Loan and Trust Agreement



 Exhibit 4.1 
  
 Execution Copy 
  

  
 LOAN AND TRUST AGREEMENT 

 
 among 
  
 HILLSBOROUGH COUNTY INDUSTRIAL 
 DEVELOPMENT AUTHORITY, 
  
 TAMPA ELECTRIC COMPANY 
  
 and 

 
 THE BANK OF NEW YORK TRUST COMPANY, N.A., 
 As Trustee 
  
 Dated as of January 5, 2006 
  
 And Providing for the Issue of 
  
 Hillsborough County Industrial Development Authority 
 Pollution Control Revenue Refunding Bonds 
 (Tampa Electric Company Project) 
 Series 2006 
  








 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page


	ARTICLE I DEFINITIONS	  	1
			
	 Section 1.01.  
	  	Definitions	  	1
			
	 Section 1.02.
	  	Interpretation	  	10
		
	ARTICLE II THE ASSIGNMENT AND PLEDGE	  	11
			
	 Section 2.01.
	  	The Assignment and Pledge of Revenues and Funds	  	11
			
	 Section 2.02.
	  	Pledge of First Mortgage Bonds	  	11
			
	 Section 2.03.
	  	Release of First Mortgage Bonds	  	11
			
	 Section 2.04.
	  	Further Assurances	  	12
		
	ARTICLE III CONDITIONS AND TERMS OF BONDS	  	12
			
	 Section 3.01.
	  	Authorization and Issuance of Bonds; Dating	  	12
			
	 Section 3.02.
	  	Interest on the Bonds	  	12
			
	 Section 3.03.
	  	Changes to and from Auction Mode Rate Determination Method	  	19
			
	 Section 3.04.
	  	Undelivered Bonds	  	21
			
	 Section 3.05.
	  	Form of Bonds	  	22
			
	 Section 3.06.
	  	Execution and Authentication of Bonds	  	22
			
	 Section 3.07.
	  	Transfer and Exchange of Bonds	  	23
			
	 Section 3.08.
	  	Registration Books	  	23
			
	 Section 3.09.
	  	Temporary Bonds	  	23
			
	 Section 3.10.
	  	Bond Mutilated, Destroyed, Lost or Stolen	  	23
			
	 Section 3.11.
	  	Safekeeping and Cancellation of Bonds	  	24
			
	 Section 3.12.
	  	Special Agreement with Bondholders	  	24
			
	 Section 3.13.
	  	CUSIP Numbers	  	24
		
	ARTICLE IV REDEMPTION, MANDATORY TENDER AND REMARKETING	  	25
			
	 Section 4.01.
	  	Redemption	  	25
			
	 Section 4.02.
	  	Optional Redemption Dates	  	26
			
	 Section 4.03.
	  	Selection of Bonds to Be Redeemed	  	26
			
	 Section 4.04.
	  	Redemption Notices	  	27
			
	 Section 4.05.
	  	Bonds Redeemed in Part	  	28
			
	 Section 4.06.
	  	Mandatory Tender	  	28

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page


	 Section 4.07.  
	  	Source of Funds for Purchase of Bonds	  	30
			
	 Section 4.08.
	  	Delivery of Bonds	  	30
			
	 Section 4.09.
	  	No Purchase or Sale after Event of Default	  	31
			
	 Section 4.10.
	  	Purchase Fund	  	31
			
	 Section 4.11.
	  	Disposition of Purchased Bonds	  	31
			
	 Section 4.12.
	  	Purchase of Bonds in Lieu of Redemption	  	33
		
	ARTICLE V FUNDS AND ACCOUNTS	  	33
			
	 Section 5.01.
	  	Application of Proceeds	  	33
			
	 Section 5.02.
	  	Bond Fund	  	33
			
	 Section 5.03.
	  	First Mortgage Bond Fund	  	34
			
	 Section 5.04.
	  	Payment of Bonds	  	35
			
	 Section 5.05.
	  	Payments by the Company	  	35
			
	 Section 5.06.
	  	Moneys Held in Trust; Unclaimed Funds	  	36
			
	 Section 5.07.
	  	Refunding Fund; Notice to Redeem Refunded Bonds	  	37
			
	 Section 5.08.
	  	Investments	  	37
		
	ARTICLE VI BOOK-ENTRY SYSTEM	  	37
			
	 Section 6.01.
	  	Book-Entry System	  	37
		
	ARTICLE VII THE PROJECT	  	39
			
	 Section 7.01.
	  	Maintenance and Modifications of Project by Company	  	39
			
	 Section 7.02.
	  	Removal of Portions of the Project	  	39
			
	 Section 7.03.
	  	Assignment, Leasing and Sale by the Company	  	39
		
	ARTICLE VIII THE COMPANY	  	40
			
	 Section 8.01.
	  	Representations by the Company	  	40
			
	 Section 8.02.
	  	Access to the Project	  	41
			
	 Section 8.03.
	  	Company May Consolidate, Etc., Only on Certain Terms	  	41
			
	 Section 8.04.
	  	Indemnification Covenants	  	41
			
	 Section 8.05.
	  	Consent to Assignment of Contract Rights by the Authority	  	42
			
	 Section 8.06.
	  	Obligations of Company Hereunder Unconditional	  	42
			
	 Section 8.07.
	  	Arbitrage Bonds	  	43

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
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	ARTICLE IX THE AUTHORITY	  	43
			
	 Section 9.01.
	  	Representations by the Authority	  	43
			
	 Section 9.02.
	  	No Warranty of Condition or Suitability by the Authority	  	43
			
	 Section 9.03.
	  	Payment of Principal, Premium and Interest	  	43
			
	 Section 9.04.
	  	Authority To Use Best Efforts To Require Company To Make Payments	  	44
			
	 Section 9.05.
	  	Take Further Action	  	44
			
	 Section 9.06.
	  	No Disposition of Revenues	  	44
			
	 Section 9.07.
	  	No Extensions	  	44
			
	 Section 9.08.
	  	Covenant To Perform Further Acts	  	45
			
	 Section 9.09.
	  	Faithful Performance	  	45
		
	ARTICLE X DEFAULT AND LIMITATIONS OF LIABILITY	  	45
			
	 Section 10.01.
	  	Events of Default	  	45
			
	 Section 10.02.
	  	Acceleration	  	46
			
	 Section 10.03.
	  	Other Remedies	  	47
			
	 Section 10.04.
	  	Waiver of Past Defaults	  	47
			
	 Section 10.05.
	  	Control by Majority	  	47
			
	 Section 10.06.
	  	Limitation on Suits	  	48
			
	 Section 10.07.
	  	Rights of Bondholders to Receive Payment	  	48
			
	 Section 10.08.
	  	Collection Suit by Trustee	  	48
			
	 Section 10.09.
	  	Trustee May File Proofs of Claim	  	48
			
	 Section 10.10.
	  	Priorities	  	48
			
	 Section 10.11.
	  	Undertaking for Costs	  	49
			
	 Section 10.12.
	  	Payment Procedures under Financial Guaranty Insurance Policy	  	49
			
	 Section 10.13.
	  	Agreement To Pay Attorneys’ Fees and Expenses	  	50
			
	 Section 10.14.
	  	Remedies in Article X in Addition to Remedies in the First Mortgage	  	50
		
	ARTICLE XI THE TRUSTEE AND THE REMARKETING AGENT	  	50
			
	 Section 11.01.
	  	Conditions of Trust	  	50
			
	 Section 11.02.
	  	Reimbursement of Administrative Expenses	  	53
			
	 Section 11.03.
	  	Notice of Defaults	  	53

  

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 TABLE OF CONTENTS 
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	 Section 11.04.
	  	Trustee’s Right To Intervene; First Mortgage Bonds	  	53
			
	 Section 11.05.
	  	Successor Trustee Upon Merger, Etc	  	54
			
	 Section 11.06.
	  	Resignation of Trustee	  	54
			
	 Section 11.07.
	  	Removal of Trustee	  	55
			
	 Section 11.08.
	  	Appointments of Successor Trustee	  	55
			
	 Section 11.09.
	  	Acceptance by Successor Trustee	  	55
			
	 Section 11.10.
	  	Reliance Upon Instruments	  	56
			
	 Section 11.11.
	  	Former Trustee No Longer Custodian or Paying Agent	  	56
			
	 Section 11.12.
	  	Directions From Company; Company May Perform	  	56
			
	 Section 11.13.
	  	Trading in Bonds by Trustee, Paying Agent, Tender Agent or Registrar	  	56
			
	 Section 11.14.
	  	Appointment of Separate Paying Agent and/or Tender Agent	  	56
			
	 Section 11.15.
	  	Entities Serving in More Than One Capacity	  	57
			
	 Section 11.16.
	  	Duties of Remarketing Agent	  	57
			
	 Section 11.17.
	  	Eligibility of Remarketing Agent	  	57
			
	 Section 11.18.
	  	Replacement of Remarketing Agent	  	57
			
	 Section 11.19.
	  	Compensation of Remarketing Agent	  	57
			
	 Section 11.20.
	  	Successor Remarketing Agent	  	57
			
	 Section 11.21.
	  	Inapplicability of Provisions Relating to Remarketing Agent	  	58
		
	ARTICLE XII AMENDMENT OF OR SUPPLEMENT TO THE AGREEMENT; RIGHTS OF BOND INSURER	  	58
			
	 Section 12.01.
	  	Supplemental Agreements Without Notice to or Consent of Bondholders	  	58
			
	 Section 12.02.
	  	Supplemental Agreements Requiring Consent of Bondholders	  	59
			
	 Section 12.03.
	  	Reliance on Opinion of Counsel; Favorable Opinion of Tax Counsel Required	  	60
			
	 Section 12.04.
	  	Bond Insurer to Be Deemed Bondholder; Rights of Bond Insurer; Notices	  	60
		
	ARTICLE XIII DEFEASANCE	  	63
			
	 Section 13.01.
	  	Defeasance	  	63
			
	 Section 13.02.
	  	Bonds Deemed to Have Been Paid	  	64
			
	 Section 13.03.
	  	Moneys Held for Particular Bonds	  	65
			
	 Section 13.04.
	  	Insured Bonds; Defeasance	  	65

  

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	ARTICLE XIV MISCELLANEOUS	  	65
			
	 Section 14.01.
	  	Benefits of This Agreement Limited to Parties	  	65
			
	 Section 14.02.
	  	No Recourse Against Authority	  	65
			
	 Section 14.03.
	  	Successor Deemed Included in All References to Predecessor	  	65
			
	 Section 14.04.
	  	Extent of Covenants; No Personal Liability	  	66
			
	 Section 14.05.
	  	Notices	  	66
			
	 Section 14.06.
	  	Notices to Rating Agencies	  	67
			
	 Section 14.07.
	  	Funds	  	67
			
	 Section 14.08.
	  	Severability	  	67
			
	 Section 14.09.
	  	Florida Law to Govern	  	68
			
	 Section 14.10.
	  	Instruments of Bondholders	  	68
			
	 Section 14.11.
	  	Priority of this Agreement	  	68
			
	 Section 14.12.
	  	Binding Effect	  	68
			
	 Section 14.13.
	  	Payments Due or Other Actions on Nonbusiness Days	  	69
			
	 Section 14.14.
	  	Counterparts	  	69
			
	 Section 14.15.
	  	Waiver of Jury Trial	  	69
			
	 Section 14.16.
	  	Force Majeure	  	69
		
	EXHIBIT A     DESCRIPTION OF THE PROJECT	  	A-1
		
	EXHIBIT B     FORM OF BOND	  	B-1
		
	EXHIBIT C     AUCTION PROCEDURES	  	C-1

  

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 LOAN AND TRUST AGREEMENT 
  
 THIS LOAN AND TRUST AGREEMENT dated as of January 5, 2006, among HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY,
a public body corporate and politic and a public instrumentality created pursuant to the laws of the State of Florida (the “Authority”), TAMPA ELECTRIC COMPANY, a Florida corporation (the “Company”) and THE BANK OF
NEW YORK TRUST COMPANY, N.A., as trustee, a national banking association duly organized and existing under the laws of the United States of America and having its designated corporate trust office in the City of Jacksonville, Florida, which is
authorized under such laws to exercise corporate trust powers and is subject to examination by federal authorities, the “Trustee”). 
  
 RECITALS 
  
 This Agreement provides for the following transactions: 
  
 (a) the Authority’s issue of Bonds for the purpose of refunding bonds previously issued to finance the Project; 
  
 (b) the Company’s repayment of the loan of Bond proceeds from the
Authority through payment to the Trustee of all amounts necessary to pay principal, premium, if any, and interest on the Bonds issued by the Authority; and 
  
 (c) the Authority’s assignment to the Trustee in trust for the benefit and security of the Bondholders of the Revenues to be received hereunder and
the rights to receive the same and the security therefor. 
  
 In
consideration of the mutual agreements contained in this Agreement and other good and valuable consideration, the receipt of which is hereby acknowledged, the Authority, the Company and the Trustee agree as set forth herein for their own benefit and
for the benefit of the Bondholders. 
  
 ARTICLE I

  
 DEFINITIONS 
  
 Section 1.01. Definitions. Unless the context otherwise
requires, the terms defined in this Section shall for all purposes hereof and of any amendment hereof or supplement hereto and of the Bonds and of any certificate, opinion, request or other document mentioned herein or therein have the meanings
defined herein, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein; provided, however, that any terms used herein relating to Bonds in the Auction Mode Rate
Determination Method or Auction Procedures that are not expressly defined below shall be deemed to have the meanings provided in Exhibit C, Auction Procedures, attached hereto: 







 “Act” means the Constitution of the State of Florida, the Florida Industrial Development
Financing Act, Parts II and III of Chapter 159, Florida Statutes, a resolution of the Board of County Commissioners of Hillsborough County, Florida adopted October 27, 1971 organizing the Hillsborough County Industrial Development Authority,
and other applicable provisions of law. 
  
 “Additional
Redemption Notice” is defined in Section 4.04(b). 
  
 “Additional Tender Notice” is defined in Section 4.06(c). 
  
 “Administrative Expenses” means the direct, out-of-pocket expenses incurred by the Authority pursuant to this Agreement and reasonable in amount and the compensation of the Trustee, any paying agent
or registrar and the direct, out-of-pocket expenses of the Trustee, including fees and disbursements of its counsel, incurred by the Trustee and reasonable in amount. 
  
 “Agreement” means this Loan and Trust Agreement, among the Authority, the Company and the Trustee.

  
 “Alternate Rate” means a rate per annum equal
to (a) the BMA Municipal Swap Index of Municipal Market Data, formerly the PSA Municipal Swap Index (as such term is defined in the 1992 ISDA U.S. Municipal Counterparty Definitions) (the “BMA Rate”) most recently available as
of the date of determination, or (b) if such index is no longer available, or if the BMA Rate is no longer published, the Kenny Index (as such term is defined in the 1992 ISDA U.S. Municipal Counterparty Definitions), or if neither the BMA Rate
nor the Kenny Index is published, the index determined to equal the prevailing rate determined by the Remarketing Agent for tax exempt state and local government bonds meeting criteria determined in good faith by the Remarketing Agent to be
comparable under the circumstances to the criteria used by the Bond Market Association to determine the BMA Rate just prior to when the Bond Market Association stopped publishing the BMA Rate. 
  
 “Auction Rate Period” means each period of time when the
Bonds bear interest at an Auction Mode Rate. 
  
 “Authority” means the Hillsborough County Industrial Development Authority. 
  
