Document:

Exhibit 4.2

                              ALABAMA POWER COMPANY

                                       TO

                            JPMORGAN CHASE BANK, N.A.
                                     TRUSTEE

                        THIRTIETH SUPPLEMENTAL INDENTURE

                           DATED AS OF MARCH 16, 2005

                          SERIES DD 5.65% SENIOR NOTES

                               DUE MARCH 15, 2035

<PAGE>
<TABLE>
<CAPTION>

                               TABLE OF CONTENTS1
                                                                                                      PAGE

<S>                                                                                                           <C>
ARTICLE 1  Series DD Senior Notes.................................................................................3
---------------------------------

SECTION 101.  Establishment.......................................................................................3
----------------------------
SECTION 102.  Definitions.........................................................................................4
--------------------------
SECTION 103.  Payment of Principal and Interest...................................................................5
------------------------------------------------
SECTION 104.  Denominations.......................................................................................6
----------------------------
SECTION 105.  Global Securities...................................................................................6
--------------------------------
SECTION 106.  Transfer............................................................................................6
-----------------------
SECTION 107.  Redemption at the Company's Option..................................................................7
-------------------------------------------------

ARTICLE 2  Miscellaneous Provisions...............................................................................8
-----------------------------------

SECTION 201.  Recitals by Company.................................................................................8
----------------------------------
SECTION 202.  Ratification and Incorporation of Original Indenture................................................8
-------------------------------------------------------------------
SECTION 203.  Executed in Counterparts............................................................................8
---------------------------------------

EXHIBIT A  FORM OF SERIES DD NOTE ..............................................................................A-1

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

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

<PAGE>

     THIS THIRTIETH  SUPPLEMENTAL INDENTURE is made as of the 16th day of March,
2005, by and between ALABAMA POWER COMPANY,  an Alabama  corporation,  600 North
18th Street, Birmingham, Alabama 35291 (the "Company"), and JPMORGAN CHASE BANK,
N.A.  (formerly  known  as  The  Chase  Manhattan  Bank),  a  New  York  banking
corporation, 4 New York Plaza, New York, New York 10004 (the "Trustee").

                              W I T N E S S E T H:

     WHEREAS,  the Company has heretofore  entered into a Senior Note Indenture,
dated as of December 1, 1997 (the "Original  Indenture"),  with the Trustee,  as
supplemented by a First  Supplemental  Indenture,  dated as of December 12, 1997
(the "First Supplemental Indenture"),  a Second Supplemental Indenture, dated as
of February 26, 1998 (the "Second Supplemental Indenture"), a Third Supplemental
Indenture,  dated as of April 23, 1998 (the "Third Supplemental  Indenture"),  a
Fourth  Supplemental  Indenture,  dated  as of  August  19,  1998  (the  "Fourth
Supplemental Indenture"),  a Fifth Supplemental Indenture, dated as of September
17, 1998 (the "Fifth Supplemental  Indenture"),  a Sixth Supplemental Indenture,
dated as of September 24, 1998 (the "Sixth Supplemental  Indenture"),  a Seventh
Supplemental Indenture,  dated as of October 15, 1998 (the "Seventh Supplemental
Indenture"), an Eighth Supplemental Indenture, dated as of November 3, 1998 (the
"Eighth Supplemental  Indenture"),  a Ninth Supplemental Indenture,  dated as of
November 17, 1998 (the "Ninth  Supplemental  Indenture"),  a Tenth  Supplemental
Indenture,  dated as of May 26, 1999 (the "Tenth  Supplemental  Indenture"),  an
Eleventh  Supplemental  Indenture,  dated as of August 19,  1999 (the  "Eleventh
Supplemental  Indenture"),   a  Twelfth  Supplemental  Indenture,  dated  as  of
September  30,  1999  (the  "Twelfth  Supplemental  Indenture"),   a  Thirteenth
Supplemental Indenture,  dated as of May 18, 2000 (the "Thirteenth  Supplemental
Indenture"),  a Fourteenth Supplemental  Indenture,  dated as of August 29, 2001
(the "Fourteenth Supplemental  Indenture"),  a Fifteenth Supplemental Indenture,
dated  as of  August  29,  2001  (the  "Fifteenth  Supplemental  Indenture"),  a
Sixteenth  Supplemental  Indenture,  dated as of June 28,  2002 (the  "Sixteenth
Supplemental  Indenture"),  a Seventeenth  Supplemental  Indenture,  dated as of
October 22,  2002 (the  "Seventeenth  Supplemental  Indenture"),  an  Eighteenth
Supplemental  Indenture,   dated  as  of  November  26,  2002  (the  "Eighteenth
Supplemental  Indenture"),  a  Nineteenth  Supplemental  Indenture,  dated as of
December  12,  2002  (the  "Nineteenth  Supplemental  Indenture"),  a  Twentieth
Supplemental   Indenture,   dated  as  of  February  19,  2003  (the  "Twentieth
Supplemental  Indenture"),  a Twenty-First  Supplemental Indenture,  dated as of
February 19, 2003 (the "Twenty-First  Supplemental Indenture"),  a Twenty-Second
Supplemental  Indenture,   dated  as  of  March  14,  2003  (the  "Twenty-Second
Supplemental  Indenture"),  a Twenty-Third  Supplemental Indenture,  dated as of
April 23, 2003 (the  "Twenty-Third  Supplemental  Indenture"),  a  Twenty-Fourth
Supplemental Indenture, dated as of May 7, 2003 (the "Twenty-Fourth Supplemental
Indenture"),  a Twenty-Fifth  Supplemental  Indenture,  dated as of November 20,
2003 (the "Twenty-Fifth  Supplemental  Indenture"),  a Twenty-Sixth Supplemental
Indenture,  dated  as of  February  17,  2004  (the  "Twenty-Sixth  Supplemental
Indenture"), a Twenty-Seventh Supplemental Indenture, dated as of April 21, 2004
(the  "Twenty-Seventh  Supplemental  Indenture"),  a Twenty-Eighth  Supplemental
Indenture,  dated  as  of  August  25,  2004  (the  "Twenty-Eighth  Supplemental
Indenture) and a Twenty-Ninth  Supplemental Indenture,  dated as of November 16,
2004 (the "Twenty-Ninth Supplemental Indenture");

