Document:

Exhibit 4.3

Exhibit 4.3

GUARANTEE
AGREEMENT

by
and between

BB&T
CORPORATION

as Guarantor

and

U.S.
BANK NATIONAL ASSOCIATION

as Guarantee Trustee

relating
to

BB&T CAPITAL
TRUST II

Dated
as of June 7, 2006

                             CROSS REFERENCE TABLE 1

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

310(a)...............................................................4.1(a)
      (b).......................................................2.8; 4.1(c)
      (c)......................................................Inapplicable
311(a)...............................................................2.2(b)
      (b)............................................................2.2(b)
      (c)......................................................Inapplicable
312(a)...............................................................2.2(a)
      (b)............................................................2.2(b)
      (c)...............................................................2.3
313.....................................................................2.3
314(a)..................................................................2.4
      (b)......................................................Inapplicable
      (c)...............................................................2.5
      (d)......................................................Inapplicable
      (e).....................................................1.1; 2.5; 3.2
      (f)..........................................................2.1; 3.2
315(a).......................................................3.1(d); 3.2(a)
      (b)...............................................................2.7
      (c)............................................................3.1(c)
      (d)............................................................3.1(d)
316(a)........................................................1.1; 2.6; 5.4
      (b)..........................................................5.3; 5.7
      (c)...............................................................8.2
317(a).........................................................Inapplicable
      (b)......................................................Inapplicable
318(a)..................................................................2.1
      (b)...............................................................2.1
      (c)...............................................................2.1

______________________________
1     This Cross-Reference Table does not constitute part of the Agreement
      and shall not have any bearing upon the interpretation of any of its
                                terms or provisions.

                                       i

                              Table of Contents

                                                                          Page

ARTICLE I   DEFINITIONS......................................................1

            SECTION 1.1.  Definitions........................................1

ARTICLE II  TRUST INDENTURE ACT..............................................4

            SECTION 2.1.  Trust Indenture Act; Application...................4

            SECTION 2.2.  List of Holders....................................4

            SECTION 2.3.  Reports by the Guarantee Trustee...................4

            SECTION 2.4.  Periodic Reports to the Guarantee Trustee..........5

            SECTION 2.5.  Evidence of Compliance with Conditions Precedent...5

            SECTION 2.6.  Events of Default; Waiver..........................5

            SECTION 2.7.  Event of Default; Notice...........................5

            SECTION 2.8.  Conflicting Interests..............................6

ARTICLE III POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE...............6

            SECTION 3.1.  Powers and Duties of the Guarantee Trustee.........6

            SECTION 3.2.  Certain Rights of Guarantee Trustee................7

            SECTION 3.3.  Compensation; Indemnity; Fees......................8

ARTICLE IV  GUARANTEE TRUSTEE................................................9

            SECTION 4.1.  Guarantee Trustee; Eligibility.....................9

            SECTION 4.2.  Appointment, Removal and Resignation of the
            Guarantee Trustee................................................9

ARTICLE V   GUARANTEE.......................................................10

            SECTION 5.1.  Guarantee.........................................10

            SECTION 5.2.  Waiver of Notice and Demand.......................10

            SECTION 5.3.  Obligations Not Affected..........................10

            SECTION 5.4.  Rights of Holders.................................11

            SECTION 5.5.  Guarantee of Payment..............................12

            SECTION 5.6.  Subrogation.......................................12

            SECTION 5.7.  Independent Obligations...........................12

ARTICLE VI  COVENANTS AND SUBORDINATION.....................................12

            SECTION 6.1.  Subordination.....................................12

            SECTION 6.2.  Pari Passu Guarantees.............................12

ARTICLE VII  TERMINATION....................................................13

            SECTION 7.1.  Termination.......................................13

                                          ii

ARTICLE VIII MISCELLANEOUS..................................................13

            SECTION 8.1.  Successors and Assigns............................13

            SECTION 8.2.  Amendments........................................13

            SECTION 8.3.  Notices...........................................13

            SECTION 8.4.  Benefit...........................................14

            SECTION 8.5.  Governing Law.....................................14

            SECTION 8.6.  Counterparts......................................14

                                         iii

GUARANTEE
AGREEMENT

          GUARANTEE
AGREEMENT, dated as of June 7, 2006, between BB&T CORPORATION, a North Carolina
corporation (the “Guarantor”), having its principal office at 200 West Second
Street, Winston-Salem, North Carolina 27101, and U.S. Bank National Association, a
national banking association, as trustee (in such capacity, the “Guarantee
Trustee” and, in its separate corporate capacity and not in its capacity as Guarantee
Trustee, “U.S. Bank”), for the benefit of the Holders (as defined herein) from
time to time of the Capital Securities (as defined herein) of BB&T CAPITAL TRUST II, a
Delaware statutory trust (the “Issuer Trust”).