 “Authority Representative” means the Chairman, Vice Chairman, the Secretary or Assistant Secretary, and when used with reference to an
act or document of the Authority for purposes of this Agreement also means any other person authorized to perform the act or execute the document by a written instrument furnished to the Trustee containing the specimen signature of such person and
signed on behalf of the Authority by any of its officers. 
  
 “Beneficial Owner” means the purchaser of a beneficial interest in the Bonds when the Bonds are held by the Securities Depository in the Book-Entry System, and otherwise means a Bondholder. 
  
 “Bondholder” or “holder” means the
registered owner of any Bond. 
  

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 “Bond Fund” means the Bond Fund created in Section 5.02. 
  
 “Bond Insurer” means Ambac Assurance Corporation, a
Wisconsin-domiciled stock insurance corporation, or any successor thereto. 
  
 “Bonds” means the $85,950,000 aggregate principal amount of the Bonds issued pursuant hereto that are authenticated and delivered by the Trustee under and pursuant to ARTICLE III hereof. 

 
 “Bond Service Charges” means, for any period or time, the
principal of, premium, if any, and interest due on the Bonds for that period or payable at that time whether due at maturity or upon acceleration or redemption or pursuant to any mandatory sinking fund requirements or otherwise. 
  
 “Book-Entry System” means the system maintained by the
Securities Depository described in Section 6.01. 
  
 “Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which commercial banks in New York, New York or the city in which the designated corporate trust office of the Trustee or the
Remarketing Agent is located, are required or authorized by law or regulation to close, or (iii) a day on which the New York Stock Exchange is closed; provided, however, that during an Auction Rate Period the definition of “Business
Day” shall be supplemented as provided in Exhibit C hereto. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. References to the Code and Sections of the Code include relevant applicable regulations and proposed regulations thereunder and under the Code,
and any successor provisions to those sections, regulations or proposed regulations and, in addition, all revenue rulings, announcements, notices, procedures and judicial determinations under the foregoing applicable to the Bonds. 
  
 “Commercial Paper Mode” means each period of time, comprised
of Commercial Paper Periods, during which Commercial Paper Rates are in effect. 
  
 “Commercial Paper Period” means, with respect to any Bond, each period set under Section 3.02(a)(3). 
  
 “Commercial Paper Rate” means an interest rate on each Bond set under Section 3.02(a)(3). 
  
 “Company” means Tampa Electric Company, a Florida
corporation, and its successors and assigns as permitted under this Agreement. 
  
 “Company-Held Bonds” has the meaning set forth in Section 4.08(b). 
  
 “Company Representative” means a person at the time designated to act on behalf of the Company for purposes of this Agreement by a
written instrument furnished to the Trustee containing the specimen signature of such person and signed on behalf of the Company by any of the President, any Vice President, Treasurer or Assistant Treasurer of the Company and any other person
designated by one of the foregoing officers. 
  

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 “Conversion Notice” is defined in Section 3.03(b)(1). 
  
 “Corporation” means and includes corporations, partnerships,
including limited partnerships and limited liability partnerships, joint ventures, associations, companies, limited liability companies, joint-stock companies and business trusts. 
  
 “Daily Rate” means an interest rate on the Bonds set under Section 3.02(a)(1). 
  
 “Determination Method” is defined in Section 3.02(a).

  
 “Event of Default” means any occurrence or
event specified in and defined by Section 10.01. 
  
 “Favorable Opinion of Tax Counsel” means an Opinion of Tax Counsel addressed to the Authority and to the Trustee to the effect that the action proposed to be taken is permitted under the Act and by this Agreement and will
not adversely affect any exclusion from gross income for federal income tax purposes of interest on the Bonds. 
  
 “Financial Guaranty Insurance Policy” or “Policy” shall mean the financial guaranty insurance policy issued by the Bond
Insurer insuring the payment when due of the principal of and interest on the Bonds as provided therein. 
  
 “First Mortgage” means the Indenture of Mortgage, dated as of August 1, 1946, as heretofore and hereafter supplemented and amended,
currently by and between the Company and State Street Bank and Trust Company, as trustee. 
  
 “First Mortgage Bond Fund” means the fund established with the Trustee pursuant to Section 5.03. 
  
 “First Mortgage Bonds” means the first mortgage bonds to be created by a supplemental indenture to the First Mortgage and, at the option
of the Company, delivered to the Trustee pursuant to Section 2.02 as security for the Company’s obligation to pay the principal of, premium, if any, and interest on the Bonds. 
  
 “Fitch” means Fitch, Inc. and its successors and assigns, and, if such corporation shall be dissolved or
liquidated or shall no longer perform the functions of a securities rating agency, “Fitch” shall be deemed to refer to any other nationally recognized securities rating agency designated by the Company, with written notice to the Trustee
and the Authority. 
  
 “Funds” means,
collectively, the Bond Fund, the Refunding Fund and the First Mortgage Fund created pursuant hereto. 
  
 “Government Obligations” means any of the securities described in paragraph (a) of the definition of the term “Permitted
Investments.” 
  

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 “Indemnified Persons” is defined in Section 8.04(a). 
  
 “Insurance Agreement” means the Insurance Agreement, dated
as of January 5, 2006, between the Company and the Bond Insurer. 
  
 “Insurance Trustee” is defined in Section 10.12(a). 
  
 “Interest Account” means the account created pursuant to Section 5.02(a). 
  
 “Interest Payment Date” is defined in the form of the Bonds appearing in Exhibit B hereto. 
  
 “Interest Period” is defined in the form of the Bonds
appearing in Exhibit B hereto. 
  
 “Long-Term
Interest Rate” means an interest rate on the Bonds set under Section 3.02(a)(4). 
  
 “Long-Term Interest Rate Period” means any period as defined in Section 3.02(a)(4) which ends either on the day before the Maturity Date or a day which next precedes a Business Day and is at
least 270 days long, and which period must be the same for all Bonds. 
  
 “Maturity Date” means the stated maturity of the Bonds as set forth in Section 3.01 
  
 “Maximum Interest Rate” means, on any day, the lesser of (i) the maximum interest rate permitted by law, and (ii) 14% per
annum. 
  
 “Moody’s” means Moody’s
Investors Service, Inc., a corporation organized and existing under the laws of the State of Delaware, its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities
rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency designated by the Company, with written notice to the Trustee and the Authority. 
  
 “Opinion of Counsel” means a written opinion of counsel
selected by the Company who is acceptable to the Authority and the Trustee. Such counsel may be an employee of or counsel to the Authority, the Trustee or the Company. 
  
 “Opinion of Tax Counsel” means an Opinion of Counsel by counsel of nationally recognized standing in
matters relating to the exclusion of interest from gross income on obligations issued by or on behalf of states and their political subdivisions. 
  
 “Outstanding” or “Bonds Outstanding” when used with reference to Bonds means all Bonds which have been authenticated and
delivered by the Trustee under this Agreement, except the following: 
  
 (a) Bonds canceled or purchased by or delivered to the Trustee for cancellation. 
  

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 (b) Bonds that have become due (at maturity or on redemption, acceleration or otherwise) and for the
payment, including interest accrued to the due date, of which sufficient moneys are held by the Trustee. 
  
 (c) Bonds paid or deemed to have been paid within the meaning of Section 13.02 (other than Bonds paid under the Financial Guaranty Insurance Policy
pursuant to Section 13.04). 
  
 (d) Bonds in lieu of which
others have been authenticated under Section 3.07, Section 3.09 or Section 3.10. 
  
 Bonds purchased pursuant to tenders and not delivered to the Trustee for payment are not outstanding, but there will be outstanding Bonds authenticated
and delivered in lieu of such undelivered Bonds as provided in Section 3.04. 
  
 “Participant” means one of the entities which deposit securities, directly or indirectly, in the Book-Entry System. 
  
 “Permitted Investments” means the following investments for the following purposes: 
  
 (a) The following obligations may be used as Permitted Investments for all
purposes, including defeasance investments in refunding escrow accounts: 
  

	 	(1)	Cash (insured at all times by the Federal Deposit Insurance Corporation), and 

  


	 	(2)	Obligations of, or obligations guaranteed as to principal and interest by, the United States or any agency or instrumentality thereof, when such obligations are backed by the full
faith and credit of the U.S. including: U.S. treasury obligations, all direct or fully guaranteed obligations, Farmers Home Administration, General Services Administration, Guaranteed Title XI financing, Government National Mortgage Association
(GNMA), and State and Local Government Series. 

  
 Any security used for defeasance must provide for the timely payment of principal and interest and cannot be callable or prepayable prior to maturity or earlier redemption of the rated debt (excluding securities that do not have a fixed par
value and/or whose terms do not promise a fixed dollar amount at maturity or call date). 
  
 (b) The following obligations may be used as Permitted Investments for all purposes other than defeasance investments in refunding escrow accounts: 
  
 (1) Obligations of any of the following federal agencies which obligations represent the full faith and credit of the United
States of America, including: Export-Import Bank, Rural Economic Community Development Administration, U.S. Maritime Administration, Small Business Administration, U.S. Department of Housing & Urban Development (PHAs), Federal Housing
Administration, and Federal Financing Bank; 
  

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 (2) Direct obligations of any of the following federal agencies which obligations are not fully
guaranteed by the full faith and credit of the United States of America: senior debt obligations issued by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC), obligations of the Resolution Funding
Corporation (REFCORP), senior debt obligations of the Federal Home Loan Bank System, senior debt obligations of other Government Sponsored Agencies approved by the Bond Insurer; 
  
 (3) U.S. dollar denominated deposit accounts, federal funds and bankers’ acceptances with domestic commercial banks
which have a rating on their short term certificates of deposit on the date of purchase of “P-1” by Moody’s and “A-1” or “A-1+” by S&P and maturing not more than 360 calendar days after the date of purchase
(ratings on holding companies are not considered as the rating of the bank); 
  
 (4) Commercial paper which is rated at the time of purchase in the single highest classification, “P-1” by Moody’s and “A-1+” by S&P and which matures not more than 270 calendar days after
the date of purchase; 
  
 (5) Investments in a money market fund
rated “AAAm” or “AAAm-G” or better by S&P, including money market funds of the Trustee which satisfy such requirements; 
  
 (6) Pre-refunded Municipal Obligations defined as follows: any bonds or other obligations of any state of the United States of America or of any agency,
instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice,
and 
  
 (A) which are rated, based on an
irrevocable escrow account or fund (the “escrow”), in the highest rating category of Moody’s or S&P or any successors thereto; or 
  
 (B) (i) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or
obligations described in paragraph (a)(2) above, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the
specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (ii) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest
and redemption premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates specified in the irrevocable instructions referred to above, as appropriate; 
  
 (7) Municipal Obligations rated “Aaa/AAA” or general obligations of
States with a rating of “A2/A” or higher by both Moody’s and S&P; 
  
 (8) Investment Agreements approved in writing by the Bond Insurer (supported by appropriate opinions of counsel); and 
  

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 (9) other forms of investments (including repurchase agreements) approved in writing by the Bond Insurer.

  
 (c) The value of the above investments shall be determined as
follows: 
  
 (1) For the purpose of determining the amount in any
Fund, all Permitted Investments credited to such fund shall be valued at fair market value. The Trustee shall determine the fair market value based on accepted industry standards and from accepted industry providers. Accepted industry providers
shall include but are not limited to pricing services provided by Financial Times Interactive Data Corporation, Merrill Lynch, Salomon Smith Barney, Bear Stearns, or Lehman Brothers. 
  
 (2) As to certificates of deposit and bankers’ acceptances, the value shall equal the face amount thereof, plus.
accrued interest thereon. 
  
 (3) As to any investment not
specified above, the value thereof shall be established by agreement among the Company, the Trustee, and the Bond Insurer. 
  
 “Person” means any individual, Corporation, trust or government or any agency or political subdivision thereof. 
  
 “Principal Account” means the account created pursuant to
Section 5.02(b). 
  
 “Principal Payment
Date” means any date upon which the principal amount of any Bond is due hereunder, including the Maturity Date, any redemption date, or the date to which the maturity of the Bonds is accelerated pursuant to the terms hereof or otherwise.

  
 “Project” means, collectively, certain air
and water pollution and waste control facilities located at the Units including any structures, machinery, fixtures, improvements and equipment, all as described in Exhibit C attached hereto, as the same may be amended from time to
time, together with all additions thereto and substitutions therefor, less any deletions therefrom, as they may at any time exist. 
  
 “Purchase Fund” means the account created pursuant to Section 4.11. 
  
 “Purchase Price” means 100% of the principal amount of the Bonds being purchased plus interest accrued, if
any, to (but excluding) the purchase date. 
  
 “Record
Date” is defined in the form of the Bond appearing as Exhibit B hereto. 
  
 “Redemption Account” means the account created pursuant to Section 5.02(c). 
  
 “Redemption Date” means the date fixed for redemption of Bonds subject to redemption in any notice of redemption given in accordance with
the terms hereof. 
  
 “Redemption Price” means an
amount equal to the principal of, and premium, if any, and accrued interest to the Redemption Date, if any, on the Bonds to be redeemed. 
  

 8 








 “Refunded Bonds” means $85,950,000 in principal amount of Hillsborough County Industrial
Development Authority Pollution Control Revenue Refunding Bonds (Tampa Electric Company Project), Series 1994. 
  
 “Refunded Bonds Agreement” means the Trust Indenture dated as of January 31, 1984, as supplemented and amended by a First
Supplemental Trust Indenture dated as of August 2, 1984, and a Second Supplemental Indenture dated as of July 1, 1993, between the Authority and The Bank of New York, as successor to NationsBank of Florida, N.A., pursuant to which the
Refunded Bonds were issued. 
  
 “Refunded Bonds
Trustee” means the Trustee under the Refunded Bonds Agreement. 
  
 “Refunding Fund” means the fund by that name created in Section 5.07. 
  
 “Remarketing Agent” means the Person appointed as Remarketing Agent pursuant to Section 11.17, and its successors under this
Agreement. 
  
 “Remarketing Proceeds Account”
means the account created pursuant to Section 4.11(a). 
  
 “Responsible Officer” means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant treasurer, trust
officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be officers, respectively, or to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Agreement. 
  
 “Revenues” means and includes all payments by or on behalf of the Company to or for the account of the Authority under this Agreement and
all other revenues derived by the Authority from or in connection with this Agreement, including the income thereon and the investment thereof, if any, and any moneys received on the First Mortgage Bonds but not including payments with respect to
the indemnification or reimbursement of certain expenses of the Authority under Section 5.05(b)(1), Section 8.04 and Section 10.13 of this Agreement or under any other guaranty or indemnification agreement. The term
“Revenues” does not include any moneys or investments in the Purchase Fund. 
  
 “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies and its successors and assigns, and, if such division or corporation shall be dissolved or liquidated or shall
no longer perform the functions of a securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized securities rating agency designated by the Company, with written notice to the Trustee and the Authority.

  
 “Securities Depository” means The Depository
Trust Company, New York, New York or its nominee, and its successors and assigns, or any successor appointed under Section 6.01. 
  
 “State” means the State of Florida. 
  

 9 








 “Telerate Page 3750” means the display designated on page 3750 on Moneyline Telerate,
Inc. (or such other page as may replace the 3750 page on that service or such other service as may be nominated by the British Bankers’ Association for the purpose of displaying London interbank offered rates for U.S. dollar deposits).

  
 “Trustee” means The Bank of New York Trust
Company, N.A., a national banking association, or any other bank or trust company duly incorporated and existing under and by virtue of the laws of any state or of the United States of America, which may be substituted in its place as provided in
Section 11.05 or Section 11.08. 
  
 “Underwriter” means, collectively, J.P. Morgan Securities Inc., Merrill Lynch & Co. and Morgan Keegan & Company, Inc. and their respective successors and assigns. 
  