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

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

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

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

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

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

                                    ARTICLE 1

                             Series DD Senior Notes

         SECTION 101. Establishment. There is hereby established a new series of
Senior Notes to be issued under the Indenture, to be designated as the Company's
Series DD 5.65% Senior Notes due March 15, 2035 (the "Series DD Notes").

         There are to be authenticated and delivered $250,000,000 aggregate
principal amount of Series DD Notes, and such principal amount of the Series DD
Notes may be increased from time to time pursuant to Section 301 of the Original
Indenture. All Series DD Notes need not be issued at the same time and such
series may be reopened at any time, without the consent of any Holder, for
issuances of additional Series DD Notes. Any such additional Series DD Notes
will have the same interest rate, maturity and other terms as those initially
issued. No Series DD Notes shall be authenticated and delivered in excess of the
principal amount as so increased except as provided by Sections 203, 303, 304,
907 or 1107 of the Original Indenture. The Series DD Notes shall be issued in
definitive fully registered form.

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

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

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

         The Series DD Notes will not have a sinking fund.

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

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

         "Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
Business Day in New York City preceding such Redemption Date, as set forth in
the daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated "H.15(519)" or (ii) if such
release (or any successor release) is not published or does not contain such
prices on such Business Day, the Reference Treasury Dealer Quotation for such
Redemption Date.

         "Independent Investment Banker" means an independent investment banking
institution of national standing appointed by the Company and reasonably
acceptable to the Trustee.

         "Initial Redemption Date" means March 16, 2015.

         "Interest Payment Dates" means March 15 and September 15 of each year,
 commencing  September 15, 2005.

         "Original Issue Date" means March 16, 2005.

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

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

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

         "Stated Maturity" means March 15, 2035.

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

         SECTION 103. Payment of Principal and Interest. The principal of the
Series DD Notes shall be due at Stated Maturity (unless earlier redeemed). The
unpaid principal amount of the Series DD Notes shall bear interest at the rate
of 5.65% per annum until paid or duly provided for. Interest shall be paid
semiannually in arrears on each Interest Payment Date to the Person in whose
name the Series DD Notes are registered on the Regular Record Date for such
Interest Payment Date, provided that interest payable at the Stated Maturity of
principal or on a Redemption Date as provided herein will be paid to the Person
to whom principal is payable. Any such interest that is not so punctually paid
or duly provided for will forthwith cease to be payable to the Holders on such
Regular Record Date and may either be paid to the Person or Persons in whose
name the Series DD Notes are registered at the close of business on a Special
Record Date for the payment of such defaulted interest to be fixed by the
Trustee, notice whereof shall be given to Holders of the Series DD Notes not
less than ten (10) days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange, if any, on which the Series DD Notes shall be listed, and
upon such notice as may be required by any such exchange, all as more fully
provided in the Original Indenture.

