual or quarterly installments, as elected by the Director. Such payments shall be made (or shall commence) as soon as practicable following the Separation from Service except that such period shall not exceed ninety (90) days as permitted by Code Section 409A or, if so elected by the Director in the Distribution Election, up to twenty-four (24) months following such Separation from Service.
If at the time of a Director’s Separation from Service, the Director’s Deferred Compensation Accounts have a cumulative balance of less than the limit in effect under Code Section 402(g)(1)(B), the balance of the Deferred Compensation Accounts may be distributed in a single lump sum payment.
If the Director elected to receive annual or quarterly installments, the first installment shall be equal to the balance in the Director’s Deferred Compensation Accounts on such date divided by the number of annual or quarterly installment payments. Each subsequent annual or quarterly payment shall be an amount equal to the balance in the Director’s Deferred Compensation Accounts on the date of payment divided by the number of the then-remaining annual or quarterly payments and shall be paid on the next appropriate date of payment.
The Market Value of any shares of Common Stock credited to a Director’s Phantom Stock Investment Account shall be determined as of the date of any lump sum or installment distribution as determined by the Board.
Upon the death of a Director, or a former Director prior to the payment of all amounts credited to the Director’s Deferred Compensation Accounts, the unpaid balance shall be paid in a lump sum to the designated beneficiary of such Director or former Director within sixty (60) days of the date of death as permitted by Code Section 409A.  In the event a beneficiary designation has not been made, or the designated beneficiary is deceased or cannot be located, payment shall be made to the estate of the Director or former Director.  
To the maximum extent permitted under Treasury Regulations § 1.409A-3(i)(3), the Board, in its sole discretion, may determine to pay an amount credited to a Director’s Deferred Compensation Accounts on account of an unforeseeable emergency.

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The Market Value of any shares of Common Stock credited to a Director’s Phantom Stock Investment Account shall be determined as of the date of any lump sum or installment distribution as determined by the Board.
7.3    Transfers
If the Company enters into a written agreement with the parent, subsidiary, affiliate or former affiliate of the Company under which the parent or subsidiary, affiliate or former affiliate assumes the liability for a Director’s benefits accrued under the Plan in connection with, but prior to, such Director’s Separation from Service and the Director either has been or will be elected to the board of directors of such parent or subsidiary, affiliate or former affiliate of the Company, the liability for the Director’s benefits which have accrued under the Plan as of the date the Director Separates from Service shall be transferred from the Company to the parent or subsidiary, affiliate or former affiliate of the Company, and the Company shall have no further obligation to make any distributions to the Director under Section 7.1 or any other section herein. For the avoidance of doubt, the event described in the preceding sentence shall not constitute a distribution event whereby deferred amounts under the Plan are paid to the Director in accordance with this Section 7.
SECTION 8
Funding Change in Control and Other Special Provisions
8.1    Funding Change in Control
Notwithstanding any other terms of the Plan to the contrary, following a Funding Event, the provisions of this Section 8 shall apply to the payment of benefits under the Plan with respect to any Director who is a Participant on such date.
8.2    Funding of Trusts
The Deferred Cash Trust and the Deferred Stock Trust (collectively “Trusts”) have been established to hold assets of Southern and the Participating Companies under certain circumstances as a reserve for the discharge of the Company’s obligations under the Plan. In the event of a Funding Event involving a Funding Change in Control, the Company shall be obligated to immediately contribute such amounts to the Trusts as may be necessary to fully fund all benefits payable under the Plan in accordance with the procedures set forth in Section 8.3 hereof. All assets held in the Trusts remain subject only to the claims of the general creditors of Southern and the respective Participating Company (or Participating Companies) under federal or state law in the event of Insolvency (as defined in the Trusts). No Participant has any preferred claim on, or beneficial ownership interest in, any assets of the Trusts before the assets are paid to the Participant and all rights created under the Trusts, as under the Plan, are unsecured contractual claims of the Participant against the Company.
8.3    Funding Timing and Dispute Resolution
As soon as practicable following a Funding Event, the Company shall contribute to each Trust an amount based upon the funding strategy adopted by the Trust Administrator with the 
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assistance of an appointed actuary necessary to fulfill the Company’s obligations pursuant to this Section 8. In the event of a dispute over such actuary’s determination with respect to either or both Trusts, the Company and any complaining Participant(s) shall refer such dispute to an independent, third party actuarial consultant, chosen by the Company and such Participant.  If the Company and the Participant cannot agree on an independent, third party actuarial consultant, the actuarial consultant shall be chosen by lot from an equal number of actuaries submitted by the Company and the applicable Trust Administrator. Any such referral shall only occur once in total and the determination by the third-party actuarial consultant shall be final and binding upon both parties. The Company shall be responsible for all of the fees and expenses of the independent actuarial consultant.
8.4    Lump Sum Payment
In the event of a Funding Change in Control, notwithstanding anything to the contrary in the Plan, upon a Director’s Separation from Service, that amount in the Deferred Compensation Plan Account(s) of a Participant who was a Director determined as of the date of such Funding Change in Control shall be paid out in a lump sum provided that such Separation from Service occurred within two calendar years following the Funding Change in Control and that such Funding Change in Control constitutes a change in control event for purposes of Code Section 409A.  The lump sum payment shall be made within ninety (90) days of such Separation from Service as permitted by Code Section 409A.
SECTION 9
General Provisions
9.1    In the event that the Company shall decide to establish an advance accrual reserve on its books against the future expense of payments from any Deferred Compensation Accounts, such reserve shall not under any circumstances be deemed to be an asset of this Plan but, at all times, shall remain a part of the general assets of the Company, subject to claims of the Company’s creditors.
9.2    A person entitled to any amount under this Plan shall be a general unsecured creditor of the Company with respect to such amount. Furthermore, a person entitled to a payment or distribution with respect to a Deferred Compensation Account shall have a claim upon the Company only to the extent of the balance in such person’s Deferred Compensation Accounts.
9.3    The Company will pay all commissions, fees, and expenses that may be incurred in operating the Plan.
9.4    The Company will pay its prorated share of all commissions, fees, and expenses that may be incurred in operating any trust(s) established under the Plan (including the Deferred Stock Trust and the Deferred Cash Trust).
9.5    Notwithstanding any other provision of this Plan:
(a)    elections under this Plan may only be made by Directors while they are directors of the Company; (with the exception of the designation of beneficiaries); and

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(b)    distributions otherwise payable to a Director in the form of Common Stock or other corporation’s stock shall be delayed and/or instead paid in cash in an amount equal to the fair market value thereof if such payment in stock would violate any federal or State securities laws (including Section 16(b) of the Securities Exchange Act of 1934, as amended) and/or rules and regulations promulgated thereunder.
9.6    Directors, their legal representatives and their beneficiaries shall have no right to anticipate, alienate, sell, assign, transfer, pledge or encumber their interests in the Plan, nor shall such interests be subject to attachment, garnishment, levy or execution by or on behalf of creditors of the Directors or of their beneficiaries.
SECTION 10
Administration
10.1    General Provisions
The Board shall administer the Plan in accordance with its terms and shall have all powers necessary to carry out the provisions of the Plan as may be more particularly set forth herein. The Board shall interpret the Plan and shall determine all questions arising in the administration, interpretation, and application of the Plan. Any such determination by the Board shall be conclusive and binding on all persons. The Board shall be the Plan’s agent for service of process. The Board may designate a committee of the Board to be responsible for administering the Plan.
The Board may delegate to such officers, employees, or departments of the Company or Southern, such authority, duties, and responsibilities of the Board as it, in its sole discretion, considers necessary or appropriate for the proper and efficient operation of the Plan, including, without limitation, (i) interpretation of the Plan, (ii) approval and payment of claims, and (iii) establishment of procedures for administration of the Plan.
10.2    Claims Process
If a claim for benefits under the Plan is denied, in whole or in part, the Board will provide a written notice of the denial within a reasonable period of time, but not later than 90 days after the claim is received. If special circumstances require more time to process the claim, the Board will issue a written explanation of the special circumstances prior to the end of the 90 day period and a decision will be made as soon as possible, but not later than 180 days after the claim is received.
The written notice of claim denial will include:
•    Specific reasons why the claim was denied;
•    Specific references to applicable provisions of the Plan document or other relevant records or papers on which the denial is based, and information about where a Participant or the Participant’s beneficiary may see them;

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•    A description of any additional material or information needed to process the claim, and an explanation of why such material or information is necessary; and
•    An explanation of the claims review procedure, including the time limits applicable to such procedure, as well as a statement notifying the Participant or the Participant’s beneficiary of their right to file suit if the claim for benefits is denied, in whole or in part, on review.
Upon request, a Participant or the Participant’s beneficiary will be provided without charge, reasonable access to, and copies of, all non-confidential documents that are relevant to any denial of benefits. A claimant has 60 days from the day the claimant receives the original denial to request a review. Such request must be made in writing and sent to the Board. The request should state the reasons why the claim should be reviewed and may also include evidence or documentation to support the claimant’s position.
The Board will reconsider the claimant’s claim, taking into account all evidence, documentation, and other information related to the claim and submitted on the claimant’s behalf, regardless of whether such information was submitted or considered in the initial denial of the claim. The Board will make a decision within 60 days. If special circumstances require more time for this process, the claimant will receive written explanation of the special circumstances prior to the end of the initial 60 day period and a decision will be sent as soon as possible, but not later than 120 days after the Board receives the request.
No legal action to recover benefits or enforce or clarify rights under a Plan can be commenced until the Participant or the Participant’s beneficiary has first exhausted the claims and review procedures provided under the Plan.
SECTION 11
Definitions
11.1    “Beneficial Ownership” means beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act.
11.2    “Board” or “Board of Directors” means the Board of Directors of the Company.  In the event the Board designates a committee of the Board to be responsible for administering the Plan under Section 10.1, the term “Board” or “Board of Directors” shall mean such committee.
11.3    “Business Combination” means a reorganization, merger or consolidation or sale of Southern with another corporation or an entity treated as a corporation for United States federal income tax purposes.
11.4    “Cash Compensation” means the annual cash retainer fees and cash meeting fees payable to a Director.
11.5    “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute.

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11.6    “Common Stock” means the common stock of Southern including any shares into which it may be split, subdivided, or combined.
11.7    “Company” means Alabama Power Company, or any successor thereto.
11.8    “Company Change in Control” means the following:
(a)    The Consummation of an acquisition by any Person of Beneficial Ownership of 50% or more of the combined voting power of the then outstanding Voting Securities of the Company; provided, however, that for purposes of this Section 11.8, any acquisition by an Employee, or Group composed entirely of Employees, any qualified pension plan, any publicly held mutual fund or any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation Controlled by Southern shall not constitute a Change in Control;
(b)    Consummation of a reorganization, merger or consolidation of the Company (a “Company Business Combination”), in each case, unless, following such Company Business Combination, Southern Controls the corporation surviving or resulting from such Company Business Combination; or
(c)    Consummation of the sale or other disposition of all or substantially all of the assets of the Company to an entity which Southern does not Control.
11.9    “Compensation Payment Date” means the date on which compensation, including Cash Compensation and the Stock Retainer, is payable to a Director or would otherwise be payable to a Director if an election to defer such compensation had not been made.
11.10    “Consummation” means the completion of the final act necessary to complete a transaction as a matter of law, including, but not limited to, any required approvals by the corporation’s shareholders and board of directors, the transfer of legal and beneficial title to securities or assets and the final approval of the transaction by any applicable domestic or foreign governments or agencies.
11.11    “Control” means, in the case of a corporation, Beneficial Ownership of more than 50% of the combined voting power of the corporation’s Voting Securities, or in the case of any other entity, Beneficial Ownership of more than 50% of such entity’s voting equity interests.
11.12    “Deferred Cash Trust” means the Amended and Restated Deferred Cash Compensation Trust Agreement for Directors of The Southern Company and its Subsidiaries, as amended or amended and restated from time to time.
11.13    “Deferred Compensation Account” means the Prime Rate Investment Account, the Phantom Stock Investment Account and/or the Deferred Stock Account.
11.14    “Deferred Stock Account” means the bookkeeping account established under Section 6.3 on behalf of a Director and includes shares of Common Stock credited thereto to reflect the reinvestment of dividends.