RECITALS

          WHEREAS,
pursuant to an Amended and Restated Trust Agreement, of even date herewith (the
“Trust Agreement”), among BB&T Corporation, as Depositor, the Property
Trustee, the Delaware Trustee, and the Administrative Trustees (each as named therein) and
the holders from time to time of undivided beneficial interests in the assets of the
Issuer Trust, the Issuer Trust is issuing $600,000,000 aggregate Liquidation Amount (as
defined in the Trust Agreement) of its 6.75% Capital Securities (the “Capital
Securities”), representing preferred undivided beneficial interests in the assets of
the Issuer Trust and having the terms set forth in the Trust Agreement and $10,000
aggregate Liquidation Amount (as defined in the Trust Agreement) of its 6.75% Common
Securities (the “Common Securities” and together with the Capital Securities,
the “Trust Securities”); and

          WHEREAS,
the Capital Securities will be issued by the Issuer Trust, and the proceeds thereof,
together with the proceeds from the issuance of the Issuer Trust’s Common Securities
(as defined herein), will be used to purchase the Debentures (as defined in the Trust
Agreement) of the Guarantor, which Debentures will be deposited with U.S. Bank, as
Property Trustee under the Trust Agreement, as trust assets; and

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

          NOW,
THEREFORE, in consideration of the purchase of Trust Securities by each Holder, which
purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the Guarantor
executes and delivers this Guarantee Agreement for the benefit of the Holders from time to
time.

ARTICLE
I

DEFINITIONS

          SECTION
1.1.  Definitions.

          For
 all  purposes of this Guarantee Agreement, except as
otherwise expressly provided or unless  the context otherwise requires: 

                    (a)      The
terms defined in this Article have the meanings assigned to them in this  Article, and
include the plural as well as the singular;

                    (b)      All
other terms used herein that are defined in the Trust Indenture Act, either  directly or
by reference therein, have the meanings assigned to them therein;

                    (c)      The
words “include,” “includes” and “including” shall  be
deemed to be followed by the phrase “without limitation”;

                    (d)      All
accounting terms used but not defined herein have the meanings assigned to them  in
accordance with United States generally accepted accounting principles;

                    (e)       Unless
the context otherwise requires, any reference to an “Article” or a “Section” refers
to an Article or a Section, as the case may be,  of this Guarantee Agreement; and

                    (f)      The
words “hereby,” “herein,” “hereof” and  “hereunder” and
other words of similar import refer to this Guarantee  Agreement as a whole and not to
any particular Article, Section or other  subdivision.

          “Affiliate”
of any specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified Person. For
the purposes of this definition, “control,” when used with respect to any
specified Person, means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

          “Board
of Directors” means the board of directors of the Guarantor or the Executive
Committee of the board of directors of the Guarantor (or any other committee of the board
of directors of the Guarantor performing similar functions) or a committee designated by
the board of directors of the Guarantor (or such committee), comprised of two or more
members of the board of directors of the Guarantor or officers of the Guarantor, or both.

          “Capital
Securities” has the meaning specified in the recitals to this Guarantee Agreement.

          “Common
Securities” has the meaning specified in the recitals to this Guarantee Agreement.

          “Event
of Default” means (i) a default by the Guarantor in any of its payment obligations
under this Guarantee Agreement or (ii) a default by the Guarantor in any other obligation
hereunder that remains unremedied for 30 days.

          “Guarantee
Agreement” means this Guarantee Agreement, as modified, amended or supplemented from
time to time.