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

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

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

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

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

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

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

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

         SECTION 107. Redemption at the Company's Option. The Series DD Notes
will be subject to redemption at the option of the Company in whole or in part
at any time and from time to time upon not less than 30 nor more than 60 days'
notice. The Company shall have the right to redeem the Series DD Notes in whole
or in part at a redemption price (the "Redemption Price") equal to:

         (i) if the Redemption Date is prior to March 16, 2015, the greater of
(1) 100% of the principal amount of the Series DD Notes to be redeemed or (2)
the sum of the present values of the remaining scheduled payments of principal
and interest on the Series DD Notes being redeemed to March 16, 2015 (for
purposes of this calculation, the remaining scheduled payment of principal is
deemed payable on the Initial Redemption Date and the remaining scheduled
payments of interest are those interest payments payable on or before the
Initial Redemption Date) (excluding the portion of any such interest accrued to
the date of redemption) discounted (for purposes of determining present value)
to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at a discount rate equal to the Treasury
Yield plus 15 basis points; or

         (ii) if the Redemption Date is on or after March 16, 2015 and prior to
maturity, at a Redemption Price equal to 100% of the principal amount of the
Series DD Notes to be redeemed,

plus, in each case, accrued interest thereon to the date of redemption.

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

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

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

                                    ARTICLE 2

                            Miscellaneous Provisions

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

         SECTION 202. Ratification and Incorporation of Original Indenture. As
heretofore supplemented and as supplemented hereby, the Original Indenture is in
all respects ratified and confirmed, and the Original Indenture, the First
Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth
Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh
Supplemental Indenture, the Eighth Supplemental Indenture, the Ninth
Supplemental Indenture, the Tenth Supplemental Indenture, the Eleventh
Supplemental Indenture, the Twelfth Supplemental Indenture, the Thirteenth
Supplemental Indenture, the Fourteenth Supplemental Indenture, the Fifteenth
Supplemental Indenture, the Sixteenth Supplemental Indenture, the Seventeenth
Supplemental Indenture, the Eighteenth Supplemental Indenture, the Nineteenth
Supplemental Indenture, the Twentieth Supplemental Indenture, the Twenty-First
Supplemental Indenture, the Twenty-Second Supplemental Indenture, the
Twenty-Third Supplemental Indenture, the Twenty-Fourth Supplemental Indenture,
the Twenty-Fifth Supplemental Indenture, the Twenty-Sixth Supplemental
Indenture, the Twenty-Seventh Supplemental Indenture, the Twenty-Eighth
Supplemental Indenture, the Twenty-Ninth Supplemental Indenture and this
Thirtieth Supplemental Indenture shall be read, taken and construed as one and
the same instrument.

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

<PAGE>

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

ATTEST:                                              ALABAMA POWER COMPANY

By:                                        By:
   ------------------------------          ------------------------------------
         Assistant Secretary                   Art P. Beattie
                                               Executive Vice President,
                                               Chief Financial Officer and
                                               Treasurer

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

By:                                     By:
   ----------------------------         ------------------------------------
           Trust Officer                              Carol Ng
                                                  Vice President
PAGE>

757992.4

                                    EXHIBIT A

                             FORM OF SERIES DD NOTE

NO. __                                CUSIP NO. 010392 EP 9

                              ALABAMA POWER COMPANY

                           SERIES DD 5.65% SENIOR NOTE

                               DUE MARCH 15, 2035

       Principal Amount:                $__________________

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

       Original Issue Date:             March 16, 2005

       Stated Maturity:                 March 15, 2035

       Interest Payment Dates:          March 15 and September 15

       Interest Rate:                   5.65%

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

         Alabama Power Company, an Alabama corporation (the "Company", which
term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to
___________________________________________, or registered assigns, the
principal sum of ____________________________________________ DOLLARS
($______________) on the Stated Maturity shown above (or upon earlier
redemption), and to pay interest thereon from the Original Issue Date shown
above, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semiannually in arrears on each Interest Payment Date
as specified above, commencing on September 15, 2005, and on the Stated Maturity
(or upon earlier redemption) at the rate per annum shown above until the
principal hereof is paid or made available for payment and on any overdue
principal and on any overdue installment of interest. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date (other
than an Interest Payment Date that is the Stated Maturity or on a Redemption
Date) will, as provided in such Indenture, be paid to the Person in whose name
this Note (the "Note") is registered at the close of business on the Regular
Record Date as specified above next preceding such Interest Payment Date,
provided that any interest payable at the Stated Maturity or on any Redemption
Date will be paid to the Person to whom principal is payable. Except as
otherwise provided in the Indenture, any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Note
is registered at the close of business on a Special Record Date for the payment
of such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Notes of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange, if any, on which
the Notes of this series shall be listed, and upon such notice as may be
required by any such exchange, all as more fully provided in the Indenture.