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11.15    “Deferred Stock Trust” means the Amended and Restated Deferred Stock Trust Agreement for Directors of The Southern Company and its Subsidiaries, as amended or amended and restated from time to time.
11.16    “Deferred Stock Unit” means a bookkeeping unit, having at all times a value equal to one share of Common Stock, credited to a Participant’s Deferred Stock Account.
11.17    “Director” means a member of the Board.
11.18    “Distribution Election” means the designation by a Director of the manner of distribution of the amounts and quantities held in the Director’s Deferred Compensation Accounts upon the director’s Separation from Service pursuant to Section 5.4.
11.19    “Employee” means an employee of Southern or any of its subsidiaries that are “employing companies” as defined in the Southern Company Deferred Compensation Plan as amended and restated effective June1, 2021, and as may be amended from time to time.
11.20    “Exchange Act” means the Securities Exchange Act of 1934, as amended.
11.21    “Funding Change in Control” means any of the following:
(a)    The Consummation of an acquisition by any Person of Beneficial Ownership (during the 12-month period ending on the date of the most recent acquisition by such Person) of 35% or more of Southern’s Voting Securities; provided, however, that for purposes of this subsection (a), the following acquisitions of Southern’s Voting Securities shall not constitute a Funding Change in Control:
(i)    any acquisition directly from Southern;
(ii)    any acquisition by Southern;
(iii)    any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation controlled by Southern;
(iv)    any acquisition by a qualified pension plan or publicly held mutual fund;
(v)    any acquisition by an employee of Southern or its subsidiary or affiliate, or Group composed exclusively of such employees; or
(vi)    any Business Combination which would not otherwise constitute a Funding Change in Control because of the application of clauses (i), (ii) and (iii) of this Section 11.21(a);
(b)    The date a majority of members of the Southern Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Southern Board before the date of the appointment or election;

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(c)    The Consummation of a Business Combination, unless, following such Business Combination, all of the following three conditions are met:
(i)    all or substantially all of the individuals and entities who held Beneficial Ownership, respectively, of Southern’s Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, 50% or more of the combined voting power of the Voting Securities of the corporation surviving or resulting from such Business Combination, (including, without limitation, a corporation which as a result of such transaction holds Beneficial Ownership of all or substantially all of Southern’s Voting Securities or all or substantially all of Southern’s assets) (such surviving or resulting corporation to be referred to as “Surviving Company”), in substantially the same proportions as their ownership, immediately prior to such Business Combination, of Southern’s Voting Securities;
(ii)    no Person (excluding any corporation resulting from such Business Combination, any qualified pension plan, publicly held mutual fund, Group composed exclusively of employees or employee benefit plan (or related trust) of Southern, its subsidiaries or Surviving Company) holds Beneficial Ownership, directly or indirectly, of 35% or more of the combined voting power of the then outstanding Voting Securities of Surviving Company except to the extent that such ownership existed prior to the Business Combination; and
(iii)    the majority of the members of the board of directors of Surviving Company during the 12-month period following the Business Combination were members of the Southern Board at the earlier of the date of execution of the initial agreement, or of the action of the Southern Board, providing for such Business Combination or such members of the board of directors of the Surviving Company are directors whose appointment or election was endorsed by a majority of the members of such Southern Board.
(d)    The Consummation of an acquisition by any Person of Beneficial Ownership (during the 12-month period ending on the date of the most recent acquisition by such Person) of 50% or more of the combined voting power of the then outstanding Voting Securities of the Company; provided, however, that for purposes of this Subsection 11.21(d), any acquisition by an employee of Southern or its subsidiary or affiliate, or Group composed entirely of such employees, any qualified pension plan, publicly held mutual fund or any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation Controlled by Southern shall not constitute a Funding Change in Control;
(e)    The Consummation of a reorganization, merger or consolidation of the Company with another corporation (a “Funding Subsidiary Business Combination”), in each case, unless, following such Funding Subsidiary Business Combination, Southern Controls the corporation surviving or resulting from such Funding Subsidiary Business Combination, or
(f)    The Consummation of the sale or other disposition of all or substantially all of the assets of the Company to an entity that Southern does not Control; provided, however, that for purposes of this subsection (f) the following sales or dispositions otherwise described herein shall not constitute a Funding Change in Control:

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(i)    the sale or other disposition of all or substantially all of the assets of the Company to Southern or to a shareholder of Southern in exchange for or with respect to such shareholder’s stock of Southern;
(ii)    the sale of other disposition of all or substantially all of the assets of the Company to a Person that owns, directly or indirectly, 50% or more of the total value or voting power of the outstanding stock of Southern; or
(iii)    the sale or other disposition of all or substantially all of the assets of the Company to an entity Controlled by shareholders of Southern that hold, directly or indirectly, 50% or more of the total value or voting power of all of the outstanding stock of Southern.
For purposes of this Section 11.21(f) “all or substantially all of the assets” means at least 80% of the gross value of the assets of the entity immediately before the acquisition.
11.22    “Funding Event” means the occurrence of any of the following events as administratively determined by the Southern Committee:
(a)    Southern or the Company has entered into a written agreement, such as, but not limited to, a letter of intent, which, if Consummated, would result in a Funding Change in Control;
(b)    Southern, the Company or any other Person publicly announces an intention to take or to consider taking actions which, if Consummated, would result in a Funding Change in Control under circumstances where the Consummation of the announced action or intended action is legally and financially possible;
(c)    Any Person acquires Beneficial Ownership of fifteen percent (15%) or more of the Common Stock; or
(d)    The Southern Board or the Company elects to otherwise fund the Deferred Cash Trust and Deferred Stock Trust in accordance with the provisions of Section 8.
11.23    “Funding Subsidiary Business Combination” shall have the meaning set forth in Section 11.21(e) hereof.
11.24    “Group” has the meaning set forth in Section 14(d) of the Exchange Act.
11.25    “Incumbent Board” means those individuals who constitute the Southern Board as of June 1, 2021, plus any individual who shall become a director subsequent to such date whose election or nomination for election by Southern’s shareholders was approved by a vote of at least 75% of the directors then comprising the Incumbent Board. Notwithstanding the foregoing, no individual who shall become a director of the Southern Board subsequent to June 1, 2021, whose initial assumption of office occurs as a result of an actual or threatened election contest (within the meaning of Rule 14a-11 of the regulations promulgated under the Exchange Act) with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Southern Board shall be a member of the Incumbent Board.

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11.26    “Market Value” means the closing price at which a share of the Common Stock shall have been traded on the date such Market Value is to be determined, as specified herein (or on the next preceding trading day on which a sale was reported if such date was not a trading date), as reported by the principal securities exchange on which the Common Stock is traded. If the Common Stock is not listed for trading on a national securities exchange, the fair market value of the shares shall be determined by the Board in good faith and in accordance with a reasonable valuation method as determined under Code Section 409A and the rules and regulations promulgated thereunder.
11.27    “Modification Delay” means that the modified election shall not take effect until twelve (12) months after the date the modified election is made, the payment which is the subject of the modified election shall be deferred five (5) years from the date previously elected by the Director, and where applicable in the case of a payment made pursuant to a fixed schedule or specified time, the modified election must be made at least twelve (12) months prior to the time payment is scheduled to be made.
11.28    “Participant” means a Director or former Director who has an unpaid Deferred Compensation Account balance under the Plan.
11.29    “Participating Companies” means those companies that are affiliated with Southern whose boards of directors have authorized the establishment of trust(s) for the funding of directors’ Deferred Compensation Accounts and for which a Participant is providing (or has provided) services.
11.30    “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act.
11.31    “Phantom Stock Investment Account” means the bookkeeping account established pursuant to Section 6.2 in which a Director may elect to defer Cash Compensation or make investments, and includes amounts credited thereto to reflect the reinvestment of dividends.
11.32    “Phantom Stock Unit” means a bookkeeping unit, having at all times a value equal to one share of Common Stock, credited to a Participant’s Phantom Stock Investment Account.
11.33    “Plan” means the Deferred Compensation Plan for Outside Directors of Alabama Power Company as from time to time in effect.
11.34    “Plan Period” means the period designated in Section 4.
11.35    “Preliminary Change in Control” means the occurrence of any of the following as determined by the Southern Committee:
(a)    Southern or the Company has entered into a written agreement, such as, but not limited to, a letter of intent, which, if Consummated, would result in a Southern Change in Control or a Company Change in Control, as the case may be;
(b)    Southern, the Company or any Person publicly announces an intention to take or to consider taking actions which, if Consummated, would result in a Southern Change in Control or 
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a Company Change in Control under circumstances where the Consummation of the announced action or intended action is legally and financially possible;
(c)    Any Person becomes the Beneficial Owner of fifteen percent (15%) or more of the Common Stock; or
(d)    The Southern Board or the Board has declared that a Preliminary Change in Control has occurred.
11.36    “Prime Interest Rate” means the prime rate of interest as published in the Wall Street Journal or its successor on the first day of the applicable calendar quarter.
11.37    “Prime Rate Investment Account” means the bookkeeping account established pursuant to Section 6.1 in which a Director may elect to defer Cash Compensation or make investments, the investment return on which is computed at the Prime Interest Rate.
11.38    “Separation from Service” means a separation from service as such term is defined in Code Section 409A or any other applicable regulations or guidance from the Department of Treasury.
11.39    “Southern” means The Southern Company.
11.40    “Southern Board” means the Board of Directors of Southern.
11.41    “Southern Change in Control” means any of the following:
(a)    The Consummation of an acquisition by any Person of Beneficial Ownership of 20% or more of Southern’s Voting Securities; provided, however, that for purposes of this subsection (a), the following acquisitions of Southern’s Voting Securities shall not constitute a Change in Control:
(i)    any acquisition directly from Southern,
(ii)    any acquisition by Southern,
(iii)    any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation controlled by Southern,
(iv)    any acquisition by a qualified pension plan or publicly held mutual fund,
(v)    any acquisition by an Employee or Group composed exclusively of Employees, or
(vi)    any Business Combination which would not otherwise constitute a Southern Change in Control because of the application of clauses (i), (ii) and (iii) of Section 11.41(a) of this Plan;
(b)    A change in the composition of the Southern Board whereby individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Southern Board; or
(c)    Consummation of a Business Combination, unless, following such Business Combination, all of the following three conditions are met:
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(i)    all or substantially all of the individuals and entities who held Beneficial Ownership, respectively, of Southern’s Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, 65% or more of the combined voting power of the Voting Securities of the corporation surviving or resulting from such Business Combination, (including, without limitation, a corporation which as a result of such transaction holds Beneficial Ownership of all or substantially all of Southern’s Voting Securities or all or substantially all of Southern’s assets) (such surviving or resulting corporation to be referred to as “Surviving Company”), in substantially the same proportions as their ownership, immediately prior to such Business Combination, of Southern’s Voting Securities;
(ii)    no Person (excluding any corporation resulting from such Business Combination, any qualified pension plan, publicly held mutual fund, Group composed exclusively of employees or employee benefit plan (or related trust) of Southern, its subsidiaries, or Surviving Company) holds Beneficial Ownership, directly or indirectly, of 20% or more of the combined voting power of the then outstanding Voting Securities of Surviving Company except to the extent that such ownership existed prior to the Business Combination; and
(iii)    at least a majority of the members of the board of directors of Surviving Company were members of the Incumbent Board at the earlier of the date of execution of the initial agreement, or of the action of the Southern Board, providing for such Business Combination.
11.42    “Southern Committee” means a committee comprised of the Chairman of the Southern Board, the Chief Financial Officer of Southern and the General Counsel of Southern.
11.43    “Stock Retainer” means the annual Board retainer fee that is paid to the Director in the form of Common Stock.
11.44    “Transferred Amount” means an amount (a) equal to the value of a Director’s accounts under the applicable deferred compensation plan for directors of Southern, Georgia Power Company, Mississippi Power Company, or Southern Company Gas and (b) which has been transferred to the Plan in connection with the Director’s transfer from the Southern Board or the board of directors of Georgia Power Company Mississippi Power Company, or Southern Company Gas.
11.45    “Trust Administrator” means the individual or committee that is established in the Deferred Stock Trust and the Deferred Cash Trust, to administer such trusts.
11.46    “Voting Securities” means the outstanding voting securities of a corporation entitling the holder thereof to vote generally in the election of such corporation’s directors.
Where the context requires, words in the masculine gender shall include the feminine gender, words in the singular shall include the plural, and words in the plural shall include the singular.
SECTION 12
Amendment, Termination and Effective Date
12.1    Amendment of the Plan
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The Plan may be amended or terminated at any time by the Board of Directors, provided, however, that no such amendment or termination of the Plan shall be effective if such amendment or termination is made or is effective within a period that is (a) six (6) months before, or at any time after, a Preliminary Change in Control and (b) prior to (x) the earlier of such time as the Southern Committee shall have determined that the event that gave rise to such Preliminary Change in Control shall not be Consummated or (y) two years following the respective Change in Control, unless such amendment or termination during such period has the effect of increasing benefits to Participants under the Plan, is determined by the Board of Directors to be immaterial, or applies solely to Directors who, in the case of a Company Change in Control, are not Directors on the date of the respective Preliminary Change in Control, or, in the case of a Southern Change in Control, are not Directors on the date of the respective Southern Change in Control. Following a Change in Control, nothing in this Section 12.1 shall prevent the Board of Directors from amending or terminating the Plan as to any subsequent Change in Control provided that no such amendment or termination shall impair any rights or reduce any benefits previously accrued under the Plan as a result of a previous Change in Control.
12.2    No Impairment of Benefits
Notwithstanding the provisions of Section 12.1 herein, no amendment to or termination of the Plan shall impair any rights to benefits that have accrued hereunder.
12.3    Code Section 409A
All payments of “non-qualified deferred compensation” (within the meaning of Code Section 409A) under this Plan, whether or not expressly designated as such, are intended to comply with the requirements of Code Section 409A, and shall be interpreted in accordance therewith. Neither the Participant nor the Company may accelerate any such deferred payment, except in compliance with Code Section 409A for such events that include but may not be limited to a termination of the Plan.
To the extent of the reimbursement of expenses, (a) there shall be an objectively determinable nondiscretionary definition of expenses eligible for reimbursement; (b) such expenses shall be only those incurred during the Participant’s lifetime; (c) the amount of expenses eligible for reimbursement during a calendar year shall not affect the expenses eligible for reimbursement in any other taxable year; (d) the reimbursement of an eligible expense shall 
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be made on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (e) the right to reimbursement shall not be subject to liquidation or exchange for another benefit.
12.4    Governing Law
This Plan shall be construed in accordance with and governed by the laws of the state in which the Company is incorporated to the extent not inconsistent with the requirements of the Employee Retirement Income Security Act of 1974, as amended, and Code Section 409A.
IN WITNESS WHEREOF, the Plan, as amended and restated effective June 1, 2021, has been executed pursuant to resolutions of the Board, this day of July 21, 2021.
												