          “Guarantee
Payments” means the following payments or distributions, without duplication, with
respect to the Trust Securities, to the extent not paid or made by or on behalf of the
Issuer Trust: (i) any accumulated and unpaid Distributions (as defined in the Trust
Agreement) required to be paid on the Trust Securities, to the extent the Issuer Trust
shall have funds on hand available therefor at such time; (ii) the Redemption Price (as
defined in the Trust Agreement) with respect to any Trust Securities called for redemption
by the Issuer Trust, to the extent the Issuer Trust shall have funds on hand available
therefor at such time; and (iii) upon a voluntary or involuntary dissolution, winding-up
or liquidation of the Issuer Trust, unless Debentures are distributed to the Holders, the
lesser of (a) the Liquidation Distribution (as defined in the Trust Agreement) with
respect to the Trust Securities, to the extent that the Issuer Trust shall have funds on
hand available therefor at such time, and (b) the amount of assets of the Issuer Trust
remaining available for distribution to Holders on liquidation of the Issuer.

2

          “Guarantee
Trustee” means U.S. Bank, solely in its capacity as Guarantee Trustee and not in its
individual capacity, until a Successor Guarantee Trustee has been appointed and has
accepted such appointment pursuant to the terms of this Guarantee Agreement, and
thereafter means each such Successor Guarantee Trustee.

          “Guarantor”
has the meaning specified in the first paragraph of this Guarantee Agreement.

          “Holder”
means any Holder (as defined in the Trust Agreement) of any Trust Securities; provided,
however, that in determining whether the holders of the requisite percentage of Trust
Securities have given any request, notice, consent or waiver hereunder, “Holder”
shall not include the Guarantor, the Guarantee Trustee, or any Affiliate of the Guarantor
or the Guarantee Trustee.

          “Indenture”
means the Junior Subordinated Indenture, dated as of August 18, 2005, between BB&T
Corporation and U.S. Bank, as trustee, as the same may be modified, amended or
supplemented from time to time.

          “Issuer
Trust” has the meaning specified in the first paragraph of this Guarantee Agreement.

          “List
of Holders” has the meaning specified in Section 2.2(a).

          “Majority
in Liquidation Amount of the Trust Securities” means, except as provided by the Trust
Indenture Act, Trust Securities representing more than 50% of the aggregate Liquidation
Amount (as defined in the Trust Agreement) of all Trust Securities then Outstanding (as
defined in the Trust Agreement).

          “Officers’
Certificate” means, with respect to any Person, a certificate signed by the Chairman
or a Vice Chairman of the Board of Directors of such Person or the President or a Vice
President of such Person, and by the Treasurer, an Assistant Treasurer, the Secretary or
an Assistant Secretary of such Person. Any Officers’ Certificate delivered with
respect to compliance with a condition or covenant provided for in this Guarantee
Agreement shall include:

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

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

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

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

          “Person”
means a legal person, including any individual, corporation, estate, partnership, joint
venture, association, joint stock company, company, limited liability company, trust,
statutory or business trust, unincorporated association, or government or any agency or
political subdivision thereof, or any other entity of whatever nature.

          “Responsible
Officer” means, with respect to the Guarantee Trustee, any officer in the Corporate
Trust Department of the Guarantee Trustee and also means, with respect to a particular
matter, any other officer to whom such matter is referred because of that officer’s
knowledge of and familiarity with the particular subject.

3

          “Successor
Guarantee Trustee” means a successor Guarantee Trustee possessing the qualifications
to act as Guarantee Trustee under Section 4.1.

          “Trust
Agreement” means the Amended and Restated Trust Agreement of the Issuer Trust
referred to in the recitals to this Guarantee Agreement, as modified, amended or
supplemented from time to time.

          “Trust
Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this Guarantee Agreement was executed; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so
amended.

          “Trust
Securities” has the meaning specified in the recitals to this Guarantee Agreement.

          “Vice
President,” when used with respect to the Guarantor, means any duly appointed vice
president, whether or not designated by a number or a word or words added before or after
the title “vice president.”

ARTICLE
II

TRUST INDENTURE ACT

          SECTION
2.1.  Trust Indenture Act; Application.

          Except
as otherwise expressly provided herein, the Trust Indenture Act shall apply as a matter of
contract to this Guarantee Agreement for purposes of interpretation, construction and
defining the rights and obligations hereunder, and this Guarantee Agreement, the Guarantor
and the Guarantee Trustee shall be deemed for all purposes hereof to be subject to and
governed by the Trust Indenture Act to the same extent as would be the case if this
Guarantee Agreement were qualified under the Trust Indenture Act on the date hereof.
Except as otherwise expressly provided herein, if and to the extent that any provision of
this Guarantee Agreement limits, qualifies or conflicts with the duties imposed by
Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

          SECTION
2.2.  List of Holders.