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

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

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

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

<PAGE>

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

Dated:

                      ALABAMA POWER COMPANY

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

Attest:

         Assistant Secretary

                               {Seal of ALABAMA POWER COMPANY appears here}

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                       JPMORGAN CHASE BANK, N.A.

                                       as Trustee

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

<PAGE>

                             (Reverse Side of Note)

         This Note is one of a duly authorized issue of Senior Notes of the
Company (the "Notes"), issued and issuable in one or more series under a Senior
Note Indenture, dated as of December 1, 1997, as supplemented (the "Indenture"),
between the Company and JPMorgan Chase Bank, N.A. (formerly known as The Chase
Manhattan Bank), Trustee (the "Trustee," which term includes any successor
trustee under the Indenture), to which Indenture and all indentures incidental
thereto reference is hereby made for a statement of the respective rights,
limitation of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Notes issued thereunder and of the terms upon
which said Notes are, and are to be, authenticated and delivered. This Note is
one of the series designated on the face hereof as Series DD 5.65% Senior Notes
due March 15, 2035 (the "Series DD Notes") which is unlimited in aggregate
principal amount. Capitalized terms used herein for which no definition is
provided herein shall have the meanings set forth in the Indenture.

         The Series DD Notes will be subject to redemption at the option of the
Company in whole or in part at any time and from time to time upon not less than
30 nor more than 60 days' notice. The Company shall have the right to redeem the
Series DD Notes in whole or in part at a redemption price (the "Redemption
Price") equal to:

         (i) if the Redemption Date is prior to March 16, 2015, the greater of
(1) 100% of the principal amount of the Series DD Notes to be redeemed or (2)
the sum of the present values of the remaining scheduled payments of principal
and interest on the Series DD Notes being redeemed to March 16, 2015 (for
purposes of this calculation, the remaining scheduled payment of principal is
deemed payable on March 16, 2005 (the "Initial Redemption Date") and the
remaining scheduled payments of interest are those interest payments payable on
or before the Initial Redemption Date) (excluding the portion of any such
interest accrued to the date of redemption) discounted (for purposes of
determining present value) to the Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at a discount rate
equal to the Treasury Yield (as defined below) plus 15 basis points; or

         (ii) if the Redemption Date is on or after March 16, 2015 and prior to
maturity, at a Redemption Price equal to 100% of the principal amount of the
Series DD Notes to be redeemed, plus, in each case, accrued interest thereon to
the date of redemption.

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

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

         "Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
Business Day in New York City preceding such Redemption Date, as set forth in
the daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated "H.15(519)" or (ii) if such
release (or any successor release) is not published or does not contain such
prices on such Business Day, the Reference Treasury Dealer Quotation for such
Redemption Date.

         "Independent Investment Banker" means an independent investment banking
institution of national standing appointed by the Company and reasonably
acceptable to the Trustee.

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

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

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

         In the event of redemption of this Note in part only, a new Note or
Notes of this Series for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the surrender hereof.

         The Series DD Notes will not have a sinking fund.

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

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

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

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

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

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

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

<PAGE>

                                  ABBREVIATIONS

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

TEN COM- as tenants in          UNIF GIFT MIN ACT- _______ Custodian ________
         common                                    (Cust)           (Minor)

TEN ENT- as tenants by the
         entireties                                    under Uniform Gifts to
 JT TEN- as joint tenants                              Minors Act
         with right of
        survivorship and                      ________________________

         not as tenants                           (State)
         in common

                    Additional abbreviations may also be used
                          though not on the above list.

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

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

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

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

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

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

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

<PAGE>

                                            B-1

                                    EXHIBIT B

                          CERTIFICATE OF AUTHENTICATION

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

                                     JPMORGAN CHASE BANK, N.A.

                                     as Trustee

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

                                              Authorized OfficerForm of Performance Share Agreement dated November 9, 2004

Exhibit
10.1

FORM
OF PERFORMANCE SHARE AGREEMENT

pursuant
to the

CHESAPEAKE
UTILITIES CORPORATION

PERFORMANCE
INCENTIVE PLAN

AGREEMENT
dated as of November 9, 2004, and entered into, in duplicate, by and between
Chesapeake Utilities Corporation, a Delaware corporation (the "Company"), and
[name of executive] (the "Grantee") who resides at [address of
executive].