			ALABAMA POWER COMPANY

			By:	/s/Ceila H. Shorts
				

						
	Attest:

	By:	/s/Amy Riley
		

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PROVISIONS FOR PRE-2005 DEFERRALS UNDER
THE DEFERRED COMPENSATION PLAN FOR OUTSIDE DIRECTORS OF ALABAMA POWER COMPANY
SECTION 1

Purpose
1.1    Provisions for Pre-2005 Deferrals:  This document (the “Pre-2005 Addendum”) sets forth the operative provisions of the Deferred Compensation Plan for Outside Directors of Alabama Power Company (as amended or amended and restated from time to time, the “Plan”) applicable to “grandfathered” deferrals of Cash Compensation and Stock Retainer made by Participants which are treated by the Company as not subject to Code Section 409A.  The Deferred Compensation Account balance (plus earnings thereon) of the grandfathered deferrals shall only be subject to the provisions set forth in this Pre-2005 Addendum.  In accordance with transition rules under Code Section 409A, Internal Revenue Service Notice 2005-1, Treasury Regulation Section 1.409A-1 et seq., or any other applicable guidance from the Department of Treasury, these provisions are only intended to preserve the rights and features of the “grandfathered” deferrals and are, therefore, not intended to “materially modify” any aspect of such rights and features.  Provisions of this Pre-2005 Addendum should be so construed whenever necessary or appropriate.  Provisions in this Pre-2005 Addendum shall only be amended in accordance with this Pre-2005 Addendum’s terms.  Capitalized terms used herein but not defined herein shall have the meanings given to such terms in the Plan (as in effect prior to January 1, 2005).
SECTION 2

Definitions
2.1    “Beneficial Ownership” means beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act.
2.2    “Board” or “Board of Directors” means the Board of Directors of the Company.
2.3    “Business Combination” means a reorganization, merger or consolidation or sale of Southern with another corporation or an entity treated as a corporation for United States federal income tax purposes.
2.4    “Cash Compensation” means the annual retainer fees and meeting fees payable to a Director in cash.
2.5    “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute.

2.6    “Committee” means the Compensation Committee of the Board, or such other committee as may be designated by the Board to be responsible for administering the Plan and this Pre-2005 Addendum.
2.7    “Common Stock” means the common stock of Southern, including any shares into which it may be split, subdivided, or combined.
2.8    “Company” means Alabama Power Company, or any successor thereto.
2.9    “Company Change in Control” means the following:
(a)    The Consummation of an acquisition by any Person of Beneficial Ownership of 50% or more of the combined voting power of the then outstanding Voting Securities of the Company; provided, however, that for purposes of this Section 2.9, any acquisition by an Employee, or Group composed entirely of Employees, any qualified pension plan, any publicly held mutual fund or any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation Controlled by Southern shall not constitute a Change in Control;
(b)    Consummation of a reorganization, merger or consolidation of the Company (a “Company Business Combination”), in each case, unless, following such Company Business Combination, Southern Controls the corporation surviving or resulting from such Company Business Combination; or
(c)    Consummation of the sale or other disposition of all or substantially all of the assets of the Company to an entity which Southern does not Control.
2.10    “Compensation Payment Date” means the date on which compensation, including Cash Compensation, and the Stock Retainer, is payable to a Director or compensation which would otherwise be payable to a Director if an election to defer such compensation had not been made.
2.11    “Consummation” means the completion of the final act necessary to complete a transaction as a matter of law, including, but not limited to, any required approvals by the corporation’s shareholders and board of directors, the transfer of legal and beneficial title to securities or assets and the final approval of the transaction by any applicable domestic or foreign governments or agencies.
2.12    “Control” means, in the case of a corporation, Beneficial Ownership of more than 50% of the combined voting power of the corporation’s Voting Securities, or in the case of any other entity, Beneficial Ownership of more than 50% of such entity’s voting equity interests.
2.13    “Deferred Cash Trust” means the Amended and Restated Deferred Cash Compensation Trust Agreement for Directors of The Southern Company and its Subsidiaries, as amended or amended and restated from time to time.

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2.14    “Deferred Compensation Account” means the Prime Rate Investment Account, the Phantom Stock Investment Account, the Deferred Stock Account, and/or the Stock Dividend Investment Account applicable to “grandfathered” deferrals of Cash Compensation and Stock Retainer made by Participants which are treated by the Company as not subject to Code Section 409A.
2.15    “Deferred Pension Election” means the election by a Director who had a Pension Benefit as of the Termination Date, who made a single one-time election, to credit all his Pension Benefit into (i) the Prime Rate Investment Account or (ii) the Phantom Stock Investment Account in connection with the deferral of receipt of the Director’s Pension Benefit until termination from the Board.
2.16    “Deferred Stock Account” means the bookkeeping account established under Section 5.3 of this Pre-2005 Addendum on behalf of a Director and includes shares of Common Stock credited thereto to reflect the reinvestment of dividends pursuant to Section 5.3(a)(iii) of this Pre-2005 Addendum.
2.17    “Deferred Stock Trust” means the Amended and Restated Deferred Stock Trust Agreement for Directors of The Southern Company and its Subsidiaries, as amended or amended and restated from time to time.
2.18    “Director” means a member of the Board.
2.19    “Distribution Election” means the designation by a Director of the manner of distribution of the amounts and quantities held in the Director’s Deferred Compensation Accounts upon the director’s termination from the Board pursuant to Section 6.3 of this Pre-2005 Addendum.
2.20    “Employee” means an employee of Southern or any of its subsidiaries that are “employing companies” as defined in the Southern Company Deferred Compensation Plan as amended and restated effective January 1, 2005, and as may be amended from time to time.
2.21    “Exchange Act” means the Securities Exchange Act of 1934, as amended.
2.22    “Funding Change in Control means any of the following:
(a)    The Consummation of an acquisition by any Person of Beneficial Ownership (during the 12-month period ending on the date of the most recent acquisition by such Person) of 35% or more of Southern’s Voting Securities; provided, however, that for purposes of this subsection (a), the following acquisitions of Southern’s Voting Securities shall not constitute a Funding Change in Control:
(i)    any acquisition directly from Southern;
(ii)    any acquisition by Southern;

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(iii)    any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation controlled by Southern;
(iv)    any acquisition by a qualified pension plan or publicly held mutual fund;
(v)    any acquisition by an employee of Southern or its subsidiary or affiliate, or Group composed exclusively of such employees; or
(vi)    any Business Combination which would not otherwise constitute a Funding Change in Control because of the application of clauses (i), (ii) and (iii) of this Section 2.22(a);
(b)    The date a majority of members of the Southern Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Southern Board of Directors before the date of the appointment or election;
(c)    The Consummation of a Business Combination, unless, following such Business Combination, all of the following three conditions are met:
(i)    all or substantially all of the individuals and entities who held Beneficial Ownership, respectively, of Southern’s Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, 50% or more of the combined voting power of the Voting Securities of the corporation surviving or resulting from such Business Combination, (including, without limitation, a corporation which as a result of such transaction holds Beneficial Ownership of all or substantially all of Southern’s Voting Securities or all or substantially all of Southern’s assets) (such surviving or resulting corporation to be referred to as “Surviving Company”), in substantially the same proportions as their ownership, immediately prior to such Business Combination, of Southern’s Voting Securities;
(ii)    no Person (excluding any corporation resulting from such Business Combination, any qualified pension plan, publicly held mutual fund, Group composed exclusively of employees or employee benefit plan (or related trust) of Southern, its subsidiaries or Surviving Company) holds Beneficial Ownership, directly or indirectly, of 35% or more of the combined voting power of the then outstanding Voting Securities of Surviving Company except to the extent that such ownership existed prior to the Business Combination; and
(iii)    the majority of the members of the board of directors of Surviving Company during the 12-month period following the Business Combination were members of the Southern Board of Directors at 
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the earlier of the date of execution of the initial agreement, or of the action of the Southern Board of Directors, providing for such Business Combination or such members of the board of directors of the Surviving Company are directors whose appointment or election was endorsed by a majority of the members of such Southern Board of Directors.
(d)    The Consummation of an acquisition by any Person of Beneficial Ownership (during the 12-month period ending on the date of the most recent acquisition by such Person) of 50% or more of the combined voting power of the then outstanding Voting Securities of the Company; provided, however, that for purposes of this Section 2.22(d), any acquisition by an employee of Southern or its subsidiary or affiliate, or Group composed entirely of such employees, any qualified pension plan, publicly held mutual fund or any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation Controlled by Southern shall not constitute a Funding Change in Control;
(e)    The Consummation of a reorganization, merger or consolidation of the Company with another corporation (a “Funding Subsidiary Business Combination”), in each case, unless, following such Funding Subsidiary Business Combination, Southern Controls the corporation surviving or resulting from such Funding Subsidiary Business Combination, or
(f)    The Consummation of the sale or other disposition of all or substantially all of the assets of the Company to an entity that Southern does not Control; provided, however, that for purposes of this subsection (f) the following sales or dispositions otherwise described herein shall not constitute a Funding Change in Control:
(i)    the sale or other disposition of all or substantially all of the assets of the Company to Southern or to a shareholder of Southern in exchange for or with respect to such shareholder’s stock of Southern;
(ii)    the sale of other disposition of all or substantially all of the assets of the Company to a Person that owns, directly or indirectly, 50% or more of the total value or voting power of the outstanding stock of Southern; or
(iii)    the sale or other disposition of all or substantially all of the assets of the Company to an entity Controlled by shareholders of Southern that hold, directly or indirectly, 50% or more of the total value or voting power of all of the outstanding stock of Southern.
For purposes of this Section 2.22(f) “all or substantially all of the assets” means at least 80% of the gross value of the assets of the entity immediately before the acquisition.