                    (a)      The
Guarantor shall furnish or cause to be furnished to the Guarantee Trustee (a)
semiannually, on or before June 30 and December 31 of each year, a list, in such  form as
the Guarantee Trustee may reasonably require, of the names and addresses  of the Holders
(a “List of Holders”) as of a date not more than 15  days prior to the delivery
thereof, and (b) at such other times as the Guarantee  Trustee may request in writing,
within 30 days after the receipt by the  Guarantor of any such request, a List of Holders
as of a date not more than 15  days prior to the time such list is furnished, in each
case to the extent such  information is in the possession or control of the Guarantor and
has not  otherwise been received by the Guarantee Trustee in its capacity as such. The
Guarantee Trustee may destroy any List of Holders previously given to it on  receipt of a
new List of Holders.

                    (b)      The
Guarantee Trustee shall comply with the requirements of Section 311(a), Section  311(b)
and Section 312(b) of the Trust Indenture Act.

          SECTION
2.3.  Reports by the Guarantee Trustee.

4

          Within
60 days after May 15 of each year, commencing May 15, 2007, the Guarantee Trustee shall
provide to the Holders such reports as are required by Section 313 of the Trust Indenture
Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture
Act. If this Guarantee Agreement shall have been qualified under the Trust Indenture Act,
the Guarantee Trustee shall also comply with the requirements of Section 313(d) of the
Trust Indenture Act.

                    SECTION      2.4.
Periodic Reports to the Guarantee Trustee.

          The
Guarantor shall provide to the Guarantee Trustee and the Holders such documents, reports
and information, if any, as required by Section 314 of the Trust Indenture Act and the
compliance certificate required by Section 314 of the Trust Indenture Act, in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act, provided
that such documents, reports and information shall be required to be provided to the
Securities and Exchange Commission only if this Guarantee Agreement shall have been
qualified under the Trust Indenture Act.

          SECTION
2.5.  Evidence of Compliance with Conditions Precedent.

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

          SECTION
2.6.  Events of Default; Waiver.

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

          SECTION
2.7.  Event of Default; Notice.

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

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

5

          SECTION
2.8.  Conflicting Interests.

          The
Trust Agreement and the Indenture shall be deemed to be specifically described in this
Guarantee Agreement for the purposes of clause (i) of the first proviso contained in
Section 310(b) of the Trust Indenture Act.

ARTICLE
III

POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

          SECTION
3.1.  Powers and Duties of the Guarantee Trustee.

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

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

                    (c)      The
Guarantee Trustee, before the occurrence of any Event of Default and after the  curing of
all Events of Default that may have occurred, shall undertake to  perform only such
duties as are specifically set forth in this Guarantee  Agreement (including pursuant to
Section 2.1), and no implied covenants shall be  read into this Guarantee Agreement
against the Guarantee Trustee. If an Event of  Default has occurred (that has not been
cured or waived pursuant to Section  2.6), the Guarantee Trustee shall exercise such of
the rights and powers vested  in it by this Guarantee Agreement, and use the same degree
of care and skill in  its exercise thereof, as a prudent person would exercise or use
under the  circumstances in the conduct of his or her own affairs.

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

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

                                        (A)      the
duties and obligations of the Guarantee Trustee shall be determined solely by  the
express provisions of this Guarantee Agreement (including pursuant to  Section 2.1), and
the Guarantee Trustee shall not be liable except for the  performance of such duties and
obligations as are specifically set forth in this  Guarantee Agreement (including
pursuant to Section 2.1); and

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

6

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

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

                              (iv)       Subject
to Section 3.1(b), no provision of this Guarantee Agreement shall  require the Guarantee
Trustee to expend or risk its own funds or otherwise incur  personal financial liability
in the performance of any of its duties or in the  exercise of any of its rights or
powers, if the Guarantee Trustee shall have  reasonable grounds for believing that the
repayment of such funds or liability  is not reasonably assured to it under the terms of
this Guarantee Agreement or  adequate indemnity against such risk or liability is not
reasonably assured to  it.

          SECTION
3.2.  Certain Rights of Guarantee Trustee.

                    (a)       Subject
to the provisions of Section 3.1:

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

                              (ii)      Any
direction or act of the Guarantor contemplated by this Guarantee Agreement shall  be
sufficiently evidenced by an Officers’ Certificate unless otherwise  prescribed
herein.