WITNESSETH
that:

WHEREAS,
the Chesapeake Utilities Corporation Performance Incentive Plan (the "Plan") has
been duly adopted by action of the Company's Board of Directors (the "Board") as
of January 1, 1992; and

WHEREAS,
the Committee of the Board of Directors of the Company referred to in the Plan
(the "Committee") has determined that it is in the best interests of the Company
to grant the Performance Share Award described herein pursuant to the Plan;
and

WHEREAS,
the shares of the Common Stock of the Company that are subject to this
Agreement, when added to the other shares of Common Stock that are subject to
awards granted under the Plan, do not exceed the total number of shares of
Common Stock with respect to which awards are authorized to be granted under the
Plan;

NOW,
THEREFORE, it is hereby covenanted and agreed by and between the Company and the
Grantee as follows:

Section
1. Performance
Share Award

The
Company hereby grants to the Grantee a Performance Share Award for the year
ending December 31, 2005 (the "Award Year"). As more fully described herein, the
Grantee may earn a maximum total of [number of shares] shares (the "Contingent
Performance Shares") upon the Company's achievement of the Performance Goals set
forth in Section 2. Alternatively, the Grantee may elect to receive [number of
shares] shares (the "Forfeitable Performance Shares"), as detailed in Section 3,
in lieu of receiving any Contingent Performance Shares. The Forfeitable
Performance Shares shall be subject to forfeiture conditions, as set forth in
Section 3(c).

Section
2. Contingent
Performance Shares

	(a)  	
      As
      soon as practicable after the Company’s independent auditors have
      certified the Company’s financial statements for the Award Year, the
      Committee shall determine for purposes of this Agreement the Company’s (1)
      earnings growth (“EG”), (2) growth in non-regulated investments (“NRIG”)
      and (3) Shareholder Value as of the end of the Award Year. The EG, NRIG
      and Shareholder Value shall be determined by the Committee based on
      financial results reported to shareholders in the Company’s annual reports
      and shall be subject to adjustment by the Committee for extraordinary
      events
      during
      the Award Year. The Committee shall promptly notify the Grantee of its
      determination.

	(b)  	
      The
      Grantee may earn up to [number of shares] Contingent Performance Shares
      (the “Maximum Award”) as follows:

(1) The
performance measured for Shareholder Value will be the value of $10,000 invested
in the Company stock compared to a Utility Index. If the Company’s performance
exceeds the Utility Index, the Grantee will be eligible to earn up to 30% of the
Maximum Award for the Award Year. If the value of $10,000 invested for the Award
Year does not exceed the Utility Index for the Award Year, the Grantee shall not
earn any Contingent Performance Shares under this Paragraph (b)(1).

(2) The
performance measured for EG will be based upon the performance of the Company’s
regulated natural gas operations, the Company’s Delmarva propane distribution
operations and the overall corporate results of operation.

a.The
performance measured for EG for the Company’s regulated natural gas operations
will be based upon achieving at least 90% of the average allowed pre-tax return
on investment (“target return on investment”) in the Award Year. If the
Company’s regulated operations achieve the target return on investment in the
Award Year, the Grantee will be eligible to earn at least 12.5% of the Maximum
Award. If the target return on investment is not achieved in the Company’s
regulated natural gas operations, the Grantee shall not earn any Contingent
Performance Shares under this paragraph (b)(2)(a).

	b.  	
      The
      performance measured for EG for the Company’s Delmarva propane
      distribution operation will be based upon generating at least the target
      level of earnings, before interest expense and income taxes (“target
      EBIT”), for the Award Year. If the Delmarva propane distribution operation
      achieves the target EBIT, the Grantee will be eligible to earn 12.5% of
      the Maximum Award. If the target EBIT in the Company’s Delmarva propane
      distribution operation is not achieved, the Grantee will not be eligible
      to any Contingent Performance Shares under this paragraph
      (b)(2)(b).

	c.  	
      The
      performance measured for overall corporate results of operation will be
      based upon achieving a growth in earnings per share of 3% to 5% for the
      award year. If the Company earnings per share for 2005 is equal to or
      exceeds $1.65, the Grantee is eligible to earn 10% of the maximum award.
      If the earnings per share is equal to or greater than $1.68, the Grantee
      is eligible to earn an additional 10% of the maximum award but in no event
      shall the Grantee earn more than a 20% of the maximum award under this
      paragraph (b)(2)(c). If any of the award under this paragraph is unearned
      in the current year, the Grantee is eligible to earn those shares, if the
      accumulative earnings per share for 2005 to 2007 equals or exceeds
      $5.19.