 “Units” means Unit Nos. 1, 2, 3 and 4 of the Big Bend
Station and Unit Nos. 1, 2, 3, 4, 5 and 6 of the F.J. Gannon Station (now known as the H.L. Culbreath Bayside Station) electric generating facilities of the Company, and related support facilities, as they may at any time exist. 
  
 “Weekly Rate” means an interest rate on the Bonds set under
Section 3.02(a). 
  
 Section 1.02. Interpretation.

  
 (a) In this Agreement, unless the context otherwise
requires: 
  
 (1) The terms “hereby,”
“hereof,” “hereto,” “herein,” “hereunder” and any similar terms, as used in this Agreement, refer to this Agreement, and the term “hereafter” shall mean after, and the term “heretofore”
shall mean before, the date of this Agreement; 
  
 (2) An
accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles; 
  
 (3) References to Articles and Sections are to the Articles and Sections of this Agreement, except as expressly stated otherwise; 
  
 (4) The singular form of any word, including the terms defined in
Section 1.01, includes the plural, and vice versa, and a word of any gender includes all genders; 
  
 (5) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal
entities, including public bodies, as well as natural persons; and 
  
 (6) Any headings preceding the text of the several Articles and Sections of this Agreement, and any index or table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not
constitute a part of this Agreement, nor shall they affect its meaning, construction or effect. 
  
 (b) Whenever in this Agreement, the Authority, the Company, the Bond Insurer, the Trustee, the Auction Agent, any Broker-Dealer or the Remarketing Agent
is named or referred to, it shall include, and shall be deemed to include, its respective successors and assigns whether 

  

 10 








 
so expressed or not. All of the covenants, stipulations, obligations and agreements by or on behalf of, and other provisions for the benefit of, the
Authority, the Company, the Bond Insurer, the Trustee, the Auction Agent, any Broker-Dealer or the Remarketing Agent contained in this Agreement shall bind and inure to the benefit of such respective successors and assigns and shall bind and inure
to the benefit of any officer, board, commission, authority, agency or instrumentality to whom or to which there shall be transferred by or in accordance with law any right, power or duty of the Authority or of its successors or assigns, the
possession of which is necessary or appropriate in order to comply with any such covenants, stipulations, obligations, agreements or other provisions of this Agreement. 
  
 ARTICLE II 
  
 THE ASSIGNMENT AND PLEDGE 
  
 Section 2.01. The Assignment and Pledge of Revenues and Funds. The Authority assigns and pledges to the Trustee in trust upon
the terms hereof (a) all Revenues to be received from the Company or derived from any security provided hereunder, and (b) all rights to receive such Revenues and the proceeds of such rights, and all other rights and interests of the
Authority provided hereunder, provided, however, that this assignment and pledge does not include the rights of the Authority pursuant to Section 5.05(b)(1), Section 8.04 and Section 10.13. 
  
 Section 2.02. Pledge of First Mortgage Bonds.

  
 (a) In order to provide collateral security for the
Company’s obligations to make payments of principal, premium, if any, and interest on the Bonds, as required under this Agreement, the Company may elect to issue and deliver to the Trustee a series of First Mortgage Bonds (i) registered in
the name of the Trustee, (ii) which shall have the same stated rate or rates of interest prior to maturity, payable at the same times, and (iii) which shall become due in the same principal amount or amounts, either by redemption, through
operation of a sinking fund or by maturity, on the same date or dates, as the Bonds. The First Mortgage Bonds shall be held subject to the terms and provisions of this Agreement and the First Mortgage. 
  
 (b) To exercise the election described in Section 2.02(a), the Company
shall, not less than 14 days prior to the proposed date of delivery of the First Mortgage Bonds (i) give to the Authority, the Trustee and each nationally recognized securities rating agency which then rates the Bonds written notice that shall
designate the date on which such series of First Mortgage Bonds shall be delivered and (ii) deliver to the Trustee and the Authority an Opinion of Tax Counsel to the effect that such election and the delivery of such series of First Mortgage
Bonds will not cause the interest on the Bonds to become includable in gross income for federal income tax purposes. 
  
 Section 2.03. Release of First Mortgage Bonds. 
  
 (a) To the extent that (i) Bonds have been paid or become due and sufficient moneys are held by the Trustee in trust
for the payment thereof, (ii) Bonds are deemed to have been paid in accordance with Section 13.01 and (iii) Bonds (other than Bonds which have been redeemed or called for redemption) have been delivered to, or have been acquired by,
the Trustee and 

  

 11 








 
canceled and other Bonds of the same series shall not be issuable in lieu thereof, in substitution therefor, in exchange therefor or upon registration of
transfer thereof, the obligation of the Company to make payments with respect to the principal, premium, if any, and interest on the First Mortgage Bonds shall be satisfied and discharged and the Trustee shall release and surrender to the Company
First Mortgage Bonds in an aggregate principal amount equal to the aggregate principal amount of such Bonds, bearing the same rate or rates of interest as such Bonds and becoming due, either by redemption through operation of a sinking fund or by
maturity, on the same date or dates as such Bonds. 
  
 (b) If
First Mortgage Bonds have been delivered to the Trustee as required by the terms of the Insurance Agreement, and under the conditions of the Insurance Agreement the Company is entitled to the release of the First Mortgage Bonds, upon delivery to the
Trustee of a written consent of the Bond Insurer confirming that the First Mortgage Bonds may be released, the obligation of the Company to make payments with respect to the principal, premium, if any, and interest on the First Mortgage Bonds shall
be satisfied and discharged, and the Trustee shall release and surrender the First Mortgage Bonds to the Company. 
  
 Section 2.04. Further Assurances. The Company, the Authority and the Trustee shall from time to time execute, deliver and
register, record and file such instruments as the Authority or the Trustee may reasonably require to confirm, perfect or maintain the security created or intended to be created hereby. 
  
 ARTICLE III 
  
 CONDITIONS AND TERMS OF BONDS 
  
 Section 3.01. Authorization and Issuance of Bonds; Dating. There is hereby authorized the issuance of the Bonds in the aggregate
principal amount of Eighty-Five Million, Nine Hundred Fifty Thousand Dollars ($85,950,000) to be designated as “Hillsborough County Industrial Development Authority Pollution Control Revenue Refunding Bonds (Tampa Electric Company Project),
Series 2006”. The Bonds shall mature on December 1, 2034 (the “Maturity Date”). All Bonds will be dated the date of original issuance and delivery, will bear interest from that date and shall mature, subject to prior
redemption or mandatory tender, on the Maturity Date. The Bonds are special obligations of the Authority and shall be payable solely from the Revenues. 
  
 The Trustee is hereby authorized to authenticate and to deliver the Bonds only upon (i) written direction of the Authority, (ii) receipt of a
copy of the Financial Guaranty Insurance Policy and evidence satisfactory to it of delivery of that Policy and (iii) receipt of the proceeds of sale thereof in the amounts set forth in the written direction of the Authority. 
  
 Section 3.02. Interest on the Bonds. Interest on the Bonds
will be payable as provided in the Bonds and in this Section. The Determination Method may be changed by the Company as described in paragraph (b) below. The methods of determining the various interest rates are as provided in paragraph
(a) below, provided that no interest rate set or determined by the Remarketing Agent under (a)(1), (2), (3), (4) or (5), or an Alternate Rate determined under (a)(6), shall exceed the Maximum Rate. 
  

 12 








 (a) Interest Rate Determination Methods. In accordance with the notification requirements
described herein, the Company shall determine the applicable interest rate determination method (each a “Determination Method”) on the Bonds. The interest rate on the Bonds shall be determined by one of the following Determination
Methods. 
  
 (1) Daily Rate. When interest on the
Bonds is payable at a Daily Rate, the Remarketing Agent will set a Daily Rate on or before 10:00 a.m., New York City time, on each Business Day for that Business Day. Each Daily Rate will be the minimum rate necessary (as determined by the
Remarketing Agent based on the examination of tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to have been priced or traded under then-prevailing market conditions) for the Remarketing Agent to sell the Bonds on the day
the rate is set at their principal amount (without regard to accrued interest). The Daily Rate for any non-Business Day will be the rate for the last day for which a rate was set. 
  
 (2) Weekly Rate. When interest on the Bonds is payable at a Weekly Rate, the Remarketing Agent will set a
Weekly Rate on or before 5:00 p.m., New York City time, on the last Business Day before the commencement of a period during which the Bonds bear interest at a Weekly Rate and on each Wednesday thereafter so long as interest on the Bonds is to be
payable at a Weekly Rate or, if any Wednesday is not a Business Day, on the next preceding Business Day. Each Weekly Rate will be the minimum rate necessary (as determined by the Remarketing Agent based on the examination of tax-exempt obligations
comparable to the Bonds known by the Remarketing Agent to have been priced or traded under then prevailing market conditions) for the Remarketing Agent to sell the Bonds on the date the rate is set at their principal amount (without regard to
accrued interest). Thereafter, each Weekly Rate shall apply to (i) the period beginning on the Thursday after the Weekly Rate is set and ending on the following Wednesday or, if earlier, ending on the day before the effective date of a new
method of determining the interest rate on the Bonds or (ii) the period beginning on the effective date of the change to a Weekly Rate and ending on the next Wednesday. 
  
 (3) Commercial Paper Rate. During a Commercial Paper Mode, each Bond will bear interest during the Commercial
Paper Period for such Bond at the Commercial Paper Rate for such Bond. Different Commercial Paper Periods may apply to different Bonds at any time and from time to time. Except as otherwise described in this subparagraph (3), the Commercial Paper
Period and Commercial Paper Rate for each Bond will be determined by the Remarketing Agent no later than 1:00 p.m., New York City time, on the first day of each Commercial Paper Period. 
  
 (i) Determination of Commercial Paper Periods. Subject to Section 3.02(b)(2)(vii), each Commercial Paper
Period will be a period of at least 1 day and not more than 270 days, determined by the Remarketing Agent to be the period which, together with all other Commercial Paper Periods for all Bonds then outstanding, will, in the judgment of the
Remarketing Agent, result in the lowest overall interest expense on the Bonds over the next 270 days. Each Commercial Paper Period will end on either the day before a Business Day or on the day before the Maturity Date for such Bond. However, any
Bond purchased on behalf of the Company and remaining unsold by the Remarketing Agent as of the close of business on the first day of the Commercial Paper Period for that Bond will have a Commercial Paper Period of 1 day or, if that Commercial Paper
Period would not end on a day before a Business Day, a Commercial Paper Period of the shortest possible duration greater than 1 day ending on a day before a Business Day. 
  

 13 








 In determining the number of days in each Commercial Paper Period, the Remarketing Agent shall take into
account the following factors: (I) existing short-term tax-exempt market rates and indices of such short-term rates, (II) the existing market supply and demand for short-term tax-exempt securities, (III) existing yield curves for short-term and
long term tax-exempt securities for obligations of credit quality comparable to the Bonds, (IV) general economic conditions, (V) industry economic and financial conditions that may affect or be relevant to the Bonds, (VI) the number of days in
other Commercial Paper Periods applicable to the Bonds and (VII) such other facts, circumstances and conditions as the Remarketing Agent, in its sole discretion, shall determine to be relevant. 
  
 (ii) Determination of Commercial Paper Rates. The Commercial
Paper Rate for each Commercial Paper Period for each Bond shall be the minimum rate necessary (as determined by the Remarketing Agent based on the examination of tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to have
been priced or traded under then-prevailing market conditions) for the Remarketing Agent to sell such Bond on the date and at the time of such determination at its principal amount (without regard to accrued interest). 
  
 (4) Long-Term Interest Rate. The Remarketing Agent will set a
Long Term Interest Rate on a date not less than the Business Day before the beginning of any period determined by the Company prior to the effective date of the Long Term Interest Rate (a “Long-Term Interest Rate Period”) in which
interest on any of the Bonds will be payable at a Long-Term Interest Rate. The last day of each such Long-Term Interest Rate Period shall be determined by the Company in accordance with Section 3.02(b)(1). Each Long-Term Interest Rate will be
the minimum rate necessary (as determined by the Remarketing Agent with respect to any Long-Term Interest Rate Period based on the examination of tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to have been priced or
traded under then-prevailing market conditions) for the Remarketing Agent to sell the Bonds for delivery on the effective date of the Long-Term Interest Rate at their principal amount (without regard to accrued interest). 
  
 When all Bonds in a Long-Term Interest Rate are not purchased on the date
set for mandatory tender for such bonds pursuant to “Mandatory Tender at Beginning of a New Long-Term Interest Rate Period” or “Mandatory Tender Upon a Change in the Determination Method” under paragraph 7 in the
form of the Bond, such Bonds (i) shall be returned to their holders and remain outstanding, (ii) shall continue in the Long-Term Interest Rate until purchased, as described in the immediately succeeding clause (iii), and shall bear
interest at a Long-Term Interest Rate of the lower of the Maximum Rate or such rate as determined by the Remarketing Agent based upon prevailing market conditions at the time the Bonds were converted to the Long-Term Interest Rate previously in
effect until so purchased, (iii) shall be purchased upon the availability of remarketing proceeds to purchase such Bonds (or funds as provided for in Section 4.07(b) hereof), and (iv) in such event such Purchase Price shall not be
considered due and payable so that no Event of Default shall be deemed to have occurred. 
  

 14 








 The Remarketing Agent shall use its best efforts to cause the Bonds in a Long-Term Interest Rate
required to be purchased on the date set for mandatory tender for such Bonds pursuant to “Mandatory Tender at Beginning of a New Long-Term Interest Rate Period” or “Mandatory Tender Upon a Change in the Determination
Method” under paragraph 7 in the form of the Bonds, to be remarketed (in such Determination Method or Methods) on the first date thereafter at which time all such Bonds can be sold at par, at a rate not exceeding the Maximum Rate.

  
 (5) Auction Mode Rate. During an Auction Rate
Period, the Auction Mode Rate will be determined by the Auction Agent in accordance with the provisions set forth in Exhibit C hereto, which is part of this Agreement. 
  
 (6) Failure of Remarketing Agent to Announce Interest Rates on the Bonds. Except as set forth in Exhibit
C, if the appropriate interest rate or Commercial Paper Period is not or cannot be determined for any reason, the method of determining interest on the Bonds shall be as provided in this Section 3.02(a)(6). If the Bonds bear interest at the
Daily Rate or the Weekly Rate, interest will be payable at the Alternate Rate, and Bonds bearing interest at the Commercial Paper Rate shall be automatically converted to the Weekly Rate (without the necessity of complying with the requirements of
Section 3.02(b)), and if the Weekly Rate cannot be determined, interest thereon will be payable at the Alternate Rate, until such time as the Determination Method can be changed in accordance with Section 3.02(b). If the Bonds bear
interest at the Long-Term Interest Rate, the Bonds (i) shall not be purchased on the date set for mandatory tender occurring the day after the last day of the then-current Long-Term Interest Rate Period for such Bonds in accordance with
“Mandatory Tender at Beginning of a New Long-Term Interest Rate Period” or “Mandatory Tender Upon a Change in the Determination Method” under paragraph 7 in the form of Bond but shall instead be returned to their
holders and remain outstanding, (ii) shall continue in the Long-Term Interest Rate until purchased, as described in the immediately succeeding clause (iii), and shall bear interest at a Long-Term Interest Rate of the lower of the Maximum Rate
or such rate as determined by the Remarketing Agent based upon prevailing market conditions at the time the Bonds were converted to the Long-Term Interest Rate previously in effect until so purchased, and (iii) shall be purchased upon the
availability of remarketing proceeds to purchase such Bonds (or funds as provided for in Section 4.07(b) hereof). In such event the Purchase Price shall not be considered due and payable so that no Event of Default shall be deemed to have
occurred. The Remarketing Agent shall use its best efforts to cause the Bonds in a Long-Term Interest Rate required to be purchased on the date set for mandatory tender for such Bonds pursuant to “Mandatory Tender at Beginning of a New
Long-Term Interest Rate Period” or “Mandatory Tender Upon a Change in the Determination Method” under paragraph 7 in the form of Bond, to be remarketed (in such Determination Method or Methods) on the first date thereafter
at which time all such Bonds can be sold at par, at a rate not exceeding the Maximum Rate. The Trustee shall promptly notify the Bondholders of any such automatic change as set forth in Section 4.06(b). 
  