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

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

                              (v)      The
Guarantee Trustee shall be under no obligation to exercise any of the rights or  powers
vested in it by this Guarantee Agreement at the request or direction of  any Holder
unless such Holder shall have provided to the Guarantee Trustee such  adequate security
and indemnity as would satisfy a reasonable person in the  position of the Guarantee
Trustee against the costs, expenses (including  attorneys’ fees and expenses) and
liabilities that might be incurred by it  in complying with such request or direction,
including such reasonable advances  as may be requested by the Guarantee Trustee;
provided that nothing contained in  this Section 3.2(a)(v) shall be taken to relieve the
Guarantee Trustee, upon the  occurrence of an Event of Default, of its obligation to
exercise the rights and  powers vested in it by this Guarantee Agreement.

7

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

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

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

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

          SECTION
3.3.  Compensation; Indemnity; Fees.

          The
Guarantor agrees:

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

                    (b)       except
as otherwise expressly provided herein, to reimburse the Guarantee  Trustee upon request
for all reasonable expenses, disbursements and advances  incurred or made by the
Guarantee Trustee in accordance with any provision of  this Guarantee Agreement
(including the reasonable compensation and the expenses  and disbursements of its agents
and counsel), except any such expense,  disbursement or advance as may be attributable to
its negligence or bad faith;  and (c) to indemnify the Guarantee Trustee for, and to hold
it harmless against,  any loss, liability or expense incurred without negligence, willful
misconduct  or bad faith on the part of the Guarantee Trustee, arising out of or in
connection with the acceptance or administration of this Guarantee Agreement,  including
the costs and expenses of defending itself against any claim or  liability in connection
with the exercise or performance of any of its powers or  duties hereunder.

8

          The
Guarantee Trustee will not claim or exact any lien or charge on any Guarantee Payments as
a result of any amount due to it under this Guarantee Agreement.

          The
provisions of this Section 3.3 shall survive the termination of this Guarantee Agreement
or the resignation or removal of the Guarantee Trustee.

ARTICLE
IV

GUARANTEE TRUSTEE

          SECTION
4.1.  Guarantee Trustee; Eligibility.

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

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

                              (ii)      be
a  Person that is eligible pursuant to the Trust Indenture Act to act as such and  has a
combined capital and surplus of at least $50,000,000, and shall be a  corporation meeting
the requirements of Section 310(a) of the Trust Indenture  Act. If such corporation
publishes reports of condition at least annually,  pursuant to law or to the requirements
of its supervising or examining  authority, then, for the purposes of this Section 4.1
and to the extent  permitted by the Trust Indenture Act, the combined capital and surplus
of such  corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

                    (b)      If
at  any time the Guarantee Trustee shall cease to be eligible to so act under  Section
4.1(a), the Guarantee Trustee shall immediately resign in the manner and  with the effect
set out in Section 4.2.

                    (c)      If
the Guarantee Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee  Trustee and
Guarantor shall in all respects comply with the provisions of  Section 310(b) of the
Trust Indenture Act.

          SECTION
4.2.  Appointment, Removal and Resignation of the Guarantee  Trustee.

                    (a)       Subject
to Section 4.2(c), the Guarantee Trustee may be appointed or removed at  any time by the
action of the Holders of a Majority in Liquidation Amount of the  Trust Securities
delivered to the Guarantee Trustee and the Guarantor (i) for  cause or (ii) if a
Debenture Event of Default (as defined in the Trust  Agreement) shall have occurred and
be continuing at any time.

                    (b)       Subject
to Section 4.2(c), the Guarantee Trustee may resign from office (without  need for prior
or subsequent accounting) by giving written notice thereof to the  Holders and the
Guarantor and by appointing a successor Guarantee Trustee. The  Guarantee Trustee shall
appoint a successor by requesting from at least three  Persons meeting the requirements
of Section 4.1(a) their expenses and charges to  serve as the Guarantee Trustee, and
selecting the Person who agrees to the  lowest expenses and charges.

                    (c)      The
Guarantee Trustee appointed hereunder shall hold office until a Successor  Guarantee
Trustee shall have been appointed and shall have accepted such  appointment. No removal
or resignation of a Guarantee Trustee shall be effective  until a Successor Guarantee
Trustee has been appointed and has accepted such  appointment by written instrument
executed by such Successor Guarantee Trustee  and delivered to the Guarantor and, in the
case of any resignation, the  resigning Guarantee Trustee.