(3)The
performance measured for growth in non-regulated investments (“NRIG”) will be
based upon execution of the Company’s long-term strategic plan, assuming
attainment of pre-authorized milestones and objectives. If the long-term
strategy is executed, the Grantee will be eligible to earn 25% of the Maximum
Award. If the long-term strategic plan is not executed, after approval from the
Company’s Board of Directors, the Grantee shall not earn any Contingent
Performance Shares under this paragraph (b)(3).

(c) Contingent
Performance Shares that are earned by the Grantee pursuant to this Section 2
shall be issued promptly, without payment of consideration by the Grantee. The
Grantee shall have the right to vote the Contingent Performance Shares and to
receive the dividends distributable with respect to such shares on and after,
but not before, the date on which the Grantee is recorded on the Company's
ledger as holder of record of the Contingent Performance Shares (the "Issue
Date"). If, however, the Grantee receives shares of Common Stock as part of any
dividend or other distribution with respect to the Contingent Performance
Shares, such shares shall be treated as if they are Contingent Performance
Shares, and such shares shall be subject to all of the terms and conditions
imposed by this Section 2. 

(d) Sale,
transfer, pledge, or hypothecation of the Contingent Performance Shares shall be
prohibited for a period of three (3) years after the Issue Date (the "Limitation
Period"), and the Performance Shares shall bear a restrictive legend to that
effect. Any attempt to dispose of Contingent Performance Shares in contravention
of this Agreement shall be ineffective. Upon expiration of the Limitation
Period, the transfer restrictions imposed by this Section shall expire, and new
certificates representing the Contingent Performance Shares, without the
restrictive legend described in this paragraph (d), shall be issued, subject to
the provisions of paragraph (e) of this Section 2.

(e) The
Performance Shares will be not registered for resale under the Securities Act of
1933 or the laws of any state except when and to the extent determined by the
Board pursuant to a resolution. Until a registration statement is filed and
becomes effective, however, transfer of the Contingent Performance Shares after
expiration of the Limitation Period shall require the availability of an
exemption from such registration, and prior to the issuance of new certificates,
the Company shall be entitled to take such measures as it deems appropriate
(including but not limited to obtaining from the Grantee an investment
representation letter and/or further legending the new certificates) to ensure
that the Contingent Performance Shares are not transferred in the absence of
such exemption.

(f) In the
event of a Change in Control, as defined in the Plan, during the Award Year, the
Grantee shall earn at least the Maximum Award of Contingent Performance Shares
set forth in this Section 2, as if all employment and performance criteria were
satisfied, pro rated based on the proportion of the Award Year that has expired
as of the date of such Change in Control.

(g) If,
during the Award Year, the Grantee is separated from employment, Contingent
Performance Shares shall be deemed earned or forfeited as follows:

(1) Upon
voluntary termination by the Grantee (other than for retirement at age 65 or as
accepted by the Committee) or termination by the Company for failure of job
performance or other just cause as determined by the Committee, all unearned
Contingent Performance Shares shall be forfeited immediately;

(2) If the
Grantee separates from employment by reason of death or total and permanent
disability (as determined by the Committee), the number of Contingent
Performance Shares that would otherwise have been earned at the end of the Award
Year shall be reduced by pro rating such Contingent Performance Shares based on
the proportion of the Award Year during which the Grantee was employed by the
Company, unless the Committee determines that the Contingent Performance Shares
shall not be so reduced;

(3) Retirement
of the Grantee at age 65 or as accepted by the Committee shall not affect the
Contingent Performance Shares, which shall continue to be earned through the
remainder of the Award Year, as set forth above.

(h) The
Grantee shall be solely responsible for any federal, state and local income
taxes imposed in connection with the delivery of Contingent Performance Shares.
Prior to the transfer of any Contingent Performance Shares to the Grantee, the
Grantee shall remit to the Company an amount sufficient to satisfy any federal,
state, local and other withholding tax requirements. The Grantee may elect to
have all or part of any withholding tax obligation satisfied by having the
Company withhold shares otherwise deliverable to the Grantee as Contingent
Performance Shares, unless the Committee determines otherwise by resolution. If
the Grantee fails to make such payments or election, the Company and its
subsidiaries shall, to the extent permitted by law, have the right to deduct
from any payments of any kind otherwise due to the Grantee any taxes required by
law to be withheld with respect to the Contingent Performance
Shares.