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2.23    “Funding Event” shall mean the occurrence of any of the following events as administratively determined by the Southern Committee:
(a)    Southern or the Company has entered into a written agreement, such as, but not limited to, a letter of intent, which, if Consummated, would result in a Funding Change in Control;
(b)    Southern, the Company or any other Person publicly announces an intention to take or to consider taking actions which, if Consummated, would result in a Funding Change in Control under circumstances where the Consummation of the announced action or intended action is legally and financially possible;
(c)    Any Person acquires Beneficial Ownership of fifteen percent (15%) or more of the Common Stock; or
(d)    The Southern Board of Directors or the board of directors of the Company elects to otherwise fund the Deferred Cash Trust and Deferred Stock Trust in accordance with the provisions of Section 7 of this Pre-2005 Addendum.
2.24    “Funding Subsidiary Business Combination” shall have the meaning set forth in Section 2.22(e) hereof.
2.25    “Group” has the meaning set forth in Section 14(d) of the Exchange Act.
2.26    “Incumbent Board” means those individuals who constitute the Southern board of directors as of January 1, 2008, plus any individual who shall become a director subsequent to such date whose election or nomination for election by Southern’s shareholders was approved by a vote of at least 75% of the directors then comprising the Incumbent Board.  Notwithstanding the foregoing, no individual who shall become a director of the Southern board of directors subsequent to January 1, 2008, whose initial assumption of office occurs as a result of an actual or threatened election contest (within the meaning of Rule 14a-11 of the regulations promulgated under the Exchange Act) with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Southern board of directors shall be a member of the Incumbent Board.
2.27    “Market Value” means the average of the high and low prices of the Common Stock, as published in the Wall Street Journal in its report of New York Stock Exchange composite transactions, on the date such Market Value is to be determined, as specified herein (or the average of the high and low sale prices on the trading day immediately preceding such date if the Common Stock is not traded on the New York Stock Exchange on such date).
2.28    “Participant” means a Director or former Director who has an unpaid Deferred Compensation Account balance under this Pre-2005 Addendum.

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2.29    “Participating Companies” means those companies that are affiliated with Southern whose boards of directors have authorized the establishment of trust(s) for the funding of their respective directors’ Deferred Compensation Accounts under their respective Deferred Compensation Plans for Directors, including the Plan as maintained by the Company for its Directors.
2.30    “Pension Benefit” means the U.S. dollar amount of the actuarially-determined present value of benefits based on a Director’s expected service at the required retirement date under The Southern Company Outside Directors Pension Plan, as calculated as of the Termination Date, plus accrued earnings on such amount calculated as if invested at the Prime Interest Rate from the Termination Date, until such amount is invested in Deferred Compensation Accounts.
2.31    “Pension Benefit Investment Date” means the date to be determined by the Committee, as of which the Director’s Pension Benefit will be credited to a Deferred Compensation Account in accordance with the director’s Deferred Pension Election.
2.32    “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act.
2.33    “Phantom Stock Investment Account” means the bookkeeping account established pursuant to Section 5.2 of this Pre-2005 Addendum in which a Director may elect to defer Cash Compensation or make investments, and includes amounts credited thereto to reflect the reinvestment of dividends.
2.34    “Plan” means the Deferred Compensation Plan for Outside Directors of Alabama Power Company as from time to time in effect.
2.35    “Plan Period” means the period designated in Section 4.
2.36    “Preliminary Change in Control” means the occurrence of any of the following as determined by the Southern Committee:
(a)    Southern or the Company has entered into a written agreement, such as, but not limited to, a letter of intent, which, if Consummated, would result in a Southern Change in Control or a Company Change in Control, as the case may be;
(b)    Southern, the Company or any Person publicly announces an intention to take or to consider taking actions which, if Consummated, would result in a Southern Change in Control or a Company Change in Control under circumstances where the Consummation of the announced action or intended action is legally and financially possible;
(c)    Any Person becomes the Beneficial Owner of fifteen percent (15%) or more of the Common Stock; or

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(d)    The Southern board of directors or the board of directors of the Company has declared that a Preliminary Change in Control has occurred.
2.37    “Prime Interest Rate” means the prime rate of interest as published in the Wall Street Journal, or its successor on the first day of the applicable calendar quarter.
2.38    “Prime Rate Investment Account” means the bookkeeping account established pursuant to Section 5.1 of this Pre-2005 Addendum in which a Director may elect to defer Cash Compensation or make investments, the investment return on which is computed at the Prime Interest Rate.
2.39    “Southern” means The Southern Company.
2.40    “Southern Change in Control” means any of the following:
(a)    The Consummation of an acquisition by any Person of Beneficial Ownership of 20% or more of Southern’s Voting Securities; provided, however, that for purposes of this subsection (a), the following acquisitions of Southern’s Voting Securities shall not constitute a Change in Control:
(i)    any acquisition directly from Southern,
(ii)    any acquisition by Southern,
(iii)    any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Southern or any corporation controlled by Southern,
(iv)    any acquisition by a qualified pension plan or publicly held mutual fund,
(v)    any acquisition by an Employee or Group composed exclusively of Employees, or
(vi)    any Business Combination which would not otherwise constitute a Change in Control because of the application of clauses (i), (ii) and (iii) of Section 2.40(a) of this Pre-2005 Addendum;
(b)    A change in the composition of Southern’s board of directors whereby individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of Southern’s board of directors; or
(c)    Consummation of a Business Combination, unless, following such Business Combination, all of the following three conditions are met:
(i)    all or substantially all of the individuals and entities who held Beneficial Ownership, respectively, of Southern’s Voting Securities immediately prior to such Business Combination beneficially own, 
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directly or indirectly, 65% or more of the combined voting power of the Voting Securities of the corporation surviving or resulting from such Business Combination, (including, without limitation, a corporation which as a result of such transaction holds Beneficial Ownership of all or substantially all of Southern’s Voting Securities or all or substantially all of Southern’s assets) (such surviving or resulting corporation to be referred to as “Surviving Company”), in substantially the same proportions as their ownership, immediately prior to such Business Combination, of Southern’s Voting Securities;
(ii)    no Person (excluding any corporation resulting from such Business Combination, any qualified pension plan, publicly held mutual fund, Group composed exclusively of employees or employee benefit plan (or related trust) of Southern, its subsidiaries, or Surviving Company) holds Beneficial Ownership, directly or indirectly, of 20% or more of the combined voting power of the then outstanding Voting Securities of Surviving Company except to the extent that such ownership existed prior to the Business Combination; and
(iii)    at least a majority of the members of the Board were members of the Incumbent Board at the earlier of the date of execution of the initial agreement, or of the action of the Southern board of directors, providing for such Business Combination.
2.41    “Southern Committee” means a committee comprised of the Chairman of the Southern Board, the Chief Financial Officer of Southern, and the General Counsel of Southern.
2.42    “Stock Dividend Investment Account” means the bookkeeping account(s) established pursuant to Section 5.4 of this Pre-2005 Addendum on behalf of a Director that is credited with shares of stock, other than Common Stock, paid as a dividend on shares of Common Stock.
2.43    “Stock Retainer” means the annual Board retainer fee that is paid to the Director in the form of Common Stock.
2.44    “Termination Date” means January 1, 1997, the date as of which The Southern Company Outside Directors Pension Plan was effectively terminated.
2.45    “Trust Administrator” means the individual or committee that is established in the Deferred Stock Trust and the Deferred Cash Trust, to administer such trusts on behalf of the Participating Companies.
2.46    “Voting Securities” means the outstanding voting securities of a corporation entitling the holder thereof to vote generally in the election of such corporation’s directors.

9

Where the context requires, words in the masculine gender shall include the feminine gender, words in the singular shall include the plural, and words in the plural shall include the singular.
SECTION 3

Eligibility
For so long as a Director has a Deferred Compensation Account balance governed by this Pre-2005 Addendum, he or she shall be a Participant in the Plan for purposes of this Pre-2005 Addendum, and such Deferred Compensation Account balance shall be maintained and administered solely in accordance with the terms of this Pre-2005 Addendum.
SECTION 4

Plan Periods
No new deferral elections may be made which are subject to this Pre-2005 Addendum.
SECTION 5

Accounts
5.1    Prime Rate Investment Account
A Prime Rate Investment Account shall be established for each Director electing deferral of Cash Compensation for investment at the Prime Interest Rate.  The amount directed by the Director to such account shall be credited to it as of the Pension Benefit Investment Date or Compensation Payment Date, as applicable, and credited thereafter with interest computed using the Prime Interest Rate.  Interest shall be computed from the date such compensation is credited to the account and compounded quarterly at the end of each calendar quarter.  The Prime Interest Rate in effect on the first day of a calendar quarter shall be deemed the Prime Interest Rate in effect for that entire quarter.  Interest shall accrue and compound on any balance until the amount credited to the account is fully distributed.
5.2    Phantom Stock Investment Account
The Phantom Stock Investment Account established for each Director electing deferral of Cash Compensation for investment at the Common Stock investment rate shall be credited with the number of shares (including fractional shares rounded to the nearest ten-thousandth) of Common Stock which could have been purchased on the Pension Benefit Investment Date or the Compensation Payment Date, as applicable, as determined by dividing the applicable compensation by the Market Value on such date.  On the date of the payment of dividends on the Common Stock, the Director’s Phantom Stock Investment Account shall be credited with additional shares (including fractional shares rounded to the nearest ten-thousandth) of Common Stock, as follows:

10

(a)    In the case of cash dividends, such additional shares as would have been purchased as of the Common Stock dividend record date as if the credited shares had been outstanding on such date and dividends reinvested thereon under the Southern Company Southern Investment Plan;
(b)    In the case of dividends payable in property other than cash or Common Stock, such additional shares as could be purchased at the Market Value as of the date of payment with the fair market value of the property which would have been payable if the credited shares had been outstanding; and
(c)    In the case of dividends payable in Common Stock, such additional shares as would have been payable on the credited shares as if they had been outstanding.
5.3    Deferred Stock Account
(a)    A Director’s Deferred Stock Account will be credited:
(i)    with the number of shares of Common Stock (rounded to the nearest ten thousandth of a share) determined by dividing the sum of the amount of Cash Compensation subject to deferral or investment in the Deferred Stock Account and the Stock Retainer (that is denominated in dollars), by the average price paid by the Trust Administrator of the Deferred Stock Trust for shares of Common Stock with respect to the Pension Benefit Investment Date or the Compensation Payment Date, as applicable, as reported by the Trust Administrator, or if the Trust Administrator shall not at such time purchase any shares of Common Stock, by the Market Value on such date;
(ii)    as of the date on which Stock Retainer (that is denominated in shares of Common Stock) is paid, with the number of shares of Common Stock payable to the Director as his Stock Retainer; and
(iii)    as of each date on which dividends are paid on the Common Stock, with the number of shares of Common Stock (rounded to the nearest ten thousandth of a share) determined by multiplying the number of shares of Common Stock credited in the Director’s Deferred Stock Account on the dividend record date, by the dividend rate per share of Common Stock, and dividing the product by the price per share of Common Stock attributable to the reinvestment of dividends on the shares of Common Stock held in the Deferred Stock Trust on the applicable dividend payment date or, if the Trust Administrator of the Deferred Stock Trust has not reinvested in shares of Common Stock on the applicable dividend reinvestment date, the product shall be divided by the Market Value on the dividend payment date.