 While Bonds are in a Commercial Paper Mode, during any transition period
caused by an automatic conversion of such Bonds to a Weekly Rate in accordance with this Subsection (6), Bonds bearing interest at a Weekly Rate and Bonds bearing interest at a Commercial Paper Rate, as applicable, shall be governed by the
provisions of this Agreement applicable to such methods of determining interest on the Bonds. 
  

 15 








 (b) Initial Interest Rate Determination Method; Change in Interest Rate Determination
Method. 
  
 (1) The Bonds shall bear interest for the
Initial Period at an Auction Mode Rate. The Auction Mode Rate for the Initial Period shall be determined in accordance with this Agreement on or prior to the effective date of this Agreement by the Underwriter as the minimum rate required to sell
the Bonds on the date of issuance at a purchase price of par. Following the Initial Period, the Bonds shall bear interest at Auction Mode Rates established for seven-day Auction Periods, until changed in accordance with this Agreement. The Company
may change the Determination Method, of all but not part of the Bonds, from time to time by notifying, as applicable, the Authority, the Trustee, the Bond Insurer, the Remarketing Agent, the Auction Agent and the Broker-Dealer. Such notice (a
“Conversion Notice”) shall contain the effective date of such change; provided, however, that if the change is to the Auction Mode Rate Determination Method from another Determination Method or from the Auction Mode Rate
Determination Method to another Determination Method, the Conversion Notice shall be given in accordance with Section 3.03(a) or Section 3.03(b), as applicable. The Conversion Notice must be accompanied by a Favorable Opinion of Tax
Counsel addressed to the Bond Insurer and the Trustee. If the Company’s Conversion Notice complies with this paragraph, and if the Company shall deliver to the Trustee, the Bond Insurer and the Authority a confirming Favorable Opinion of Tax
Counsel on the effective date as specified in the Conversion Notice, the interest rate on the Bonds will be determined on the basis of the new rate on the effective date specified by the Company until there is another change as provided in this
Section. 
  
 If the Company wishes to change the Determination
Method to or from an Auction Mode Rate, the Company must comply with Section 3.03. 
  
 If, 30 days before the end of a Long Term Interest Rate Period, the Company has not provided for the next interest rate period, a new Long-Term Interest Rate Period of the same duration will follow (or if shorter, a
Long Term Interest Rate Period ending on the day before the Maturity Date for the Bonds). 
  
 When one Long-Term Interest Rate Period follows another, all provisions of this Agreement applying to a change in the Determination Method will apply, except: 
  
 (A) the mandatory tender described under “Mandatory
Tender Upon a Change in the Determination Method” in the Bonds will not apply, but the mandatory tender described under “Mandatory Tender at Beginning of a New Long Term Interest Rate Period” in the Bonds will apply;

  
 (B) the Company will not be required to
deliver a Favorable Opinion of Tax Counsel if a new Long-Term Interest Rate Period begins as a result of the Company failing to provide for the next interest rate period; and 
  
 (C) the Company will not be required to deliver a Favorable Opinion of Tax Counsel if (i) the Company
has previously designated a series of successive Long-Term Interest Rate Periods which, together with the current Long-Term Interest Rate Period, are substantially equal in length, (ii) a Favorable Opinion of Tax Counsel addressed to 

  

 16 








 
the Trustee was delivered before the first such Long-Term Interest Rate Period in that series which applies to each such successive Long-Term Interest Rate
Period and (iii) no other change in the security for the Bonds or in this Agreement or the terms of the Bonds is made which is effective as of, or agreed to in connection with, the effective date of such subsequent Long-Term Interest Rate
Period. 
  
 (2) Limitations. Any change in the
Determination Method pursuant to paragraph (1) above must comply with the following: 
  
 (i) the effective date of a change (or each effective date in the case of a change from a Commercial Paper Mode) shall be a Business Day which is at least 15 days (30 days if a Long-Term Interest Rate is then in
effect and the effective date is before the day after the last day of a Long-Term Interest Rate Period) after receipt by the Trustee of the Company’s Conversion Notice; provided that, for a change to an Auction Mode Rate, such Conversion Notice
must be delivered not less than 18 days prior to the effective date, as set forth in Section 3.03(a)(2); 
  
 (ii) if a Long-Term Interest Rate is then in effect, the effective date of any change must be either the day after the last day of the then current
Long-Term Interest Rate Period or, except as described in clause (iii) below, a day on which the Bonds would otherwise be subject to redemption under the paragraph “Optional Redemption During Long-Term Interest Rate Period” in
paragraph 9 of the Bonds if the change did not occur; 
  
 (iii)
if the Company has previously designated successive Long-Term Interest Rate Periods, the effective date of each Long-Term Interest Rate Period must be the day after the last day of the previous Long-Term Interest Rate Period; 
  
 (iv) if a Commercial Paper Mode is then in effect, the effective date of any
change must be either the day after the last day of the Commercial Paper Mode or, as to any Bond, the day after the last day of the Commercial Paper Period then in effect (or to be in effect) with respect to that Bond; 
  
 (v) if any Bonds have been called for redemption and the redemption has not
yet occurred, the effective date of the change cannot be before such redemption date; 
  
 (vi) if a Long-Term Interest Rate is then in effect, the effective date of any change cannot occur during the period after a Record Date and to, but not including, the related Interest Payment Date; 
  
 (vii) if a Commercial Paper Mode is then in effect, the Remarketing Agent
shall determine Commercial Paper Periods of such duration that will, in the judgment of the Remarketing Agent, best promote an orderly transition on the effective date. After the receipt by the Trustee of the Company’s Conversion Notice, the
day after the last day of each Commercial Paper Period shall be, with respect to such Bond, not later than the effective date of the change. The Remarketing Agent shall promptly give written notice of each such last date and each such effective date
with respect to each Bond to the Authority, the Company and the Trustee; 
  

 17 








 (viii) if an Auction Mode Rate is then in effect, the effective date of any change must be the day after
the last day of the Auction Period then in effect; and 
  
 (ix)
in the event of a conversion to an Auction Mode Rate Determination Method from Commercial Paper Mode, the effective date of such conversion may not be earlier than the day following the last day of the longest Commercial Paper Period then in effect.

  
 During any transition period in connection with a change in
Determination Method from the Commercial Paper Mode to a Daily Rate, Weekly Rate or a Long-Term Interest Rate, as applicable, in which the Remarketing Agent is setting different Commercial Paper Periods in order to effect an orderly transition of
such change, Bonds bearing interest at a Commercial Paper Rate shall be governed by the provisions of this Agreement applicable to a Commercial Paper Mode and Bonds bearing interest at a Daily Rate, Weekly Rate or Long-Term Interest Rate, as
applicable, shall be governed by the provisions of this Agreement applicable to such Determination Methods. 
  
 (c) Calculation of Interest. The Remarketing Agent, and in the case of subparagraph 5 below, the Auction Agent, shall provide the
Trustee and the Company with notice in writing or by other written electronic means or by telephone (any such notice by telephone to be delivered to a Responsible Officer of the Trustee) promptly confirmed by facsimile transmission by 1:00 p.m., New
York City time, 
  
 (1) on the last Business Day of a month in
which interest on the Bonds was payable at a Daily Rate, of the Daily Rate for each day in such month, 
  
 (2) on each day on which a Weekly Rate becomes effective, of the Weekly Rate, 
  
 (3) on the first day of each Commercial Paper Period, of the length thereof and the Commercial Paper Rate, and, if there is
more than one Commercial Paper Rate then in effect, of the related applicable principal amounts, 
  
 (4) on the first Business Day of a Long-Term Interest Rate Period, of the Long-Term Interest Rate or Long-Term Interest Rates set for that period,

  
 (5) on the first Business Day of each Auction Period, of the
Auction Mode Rate set for that period, and 
  
 (6) on any Business
Day preceding any redemption or purchase date, any interest rate requested by the Trustee in order to enable it to calculate the accrued interest, if any, due on such redemption or purchase date. 
  
 Using the rates supplied by this notice, the Trustee will calculate the
interest payable on the Bonds. The Remarketing Agent or the Auction Agent, as the case may be, will inform the Trustee and the Company orally at the oral request of either of them of any interest rate so set. The Trustee will confirm the effective
interest rate in writing to any Bondholder who requests it. 
  

 18 








 The setting of the rates by the Remarketing Agent or the Auction Agent, as applicable, the determination
of Commercial Paper Periods by the Remarketing Agent and the calculation of interest payable on the Bonds by the Trustee as provided in this Agreement will be conclusive and binding on the Authority, the Company, the Trustee and the owners of the
Bonds. 
  
 (d) Change in Rate Determination Method-Opinions
of Counsel. Notwithstanding any provision of this Section 3.02, no change shall be made in the Determination Method at the direction of the Company pursuant to Section 3.02(b)(1), and the Bonds shall continue to bear interest in
accordance with the then current Determination Method, if the Trustee shall receive written notice prior to the effective date of such change that (i) the Favorable Opinion of Tax Counsel and confirmation thereof if required under
Section 3.02(b)(1) has not been delivered or (ii) that the Company has revoked its election. If the Trustee shall have sent any notice to the Bondholders regarding a change in rate pursuant to Section 4.06(b), then in the event of
such failure to deliver such opinion or confirmation, or revocation by the Company, the Trustee shall promptly notify all Bondholders of such failure and, except for Bonds in the Auction Mode Rate, the Bonds shall still be subject to mandatory
tender on that proposed date and the Remarketing Agent shall remarket the Bonds pursuant to the terms of this Agreement. If the change was from an Auction Mode Rate, Section 3.03(b)(4) will apply. 
  
 Section 3.03. Changes to and from Auction Mode Rate
Determination Method. 
  
 (a) Changes to Auction
Mode Rate. At the option of the Company, all of the Bonds may be converted from another Determination Method to the Auction Mode Rate Determination Method. Any such conversion shall be made as follows: 
  
 (1) In any such conversion from another Determination Method, the effective
date for the Auction Rate Period shall be a regularly scheduled Interest Payment Date on which interest is payable for the Interest Period from which the conversion is to be made; 
  
 (2) The Company shall give written notice of any such conversion to the Remarketing Agent, the Bond Insurer, the Authority,
the Trustee, the Auction Agent, and each Broker-Dealer, as applicable, not less than 18 days prior to the proposed effective date for the change. Such notice shall specify the information required pursuant to Section 3.03(b)(1) and the length
of the Auction Period for such Auction Rate Period. Together with such notice, the Company shall file with the Authority, the Bond Insurer and the Trustee a Favorable Opinion of Tax Counsel with respect to such conversion to an Auction Mode Rate
Determination Method. No such change to an Auction Mode Rate Determination Method shall become effective unless the Company shall also file, with the Authority, the Bond Insurer and the Trustee, a Favorable Opinion of Tax Counsel addressed to the
Trustee and the Bond Insurer to the same effect dated the effective date for the Auction Mode Rate; 
  
 (3) At least 15 days prior to the effective date for the Auction Mode Rate, the Trustee shall mail a written notice of the conversion to the owners of all
Bonds to be converted; 
  
 (4) The initial Auction Mode Rate for
the Auction Period commencing on the effective date for the Auction Mode Rate shall be the lowest rate which, in the judgment of the Broker-Dealers or the Remarketing Agent, as the case may be, is necessary to enable the Bonds 

  

 19 








 
to be remarketed at a price equal to the principal amount thereof, plus accrued interest, if any, on the effective date for the Auction Mode Rate. Such
determination shall be conclusive and binding upon the Authority, the Company, the Trustee, the Auction Agent and the owners of the Bonds to which such rate will be applicable; 
  
 (5) Not later than 5:00 p.m., New York City time, on the date of determination of the Auction Mode Rate, the Auction Agent
or the Remarketing Agent, as the case may be, shall notify the Trustee and the Company of the Auction Mode Rate by telephone, promptly confirmed in writing; 
  
 (6) Interest on the Bonds in an Auction Period of 180 days or less will be computed on the basis of actual days over 360 and in an Auction Period greater
than 180 days on the basis of a 360-day year of twelve 30-day months; 
  
 (7) The Company may revoke its election to effect a conversion of the interest rate on any Bonds to an Auction Mode Rate by giving written notice of such revocation to the Trustee, the Remarketing Agent, the Auction Agent and each
Broker-Dealer, as applicable, at any reasonable time prior to the setting of the Auction Mode Rate by the Broker-Dealers or the Remarketing Agent; and 
  
 (8) No Bonds may be converted to the Auction Mode Rate Determination Method when the Bonds are not held by a Securities Depository. 
  
 (b) Conversions from Auction Mode Rate Determination Method. At
the option of the Company, all of the Bonds may be converted from an Auction Mode Rate to another Determination Method. Any such conversion shall be made as follows: 
  
 (1) The effective date for the new Determination Method shall be the second regularly scheduled Interest Payment Date
following the final Auction Date. 
  
 (2) The Company shall give
written notice of any such conversion to the Authority, the Bond Insurer, the Trustee, the Remarketing Agent, the Auction Agent and the Broker Dealer(s) not less than 18 days prior to the proposed effective date for the change. Such notice shall
specify the effective date for the new Determination Method, the Determination Method to which the conversion will be made and any additional information required pursuant to Section 3.02(b)(1). Together with such notice, the Company shall file
with the Authority, the Bond Insurer and the Trustee a Favorable Opinion of Tax Counsel addressed to the Trustee and the Bond Insurer with respect to the conversion. No change to the new Determination Method shall become effective unless the Company
shall also file, with the Authority, the Bond Insurer and the Trustee, a Favorable Opinion of Tax Counsel addressed to the Trustee and the Bond Insurer to the same effect dated the effective date for the new Determination Method. 
  
 (3) At least 15 days prior to the effective date for the new Determination
Method, the Trustee shall mail a written notice of the conversion to the owners of all Bonds to be converted, specifying the effective date for the new Determination Method. 
  
 (4) If on the effective date for the new Determination Method any condition precedent to such conversion required under this
Agreement is not satisfied, the Trustee will give 

  

 20 








 
written notice by first class mail postage prepaid as soon as practicable, and in any event not later than the next succeeding Business Day, to the
Bondholders to have been converted, that such conversion has not occurred, that Bonds will not be purchased on the failed effective date for the new Determination Method, that the Auction Agent will continue to implement the Auction Procedures on
the Auction Dates with respect to such Bonds which otherwise would have been converted excluding however, the Auction Date falling on the Business Day next preceding the failed effective date for the new Determination Method: (i) if the
preceding Auction Period was a period of one year or less, the new Auction Period shall be seven days (or if such seventh day is not followed by a Business Day, then the new Auction Period shall be extended to the next succeeding day which is
followed by a Business Day) and the Auction Mode Rate for the new Auction Period shall be the same as the Auction Mode Rate for the preceding Auction Period, and (ii) if the preceding Auction Period was a period of greater than one year, the
preceding Auction Period shall be extended to the seventh day following the day that would have been the last day of such Auction Period had it not been extended (or if such seventh day is not followed by a Business Day then to the next succeeding
day which is followed by a Business Day) and the Auction Mode Rate in effect for the preceding Auction Period will continue in effect for the Auction Period as so extended. In the event an Auction Period is extended as set forth in clause (i)
or (ii) of the preceding sentence, an Auction shall be held on the last Business Day of the Auction Period as so extended to take effect for an Auction Period beginning on the Business Day immediately following the last day of the Auction
Period as extended, which new Auction Period will end on the date it would otherwise have ended on had the prior Auction Period not been extended. Notwithstanding the foregoing, no Auction Mode Rate shall be extended for more than 35 days. If, at
the end of 35 days, the Auction Agent fails to calculate or provide the Auction Mode Rate, the Auction Mode Rate shall be the Maximum Interest Rate. 
  