Section
3. Forfeitable
Performance Shares

(a) In lieu
of earning Contingent Performance Shares, the Grantee may elect to receive
[number of shares] Forfeitable Performance Shares, irrespective of whether the
Company meets any Performance Goals. The Grantee must make any such election on
or before September 30, 2005, and the election must be made in writing, in a
manner prescribed by the Committee. Once made, the election is irrevocable. If a
Grantee makes such an election, he shall not receive any Contingent Performance
Shares under this Agreement. 

(b) Any
Forfeitable Performance Shares received by the Grantee pursuant to this Section
3 shall be issued as promptly as possible after December 31, 2005, without
payment of consideration by the Grantee. The Grantee shall have the right to
vote the Forfeitable Performance Shares and to receive the dividends
distributable with respect to such shares on and after, but not before, the date
on which the Grantee is recorded on the Company's ledger as holder of record of
the Forfeitable Performance Shares (the "Issue Date"). If, however, the Grantee
receives shares of Common Stock as part of any dividend or distribution with
respect to the Forfeitable Performance Shares, such shares shall be treated as
if they are Forfeitable Performance Shares, and such shares shall be subject to
all of the terms and conditions imposed by this Section 3.

(c) The
Forfeitable Performance Shares shall be subject to the following
restrictions:

(1) Sale,
transfer, pledge or hypothecation of the Forfeitable Performance Shares shall be
prohibited for a period of three (3) years after the Issue Date (the
"Restriction Period"), and the certificates evidencing the Forfeitable
Performance Shares shall bear an appropriate restrictive legend that refers to
the terms, conditions, and restrictions set forth in this Agreement. Any attempt
to dispose of Forfeitable Performance Shares in contravention of this Agreement
shall be ineffective. Upon expiration of the Restriction Period, the transfer
restrictions imposed by this Section shall expire, and new certificates
representing the Forfeitable Performance Shares, without the restrictive legend
described in this paragraph (c)(1), shall be issued, subject to the provisions
of paragraph (f) of this Section 3.

(2) If,
during the Restriction Period, the Grantee separates from employment for any
reason other than death, normal retirement, total and permanent disability (as
determined by the Committee), or involuntary termination without cause (as
determined by the Committee), all Forfeitable Performance Shares shall be
forfeited immediately.

(d) All
restrictions under paragraph (c) of this Section 3 shall immediately expire on
the earliest of: (A) the Grantee's separation from employment because of death,
total and permanent disability (as determined by the Committee), or involuntary
termination without cause (as determined by the Committee), (B) a Change in
Control, as defined in the Plan, or (C) the end of the Restriction Period.

(e) If, after
the Grantee has made an election to receive Forfeitable Performance Shares
pursuant to Section 3(a), a Change in Control, as defined in the Plan, occurs
during the Award Year, the Grantee shall receive at least the total number of
Forfeitable Performance Shares due under this Agreement, pro rated based on the
proportion of the Award Year that has expired as of the date of such Change in
Control. Pursuant to Section 3(d), such Shares shall not be subject to any of
the restrictions imposed by this Section.

(f) The
Forfeitable Performance Shares shall be not registered for resale under the
Securities Act of 1933 or the laws of any state except when and to the extent
determined by the Board pursuant to a resolution. Until a registration statement
is filed and becomes effective, however, transfer of the Forfeitable Performance
Shares after expiration of the Restriction Period shall require the availability
of an exemption from such registration, and prior to the issuance of new
certificates, the Company shall be entitled to take such measures as it deems
appropriate (including but not limited to obtaining from the Grantee an
investment representation letter and/or further legending the new certificates)
to ensure that the Forfeitable Performance Shares are not transferred in the
absence of such exemption.

(g) The
Grantee shall be solely responsible for any federal, state and local income
taxes imposed in connection with receipt of the Forfeitable Performance
Shares:

(1) The
Grantee agrees that, no later than the date that the restrictions set forth in
Section 3(c) lapse, he shall remit to the Company an amount sufficient to
satisfy any federal, state, local and other withholding tax requirements.

(2) The
Grantee may elect to have all or part of any withholding tax obligation
satisfied by having the Company withhold shares otherwise deliverable to the
Grantee in connection with the Award of Restricted Stock, unless the Committee
determines otherwise by resolution.