11

(b)    If Southern enters into transactions involving stock splits, stock dividends, reverse splits or any other recapitalization transactions, the number of shares of Common Stock credited to a Director’s Deferred Stock Account will be adjusted (rounded to the nearest ten thousandth of a share) so that the Director’s Deferred Stock Account reflects the same equity percentage interest in Southern after the recapitalization as was the case before such transaction.
(c)    If at least a majority of Southern’s stock is sold or exchanged by its shareholders pursuant to an integrated plan for cash or property (including stock of another corporation) or if substantially all of the assets of Southern are disposed of and, as a consequence thereof, cash or property is distributed to Southern’s shareholders, each Director’s Deferred Stock Account will, to the extent not already so credited under this Section 5.3, be (i) credited with the amount of cash or property receivable by a Southern shareholder directly holding the same number of shares of Common Stock as is credited to such Director’s Deferred Stock Account and (ii) debited by that number of shares of Common Stock surrendered by such equivalent Southern shareholder.
(d)    Except as expressly provided in this Pre-2005 Addendum, a Director shall have no rights as a stockholder of Southern with respect to the Director’s Deferred Stock Account unless and until such Common Stock is paid to the Director.
5.4    Stock Dividend Investment Account
(a)    A Director’s Stock Dividend Investment Account will be credited as of the date on which a dividend is paid in stock other than Common Stock to the Company’s common stockholders with the number of shares of such other corporation’s stock receivable by such Southern common stockholder.  Thereafter, if dividends are paid on the above-described non-Common Stock dividends, such subsequent dividends shall be credited in the same manner as described in Section 5.3(a)(iii) of this Pre-2005 Addendum.
(b)    Except as expressly provided herein, a Director shall have no rights as a stockholder of any corporation the common stock of which is credited to the Director’s Stock Dividend Investment Account.
SECTION 6

Distributions
6.1    Upon the termination of a Director’s membership on the Board the amount credited to a Director’s Deferred Compensation Accounts will be paid to the Director or his beneficiary, as applicable, in the following manner:
(a)    the amount credited to a Director’s Prime Rate Investment Account and Phantom Stock Investment Account shall be paid in cash;

12

(b)    the amount credited to a Director’s Deferred Stock Account shall, except as otherwise provided in Sections 5.3 and 6.6 of this Pre-2005 Addendum, or to the extent the Company is otherwise, in the reasonable judgment of the Committee, precluded from doing so, be paid in shares of Common Stock (with any fractional share interest therein paid in cash to the extent of the then Market Value thereof); and
(c)    the amount credited to a Stock Dividend Investment Account shall, except as otherwise provided in Section 6.6 of this Pre-2005 Addendum, be paid from the assets in the Deferred Stock Trust in shares of the applicable corporation, however if there is not a sufficient number of shares held in the Trust, the remainder shall be paid in cash based upon the Market Value of such shares held in the Trust, the remainder shall be paid in cash based upon the Market Value of such shares.
Such payments shall be from the general assets of the Company (including the Deferred Cash Trust and the Deferred Stock Trust) in accordance with this Section 6.
6.2    Unless other arrangements are specified by the Committee on a uniform and nondiscriminatory basis, deferred amounts shall be paid in the form of (i) a lump sum payment, or (ii) in approximately equal annual or quarterly installments, as elected by the Director pursuant to the provisions of Section 6.3 of this Pre-2005 Addendum, provided, however, that payments shall be made only in a single lump sum if payment commences due to termination for cause.  Such payments shall be made (or shall commence) as soon as practicable following the termination of Board membership or, if so elected in the Distribution Election, up to twenty-four (24) months following such termination.
If at the time of a Director’s termination of Board membership, his Deferred Compensation Accounts have a cumulative balance of less than $75,000, the balance of the Deferred Compensation Accounts may be distributed in a single lump sum payment or in three or fewer approximately equal annual installments, in the discretion of the Committee if the Director has elected a longer installment payout period.
In the event a Director elected to receive the balance of his Deferred Compensation Accounts in a lump sum, distribution shall be made on the first day of the month selected by the Director on his Distribution Election, or as soon as reasonably possible thereafter.  If the Director elected to receive annual or quarterly installments, the first payment shall be made on the first day of the month selected by a Director, or as soon as reasonably possible thereafter, and shall be equal to the balance in the Director’s Deferred Compensation Accounts on such date divided by the number of annual or quarterly installment payments.  Each subsequent annual or quarterly payment shall be an amount equal to the balance in the Director’s Deferred Compensation Accounts on the date of payment divided by the number of remaining annual or quarterly payments.
Notwithstanding a Director’s election to receive his Deferred Compensation Account balance in installments, the Committee, upon request of the Director and in its sole discretion, may accelerate the payment of any such installments for cause, such as financial hardship or 
13

financial emergency. The Market Value of any shares of Common Stock credited to a Director’s Phantom Stock Investment Account shall be determined as of the date of any lump sum or installment distribution as determined by the Committee.
Upon the death of a Director, or a former Director prior to the payment of all amounts credited to the Director’s Deferred Compensation Accounts, the unpaid balance shall be paid in a lump sum to the designated beneficiary of such Director or former Director within sixty (60) days of the date of death (or as soon as reasonably possible thereafter).  In the event a beneficiary designation has not been made, or the designated beneficiary is deceased or cannot be located, payment shall be made to the estate of the Director or former Director.  The Market Value of any shares of Common Stock credited to a Director’s Phantom Stock Investment Account shall be determined as of the date of any lump sum distribution.
6.3    Distribution Election
(a)    Except as set forth in Section 6.3 (b) of this Pre-2005 Addendum, prior to the initial establishment of a Deferred Compensation Account for a Director, the Director must elect, in writing, that upon termination from the Board of Directors the values and quantities held in the Directors Deferred Compensation Accounts be distributed to the Director, pursuant to the provisions of this Section 6, in a lump sum or in a series of annual or quarterly installments not to exceed fifteen (15) years.  Distributions from the Prime Rate Investment Account and Phantom Stock Investment Account can be in a lump sum or in annual or quarterly installments.  Distributions from the Deferred Stock Account and Stock Dividend Investment Account can be lump sum or annual installments.  The time for the commencement of distribution shall not be later than the first day of the month or quarter coinciding with or next following the second anniversary of termination of Board membership.
(b)    Any Director who made a Deferred Pension Election made a Distribution Election at the time the Deferred Pension Election was made attributable to the Pension Benefit and any accumulated investment return.
(c)    Distribution Elections made under Sections 6.3(a) and (b) above are irrevocable except that a Director may amend any of the Distribution Elections then in effect while the Director is still a director of the Company as required under Section 6.6 of this Pre-2005 Addendum provided the amended election is made not later than the 366th day prior to the Director’s termination of Board membership.  In addition, any amendment to a Distribution Election must be made on a form prescribed by the Committee and delivered to the Secretary or Assistant Secretary of the Company.
6.4    Beneficiary Designation
A Director or former Director may designate a beneficiary to receive distributions under this Pre-2005 Addendum in accordance with the provisions of this Section 6 upon the death of the 
14

director.  The beneficiary designation may be changed by a Director or former Director at any time, and without the consent of the prior beneficiary.
6.5    Form of Election
All elections pursuant to the provisions of this Section 6 of the Pre-2005 Addendum shall be made in writing to the Secretary or Assistant Secretary of the Company on a form or forms available upon request of the Secretary or Assistant Secretary.
6.6    Distribution Limitations
    Notwithstanding any other provision of this Pre-2005 Addendum:  (i) elections under this Pre-2005 Addendum may only be made by Directors while they are directors of the Company (with the exception of the designation of beneficiaries), and (ii) distributions otherwise payable to a Director in the form of Common Stock or other corporation’s stock shall be delayed and/or instead paid in cash in an amount equal to the fair market value thereof if such payment in Common Stock would violate any federal or State securities laws (including Section 16(b) of the Securities Exchange Act of 1934, as amended) and/or rules and regulations promulgated thereunder.
SECTION 7

Change in Control and Other Special Provisions
7.1    Notwithstanding any other terms of this Pre-2005 Addendum to the contrary, following a Funding Event or a Preliminary Change in Control as the case may be, the provisions of this Section 7 shall apply to the payment of benefits under this Pre-2005 Addendum with respect to any Director who is a Participant on such date.
7.2    The Deferred Cash Trust and the Deferred Stock Trust (collectively “Trusts”) have been established to hold assets of the Participating Companies under certain circumstances as a reserve for the discharge of the Company’s obligations under the Pre-2005 Addendum.  In the event of a Funding Event involving a Funding Change in Control of Southern or the Company, the Company shall be obligated to immediately contribute such amounts to the Trusts as may be necessary to fully fund all benefits payable under this Pre-2005 Addendum in accordance with the procedures set forth in Section 7.3 hereof. All assets held in the Trusts remain subject only to the claims of Southern’s and the Participating Companies’ general creditors whose claims against Southern and the Participating Companies are not satisfied because of Southern’s or the Participating Companies’ bankruptcy or insolvency (as those terms were defined in the Trusts as in effect prior to January 1, 2005). No Participant has any preferred claim on, or beneficial ownership interest in, any assets of the Trusts before the assets are paid to the Participant and all rights created under the Trusts, as under this Pre-2005 Addendum, are unsecured contractual claims of the Participant against the Company.
7.3    As soon as practicable following a Funding Event, the Company shall contribute an amount based upon the funding strategy adopted by the Trust Administrator with 
15

the assistance of an appointed actuary necessary to fulfill the Company’s obligations pursuant to this Section 7.  In the event of a dispute over such actuary’s determination, the Company and any complaining Participant(s) shall refer such dispute to an independent, third party actuarial consultant, chosen by the Company and such Participant.  If the Company and the Participant cannot agree on an independent, third party actuarial consultant, the actuarial consultant shall be chosen by lot from an equal number of actuaries submitted by the Company and the applicable Trust Administrator.  Any such referral shall only occur once in total and the determination by the third-party actuarial consultant shall be final and binding upon both parties.  The Company shall be responsible for all of the fees and expenses of the independent actuarial consultant.
7.4    In the event of a Southern Change in Control or a Company Change in Control, notwithstanding anything to the contrary in this Pre-2005 Addendum, upon termination as a Director, that amount in the Deferred Compensation Plan Account(s) of a Participant who was a Director determined as of such Change in Control shall be paid out in a lump sum if such Participant makes an election pursuant to procedures established by the Trust Administrator, in its sole and absolute discretion.  If no such election is made, the Director shall receive payment of his Accounts solely in accordance with Section 6 of this Pre-2005 Addendum.
SECTION 8