 (5) On the conversion date applicable to the Bonds to be converted, the Bonds to be converted shall be subject to mandatory tender at a purchase price
equal to 100% of the principal amount thereof, plus accrued interest. The purchase price of such Bonds so tendered shall be payable solely from the proceeds of the remarketing of such Bonds. In the event that the conditions of a conversion are not
satisfied, including the failure to remarket all applicable Bonds on a mandatory tender date, the Bonds to have been converted will not be subject to mandatory tender, will be returned to their owners, will remain in (or automatically convert to)
the Auction Periods described in Section 3.03(b)(4) hereof. 
  
 (6) A liquidity facility shall be required to support the Bonds in the event the Bonds are changed to a Determination Method other than an Auction Mode Rate or a Long-Term Interest Rate. The liquidity facility and the liquidity facility
provider shall satisfy the terms set forth in the Insurance Agreement, or in the alternative, the Bond Insurer’s prior written approval of the liquidity facility and the liquidity facility provider shall be obtained prior to the liquidity
facility being entered into. The Authority (at the direction of the Company) and the Trustee shall amend this Agreement to incorporate provisions necessary to effect any such change in Determination Method. 
  
 Section 3.04. Undelivered Bonds. If a Bond
is tendered for purchase as provided in Article III, or if the holder of a Bond gives irrevocable instructions to the Remarketing Agent for purchase, and in each case funds are deposited with the Trustee sufficient for the purchase, the Trustee upon
request of the Company or the Remarketing Agent will authenticate a new Bond in 

  

 21 








 
the same maturity and in the same denomination registered as the Company or the Remarketing Agent may direct and deliver it to the Company or upon the
Company’s order, whether or not the Bond purchased is ever delivered, and the undelivered Bonds shall be canceled on the books of the Trustee, whether or not said undelivered Bonds have been delivered to the Trustee. From and after the purchase
date, interest on such Bond shall cease to be payable to the prior holder thereof, such holder shall cease to be entitled to the benefits or security of this Agreement and shall have recourse solely to the funds held by the Trustee for the purchase
of such Bond, and the Trustee shall not register any further transfer of such Bond by such prior holder. If Bonds to be purchased are not delivered by the holders by 12:00 noon, New York City time, on any purchase date, the Trustee shall hold any
funds received for the purchase of those Bonds in trust in a separate account and shall pay such funds to the former owners of the Bonds upon presentation of the Bonds. All funds held by the Trustee for the purchase of undelivered Bonds shall be
held uninvested. 
  
 Section 3.05. Form
of Bonds. The Bonds shall be substantially in the form of Exhibit B, which is part of this Agreement, in the denominations provided for in the Bonds, with appropriate or necessary insertions, omissions and variations as permitted
or required hereby, including the appropriate series designation and Maturity Date. The Bonds shall express the purpose for which they are issued and any other statements or legends which may be required by law or the provisions hereof, including
the provisions of Section 6.01. Bonds will be numbered as determined by the Trustee. All Bonds, unless a supplemental agreement shall have been executed and delivered pursuant to Section 12.01, shall be in fully registered form, and,
subject to Section 12.04, the holder of a Bond shall be regarded as the absolute owner thereof for all purposes of this Agreement. 
  
 Section 3.06. Execution and Authentication of Bonds. Each Bond shall be signed by the Chairman of the Authority and
attested by the Secretary of the Authority in their official capacities (provided that any or all of those signatures may be facsimiles) and shall bear the seal or a facsimile of the seal, if any, of the Authority. In case any officer whose
signature or a facsimile of whose signature appears on any Bond shall cease to be that officer before the issuance of the Bond, his signature or the facsimile thereof nevertheless shall be valid and sufficient for all purposes, the same as if he had
remained in office until that time. Any Bond may be executed on behalf of the Authority by an officer who, on the date of execution is the proper officer, although on the date of the Bond that person was not the proper officer. 
  
 No Bond shall be valid or become obligatory for any purpose or shall be
entitled to any security or benefit under this Agreement unless and until a certificate of authentication, substantially in the form set forth in Exhibit B to this Agreement, shall have been signed by the Trustee. The authentication by the
Trustee upon any Bond shall be conclusive evidence that the Bond so authenticated has been duly authenticated and delivered hereunder and is entitled to the security and benefit of this Agreement. The certificate of the Trustee may be executed by
any person authorized by the Trustee, but it shall not be necessary that the same authorized person sign the certificates of authentication on all of the Bonds. In authenticating the Bonds, the Trustee shall add the date of its authentication of
Bonds. No Bond shall be authenticated except in an authorized denomination. 
  

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 Section 3.07. Transfer and Exchange of Bonds. Subject to
Section 6.01, all Bonds are transferable or exchangeable by the holder thereof, in person or by the Bondholder’s attorney duly authorized in writing, at the office of the Trustee in the books required to be kept by the Trustee pursuant to
the provisions of Section 3.08, upon surrender of such Bonds accompanied by delivery of a duly executed written instrument of transfer or exchange in a form approved by the Trustee. Whenever any Bond or Bonds shall be surrendered for transfer
or exchange, the Trustee shall execute and deliver a new Bond or Bonds of authorized denominations of the same aggregate principal amount, except that the Trustee may require the payment by any Bondholder requesting such transfer or exchange of any
tax or other governmental charge required to be paid with respect to such transfer or exchange. All Bonds surrendered pursuant to the provisions of this Section shall be canceled by the Trustee, shall not be redelivered and shall be disposed of
as provided in Section 3.11. The Trustee shall not be required to transfer or exchange (i) any Bonds of the maturity or maturities being redeemed during the period commencing on the date ten days prior to the date of mailing of a notice of
redemption of Bonds of that maturity for redemption and ending on such date of mailing or (ii) any Bond selected for redemption in whole or in part. 
  
 Section 3.08. Registration Books. The Trustee will keep at its office sufficient books for the registration of the
ownership, transfer or exchange of the Bonds, which books shall be available for inspection by the Authority, the Company and the Trustee at reasonable hours and under reasonable conditions; and upon presentation for such purpose the Trustee shall,
under such reasonable regulations as it may prescribe, register the ownership, transfer or exchange of the Bonds in such books as hereinabove provided. The ownership of any Bonds may be proved by the books required to be kept by the Trustee pursuant
to the provisions of this Section. 
  
 Section 3.09. Temporary Bonds. The Bonds may be initially delivered in temporary form exchangeable for definitive Bonds when ready for delivery, which temporary Bonds shall be printed, lithographed or
typewritten, shall be of such denominations as may be determined by the Trustee, shall be in fully registered form and shall contain such reference to any of the provisions hereof as may be appropriate. Every temporary Bond shall be authenticated
and delivered by the Trustee upon the same conditions and terms and in substantially the same manner as definitive Bonds. If the Trustee authenticates and delivers temporary Bonds, the Authority will prepare and execute and the Trustee will
authenticate definitive Bonds without delay, and in that case upon demand of the holder of any temporary Bonds such definitive Bonds shall be exchanged without cost to such Bondholder for temporary Bonds at the office of the Trustee upon surrender
of such temporary Bonds, and until so exchanged such temporary Bonds shall be entitled to the same benefit, protection and security hereunder as the definitive Bonds executed and delivered hereunder. All temporary Bonds surrendered pursuant to the
provisions of this Section shall be canceled by the Trustee, shall not be redelivered and shall be disposed of as provided in Section 3.11. 
  
 Section 3.10. Bond Mutilated, Destroyed, Lost or Stolen. If any Bond shall become mutilated, the Trustee shall
authenticate and deliver a new Bond of like tenor and of the same Maturity Date in lieu of the mutilated Bond, but only upon surrender to the Trustee of the mutilated Bond, and every mutilated Bond surrendered to the Trustee shall be canceled by it
and shall not be redelivered and shall be disposed of as provided in Section 3.11. If any Bond shall be destroyed, lost or stolen, evidence of such destruction, loss or theft may be submitted to the Trustee and if such evidence is satisfactory
to the Trustee, and the Trustee and the Authority 

  

 23 








 
receive indemnity satisfactory to them, the Trustee shall authenticate and deliver a new Bond of like tenor and of the same Maturity Date in substitution for
the destroyed, lost or stolen Bond. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Bond authenticated and delivered by it under this Section and of the expenses which may be incurred by it under
this Section. Any replacement Bond authenticated and delivered under the provisions of this Section in lieu of or in substitution for any mutilated, destroyed, lost or stolen Bond shall be equally and proportionately entitled to the benefit,
protection and security hereof with all other Bonds executed and delivered hereunder, to the same extent as the mutilated, destroyed, lost or stolen Bond replaced; and neither the Trustee nor the Authority shall be required to treat both the
original Bond and any replacement Bond as being outstanding for the purpose of determining the principal amount of Bonds which may be authenticated and delivered hereunder or for the purpose of determining any percentage of Bonds outstanding
hereunder, but both the original and the replacement Bond shall be treated as one and the same. Notwithstanding any other provision of this Section, rather than authenticating and delivering a new Bond for a mutilated, destroyed, lost or stolen Bond
which has been called for redemption, the Trustee may make payment of the principal of such mutilated, destroyed, lost or stolen Bond directly to the holder thereof under such regulations as the Trustee may prescribe. 
  
 Section 3.11. Safekeeping and Cancellation of
Bonds. Any Bond surrendered pursuant to this Article for the purpose of payment or retirement, or for exchange, replacement or transfer, shall be canceled upon presentation and surrender thereof to the Trustee. 
  
 The Company on behalf of the Authority, may deliver at any time to the
Trustee for cancellation any outstanding Bonds previously authenticated and delivered hereunder, which the Authority or the Company may have acquired in any manner whatsoever. All Bonds so delivered shall be canceled promptly by the Trustee.
Certification of the surrender and cancellation shall be made by the Trustee to the Authority and the Company upon the request of either therefor. Such canceled Bonds shall be disposed of by the Trustee in accordance with its customary procedures.

  
 Section 3.12. Special Agreement with
Bondholders. Notwithstanding any provision of this Agreement or of any Bond to the contrary, with the approval of the Company, the Trustee may enter into an agreement with any holder of at least $1,000,000 aggregate principal amount of Bonds
providing for making all payments to that holder on that Bond or any part thereof (other than any payment of the entire unpaid principal amount thereof) at a place and in a manner other than as provided in this Agreement and in the Bond, without
presentation or surrender of the Bond, upon any conditions which shall be satisfactory to the Trustee and the Company; provided, that payment in any event shall be made to the person in whose name a Bond shall be registered on the books
required to be kept by the Trustee pursuant to the provisions of Section 3.08, with respect to payment of principal and premium, on the date such principal and premium is due, and, with respect to the payment of interest, as of the applicable
Record Date. 
  
 Section 3.13. CUSIP
Numbers. The Authority in issuing the Bonds may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Bondholders; provided
that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Bonds or as contained in any notice of a redemption and that reliance may be placed only on the other 

  

 24 








 
identification numbers printed on the Bonds, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee in writing of any change in the “CUSIP” numbers of which the Company has written notice. 
  
 ARTICLE IV 
  
 REDEMPTION, MANDATORY TENDER AND REMARKETING 
  
 Section 4.01. Redemption. 
  
 (a) Special Mandatory Redemption Upon Taxability. If, as a result of the failure of the Company to observe any covenant, agreement or
representation in this Agreement, a court of competent jurisdiction or any administrative agency finally determines (such determination not to be considered final unless the Authority has been given written notice and, if, in consultation with the
Company, the Authority determines to contest, at the Company’s expense, either directly or in the name of any holder of a Bond, any such determination, until the conclusion of any appellate review if sought by the Authority in consultation with
the Company) that the interest payable on any Bond is includable for federal income tax purposes in the gross income, as defined in Section 61 of the Code, of any Bondholder (other than a “substantial user” of the Project or a
“related person,” as defined in the Code), the Bonds shall be subject to special mandatory redemption prior to maturity, as a whole, or in part if such partial redemption will preserve the exclusion from gross income for federal income tax
purposes of interest on the remaining Bonds outstanding (and if in part, to be selected by the Trustee or by the Securities Depository, as applicable, by lot or in any other customary manner as determined by the Trustee or by the Securities
Depository, as applicable) at a redemption price equal to the principal amount thereof, plus interest accrued to the redemption date, without premium. The Company will give notice to the Authority and the Trustee in writing of the amount of Bonds to
be redeemed and of the date selected for such redemption not later than 90 days after the date of such final determination, such redemption date to be not more than 180 days after the date of such final determination. 
  
 (b) Extraordinary Optional Redemption. The Bonds are subject to
redemption prior to maturity at the option of the Company, by notice to the Trustee and the Authority, in whole, at any time, at a redemption price equal to the principal amount of the outstanding Bonds, plus accrued interest thereon to the date of
redemption, without premium, on any date selected by the Company, but not less than 45 days after nor more than 180 days after the Company shall have given notice of its exercise of the right to make such prepayment. The Company may exercise its
right to cause the Bonds to be redeemed at its option, if: 
  
 (1) In the opinion of the Company, the continued operation by the Company of all or substantially all of the Units is impracticable, uneconomical or undesirable due to (A) the imposition of taxes or other liabilities or burdens not
being imposed as of the date of the Bonds, (B) changes in technology or in the economic availability of raw materials or operating supplies or equipment or (C) destruction of or damage to all or a substantial portion of such Units;
provided, however, that the Company may not exercise its right to redeem the Bonds for reasons described in this clause (1) if any portion of the redemption price is to be paid from the proceeds of tax-exempt bonds; 
  

 25 








 (2) All or substantially all of the Units shall have been condemned or taken by eminent domain;

  
 (3) The operation by the Company of all or substantially all
of the Units shall have been enjoined and the Company shall have been prevented from carrying on normal operations at such Units for a period of six months or more; or 
  
 (4) In the event the First Mortgage Bonds have been issued, all or substantially all the mortgaged and pledged property
constituting bondable property (as defined in the First Mortgage) which at the time shall be subject to the lien of the First Mortgage as a first lien shall be released from the lien of the First Mortgage pursuant to the provisions thereof, and
available moneys in the hands of the trustee or trustees at the time serving as such under the First Mortgage, including any moneys deposited by the Company available for the purpose, are sufficient to redeem all the first mortgage bonds of all
series issued pursuant to the First Mortgage at the redemption prices (together with accrued interest to the date of redemption) specified therein applicable to the redemption thereof upon the happening of such event. 
  
 For purposes of clause (1) of this Section 4.01(b), the
“opinion of the Company” shall be expressed to the Authority and the Trustee by delivery of a certified copy of a resolution of the Board of Directors of the Company or the Executive Committee thereof stating that it is the opinion of said
Board of Directors or Executive Committee that the circumstances, situations or conditions described in subclause (A), (B) or (C) of such clause (1) exist to the extent required for the Company to exercise the option provided.