9

                    (d)      If
no  Successor Guarantee Trustee shall have been appointed and accepted appointment  as
provided in this Section 4.2 within 60 days after delivery to the Holders and  the
Guarantor of a notice of resignation, the resigning Guarantee Trustee may  petition, at
the expense of the Guarantor, any court of competent jurisdiction  for appointment of a
Successor Guarantee Trustee. Such court may thereupon,  after prescribing such notice, if
any, as it may deem proper, appoint a  Successor Guarantee Trustee.

                    (e)      If
a  resigning Guarantee Trustee shall fail to appoint a successor, or if a Guarantee
Trustee shall be removed or become incapable of acting as Guarantee Trustee and  a
replacement shall not be appointed prior to such resignation or removal, or if  a vacancy
shall occur in the office of Guarantee Trustee for any cause, the  Holders of the Trust
Securities, by the action of the Holders of record of not  less than 25% in aggregate
Liquidation Amount (as defined in the Trust  Agreement) of the Trust Securities then
Outstanding (as defined in the Trust  Agreement) delivered to such Guarantee Trustee, may
appoint a Successor  Guarantee Trustee or Trustees.

          If
no successor Guarantee Trustee shall have been so appointed by the Holders of the Trust
Securities and accepted appointment, any Holder, on behalf of such Holder and all others
similarly situated, or any other Guarantee Trustee, may petition any court of competent
jurisdiction for the appointment of a successor Guarantee Trustee.

ARTICLE
V

GUARANTEE

          SECTION
5.1.  Guarantee.

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

          SECTION
5.2.  Waiver of Notice and Demand.

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

          SECTION
5.3.  Obligations Not Affected.

          The
obligations, covenants, agreements and duties of the Guarantor under this Guarantee
Agreement shall in no way be affected or impaired by reason of the happening from time to
time of any of the following:

10

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

                    (b)      the
extension of time for the payment by the Issuer Trust of allot any portion of  the
Distributions

                              (i)       (other
than an extension of time for payment of Distributions that results from  the extension
of any interest payment period on the Debentures as provided in  the Indenture),
Redemption Price, Liquidation Distribution or any other sums  payable under the terms of
the Trust Securities or the extension of time for the  performance of any other
obligation under, arising out of, or in connection  with, the Trust Securities;

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

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

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

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

                    (g)      any
other circumstance whatsoever that might otherwise constitute a legal or  equitable
discharge or defense of a guarantor (other than payment of the  underlying obligation),
it being the intent of this Section 5.3 that the  obligations of the Guarantor hereunder
shall be absolute and unconditional under  any and all circumstances.

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

          SECTION
5.4.  Rights of Holders.

          The
Guarantor expressly acknowledges that: (i) this Guarantee Agreement will be deposited with
the Guarantee Trustee to be held for the benefit of the Holders; (ii) the Guarantee
Trustee has the right to enforce this Guarantee Agreement on behalf of the Holders; (iii)
the Holders of a Majority in Liquidation Amount of the Trust Securities have the right to
direct the time, method and place of conducting any proceeding for any remedy available to
the Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust or
power conferred upon the Guarantee Trustee under this Guarantee Agreement; and (iv) any
Holder may institute a legal proceeding directly against the Guarantor to enforce its
rights under this Guarantee Agreement without first instituting a legal proceeding against
the Guarantee Trustee, the Issuer Trust or any other Person.

11

          SECTION
5.5.  Guarantee of Payment.

          This
Guarantee Agreement creates a guarantee of payment and not of collection. This Guarantee
Agreement will not be discharged except by payment of the Guarantee Payments in full
(without duplication of amounts theretofore paid by the Issuer Trust) or upon the
distribution of Debentures to Holders as provided in the Trust Agreement.

          SECTION
5.6.  Subrogation.

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

          SECTION
5.7.  Independent Obligations.

          The
Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer Trust with respect to the Trust Securities and that the Guarantor shall be
liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Guarantee Agreement notwithstanding the occurrence of any event referred to
in subsections (a) through (g), inclusive, of Section 5.3 hereof.

ARTICLE
VI

COVENANTS AND SUBORDINATION

          SECTION
6.1.  Subordination.