General Provisions
8.1    In the event that the Company shall decide to establish an advance accrual reserve on its books against the future expense of payments from any Deferred Compensation Accounts, such reserve shall not under any circumstances be deemed to be an asset of this Pre-2005 Addendum but, at all times, shall remain a part of the general assets of the Company, subject to claims of the Company’s creditors.
8.2    A person entitled to any amount under this Pre-2005 Addendum shall be a general unsecured creditor of the Company with respect to such amount. Furthermore, a person entitled to a payment or distribution with respect to a Deferred Compensation Account shall have a claim upon the Company only to the extent of the balance in his Deferred Compensation Accounts.
8.3    The Company will pay all commissions, fees, and expenses that may be incurred in operating the Pre-2005 Addendum.
8.4    The Company will pay its prorated share of all commissions, fees, and expenses that may be incurred in operating any trust(s) established under this Pre-2005 Addendum (including the Deferred Stock Trust and the Deferred Cash Trust).
8.5    Notwithstanding any other provision of this Pre-2005 Addendum:

16

(a)    elections under this Pre-2005 Addendum may only be made by Directors while they are directors of the Company; (with the exception of the designation of beneficiaries); and
(b)    distributions otherwise payable to a Director in the form of Common Stock or other corporation’s stock shall be delayed and/or instead paid in cash in an amount equal to the fair market value thereof if such payment in stock would violate any federal or State securities laws (including Section 16(b) of the Securities Exchange Act of 1934, as amended) and/or rules and regulations promulgated thereunder.
8.6    Directors, their legal representatives and their beneficiaries shall have no right to anticipate, alienate, sell, assign, transfer, pledge or encumber their interests in the Pre-2005 Addendum, nor shall such interests be subject to attachment, garnishment, levy or execution by or on behalf of creditors of the Directors or of their beneficiaries.
SECTION 9

Administration
9.1    General Provisions
The Committee shall administer the Pre-2005 Addendum in accordance with its terms and shall have all powers necessary to carry out the provisions of the Pre-2005 Addendum as may be more particularly set forth herein. The Committee shall interpret the Pre-2005 Addendum and shall determine all questions arising in the administration, interpretation, and application of the Pre-2005 Addendum. Any such determination by the Committee shall be conclusive and binding on all persons. The Committee shall be the Pre-2005 Addendum’s agent for service of process.
The Committee may delegate to such officers, employees, or departments of the Company or Southern, such authority, duties, and responsibilities of the Committee as it, in its sole discretion, considers necessary or appropriate for the proper and efficient operation of the Pre-2005 Addendum, including, without limitation, (i) interpretation of the Pre-2005 Addendum, (ii) approval and payment of claims, and (iii) establishment of procedures for administration of the Pre-2005 Addendum.
9.2    Claims Process
If a claim for benefits under the Pre-2005 Addendum is denied, in whole or in part, the Committee will provide a written notice of the denial within a reasonable period of time, but not later than 90 days after the claim is received. If special circumstances require more time to process the claim, the Committee will issue a written explanation of the special circumstances prior to the end of the 90 day period and a decision will be made as soon as possible, but not later than 180 days after the claim is received.
The written notice of claim denial will include:

17

•    Specific reasons why the claim was denied;
•    Specific references to applicable provisions of the Pre-2005 Addendum document or other relevant records or papers on which the denial is based, and information about where a Participant or his or her beneficiary may see them;
•    A description of any additional material or information needed to process the claim, and an explanation of why such material or information is necessary; and
•    An explanation of the claims review procedure, including the time limits applicable to such procedure, as well as a statement notifying the Participant or his or her beneficiary of their right to file suit if the claim for benefits is denied, in whole or in part, on review.
Upon request, a Participant or his or her beneficiary will be provided without charge, reasonable access to, and copies of, all non-confidential documents that are relevant to any denial of benefits. A claimant has 60 days from the day he or she receives the original denial to request a review. Such request must be made in writing and sent to the Committee. The request should state the reasons why the claim should be reviewed and may also include evidence or documentation to support the claimant’s position.
The Committee will reconsider the claimant’s claim, taking into account all evidence, documentation, and other information related to the claim and submitted on the claimant’s behalf, regardless of whether such information was submitted or considered in the initial denial of the claim. The Committee will make a decision within 60 days. If special circumstances require more time for this process, the claimant will receive written explanation of the special circumstances prior to the end of the initial 60 day period and a decision will be sent as soon as possible, but not later than 120 days after the Committee receives the request.
No legal action to recover benefits or enforce or clarify rights under the Pre-2005 Addendum can be commenced until the Participant or his or her beneficiary has first exhausted the claims and review procedures provided under the Pre-2005 Addendum.
SECTION 10

Amendment and Termination
10.1    Amendment of the Pre-2005 Addendum
This Pre-2005 Addendum may be amended or terminated at any time by the Board in its sole discretion at any time and from time to time by written resolution expressly modifying this Pre-2005 Addendum; provided, however, that no such amendment or termination shall impair any rights to any benefits that have accrued hereunder, and further provided that no such amendment or termination of the Pre-2005 Addendum shall be effective if such amendment or termination is made or is effective within a period that is (a) six (6) months before, or at any time after, a Preliminary Change in Control and (b) prior to (x) the earlier of such time as the Southern Committee shall have determined that the event that gave rise to such Preliminary Change in 
18

Control shall not be Consummated or (y) two years following the respective Change in Control, unless such amendment or termination during such period has the effect of increasing benefits to Participants under the Pre-2005 Addendum, is determined by the Board of Directors to be immaterial, or applies solely to Directors who, in the case of a Company Change in Control, are not Directors on the date of the respective Preliminary Change in Control, or, in the case of a Southern Change in Control, are not Directors on the date of the respective Southern Change in Control.  Following a Change in Control, nothing in this Section 10.1 shall prevent the Board of Directors from amending or terminating the Pre-2005 Addendum as to any subsequent Change in Control provided that no such amendment or termination shall impair any rights or reduce any benefits previously accrued under the Pre-2005 Addendum as a result of a previous Change in Control.  It is the Company’s intent that any modification to this Pre-2005 Addendum shall not constitute nor shall it be interpreted to be a “material modification” of any right or feature of this Pre-2005 Addendum as such term is defined under Code Section 409A, Internal Revenue Service Notice 2005-1, Treasury Regulation Section 1.409A-1 et seq., or any subsequent guidance promulgated by the Treasury Department, unless the Pre-2005 Addendum is amended contemporaneously to comply with Code Section 409A.
10.2    Governing Law
This Pre-2005 Addendum shall be construed in accordance with and governed by the laws of the state in which the Company is incorporated to the extent not inconsistent with the requirements of the Employee Retirement Income Security Act of 1974, as amended, and Code Section 409A.

19Exhibit
10.44

 

September
14, 2021

 

Lynn
Kirkpatrick

6019
Folsom Dr.

La
Jolla, CA 92037

 

Via
email: lkirkpatrick@ensysce.com

 

Dear
Lynn:

 

Ensysce
Biosciences, Inc. (the “Company”) is pleased confirm its offer of employment to you on the terms and subject
to the conditions set forth in this letter agreement (this “Agreement”).

 

1.
Position. Start Date. This contract as the Chief Executive Officer will begin October 1, 2021 (“Start Date”).
As the Chief Executive Officer you shall be responsible for the overall strategy of the Company under the and subject to the direction
of the Company’s board of directors (the “Board”). You agree to devote your full business
time and attention to your work for the Company, except as agreed in writing. Except upon the prior written consent of the Board of Directors
of the Company (the “Board”), you will not, during your employment with the Company, (i) accept
or maintain any other employment, or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for
pecuniary advantage) that might interfere with your duties and responsibilities as a Company employee or create a conflict of interest
with the Company.

 

2.
Salary/Compensation. Your initial base salary will be $380,000 per year, less payroll deductions and applicable withholdings, paid
on the Company’s normal payroll schedule. Your salary will be reviewed from time to time by the Board or its compensation committee,
and may be adjusted in the sole discretion of the Board or its compensation committee. Prior to your start date, you will continue to
be paid as a consultant at the current monthly rate.

 

3.
Bonus. You will be eligible to earn an annual performance bonus based on achievement of Company performance objectives to be established
by the Board or its compensation committee and provided to you. Your annual target performance bonus will initially be equal to 50% of
your base salary, although the amount of any payment will be dependent upon actual performance as determined by the Board or its compensation
committee. The bonus system with yearly goals will be initiated at the end of 2021 for the following years benefit plan. Generally, you
must be employed by the Company through the date on which bonuses are paid in order to be eligible to receive a bonus. Your annual target
performance bonus, if any, shall be paid to you on or before March 15 of the year following the year to which it relates. Your annual
target performance bonus percentage is subject to modification from time to time in the discretion of the Board or its compensation committee.

 

4.
Equity Award. Following your Start Date, and subject to approval by the Board of Directors or its compensation committee, you may
be granted certain stock options under the Company’s newly formed Equity Incentive Plan (the “Plan”).
The stock options shall be granted at the fair market value of the stock on the date of grant in accordance with the Plan and shall
be subject to the terms and conditions of the Plan, stock option grant notice and option agreement to be entered into between you and
the Company.

 

5.
Benefits. Paid Time Off (PTO). During your employment with the Company, you will be eligible to participate in the benefits plans
made generally available by the Company to its senior executives, in accordance with the benefit plans established by the Company, and
as may be amended from time to time in the Company’s sole discretion. You will be eligible for 25 days PTO in the first year, which
includes paid holidays generally observed by the Company in the United States in accordance with the holiday policy of the Company in
effect from time to time. Paid time off will be evaluated yearly by the Company’s compensation committee.

 

    	 

    	 

    

 

6.
At-Will Employment. The Company is an “at-will” employer. Accordingly, either you or the Company may terminate the employment
relationship at any time, with or without advance notice, and with or without cause.

 

7.
Termination. Upon any termination of your employment, you will be deemed to have resigned, and you hereby resign, from all offices
and directorships, if any, then held with the Company or any subsidiary. In the event of termination of your employment with the Company,
regardless of the reasons for such termination, the Company shall pay your base salary and accrued but unused PTO up to and through the
date of termination, less applicable payroll and tax withholdings (the “Accrued Obligations”).

 

8.
Severance. You shall be eligible for the severance benefits described in this Section 8.

 

a.
In the event (i) the Company terminates your employment without Cause (as defined below and other than due to your death or disability),
or (ii) you terminate your employment for Good Reason (as defined below), and provided in either case of (i) or (ii) such termination
or resignation constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without
regard to any alternative definition thereunder, a “Separation from Service”) (such termination or resignation,
an “Involuntary Termination”), then, in addition to the Accrued Obligations, subject to your
obligations below, you shall be entitled to receive an amount equal to twelve (12) months of your then current base salary (ignoring
any decrease in base salary that forms the basis for Good Reason), less all applicable withholdings and deductions, paid on the schedule
described below (the “Severance Pay”).

 

b.
The Severance Pay is conditional upon (i) your continuing to comply with your obligations under your PIIA (as defined below); and
(ii) your delivering to the Company an executed separation agreement and general release of claims in favor of the Company, in a form
attached hereto as EXHIBIT A, within the time period set forth therein, which becomes effective in accordance with its terms, which shall
be no later than sixty (60) days following your Separation from Service (the “Release”). The Severance
Pay will be paid in equal installments on the Company’s regular payroll schedule over the period outlined above following the date
of your Separation from Service; provided, however, that no payments will be made prior to the sixtieth (60th) day
following your Separation from Service. On the sixtieth (60th) day following your Separation from Service, the Company will
pay you in a lump sum the amount of the Severance Pay that you would have received on or prior to such date under the original schedule
but for the delay while waiting for the sixtieth (60th) day, with the balance of the Severance Pay being paid as originally
scheduled.