  
 (c) Optional Redemption. The Bonds shall
be subject to redemption at the option of the Company as provided under “Optional Redemption During Long Term Interest Rate Period”, “Optional Redemption During Daily or Weekly Rate Period”, or “Optional
Redemption During Auction Rate Period” in paragraph 9 of the form of the Bonds. The Company will notify the Trustee in writing of such redemption at least 15 days before the date on which the Trustee is required to deliver notice of
redemption to the Bondholders. 
  
 Section 4.02. Optional Redemption Dates. The redemption date of Bonds to be redeemed pursuant to any optional redemption provision in this Agreement and the Bonds will be a date permitted by the Bonds and
specified by the Company in the notice delivered pursuant to Section 4.04. 
  
 Section 4.03. Selection of Bonds to Be Redeemed. Except as provided in the Bonds, if fewer than all the Bonds are to be redeemed, the Trustee will select the Bonds to be redeemed by
lot, except that the Trustee will first select any Bonds owned by the Company or any of its nominees or held by the Trustee for the account of the Company or any of its nominees. The Trustee will make the selection from Bonds not previously called
for redemption. For this purpose, the Trustee will consider each Bond in a denomination larger than the minimum denomination permitted by the Bonds at the time to be separate Bonds each in the minimum denomination. Provisions of this Agreement that
apply to Bonds called for redemption also apply to portions of Bonds called for redemption. 
  

 26 








 Section 4.04. Redemption Notices. 
  
 (a) Official Notice of Redemption. The Trustee will give
notice of each redemption as provided in the Bonds and will at the same time give a copy of the notice to the Remarketing Agent, the Auction Agent, the Bond Insurer and each Broker-Dealer, as applicable. The notice shall identify the Bonds to be
redeemed (including CUSIP numbers) and shall state (1) the redemption date (and, if the Bonds provide that accrued interest will not be paid on the redemption date, the date it will be paid), (2) the redemption price, (3) that the
Bonds called for redemption must be surrendered to collect the redemption price, (4) the address at which the Bonds must be surrendered and (5) that interest on the Bonds called for redemption ceases to accrue on the redemption date.

  
 With respect to an optional redemption of any Bonds under
“Optional Redemption During Long-Term Interest Rate Period,” “Extraordinary Optional Redemption,” “Optional Redemption During Daily or Weekly Rate Period” or “Optional Redemption During Auction Rate
Period” in paragraph 9 of the form of the Bonds, unless moneys sufficient to pay the principal of, premium, if any, and interest on the Bonds to be redeemed shall have been received by the Trustee prior to the giving of such notice of
redemption, such notice may state that said redemption shall be conditional upon the receipt of such moneys by the Trustee on or prior to the date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect,
such Bonds shall not be redeemed, the redemption price shall not be due and payable and the Trustee shall give notice, in the same manner in which the notice of redemption was given, that such moneys were not so received and that such Bonds will not
be redeemed. 
  
 Failure to give any required notice of redemption
as to any particular Bonds or any defect therein will not affect the validity of the call for redemption of any Bonds in respect of which no such failure or defect has occurred. Any notice mailed as provided in the Bonds shall be effective when sent
and will be conclusively presumed to have been given whether or not actually received by any holder. 
  
 (b) Additional Notice of Redemption. In addition to the redemption notice required above, further notice (the “Additional Redemption
Notice”) shall be given by the Trustee as set out below. No defect in the Additional Redemption Notice nor any failure to give all or any portion of the Additional Redemption Notice shall in any manner defeat the effectiveness of a call for
redemption if notice is given as prescribed in paragraph (a) above. 
  
 (1) Each Additional Redemption Notice shall contain the information required in paragraph (a) above for an official notice of redemption plus (i) the CUSIP numbers of all Bonds being redeemed; (ii) the
date of the Bonds as originally issued; (iii) the Determination Method for, or the rate of interest borne by, each Bond being redeemed; (iv) the maturity date of each Bond being redeemed; and (v) any other descriptive information
needed to identify accurately the Bonds being redeemed. 
  
 (2)
Each Additional Redemption Notice shall be sent at least 30 days before the redemption date by registered or certified mail or overnight delivery service (or by such other means as the Trustee may have established with the Securities Depository or
any information service) to all registered securities depositories then in the business of holding substantial 

  

 27 








 
amounts of obligations similar to the Bonds (such depository now being The Depository Trust Company of New York, New York) and to one or more national
information services that disseminate notices of redemption of obligations such as the Bonds. 
  
 The information required in any redemption notice (including an Additional Redemption Notice) pursuant to this Section and the information required in any notice of tender (including an Additional Tender Notice,
as hereinafter defined) may be combined in a single notice if it is sent to Bondholders in the manner and at the time specified under “Notice of Redemption” in paragraph 9 of the form of the Bonds. 
  
 Any redemption notice may state that no representation is made as to the
correctness of “CUSIP” numbers either as printed on the Bonds or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Bonds, and any such redemption shall not be
affected by any defect in or omission of such numbers. 
  
 If any
Bonds which bear interest at an Auction Mode Rate are to be redeemed in whole or in part, and such Bonds are held by a Securities Depository, the Trustee shall include in the notice of redemption delivered to such Securities Depository:
(i) under an item entitled “Publication Date for Securities Depository Purposes,” the Interest Payment Date prior to the date fixed for redemption, and (ii) an instruction to the Securities Depository to (x) determine on the
Publication Date after the Auction held on the immediately preceding Auction Date has settled, the Securities Depository participants whose Securities Depository positions will be redeemed (the “Securities Depository Participants”)
and the principal amount of such Bonds to be redeemed from each such position (the “Securities Depository Redemption Information”), and (y) notify the Auction Agent immediately after such determination of the positions of the
Securities Depository Participants in such Bonds immediately prior to such Auction settlement, the positions of the Securities Depository Participants in such Bonds immediately following such Auction settlement, and the Securities Depository
Redemption Information. As used herein the term “Publication Date” shall mean three Business Days after the Auction Date next preceding the date fixed for redemption. 
  
 Upon surrender to the Trustee, Bonds called for redemption shall be paid as provided in this Article at the redemption price
(including premium, if any) stated in the notice, plus interest accrued to the redemption date, or at a purchase price as provided in the form of Bond. Bonds called for redemption and purchased pursuant to a tender before the redemption date will
not be redeemed but will be dealt with as provided below in this Article. 
  
 Section 4.05. Bonds Redeemed in Part. Subject to ARTICLE VI, upon surrender of a Bond redeemed in part, the Trustee will authenticate for the holder a new Bond or Bonds in authorized
denominations equal in principal amount to the unredeemed portion of the Bond surrendered. 
  
 Section 4.06. Mandatory Tender. 
  
 (a) Mandatory Tender of Bonds. The Bonds are subject to mandatory tender as provided in paragraph 7 of the form of the Bonds. 
  

 28 








 (b) Notice to Bondholders of Change in Interest Rate Determination Method. When a change in
the Determination Method is to be made or upon commencement of a new Long Term Interest Rate Period, the Trustee will, upon notice from the Company pursuant to Section 3.02(b), notify the Bondholders by first class mail at least 15 days before
the effective date of the change or the commencement of a new Long-Term Interest Rate Period, except that (i) such notice shall be given at least 30 days prior to the effective date if a Long-Term Interest Rate Period is in effect and the
effective date is before the end of the Long-Term Interest Rate Period and (ii) no notice shall be given with respect to a tender under “Mandatory Tender on Each Interest Payment Date During Commercial Paper Mode” in paragraph
7 of the form of the Bonds. The notice shall be effective when sent and shall state: 
  
 (1) the purchase date; 
  
 (2) the
Purchase Price; 
  
 (3) that the Bonds to be tendered must be
surrendered to collect the Purchase Price; 
  
 (4) the address at
which or the manner in which the Bonds must be surrendered; 
  
 (5) that interest on the Bonds to be tendered ceases to accrue to such holder on the purchase date and such holder will be entitled only to the Purchase Price on the purchase date; 
  
 (6) that the interest rate determination method will be changed; 

 
 (7) the proposed effective date of the new rate; 
  
 (8) that a mandatory tender will result on the effective date of the change
as provided in the Bonds; and 
  
 (9) any conditions precedent to
such change and that, if such conditions are not satisfied, the Bonds will continue to bear interest in accordance with the then current method. 
  
 Failure to give any required notice of tender as to any particular Bonds or any defect therein will not affect the validity of the tender of any Bonds in
respect of which no such failure or defect has occurred. Any notice mailed as provided in the Bonds shall be effective when sent and will be conclusively presumed to have been given whether or not actually received by any holder. 
  
 (c) Additional Notice of Tender. In addition to the tender
notice required above, further notice (the “Additional Tender Notice”) shall be given by the Trustee as set out below. No defect in the Additional Tender Notice nor any failure to give all or any portion of the Additional Tender
Notice shall in any manner defeat the effectiveness of a tender notice if notice is given as prescribed in paragraph (b) above. 
  

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 (1) Each Additional Tender Notice shall contain the information required in paragraph (c) above for
an official notice of tender plus (i) the CUSIP numbers of all Bonds being tendered; (ii) the date of the Bonds as originally issued; (iii) the maturity date of each Bond being purchased; and (iv) any other descriptive
information needed to identify accurately the Bonds being purchased. 
  
 (2) Each Additional Tender Notice shall be sent at least 15 days before the purchase date by registered or certified mail or overnight delivery service (or by such other means as the Trustee may have established with the Securities
Depository or any information service) to all registered securities depositories then in the business of holding substantial amounts of obligations similar to the Bonds (such depository now being The Depository Trust Company of New York, New York)
and to one or more national information services that disseminate notices of purchase of obligations such as the Bonds. 
  
 The information required in any tender notice (including an Additional Tender Notice) pursuant to this Section and the information required in any
redemption notice (including an Additional Redemption Notice) may be combined in a single notice if it is sent to Bondholders in the manner and at the time specified under “Notice of Tender” in paragraph 7 of the form of the Bonds.

  
 Section 4.07. Source of Funds for
Purchase of Bonds. Funds for the payment of the Purchase Price of tendered Bonds shall be derived solely from the following sources in the order of priority indicated and neither the Trustee nor the Remarketing Agent shall be obligated to
provide funds from any other source: 
  
 (a) proceeds of the
remarketing of Bonds to persons other than the Company, the affiliates of the Company and the Authority and furnished immediately to the Trustee by the Remarketing Agent and deposited directly into and held continuously in, the Remarketing Proceeds
Account; and 
  
 (b) money provided by the Company or otherwise
available for the payment of the purchase price, and proceeds from the investment thereof. 
  
 In no event shall the Purchase Price of tendered Bonds be payable under the Financial Guaranty Insurance Policy. 
  
 Section 4.08. Delivery of Bonds. On each tender date, the Bonds shall be delivered as follows: 
  
 (a) Bonds purchased by the Trustee with moneys described in
Section 4.07(a) shall be delivered by the Remarketing Agent to the purchasers of those Bonds by 3:00 p.m., New York City time; and 
  
 (b) Bonds purchased by the Trustee with moneys described in Section 4.07(b) (the “Company-Held Bonds”) shall be, at the direction of
the Company, either (i) delivered to and registered in the name of the Company on or before 3:00 p.m., New York City time, or (ii) delivered to or held by the Trustee for the account of the Company. 
  

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 Section 4.09. No Purchase or Sale after Event of Default. Anything in
this Agreement to the contrary notwithstanding, if there shall have occurred and be continuing an Event of Default under this Agreement, the Remarketing Agent shall not remarket any Bonds. 
  
 Section 4.10. Purchase Fund. There is hereby
established and there shall be maintained with the Trustee a separate fund to be known as the “Purchase Fund”. The Trustee shall further establish separate accounts within the Purchase Fund to be known as the “Remarketing Proceeds
Account” and the “Company Purchase Account.” 
  
 (a) Remarketing Proceeds Account. Upon receipt from the Remarketing Agent of the proceeds of a remarketing of Bonds on a purchase date, the Trustee shall directly deposit such proceeds, and shall deposit only such proceeds, in
the Remarketing Proceeds Account for application to the Purchase Price of the Bonds. Neither the Authority nor the Company shall have any interest in the Remarketing Proceeds Account. 
  
 (b) Company Purchase Account. Upon receipt of funds provided to the Trustee by the Company pursuant to
Section 5.05(c), the Trustee shall directly deposit such money, and shall deposit only such money, in the Company Purchase Account for application to the Purchase Price of the Bonds. Neither the Authority nor the Company shall have any interest
in the Company Purchase Account. 
  
 (c) Investment.
Amounts held in the Remarketing Proceeds Account and the Company Purchase Account by the Trustee shall be held uninvested. 
  
 Section 4.11. Disposition of Purchased Bonds. 
  

(a) Bonds to Be Remarketed. Bonds purchased pursuant to tenders as provided in the form of Bonds or as provided in Section 4.06 will
be offered for sale by the Remarketing Agent as provided in this Section except as follows: 
  
 (1) Bonds required to be tendered or redeemed, which are tendered between the date notice of mandatory tender or redemption is given and the mandatory
tender date or redemption date, may be remarketed before the mandatory tender date or redemption date only if the buyer receives a copy of the mandatory tender notice or the redemption notice, as the case may be, from the Remarketing Agent; and

  
 (2) Bonds will not be offered for sale under this
Section during the continuance of an Event of Default under Section 10.01 of this Agreement. 
  
 (b) Remarketing Effort. Except to the extent the Company directs the Remarketing Agent not to do so, the Remarketing Agent will offer for
sale and use reasonable efforts to sell all Bonds to be sold as provided in paragraph (a) above and, when directed by the Company, any Company-Held Bonds. The sale price of each Bond must be equal to the principal amount of each Bond plus
accrued interest, if any, to the purchase date. The Company may direct the Remarketing Agent from time to time to cease and to resume sales efforts with respect to some of or all the Bonds. The Remarketing Agent may buy as principal any Bonds to be
offered under this Section 4.11. 
  

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 (c) Notices in Respect of Tenders. When the Trustee receives a notice from a Bondholder (or
a Beneficial Owner through its direct Participant) as specified in paragraph 6 of the form of the Bond for the Bondholder (or a Beneficial Owner through its direct Participant) that Bonds are being tendered, the Trustee will promptly notify the
Remarketing Agent and the Company by facsimile transmission or telephone, promptly confirmed in writing, of the receipt of such notice, but in no event later than the following times: 
  
 (1) when the Bonds bear interest at a Daily Rate, no later than 11:15 a.m. (New York City time) on the same Business
Day; and 
  
 (2) when the Bonds bear interest at a Weekly Rate, no
later than 11:15 a.m. (New York City time) on the Business Day next succeeding receipt of such notice. 
  
 (d) Delivery of Remarketed Bonds. 
  
 (1) Except when the Book-Entry System is in effect, the Trustee shall hold all Bonds delivered pursuant to this Section 4.11 in trust for the benefit
of the owners thereof until moneys representing the purchase price of such Bonds shall have been delivered to or for the account of or to the order of such Bondholders, and thereafter, if such Bonds are remarketed, shall deliver replacement Bonds,
prepared by the Trustee in accordance with the directions of the Remarketing Agent and authenticated by the Trustee, for any Bonds purchased in accordance with the written directions of the Remarketing Agent, to the Remarketing Agent for delivery to
the purchasers thereof. 
  