(3) If the
Grantee properly elects, within 30 days of the Issue Date, to include in gross
income for federal income tax purposes an amount equal to the fair market value
of the Forfeitable Performance Shares, he shall make arrangements satisfactory
to the Committee to remit in the year of issue an amount sufficient to satisfy
any federal, state, local and other withholding tax requirements with respect to
such Forfeitable Performance Shares. 

(4) If the
Grantee fails to make satisfactory arrangements to meet all withholding tax
obligations, the Company and its subsidiaries shall, to the extent permitted by
law, have the right to deduct from any payments of any kind otherwise due to the
Grantee any taxes required by law to be withheld with respect to the Forfeitable
Performance Shares.

Section
4. Additional
Conditions to Issuance of Shares

Each
transfer of Contingent Performance Shares or Forfeitable Performance Shares
(together, the "Award Shares") shall be subject to the condition that if at any
time the Committee shall determine, in its sole discretion, that it is necessary
or desirable as a condition of, or in connection with, transfer of Award Shares
(i) to satisfy withholding tax or other withholding liabilities, (ii) to effect
the listing, registration or qualification on any securities exchange or under
any state or federal law of any Shares deliverable in connection with such
exercise, or (iii) to obtain the consent or approval of any regulatory body,
then in any such event such transfer shall not be effective unless such
withholding, listing, registration, qualification, consent or approval shall
have been effected or obtained free of any conditions not acceptable to the
Company.

Section
5. Adjustment
of Shares

(a) If the
Company shall become involved in a merger, consolidation or other
reorganization, whether or not the Company is the surviving corporation, any
right to earn Contingent Performance Shares or to elect to receive Forfeitable
Performance Shares shall be deemed a right to earn or to elect to receive the
consideration into which the shares of Common Stock represented by the
Contingent Performance Shares or by the Forfeitable Performance Shares would
have been converted under the terms of the merger, consolidation or other
reorganization. If the Company is not the surviving corporation, the surviving
corporation (the "Successor") shall succeed to the rights and obligations of the
Company under this Agreement.

(b) If any
subdivision or combination of shares of Common Stock or any stock dividend,
capital reorganization or recapitalization occurs after the adoption of the
Plan, the Committee shall make such proportionate adjustments as are appropriate
to the number of Contingent Performance Shares to be earned and/or to the number
of Forfeitable Performance Shares to be received in order to prevent the
dilution or enlargement of the rights of the Grantee.

Section
6. No
Right to Employment

Nothing
contained in this Agreement shall be deemed by implication or otherwise to
confer upon the Grantee any right to continued employment by the Company or any
affiliate of the Company.

Section
7. Notice

Any
notice to be given hereunder by the Grantee shall be sent by mail addressed to
Chesapeake Utilities Corporation, 909 Silver Lake Boulevard, Dover, Delaware
19904, for the attention of the Committee, c/o the Secretary, and any notice by
the Company to the Grantee shall be sent by mail addressed to the Grantee at the
address of the Grantee shown on the first page hereof. Either party may, by
notice given to the other in accordance with the provisions of this Section,
change the address to which subsequent notices shall be sent.

Section
8. Assumption
of Risk

It is
expressly understood and agreed that the Grantee assumes all risks incident to
any change hereafter in the applicable laws or regulations or incident to any
change in the market value of the Award Shares.

Section
9. Terms
of Plan

This
Agreement is entered into pursuant to the Plan (a copy of which has been
delivered to the Grantee). This Agreement is subject to all of the terms and
provisions of the Plan, which are incorporated into this Agreement by reference,
and the actions taken by the Committee pursuant to the Plan. In the event of a
conflict between this Agreement and the Plan, the provisions of the Plan shall
govern. All determinations by the Committee shall be in its sole discretion and
shall be binding on the Company and the Grantee.

Section
10. Governing
Law; Amendment

This
Agreement shall be governed by, and shall be construed and administered in
accordance with, the laws of the State of Delaware (without regard to its choice
of law rules) and the requirements of any applicable federal law. This Agreement
may be modified or amended only by a writing signed by the parties
hereto.

Section
11. Terms
of Agreement

This
Agreement shall remain in full force and effect and shall be binding on the
parties hereto for so long as any Award Shares issued to the Grantee under this
Agreement continue to be held by the Grantee.

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed in its
corporate name, and the Grantee has executed the same in evidence of the
Grantee's acceptance
hereof, upon the terms and conditions herein set forth, as of the day and year
first above written.

CHESAPEAKE
UTILITIES CORPORATION

By: ___________________________________

___________________________________

Grantee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]