 

c.
“Cause” for purposes of your Severance Pay means (i) your gross negligence or willful failure substantially to
perform your duties and responsibilities to the Company or deliberate violation of a Company policy; (ii) your commission of any act
of fraud, embezzlement or dishonesty against the Company or any other willful misconduct that has caused or is reasonably expected to
result in material injury to the Company; (iii) your unauthorized use or disclosure of any proprietary information or trade secrets of
the Company or any other party to whom you owe an obligation of nondisclosure as a result of your relationship with the Company; or (iv)
your willful breach of any of your obligations under any written agreement or covenant with the Company, including without limitation
this Agreement and your PIIA; and (v) your conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or
state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude.

 

    	2

    	 

    

 

d.
“Good Reason” for purposes of your Severance Pay means the occurrence at any time of any of the following without
your prior written consent: (i) a material reduction in your authority, duties or responsibilities (other than a mere change in title
following any merger or consolidation of the Company with another entity); (ii) a material reduction in your base salary (other than
a general reduction in base salary that affects all similarly situated executives in substantially the same proportions); or (iii) any
willful failure or willful breach by the Company of any of its material obligations under this Agreement. For purposes of this subsection,
no act, or failure to act, on the Company’s part shall be deemed “willful” unless done, or omitted to be done, by the
Company not in good faith and without reasonable belief that the Company’s act, or failure to act, was in the best interest of
the Company. In order to terminate your employment under this Agreement for Good Reason, you must (1) provide written notice to the Company
within ninety (90) days of the first occurrence of the events described above, (2) allow the Company at least thirty (30) days from such
receipt of such written notice to cure such event, and (3) if such event is not reasonably cured within such period, resign from all
position you then hold with the Company effective not later than the one-hundred eightieth (180th) day after the initial occurrence
of such event.

 

9.
Change in Control. If your Involuntary Termination occurs within one (1) month prior to, or twelve (12) months following a Change
in Control (as defined in the Plan), the vesting of all of your outstanding equity awards (including the Options) that are subject to
time-based vesting requirements shall accelerate in full such that all such equity awards shall be deemed fully vested as of the date
of such Involuntary Termination (or Change in Control, if later).

 

10.
Taxes. All amounts paid under this Agreement shall be paid less all applicable state and federal tax withholdings (if any) and any
other withholdings required by any applicable jurisdiction or authorized by you.

 

a.
Section 409A. The Severance Pay provided in this Agreement is intended to qualify for an exemption from application of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and other guidance thereunder and
any state law of similar effect (collectively “Section 409A”) or to comply with its requirements to the extent necessary
to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly. Each installment
of Severance Pay is a separate “payment” for purposes of Treasury Regulations Section 1.409A-2(b)(2)(i), and the Severance
Pay is intended to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4),
1.409A-1(b) (5) and 1.409A-1(b)(9). However, if such exemptions are not available and you are, upon Separation from Service, a “specified
employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section
409A, the timing of the Severance Pay shall be delayed until the earlier of (i) six (6) months and one day after your Separation from
Service, or (ii) your death. Except to the minimum extent that payments must be delayed because you are a “specified employee”,
all amounts of Severance Pay will be paid as soon as practicable in accordance with the schedule provided herein and in accordance with
the Company’s normal payroll practices.

 

b.
Section 280G. If any payment or benefit you will or may receive from the Company or otherwise (a “280G Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment
pursuant to this Agreement or otherwise (a “Payment”) shall be equal to the Reduced Amount. The “Reduced
Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction)
being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the
amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes,
income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis,
of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction
in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding
sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic
benefit for you. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced
pro rata (the “Pro Rata Reduction Method”).

 

    	3

    	 

    

 

Notwithstanding
the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes
pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the
Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows:
(A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for you as determined
on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause),
shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that
are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are
not deferred compensation within the meaning of Section 409A.

 

Unless
you and the Company agree on an alternative accounting firm, the accounting firm engaged by the Company for general tax compliance purposes
as of the day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations.
If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the
change of control transaction, the Company shall appoint a nationally recognized accounting firm to make the determinations required
hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.
The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide
its calculations, together with detailed supporting documentation, to you and the Company within fifteen (15) calendar days after the
date on which your right to a 280G Payment becomes reasonably likely to occur (if requested at that time by you or the Company) or such
other time as requested by you or the Company.

 

If
you receive a Payment for which the Reduced Amount was determined pursuant to clause (x) of the first paragraph of this Section 10(b)
and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, you shall promptly
return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this this
Section 10(b) so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount
was determined pursuant to clause (y) in the first paragraph of this this Section 10(b), you shall have no obligation to return any portion
of the Payment pursuant to the preceding sentence.

 

11.
Other. As a condition of employment, you must read, sign and comply with the At-Will, Confidential Information and Invention Assignment
Agreement attached hereto as EXHIBIT C (“PIIA”), which (among other provisions) prohibits any unauthorized
use or disclosure of Company proprietary, confidential or trade secret information. As required by law, this offer is subject to satisfactory
proof of your identity and right to work in the United States. Further, if requested by the Company, this offer is contingent upon your
successful completion of a background check to the satisfaction of the Company. If the Company desires that you complete a background
check, you will be required to give your consent for the Company, through an outside firm, to complete a criminal background check and
verification of information provided on your employment application.

 

12.
Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto
shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

    	4

    	 

    

 

13.
ACKNOWLEDGMENT. YOU ACKNOWLEDGE AND AGREE THAT YOU HAVE FULLY READ, UNDERSTAND AND VOLUNTARILY ENTER INTO THIS AGREEMENT. YOU ACKNOWLEDGE
AND AGREE THAT YOU HAVE HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF YOUR CHOICE BEFORE SIGNING THIS AGREEMENT.

 

14.
Withholding. The Company shall have the right to withhold from any amount payable hereunder any federal, state and local taxes in
order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

15.
Successors and Assigns. This Agreement is personal to you and shall not be assigned by you. Any purported assignment by you shall
be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially of the business or assets of the
Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.

 

16.
Entire Agreement. Please let us know of your decision to join the Company by signing a copy of this Agreement and returning it to
us not later than August 15, 2021. This Agreement, together with your PIIA, sets forth our entire agreement and understanding regarding
the terms of your employment with the Company and supersedes any prior representations or agreements, whether written or oral. This Agreement
may not be modified in any way except in a writing signed by the Company’s Chief Executive Officer (or another duly authorized
officer of the Company) upon due authorization by the Board or its compensation committee and you. It shall be governed by the laws of
the State of Delaware, without regard to principles of conflicts of laws.

 

[Signature
Page follows]

 

    	5

    	 

    

 

	Sincerely,	 
	 	 
	/s/
    Adam Levin	 
	Adam
    Levin	 
	Chair
    Compensation Committee	 
	 	 
	ACCEPTED
    AND AGREED:	 
	 	 
	/s/
    Lynn Kirkpatrick	 
	Lynn
    Kirkpatrick	 
	 	 
	9/14/2021	 
	Date	 

 

    	6

    	 

    

 

EXHIBIT
A

 

SEPARATION
AGREEMENT AND RELEASE

 

I
enter into this Separation Agreement and Release (the “Release”) pursuant to Section 8 of the Offer Letter
Agreement between Ensysce Biosciences, Inc.. (the “Employer”), and me dated _____________, 2021
(the “Agreement”). I acknowledge that my timely execution and return and my non-revocation of this Release
are conditions to the payments and benefits pursuant to Section 8 of the Agreement. I therefore agree to the following terms:

 

1.
Release of Claims. I voluntarily release and forever discharge the Employer, its affiliated and related entities, its and
their respective predecessors, successors and assigns, its and their respective employee benefit plans and fiduciaries of such plans,
and the current and former officers, directors, stockholders, members, employees, attorneys, accountants and agents of each of the foregoing
in their official and personal capacities (collectively referred to as the “Releasees”) generally from all
claims, demands, debts, damages and liabilities of every name and nature, known or unknown (“Claims”) that,
as of the date when I sign this Release, I have, ever had, now claim to have or ever claimed to have had against any or all of the Releasees.
This release includes, without limitation, all Claims:

 

	●	relating
    to my employment by the Employer and/or any affiliate of the Employer and the termination of my employment;
	 	 
	●	of
    wrongful discharge;
	 	 
	●	of
    breach of contract;
	 	 
	●	of
    retaliation or discrimination under federal, state or local law (including, without limitation,
	 	 
	●	Claims
    of age discrimination or retaliation under the Age Discrimination in Employment Act, Claims of disability discrimination or retaliation
    under the Americans with Disabilities Act, Claims of discrimination or retaliation under Title VII of the Civil Rights Act of 1964,
    Claims of any form of discrimination or retaliation that is prohibited by the California Fair Employment and Housing Act;
	 	 
	●	under
    any other federal or state statute;
	 	 
	●	of
    defamation or other torts;
	 	 
	●	of
    violation of public policy;
	 	 
	●	for
    wages, bonuses, incentive compensation, stock, stock options, vacation pay or any other compensation or benefits (except for such
    wages, bonuses, incentive compensation, stock, stock options, vacation pay or other compensation or benefits otherwise due to me
    under the Agreement); and
	 	 
	●	for
    damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and
    attorney’s fees;

 

I
agree that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the
matters released. This release does not extend to any obligations incurred under this Release, under any ongoing Company benefit plans
or for indemnification under any indemnification agreement, the Company’s Bylaws or applicable law. This release does not release
claims that cannot be released as a matter of law, including, but not limited to, my right to file a charge with or participate in a
charge by the Equal Employment

 

Opportunity
Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer
laws related to employment, against the Company (with the understanding that any such filing or participation does not give me the right
to recover any monetary damages against the Company; my release of claims herein bars me from recovering such monetary relief from the
Company).

 

    	7

    	 

    

 

I
agree that I shall not seek or accept damages of any nature, other equitable or legal remedies for my own benefit, attorney’s fees,
or costs from any of the Releasees with respect to any Claim released by this Release. I represent that I have not assigned to any third
party and I have not filed with any agency or court any Claim released by this Release.

 

2.
Ongoing Obligations. I reaffirm my ongoing obligations under the Agreement, including without limitation my obligations under
Section 11 with respect to the Proprietary Information and Invention Assignment Agreement.

 

3.
No Assignment. I represent that I have not assigned to any other person or entity any Claims against any Releasee.

 

4.
Right to Consider and Revoke Release. I acknowledge that I have been given the opportunity to consider this Release for a
period of twenty-one (21) days from the date when it is tendered to me. In the event that I executed this Release within less than twenty-one
(21) days, I acknowledge that such decision was entirely voluntary and that I had the opportunity to consider this Release until the
end of the twenty-one (21) day period. To accept this Release, I shall deliver a signed Release to the Employer’s General Counsel
within such twenty-one (21) day period; provided that I acknowledge that the Employer may change the designated recipient by notice.
For a period of seven (7) days from the date when I execute this Release (the “Revocation Period”), I
shall retain the right to revoke this Release by written notice that is received by the Employer’s General Counsel or other Employer-designated
recipient on or before the last day of the Revocation Period. This Release shall take effect only if it is executed within the twenty-one
(21) day period as set forth above and if it is not revoked pursuant to the preceding sentence. If those conditions are satisfied, this
Release shall become effective and enforceable on the date immediately following the last day of the Revocation Period (the “Effective
Date”).

 

5.
California Civil Code Section 1542. I acknowledge that I have been advised to consult with legal counsel and am familiar with
the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides
as follows:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

I,
being aware of said code section, agree to expressly waive any rights I may have thereunder, as well as under any other statute or common
law principles of similar effect.