 (2) The Remarketing Agent or, in the
case of Bonds bearing interest at an Auction Mode Rate, the Auction Agent, shall advise the Trustee and the Company in writing or by facsimile transmission of (A) the principal amount of Bonds which have been remarketed and that the proceeds of
such remarketing have been received by the Remarketing Agent, and, (B) except in the case of Bonds bearing interest at an Auction Mode Rate, the denominations and registration instructions (including taxpayer identification numbers), in each
case, in accordance with the following schedule (all times of which are New York City time): 
  

			
	 CURRENT METHOD OF INTEREST RATE DETERMINATION OR, IN
CONNECTION WITH A CHANGE IN SUCH METHOD, THE NEW
METHOD OF INTEREST RATE
DETERMINATION            

	 	 TIME BY WHICH INFORMATION
 TO BE FURNISHED
TO TRUSTEE


	Commercial Paper Period	 	12:15 p.m. on the purchase date
		
	Daily Rate Period	 	11:45 a.m. on the purchase date
		
	Weekly Rate Period	 	11:45 a.m. on the purchase date
		
	Long-Term Interest Rate Period	 	12:15 p.m. on the purchase date
		
	Auction Rate Period	 	12:15 p.m. on the date of the Auction

  

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 (3) The terms of any sale by the Remarketing Agent shall provide for the authorization of the payment of
the purchase price by the Remarketing Agent to the Trustee in exchange for Bonds registered in the name of the new Bondholder which shall be delivered by the Trustee to the Remarketing Agent at or before 2:00 p.m. (12:00 p.m. if the Bonds are not in
a Book-Entry System) (New York City time) on the purchase date if the purchase price has been received from the Remarketing Agent by the time set forth in Section 4.11(e) on the purchase date. 
  
 (e) Delivery of Proceeds of Sale. The Remarketing Agent shall
deliver directly to the Trustee an amount equal to the principal amount thereof plus accrued interest, if any, of the Bonds which the Remarketing Agent has advised the Trustee have been remarketed pursuant to Section 4.11(d)(2) no later than
1:30 p.m. (New York City time) on the purchase date. 
  
 Section 4.12. Purchase of Bonds in Lieu of Redemption. When Bonds are called for redemption pursuant to “Optional Redemption During Long-Term Interest Rate Period,” “Optional Redemption
During Daily or Weekly Rate Period” or “Optional Redemption During Auction Rate Period” as provided under paragraph 9 in the form of Bond, the Company may purchase some or all of the Bonds called for redemption if it (or
the Remarketing Agent) gives written notice to the Trustee, the Remarketing Agent, the Auction Agent, the Broker-Dealer and the Bond Insurer not later than the day before the redemption date that it wishes to purchase the principal amount of Bonds
specified in the notice, at a purchase price equal to the redemption price. On the date specified as the redemption date, the Trustee will be furnished sufficient remarketing proceeds (or other funds provided by the Company as provided in
Section 4.07(b) hereof) in sufficient time for the Trustee to make the purchase on the redemption date. Any such purchase of Bonds by the Company shall not be deemed to be a payment or redemption of the Bonds or any portion thereof and such
purchase shall not operate to extinguish or discharge the indebtedness evidenced by such Bonds. 
  
 ARTICLE V 
  
 FUNDS AND
ACCOUNTS 
  
 Section 5.01.
Application of Proceeds. The proceeds received from the sale of the Bonds shall be applied as follows: 
  
 (a) any proceeds representing accrued interest on the Bonds will be deposited into the Bond Fund; and 
  
 (b) all other proceeds will be deposited into the Refunding Fund. 

 
 Section 5.02. Bond Fund. There is hereby
established and created a fund to be designated “Hillsborough County Industrial Development Authority Pollution Control Revenue Refunding Bonds (Tampa Electric Company Project) Series 2006 Bond Fund.” 
  

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 The Bond Fund and the moneys and Permitted Investments therein shall be used solely and exclusively for
the payment of Bond Service Charges as they become due at stated maturity, by redemption, or by acceleration, all as provided herein. 
  
 Bond Service Charges shall be payable, as they become due, (i) in the first instance from the payments to be made by the Company to the Trustee
pursuant to Section 5.05(a) and to be deposited in the Bond Fund, (ii) if those payments are not made or if moneys then on deposit in the Bond Fund and available for that purpose are not sufficient to pay the Bond Service Charges, from
other Revenues to the extent then available, and (iii) from any other source lawfully available to the Trustee. 
  
 Except where moneys have been deposited with or paid to the Trustee pursuant to an instrument restricting their application to particular Bonds, all
moneys required or permitted to be deposited with or paid to the Trustee under any provision of this Agreement, and any investments thereof, shall be held by the Trustee in trust. Except for (i) moneys deposited with or paid to the Trustee for
the redemption of Bonds, notice of the redemption of which shall have been duly given, and (ii) moneys held by the Trustee pursuant to Section 13.03, all moneys described in the preceding sentence held by the Trustee shall be subject to
the lien hereof while so held. 
  
 The Trustee shall apply money
contained in the accounts described below at the following respective times in the manner hereinafter provided, which accounts the Trustee hereby agrees to establish and maintain within the Bond Fund so long as this Agreement is not discharged in
accordance with ARTICLE XIII and each such account shall constitute a trust fund for the benefit of the holders of the Bonds and the Bond Insurer, and the money in each such account shall be disbursed only for the purposes and uses hereinafter
authorized. 
  
 (a) Interest Account. The Trustee,
on each Interest Payment Date, shall withdraw and apply from moneys on deposit in the Interest Account an amount which shall be sufficient to pay interest payable on the outstanding Bonds on such Interest Payment Date. 
  
 (b) Principal Account. The Trustee, on each Principal Payment
Date, shall withdraw and apply from moneys on deposit in the Principal Account, an amount equal to the principal becoming due on Bonds on such Principal Payment Date (other than a redemption date). Money in the Principal Account shall be used and
withdrawn by the Trustee on each Principal Payment Date solely for the payment of the principal of outstanding Bonds. 
  
 (c) Redemption Account. The Trustee, on or before each redemption date, shall withdraw and apply from moneys on deposit in the Redemption
Account amounts required to pay the principal of and premium, if any, and accrued interest on Bonds to be redeemed prior to their stated maturity. Money in the Redemption Account shall be used and withdrawn by the Trustee on each redemption date
solely for the payment of the principal of and premium, if any, and accrued interest on outstanding Bonds upon the redemption thereof prior to their stated maturity. 
  
 Section 5.03. First Mortgage Bond Fund. There is hereby established and created a fund to
be designated “Hillsborough County Industrial Development Authority Pollution Control 

  

 34 








 
Facility Revenue Refunding Bonds (Tampa Electric Company Project) Series 2006 First Mortgage Bond Fund.” There shall be deposited to the credit of the
First Mortgage Bond Fund all payments, if any, made on the First Mortgage Bonds, if any. The moneys in the First Mortgage Bond Fund shall be held by the Trustee in trust and applied to the amounts which the Company may be required to pay to the
Trustee for deposit in the Bond Fund and, pending such application, shall be subject to a lien and charge in favor of the Bondholders. 
  
 Section 5.04. Payment of Bonds. The Trustee will make payments of purchase price of, principal of, premium, if any, and
interest on the Bonds from moneys available to the Trustee under Section 4.07, Section 4.10 and Section 5.02; provided, however, that during an Auction Rate Period, payment of purchase price shall occur pursuant to
Section 3.03(b)(5) hereof. 
  
 All moneys received as
proceeds of remarketing the Bonds under Section 4.11 shall be held segregated by the Trustee in the Remarketing Proceeds Account, a separate and segregated trust account, as provided in Section 4.10. To the extent that the payment of
principal or interest on the Bonds is made from moneys as described in this Section, such payment shall also satisfy and discharge any payment obligation of the Company under this Agreement and the Trustee shall promptly notify the Company in
writing if such payment requirement has not been satisfied. If any Bond is redeemed prior to maturity or if the Company surrenders any Bond to the Trustee for cancellation, the Trustee shall cancel such Bond. 
  
 Section 5.05. Payments by the Company. 
  
 (a) Debt Service. 
  
 (1) Not later than the opening of business on the Business Day on which a
payment of principal or interest is due, the Company shall pay or cause to be paid to the Trustee for deposit in the Bond Fund an amount available on such payment date equal to such payment less the amount, if any, in the Bond Fund and available
therefor. 
  
 (2) The payments to be made under the foregoing
subsection shall be appropriately adjusted to reflect the date of issue of Bonds, accrued interest deposited in the Bond Fund, if any, and any purchase or redemption of Bonds so that there will be available on each payment date in the Bond Fund the
amount necessary to pay the interest and principal due or coming due on the Bonds and so that accrued interest will be applied to the installments of interest to which it is applicable. 
  
 (3) At any time when any principal of the Bonds is overdue, the Company shall also have a continuing obligation to pay to
the Trustee for deposit in the Bond Fund an amount equal to interest on the overdue principal but the installment payments required under this Section shall not otherwise bear interest. Premiums, if any, shall not bear interest. 
  
 (4) Payments by the Company to the Trustee for deposit in the Bond Fund under
this Agreement shall discharge the obligation of the Company to the extent of such payments; provided, that if any moneys are invested in accordance with this Agreement and a loss results therefrom so that there are insufficient funds to pay
principal and interest on the Bonds when due, the Company shall supply the deficiency. 
  

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 (b) Additional Payments. 
  
 (1) Within thirty (30) days after notice from the Authority, the Company shall pay to the Authority all its reasonable
costs and expenses (except general administrative expenses or overhead) incurred by the Authority relating to the issuance of the Bonds, and for any continuing duties or obligations of the Authority relating to the Bonds, this Agreement or any other
documents executed in connection therewith, including any audit or any modification, amendment or interpretation of this Agreement or the Bonds. 
  
 (2) Within thirty (30) days after notice from the Trustee, any paying agent, tender agent or registrar, the Company shall pay to the Trustee, paying
agent, tender agent or registrar, as the case may be, its reasonable fees and expenses as set forth in Section 11.02 of this Agreement. 
  
 (c) Company’s Purchase of Bonds. If the amount received by the Trustee for the purchase of Bonds tendered pursuant to
Section 4.06(a) not sufficient to pay the purchase price of such Bonds on the date when due, the Company shall pay the amount of such deficiency to the Trustee for application in accordance with Section 4.07(b). 
  
 Section 5.06. Moneys Held in Trust; Unclaimed
Funds. The Trustee shall deposit into the Bond Fund, which shall be a separate and segregated trust account for the benefit of the Bondholders, all moneys received by it for any payment on the Bonds. Money received by the Remarketing Agent
or the Trustee from the sale of a Bond under Section 4.11 or for the purchase of a Bond will be held segregated from other funds of the Remarketing Agent or the Trustee in trust for the benefit of the person from whom such Bond was purchased or
the person delivering such purchase money, as the case may be, and will not be invested. The Trustee shall promptly, but in no event later than 30 days of their original deposit, apply moneys received from the Company in accordance with this
Agreement and as specifically directed in writing by the Company. 
  
 Notwithstanding the provisions of the immediately preceding paragraph, any moneys which shall be set aside by the Trustee or deposited with the Trustee and which shall remain unclaimed by the holders of such Bonds for a period of one year
after the date on which such Bonds shall have become due and payable shall upon request in writing be paid to the Company, and thereafter the holders of such Bonds shall look only to the Company for payment and then only to the extent of the amount
so received without any interest thereon, and the Trustee and the Authority shall have no responsibility with respect to such moneys. In the absence of any such written request, the Trustee shall from time to time deliver such unclaimed funds to or
as directed by pertinent escheat authority, as identified by the Trustee in its sole discretion, pursuant to and in accordance with applicable unclaimed property laws, rules or regulations. Any such delivery shall be in accordance with the customary
practices and procedures of the Trustee and the escheat authority. All moneys held by the Trustee and subject to this Section shall be held uninvested and without liability for interest thereon. Before making any payment under this
Section 5.06, the Trustee shall be entitled to receive at the Company’s expense an Opinion of Counsel to the effect that said payment is permitted under applicable law. 
  

 36 








 Section 5.07. Refunding Fund; Notice to Redeem Refunded Bonds.
(a) There is hereby established and created a fund to be designated “Hillsborough County Industrial Development Authority Pollution Control Facility Revenue Refunding Bonds (Tampa Electric Company Project) Series 2006 Refunding Fund”.
On the date of original issuance of the Bonds, upon receipt of the Bond proceeds the Trustee shall deposit such proceeds into the Refunding Fund in accordance with Section 5.01(b) of this Agreement. Promptly following such deposit, all moneys
in the Refunding Fund shall be transferred by the Trustee to the Refunded Bonds Trustee for redemption of the Refunded Bonds in accordance with the Refunded Bonds Agreement. 
  
 (b) The Trustee shall cause to be kept and maintained records of receipts and disbursements pertaining to the Refunding
Fund. 
  
 Section 5.08.
Investments. So long as the Bonds are outstanding and there is no default hereunder of which the Trustee is deemed to have knowledge pursuant to Section 11.03, moneys on deposit to the credit of the Funds shall, at the written
request of the Company Representative, specifying and directing that such investment of such funds be made, be invested by the Trustee in Permitted Investments having a maturity no later than the date such moneys will be needed. The Trustee is
entitled to conclusively rely on said instructions for purposes of this Section. 
  
 The Trustee may commingle any of the money held by it hereunder. The Trustee may present for redemption or sell any such deposit or investment whenever it shall be necessary in order to provide money to meet any
payment of the money so deposited or invested. The Trustee shall not be liable or responsible for any losses, fees, taxes or other charges resulting from any such deposit or investment presented for redemption or sold. 
  
 Any interest or profits on deposits and investments in the Bond Fund received
by the Trustee shall be retained therein. 
  
 The Trustee shall
have no responsibility for determining whether any investment is a legally permitted investment of the Authority or the Company, and the Trustee shall be fully protected in relying upon instructions received in accordance with this Section.

  
 ARTICLE VI 
  
 BOOK-ENTRY SYSTEM 
  
 Section 6.01. Book-Entry System. The Bonds
shall be initially issued in the name of Cede & Co., as nominee for The Depository Trust Company as the initial Securities Depository and registered owner of such Bonds, and held in the custody of the Securities Depository. A single
certificate will be issued and delivered to the Securities Depository, or a custodian thereof, for the Bonds. The Beneficial Owners will not receive physical delivery of Bond certificates except as provided herein. For so long as the Securities
Depository shall continue to serve as securities depository for such Bonds as provided herein, all transfers of beneficial ownership interests will be made by book-entry only on the records of the Securities Depository, and no investor or other
party purchasing, selling or otherwise transferring beneficial ownership of such Bonds is to receive, hold or deliver any Bond certificate. The Authority, the Company and the Trustee will recognize the Securities Depository or its nominee as the
Bondholder of such Bonds for all purposes, including payment, notices and voting. 
  

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 The Authority and the Trustee covenant and agree, so long as The Depository Trust Company shall continue
to serve as Securities Depository for the Bonds, to meet the requirements of The Depository Trust Company with respect to required notices and other provisions of any Letter of Representations executed with respect to, or any Blanket Letter of
Representations applicable to, the Bonds. 
  
 The Authority, the
Trustee, the Company and the Remarketing Agent may conclusively rely upon (i) a certificate of the Securities Depository as to the identity of the Participants in the Book-Entry-System and (ii) a certificate of any such Participant as to
the identity of, and the respective principal amount of Bonds beneficially owned by, the Beneficial Owners. 
  
 Whenever, during the term of the Bonds, the beneficial ownership thereof is determined by a book-entry at the Securities Depository, the requirements in
this Agreement of holding, delivering or transferring Bonds shall be deemed modified to require the appropriate person to meet the requirements of the Securities Depository as to registering or registering the transfer of the book-entry to produce
the same effect. Any provision hereof permitting or requiring delivery of Bonds shall, while the Bonds are in a Book-Entry System, be satisfied by the notation on the books of the Securities Depository in accordance with applicable law. 