          The
obligations of the Guarantor under this Guarantee Agreement will constitute unsecured
obligations of the Guarantor and will rank subordinate and junior in right of payment to
all Senior Indebtedness (as defined in the Indenture) of the Guarantor to the extent and
in the manner set forth in the Indenture with respect to the Debentures, and the
provisions of Article XIII of the Indenture will apply, mutatis mutandis, to the
obligations of the Guarantor hereunder. The obligations of the Guarantor hereunder do not
constitute Senior Indebtedness (as defined in the Indenture) of the Guarantor.

          SECTION
6.2.  Pari Passu Guarantees.

          The
obligations of the Guarantor under this Guarantee Agreement shall rank pari passu with the
obligations of the Guarantor under (i) any similar guarantee agreements issued by the
Guarantor on behalf of the holders of preferred or capital securities issued by any Issuer
Trust (as defined in the Indenture), (ii) the Indenture and the Securities (as defined
therein) issued thereunder; (iii) Section 4.6 of the Trust Agreement and any similar
expense agreements entered into by the Guarantor in connection with the offering of Trust
Securities (as defined in the Indenture) by any Issuer Trust (as defined in the
Indenture), and (iv) any other security, guarantee or other agreement or obligation that
is expressly stated to rank pari passu with the obligations of the Guarantor under this
Guarantee Agreement or with any obligation that ranks pari passu with the obligations of
the Guarantor under this Guarantee Agreement.

12

ARTICLE
VII

TERMINATION

          SECTION
7.1.  Termination.

          This
Guarantee Agreement shall terminate and be of no further force and effect upon (i) full
payment of the Redemption Price (as defined in the Trust Agreement) of all Trust
Securities, (ii) the distribution of Debentures to the Holders in exchange for all of the
Trust Securities or (iii) full payment of the amounts payable in accordance with Article
IX of the Trust Agreement upon liquidation of the Issuer Trust.

Notwithstanding
the foregoing, this Guarantee Agreement will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder is required to repay
any sums paid with respect to Trust Securities or this Guarantee Agreement.

ARTICLE
VIII

MISCELLANEOUS

          SECTION
8.1.  Successors and Assigns.

          All
guarantees and agreements contained in this Guarantee Agreement shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall inure to the
benefit of the Holders of the Trust Securities then outstanding. Except in connection with
a consolidation, merger or sale involving the Guarantor that is permitted under Article
VIII of the Indenture and pursuant to which the successor or assignee agrees in writing to
perform the Guarantor’s obligations hereunder, the Guarantor shall not assign its
obligations hereunder, and any purported assignment other than in accordance with this
provision shall be void.

          SECTION
8.2.  Amendments.

          Except
with respect to any changes that do not adversely affect the rights of the Holders in any
material respect (in which case no consent of the Holders will be required), this
Guarantee Agreement may only be amended with the prior approval of the Holders of not less
than a Majority in Liquidation Amount of the Trust Securities. The provisions of Article
VI of the Trust Agreement concerning meetings of the Holders shall apply to the giving of
such approval.

          SECTION
8.3.  Notices.

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

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

                                BB&T Corporation

                                200 West Second Street,

                                Winston-Salem, North Carolina 27101,

                                Attention: Secretary Telecopy:  336-733-2189

13

                    (b)       if
given to the Guarantee Trustee, at the Issuer Trust’s address or  telecopy number
set forth below or such other address or telecopy number as the  Guarantee Trustee may
give notice to the Guarantor and Holders:

                                U.S. Bank National Association One Federal Street, 3rd Floor,

                                Boston, Massachusetts 02110,

                                Attn: Corporate Trust Services Telecopy: 617-603-6683

                                with a copy to:

                                BB&T Capital Trust II c/o BB&T Corporation

                                200 West Second Street,

                                Winston-Salem, North Carolina 27101,

                                Attention: Secretary Telecopy:  336-733-2189

                    (c)       if
given to any Holder, at the address set forth on the books and records of the  Issuer
Trust.

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

          SECTION
8.4.  Benefit.

          This
Guarantee Agreement is solely for the benefit of the Holders and is not separately
transferable from the Trust Securities.

          SECTION
8.5.  Governing Law.

THIS
GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

          SECTION
8.6.  Counterparts.

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

[Remainder
of page intentionally left blank.]

14

          IN
WITNESS WHEREOF, the parties hereto have executed this Guarantee Agreement as of the day
and year first above written.