 

6.
Other Terms.

 

(a)
Legal Representation; Review of Release. I acknowledge that I have been advised to discuss all aspects of this Release with my attorney,
that I have carefully read and fully understand all of the provisions of this Release and that I am voluntarily entering into this Release.

 

(b)
Binding Nature of Release. This Release shall be binding upon me and upon my heirs, administrators, representatives and executors.

 

(c)
Amendment. This Release may be amended only upon a written agreement executed by the Employer and me.

 

    	8

    	 

    

 

(d)
Severability. In the event that at any future time it is determined by an arbitrator or court of competent jurisdiction that any covenant,
clause, provision or term of this Release is illegal, invalid or unenforceable, the remaining provisions and terms of this Release shall
not be affected thereby and the illegal, invalid or unenforceable term or provision shall be severed from the remainder of this Release.
In the event of such severance, the remaining covenants shall be binding and enforceable.

 

(e)
Governing Law and Interpretation. This Release shall be deemed to be made and entered into in the State of California, and shall in all
respects be interpreted, enforced and governed under the laws of the State of California, without giving effect to the conflict of laws
principles of such State. The language of all parts of this Release shall in all cases be construed as a whole, according to its fair
meaning, and not strictly for or against either the Employer or me.

 

(f)
Entire Agreement; Absence of Reliance. I acknowledge that I am not relying on any promises or representations by the Employer or any
of its agents, representatives or attorneys regarding any subject matter addressed in this Release.

 

	So
    agreed.	 	 
	 	 	 
	 	 	 
	Employee	 	Date

 

    	9

    	 

    

 

EXHIBIT
B

 

AT-WILL,
CONFIDENTIAL INFORMATION AND ASSIGNMENT OF INVENTIONS

AGREEMENT

 

As
a condition of my being retained as an employee (or my employee relationship being continued) by Ensysce Biosciences, Inc. (the “Company”
or “Ensysce”), a Delaware corporation, and in consideration of my employee relationship with the Company and my receipt of
the compensation now and hereafter paid to me by the Company, I agree to the following:

 

1.
Employee Relationship. I understand and acknowledge that this Agreement does not alter, amend or expand upon any rights I
may have to continue in an employee relationship with, or the duration of my employee relationship with, the Company under any existing
agreements between the Company and me or under applicable law. Any employee relationship between the Company and me, whether commenced
prior to or upon the date of this Agreement, shall be referred to herein as the “Relationship.”

 

2.
Duties. I will perform for the Company such duties as were designated by the Company in my Offer Letter of employment. During
the Relationship, I will devote my commercially reasonable efforts to the interests of the Company and will not engage in other employment
or in any activities detrimental to the interests of the Company without the prior written consent of the Company.

 

3.
At-Will Relationship. I understand and acknowledge that my Relationship with the Company is and shall continue to be at-will,
as defined under applicable law, meaning that either I or the Company may terminate the Relationship at any time for any reason or no
reason, without further obligation or liability.

 

4.
Confidential Information.

 

(a)
Company Information. I agree at all times during the term of my Relationship with the Company and thereafter, to hold in confidence,
and not to use, except for the benefit of the Company to the extent necessary to perform my obligations to the Company under the Relationship,
or to disclose to any person, firm, corporation or other entity without written authorization of the Board of Directors of the Company,
any Confidential Information of the Company which I obtain or create. I further agree not to make copies of such Confidential Information
except as authorized by the Company. I understand that “Confidential Information” means any Company proprietary information,
technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, suppliers, customer
lists and customers (including, but not limited to, customers of the Company on whom I called or with whom I became acquainted during
the Relationship), prices and costs, markets, software, developments, inventions, laboratory notebooks, processes, formulas, technology,
designs, drawings, engineering, hardware configuration information, marketing, licenses, finances, budgets or other business information
disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or observation of parts or equipment or
created by me during the period of the Relationship, whether or not during working hours. I understand that Confidential Information
includes, but is not limited to, information pertaining to any aspect of the Company’s business which is either information not
known by actual or potential competitors of the Company or other third parties not under confidentiality obligations to the Company,
or is otherwise proprietary information of the Company or its customers or suppliers, whether of a technical nature or otherwise. I further
understand that Confidential Information does not include any of the foregoing items which has become publicly and widely known and made
generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved.

 

    	10

    	 

    

 

(b)
Prior Obligations. I represent that my performance of all terms of this Agreement as an employee of the Company has not breached
and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me prior or subsequent
to the commencement of my Relationship with the Company, and I will not disclose to the Company or use any inventions, confidential or
non-public proprietary information or material belonging to any current or former client or employer or any other party. I will not induce
the Company to use any inventions, confidential or non-public proprietary information, or material belonging to any current or former
client or employer or any other party. A list of Patents of which I am inventor as of the date of this agreement is appended.

 

(c)
Third Party Information. I recognize that the Company has received and in the future will receive confidential or proprietary
information from third parties subject to a duty on the Company’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence
and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent
with the Company’s agreement with such third party.

 

5.
Inventions.

 

(a)
Assignment of Inventions. I agree that I will promptly make full written disclosure to Ensysce , will hold in trust for the
sole right and benefit of Ensysce, and hereby assign to Ensysce , or its designee, all my right, title and interest throughout the world
in and to any and all inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets, whether
or not patentable or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice,
or cause to be conceived or developed or reduced to practice, during the period of and directly related to my Relationship with the Company
(collectively referred to as “Inventions”). I further acknowledge that all Inventions which are made by me (solely
or jointly with others) within the scope of and during the period of my Relationship with the Company are “works made for hire”
(to the greatest extent permitted by applicable law) and are compensated by such amounts paid to me under the Relationship.

 

(b)
Maintenance of Records. I agree to keep and maintain adequate and current written records of all Inventions made by me (solely
or jointly with others) during the term of my Relationship with the Company. The records may be in the form of notes, sketches, drawings,
flow charts, electronic data or recordings, laboratory notebooks, and any other format. The records will be available to and remain the
sole property of the Company at all times. I agree not to remove such records from the Company’s place of business except as expressly
permitted by Company policy which may, from time to time, be revised at the sole election of the Company for the purpose of furthering
the Company’s business. I agree to return all such records (including any copies thereof) to Ensysce at the time of termination
of my Relationship with the Company as provided for in Section 6.

 

(c)
Patent and Copyright Rights. I agree to assist Ensysce , or its designee, at its expense, in every proper way to secure Ensysce
‘s, or its designee’s, rights in the Inventions and any copyrights, patents, trademarks, mask work rights, moral rights,
or other intellectual property rights relating thereto in any and all countries, including the disclosure to Ensysce or its designee
of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations,
and all other instruments which Ensysce or its designee shall deem necessary in order to apply for, obtain, maintain and transfer such
rights, or if not transferable, waive such rights, and in order to assign and convey to Ensysce or its designee, and any successors,
assigns and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work
rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed,
when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement until the expiration
of the last such intellectual property right to expire in any country of the world. If Ensysce or its designee is unable because of my
mental or physical incapacity or unavailability or for any other reason to secure my signature to apply for or to pursue any application
for any United States or foreign patents, copyright, mask works or other registrations covering Inventions or original works of authorship
assigned to Ensysce or its designee as above, then I hereby irrevocably designate and appoint Ensysce and its duly authorized officers
and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do
all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters patent, copyright
or other registrations thereon with the same legal force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim
to Ensysce or its designee any and all claims, of any nature whatsoever, which I now or hereafter have for infringement of any and all
proprietary rights assigned to Ensysce or such designee.

 

    	11

    	 

    

 

6.
Company Property; Returning Company Documents. I acknowledge and agree that I have no expectation of privacy with respect
to the Company’s telecommunications, networking or information processing systems (including, without limitation, stored company
files, e-mail messages and voice messages) and that my activity and any files or messages on or using any of those systems may be monitored
at any time without notice. I further agree that any property situated on the Company’s premises and owned by the Company, including
disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or
without notice. I agree that, at the time of termination of my Relationship with the Company, I will deliver to the Company (and will
not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts, equipment, other documents
or property, or reproductions of any of the aforementioned items developed by me pursuant to the Relationship or otherwise belonging
to the Company, its successors or assigns. In the event of the termination of the Relationship, I agree to sign and deliver the “Termination
Certification” attached hereto as Exhibit B; however, my failure to sign and deliver the Termination Certificate shall
in no way diminish my continuing obligations under this Agreement.

 

7.
Solicitation of Employees, Consultants and Other Parties. I agree that during the term of my Relationship with the Company,
and for a period of twenty-four (24) months immediately following the termination of my Relationship with the Company for any reason,
whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s
employees or consultants to terminate their relationship with the Company, or attempt to solicit, induce, recruit, encourage or take
away employees or consultants of the Company, either for myself or for any other person or entity. Further, during my Relationship with
the Company and at any time following termination of my Relationship with the Company for any reason, with or without cause, I shall
not use any Confidential Information of the Company to attempt to negatively influence any of the Company’s clients or customers
from purchasing Company products or services or to solicit or influence or attempt to influence any client, customer or other person
either directly or indirectly, to direct her/his or its purchase of products and/or services to any person, firm, corporation, institution
or other entity in competition with the business of the Company.

 

8.
Representations and Covenants.

 

(a)
Facilitation of Agreement. I agree to execute promptly any proper oath or verify any proper document required to carry out
the terms of this Agreement upon the Company’s written request to do so.

 

    	12

    	 

    

 

(b)
Conflicts. I represent that my performance of all the terms of this Agreement does not and will not breach any agreement I
have entered into, or will enter into with any third party, including without limitation any agreement to keep in confidence proprietary
information acquired by me in confidence or in trust prior to commencement of my Relationship with the Company. I agree not to enter
into any written or oral agreement that conflicts with the provisions of this Agreement.

 

(c)
Voluntary Execution. I certify and acknowledge that I have carefully read all of the provisions of this Agreement and that
I understand and will fully and faithfully comply with such provisions.

 

9.
General Provisions.

 

(a)
Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws
of the State of California, without giving effect to the principles of conflict of laws.

 

(b)
Entire Agreement. This Agreement sets forth the entire agreement and understanding between the Company and me relating to
the subject matter herein and merges all prior discussions between us. No modification or amendment to this Agreement, nor any waiver
of any rights under this Agreement, will be effective unless in writing signed by both parties. Any subsequent change or changes in my
duties, obligations, rights or compensation will not affect the validity or scope of this Agreement.

 

(c)
Severability. If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will
continue in full force and effect.

 

(d)
Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives,
and my successors and assigns, and will be for the benefit of the Company, its successors, and its assigns.

 

(e)
Survival. The provisions of this Agreement shall survive the termination of the Relationship and the assignment of this Agreement
by the Company to any successor in interest or other assignee.

 

(f)
Remedies. I acknowledge and agree that violation of this Agreement by me may cause the Company irreparable harm, and therefore
agree that the Company will be entitled to seek extraordinary relief in court, including but not limited to temporary restraining orders,
preliminary injunctions and permanent injunctions without the necessity of posting a bond or other security and in addition to and without
prejudice to any other rights or remedies that the Company may have for a breach of this Agreement.

 

(g)
ADVICE OF COUNSEL. I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT
LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED
AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.

 

[Signature
Page Follows]

 

    	13

    	 

    

 

The
parties have executed this Agreement on the respective dates set forth below:

 

	COMPANY:	 	EMPLOYEE:
	 	 	 
	ENSYSCE
    BIOSCIENCES, INC.	 	__________________________,
    an Individual
	 	 	 
	By:	                                                           	 	 
	Lynn
    Kirkpatrick, C.E.O.	 	Name:
	 	 	 
	Date:
    ___________________________, 2021	 	Date:
    ___________________________, 2021

 

    	14

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