		
	 	BB&T Corporation,
	 	as Guarantor
	 	 
	 	 
	 	By:  /s/ M. Patricia Oliver   
	 	Name: M. Patricia Oliver
	 	Title: Executive Vice
	 	President, General Counsel,
	 	Secretary and Chief Corporate
	 	Governance Officer
	 	 
	 	 
	 	 
	 	U.S. Bank National Association,
	 	as Guarantee Trustee
	 	 
	 	 
	 	By:  /s/ Rachel M. Silvia   
	 	Name: Rachel M. Silvia
	 	Title: OfficerFirst Amendment to SEDA

    
      

    

     

     

    

      C
        O R N E
        L L                        101
        Hudson Street

      CAPITAL
        PARTNERS                        Suite
        3700
                                           
Jersey
          City, NJ
          07302

      

      

      

      

       

      

      May
        15,
        2006

      

      

      VIA
        FEDERAL EXPRESS 

      AND
        FAX (307) 857-3050

      

      
        	
                U.S.
                  Energy Corp.

              
	
                877
                  North 8th
                  West

              
	
                Glen
                  L. Larsen Building

              
	
                Riverton,
                  WY 82501

              
	
                Attention:
                  Mark J. Larsen

              

      

      

      

      
        	 	
                Re:

              	
                Amendment
                  to Standby Equity Distribution
                  Agreement

              

      

      

      Dear
        Mr.
        Larsen:

      

      This
        letter will memorialize the agreements by and between U.S. Energy Corp. (the
        “Company”)
        and
        Cornell Capital Partners, LP (the “Investor”),
        in
        connection with an amendment to the Standby Equity Distribution Agreement
        dated
        May 5, 2006 (the “SEDA”)
        between the Company and the Investor. All capitalized terms herein, unless
        otherwise indicated, shall have the meaning ascribed to them in the SEDA.
        

      

      The
        parties hereby amend the SEDA as follows:

      

      1.
        Section 2.3(c) of the SEDA shall be deleted in its entirety and replaced
        with
        the following:

      

      Section
        2.3(c). Minimum Acceptable Price.
        The
        lowest Market Price of the Common Stock (before taking into account any discount
        used to calculate the Purchase Price) for any particular Advance (the “Minimum
        Acceptable Price”) shall, in connection with each Advance Notice delivered by
        the Company, be equal to ninety five percent (95%) of the VWAP on the Trading
        Day immediately preceding the Advance Notice Date for such Advance Notice.
        Subject to the next sentence, upon the issuance by the Company of an Advance
        Notice along with a Minimum Acceptable Price, (i) the Company shall
        automatically reduce the amount of the Advance set forth in such Advance
        Notice
        by twenty percent (20%) for each Trading Day during the Pricing Period that
        the
        VWAP of the Common Stock is below the Minimum Acceptable Price (each such
        day,
        an “Excluded Day”), and (ii) 

       

       

      
        
           

        

        
           

          
            

          

        

        
          
            U.S.
              Energy Corp.

            May 15, 2006

            Page 2 fo 2

          

        

      

       

      

        each
          Excluded Day shall be excluded from the Pricing Period for purposes of
          determining the Market Price. The number of shares of Common Stock to be
          delivered to the Investor at the Closing (in accordance with Section 2.3
          of this
          Agreement) shall correspond with the Advance Notice amount as reduced pursuant
          to clause (i) above, except that the Company shall be obligated to sell,
          and the
          Investor shall be obligated to purchase any shares of Common Stock corresponding
          to such Advance Notice that have been sold by the Investor and such shares
          shall
          be priced at the greater of the Purchase Price or the applicable Minimum
          Acceptable Price. The Company, and only the Company, may waive the Minimum
          Acceptable Price with respect to any particular Advance Notice by providing
          the
          Investor with written notice of waiver on or prior to the Advance Notice
          Date.

      

       

       

      This
        letter agreement shall solely have the effect specifically described above
        and
        shall have no effect on any other terms or conditions of the SEDA or related
        documents. 

      

      Cornell
        Capital Partners, LP

      

      By:
        Yorkville Advisors, LLC

      Its:
        General Partner

      

      By:
        /s/
        Mark Angelo     

      Name: Mark
        Angelo

      Title:
         Portfolio
        Manager

      

      Agreed
        and acknowledged by: 

      

      U.S.
        Energy Corp.

      

      By:
        /s/
        Mark J. Larsen   

      Name:
        Mark J. Larsen

      Title: President
        

      Date: May
        15,
        2006

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