 
 The Trustee and the Authority, at the direction and expense of the Company
and with the consent of the Remarketing Agent, may from time to time appoint a successor Securities Depository and enter into an agreement with such successor Securities Depository to establish procedures with respect to the Bonds consistent with
current industry practice. Any successor Securities Depository shall be a “clearing agency” registered under Section 17A of the Securities Exchange Act of 1934, as amended. 
  
 None of the Authority, the Company, the Trustee, any Broker-Dealer nor the Remarketing Agent will have any responsibility or
obligation to any Securities Depository, any Participants in the Book-Entry System or the Beneficial Owners with respect to (i) the accuracy of any records maintained by the Securities Depository or any Participant; (ii) the payment by the
Securities Depository or by any Participant of any amount due to any Beneficial Owner in respect of the principal amount or redemption or purchase price of, or interest on, any Bonds; (iii) the delivery of any notice by the Securities
Depository or any Participant; (iv) the selection of the Beneficial Owners to receive payment in the event of any partial redemption of the Bonds; or (v) any other action taken by the Securities Depository or any Participant. 

 
 Bond certificates are required to be delivered to and registered in the
name of the Beneficial Owner if the Securities Depository determines to discontinue providing its service with respect to the Bonds and no successor Securities Depository is appointed as described above. Such a determination may be made at any time
by giving 30 days’ notice to the Authority, the Company, the Auction Agent, the Remarketing Agent and the Trustee and discharging its responsibilities with respect thereto under applicable law. 
  

 38 








 The Trustee is hereby authorized to make such changes to the form of bond attached hereto as Exhibit
B which are necessary or appropriate to reflect that the Book-Entry System is not in effect, that a successor Securities Depository has been appointed or that an additional or co-paying agent or tender agent has been designated pursuant to
Section 11.14. 
  
 If at any time, the Securities Depository
ceases to hold the Bonds, all references herein to the Securities Depository shall be of no further force or effect. 
  
 ARTICLE VII 
  
 THE PROJECT 
  
 Section 7.01.
Maintenance and Modifications of Project by Company. Subject to the provisions of Section 7.02, the Company agrees that so long as any Bonds are outstanding it will at its own expense maintain, repair and operate the Project. The
Company may make modifications to completed components of the Project. 
  
 Section 7.02. Removal of Portions of the Project. 
  
 (a) The Company shall not be under any obligation to renew, repair or replace any inadequate, obsolete, worn-out, unsuitable, undesirable or unnecessary portion of the Project. In any instance where the Company
determines that any portion of the Project has become inadequate, obsolete, worn-out, unsuitable, undesirable or unnecessary, the Company may remove such portion from the Project and sell, trade in, exchange or otherwise dispose of such removed
portion of the Project without any responsibility or accountability to the Authority, the Trustee or the holders of the Bonds. 
  
 (b) The removal of any portion of the Project pursuant to the provisions of this Section shall not entitle the Company to any abatement or diminution
of the amounts required to be paid with respect to the Bonds. 
  
 Section 7.03. Assignment, Leasing and Sale by the Company. This Agreement may be assigned, and the Project may be leased or sold as a whole or in part, by the Company without the consent of either the Authority or the
Trustee, subject, however, except as provided in Section 8.03, to each of the following conditions: 
  
 (a) no assignment, lease or sale shall relieve the Company from liability for any of its obligations hereunder, and, in the event of any such assignment,
lease or sale, the Company shall continue to remain primarily liable for the payments required to be made pursuant to this Agreement and for the performance and observance of the other agreements on its part herein contained; 
  
 (b) the assignee, lessee or buyer shall assume the obligations of the Company
hereunder to the extent of the interest assigned, leased or sold, and may assume the Company’s obligations under Article V; 
  

 39 








 (c) the Company shall, not later than 10 days prior to the delivery thereof, furnish or cause to be
furnished to the Authority and to the Trustee a true and complete copy of the form of each such proposed assignment, lease or conveyance, as the case may be; and 
  
 (d) the Company shall, not later than the effective date of such assignment or lease, furnish or cause to be furnished to
the Authority and the Trustee a Favorable Opinion of Tax Counsel that such assignment or lease will not cause the interest on the Bonds to become includable in gross income for federal income tax purposes. 
  
 ARTICLE VIII 
  
 THE COMPANY 
  
 Section 8.01. Representations by the Company. The Company
makes the following representations as of the date of delivery of this Agreement: 
  
 (a) The Company is a corporation organized and existing under the laws of the State of Florida and has power to enter into this Agreement; 
  
 (b) By proper corporate action, the officers of the Company executing and attesting this Agreement have been duly authorized
to execute and deliver this Agreement; 
  
 (c) Neither the
execution or delivery of this Agreement or the consummation of the transactions contemplated herein (including, without limitation, execution and delivery of the First Mortgage Bonds, if any, nor the fulfillment of or compliance with the terms
hereof) will conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, the Company’s Restated Articles of Incorporation, its bylaws or any indenture, mortgage, deed of trust or other agreement or
instrument to which the Company is now a party or by which it is bound; 
  
 (d) The facilities comprising the Project constitute a “project” within the meaning of Section 159.44(2) of the Act; 
  
 (e) The Company has caused and will cause the acquisition, construction and installation of the Project at the Units, pursuant to the terms and conditions
expressed herein, all for the purpose of promoting effective and efficient pollution control throughout the State; 
  
 (f) Not less than substantially all of the proceeds of the Bonds will be used to refinance costs of “sewage or solid waste disposal facilities”
and “air or water pollution control facilities” within the meaning of Sections 103(b)(4)(E) or (F), respectively, of the Internal Revenue Code of 1954, as amended; and 
  
 (g) All necessary authorizations, approval, consents and other orders of any governmental authority or agency for the
execution and delivery by the Company of this Agreement have been obtained and are in full force and effect. 
  

 40 








 Section 8.02. Access to the Project. The Authority and its duly authorized agents
shall have such rights of access to the Project and the Units as may be reasonably necessary to inspect the Project. 
  
 Section 8.03. Company May Consolidate, Etc., Only on Certain Terms. 
  
 (a) The Company shall not consolidate with or merge into any other Corporation or convey or transfer its properties and
assets substantially as an entirety to any Person, unless the Corporation formed by such consolidation into which the Company is merged or the Person which acquires by conveyance or transfer the properties and assets of the Company substantially as
an entirety (a) shall be, if a Corporation, a Corporation organized and existing under the laws of (i) the United States of America or any State or the District of Columbia or (ii) a foreign jurisdiction which consents to the
jurisdiction of the courts of the United States of America or of any State, and (b) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual
payment of the principal of (and premium, if any) and interest on all the Bonds and the performance of every covenant of this Agreement on the part of the Company to be performed or observed. 
  
 (b) Upon any consolidation or merger, or any sale of the property and assets
of the Company as, or substantially as, an entirety in accordance with the provisions of this Section 8.03, the Corporation formed by such consolidation or into which the Company shall have been merged or the Person to which such sale shall
have been made shall succeed to and be substituted for the Company with the same effect as if it had been named herein as a party hereto, and thereafter from time to time such Corporation may exercise each and every right and power of the Company
under this Indenture, in the name of the Company or in its own name; and any act or proceeding by any provision of this Agreement required or permitted to be done by any board of officer of the Company may be done with like force and effect by the
like board or officer of any Corporation that shall at the time be the successor of the Company hereunder. 
  
 (c) The Trustee shall receive and may conclusively rely on and shall be protected in relying upon an Opinion of Counsel as conclusive evidence that any
such consolidation, merger or sale, and any such assumption of payment and performance complies with the provisions of this Section 8.03. 
  
 Section 8.04. Indemnification Covenants. 
  
 (a) The Company hereby agrees to indemnify the Authority, the Trustee, any paying agent, tender agent and registrar and each of their respective members,
directors, officers, employees, agents and attorneys (collectively, the “Indemnified Persons”) against claims arising out of the construction or operation of the Project and to pay or bond and discharge and indemnify and hold
harmless each Indemnified Person from and against (i) any lien or charge upon payments by the Company to or for the account of the Authority hereunder and (ii) any taxes, assessments, impositions and other charges of any federal, state or
municipal government or political body in respect of the Project. If any such claim is asserted, or any such lien or charge upon payments, or charges are sought to be imposed, the applicable Indemnified Person shall give prompt notice to the
Company, and the Company shall pay the same or bond and assume the defense thereof, with full power to contest, litigate, compromise or settle the same in its reasonable discretion. 
  

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 (b) The Company shall at all times protect and hold each Indemnified Person harmless against any claim or
liability arising from this Agreement, the Bond Resolution, the issuance of the Bonds and all transactions pertaining thereto, including but not limited to any loss or damage to property or any injury to or death of any person that may be occasioned
by any cause whatsoever pertaining to the Project or to the use thereof, in excess of any insurance proceeds available to the Authority in connection therewith, such indemnification to include reasonable expenses and attorneys’ fees and
expenses incurred by any Indemnified Person in connection therewith. Nothing contained herein shall require the Company to indemnify an Indemnified Person for any claim or liability resulting from the willfully wrongful acts or gross negligence of
any Indemnified Person. The provisions of this Section shall survive the termination of this Agreement. 
  
 Section 8.05. Consent to Assignment of Contract Rights by the Authority. The Company hereby consents to the pledge and assignment by
the Authority to the Trustee of (i) all of its rights under this Agreement (except its rights under Section 5.05(b)(1) and Section 10.13 to payment of certain costs and expenses and under Section 8.04 to indemnification) to the
Trustee for the benefit of the holders from time to time of the Bonds as security for payment of the principal of and premium, if any, and interest on the Bonds, and (ii) any interest it may have in the First Mortgage Bonds, if any, as
additional security for the payment of the principal of and premium, if any, and interest on the Bonds. The Company hereby agrees that by virtue of such pledge and assignment the Trustee may enjoy and enforce all such rights of the Authority
hereunder. 
  
 Section 8.06. Obligations of Company
Hereunder Unconditional. 
  
 (a) Until such time as the
principal of and premium, if any, and interest on the Bonds shall have been fully paid or deemed to have been paid as provided pursuant to Section 13.01 of this Agreement, to the extent permitted by law, the Company’s obligations under
this Agreement shall be absolute and unconditional, and the Company (i) will not suspend or discontinue payment of any amounts required to be paid by it hereunder, (ii) will perform and observe all of its other agreements contained in this
Agreement, (iii) will not knowingly take or authorize or permit, to the extent such action is within the control of the Company, any action with respect to the Project, the proceeds of the Bonds or any insurance, condemnation or other proceeds
derived directly or indirectly in connection with the Project, which will result in the loss of the exclusion of interest on the Bonds from federal gross income, and (iv) except as permitted by this Agreement, will not terminate this Agreement
for any cause, including, without limiting the generality of the foregoing, the occurrence of any act or circumstance that may constitute failure of consideration, destruction of or damage to the Project, commercial frustration of purpose, any
change in the tax or other laws of the United States of America or of the State or any political subdivision of either of them, any failure of the Authority or the Trustee to perform or observe any agreement, whether express or implied, or any duty,
liability or obligation arising out of or connected with this Agreement, or arising out of any indebtedness or liability at any time owing to the Company by the Authority or the Trustee. 
  

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 (b) Nothing contained in this Section will be construed to release the Authority from the
performance of any of the agreements on its part herein contained; and in the event the Authority should fail to perform any such agreement on its part, the Company may institute such action against the Authority as the Company may deem necessary to
compel performance of the Authority hereunder so long as such action shall not violate the agreements on the part of the Company contained in Section 8.04 or diminish the amounts required to be paid by the Company under this Agreement. The
Company may also, at its own cost and expense and in its own name or in the name of the Authority, prosecute or defend any action or proceeding or take any other action involving third persons which the Company deems reasonably necessary in order to
secure or protect its right of possession, occupancy and use hereunder, and in such event the Authority hereby agrees to cooperate fully with the Company and, at the Company’s expense, to take all action necessary to effect the substitution of
the Company for the Authority in any action or proceeding if the Company shall so request. 
  
 Section 8.07. Arbitrage Bonds. The Company will comply in all respects with the requirements of Section 148 of the Code as it relates to the Bonds. Without limiting the generality of the
foregoing, the Company shall pay to the United States any rebate that may be due with respect to the Bonds under Section 148(f) of the Code and any regulations promulgated thereunder. 
  
 ARTICLE IX 
  
 THE AUTHORITY 
  
 Section 9.01. Representations by the Authority. The
Authority makes the following representations as of the date of delivery of this Agreement: 
  
 (a) The Authority covenants that it is duly authorized under the laws of the State, including particularly and without limitation the Act, to issue the Bonds authorized hereby and to execute this Agreement, to assign
the payments and amounts hereby assigned in the manner and to the extent herein set forth and to undertake the transactions contemplated by this Agreement and to carry out its obligations hereunder, and that all action on its part for the issuance
of the Bonds and the execution and delivery of this Agreement has been duly and effectively taken; and 
  
 (b) By proper action of the Authority, the officers of the Authority executing and attesting this Agreement have been duly authorized to execute and
deliver this Agreement. 
  
 Section 9.02. No Warranty
of Condition or Suitability by the Authority. THE AUTHORITY MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE PROJECT OR ITS SUITABILITY FOR THE COMPANY’S PURPOSES OR NEEDS. 
  
 Section 9.03. Payment of Principal, Premium and Interest.
The Authority covenants that it will promptly pay the principal of, premium, if any, and interest on every Bond issued under this Agreement but only from the Revenues and any accrued interest on the Bonds deposited in the Bond Fund as provided
herein at the place, on the dates, from the funds and in the manner provided herein and in said Bonds according to the true intent and meaning thereof. The 

  

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Authority makes no representation or warranty as to the financial condition of the Company or any other party or value, validity or enforceability of any
security for the Bonds or the Company’s obligations under this Agreement. 
  
 Section 9.04. Authority To Use Best Efforts To Require Company To Make Payments. The Authority shall use its best efforts, acting through the Trustee, to require the Company to pay all of the
payments and other costs and charges payable by the Company under this Agreement. 
  
 Section 9.05. Take Further Action. The Authority covenants that it shall from time to time execute and deliver such further instruments and take such further action as may be reasonable and as may
be required to carry out the purposes of this Agreement; provided, however, that no such instruments or actions shall pledge the credit of the Authority, and provided further, however, that the Authority shall not be required to
execute and deliver such instruments or take such further actions unless reasonable indemnity is furnished by the Company for any expense or liability to be incurred therein in accordance with Section 5.05(b)(1) and Section 8.04. The
Authority shall be entitled to the advice of counsel (who may be counsel for any party) and shall not be liable for any action taken in good faith in reliance on such advice. The Authority may rely conclusively on any notice, certificate or other
document furnished to it under this Agreement and reasonably believed by it to be genuine. The Authority shall not be liable for any action taken or omitted to be taken by it in good faith and reasonably believed by it to be within the discretion or
power conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed under this Agreement or omitted to be taken by it by reason of the lack of direction or instruction required for such action, or be responsible
for the consequences of any error of judgment reasonably made by it. When any payment or consent or other action by the Authority is called for by this Agreement, the Authority may defer such action pending receipt of such evidence, if any, as it
may reasonably require in support thereof. A permissive right or power to act shall not be construed as a requirement to act. The Authority shall in no event be liable for the application or misapplication of funds, or for other acts or defaults by
any person, firm or corporation except by its own members, officers, agents and employees. No recourse shall be had by the Company, the Trustee or any Bondholder for any claim based on this Agreement or the Bonds or any agreement securing the same
against any member, officer, agent or employee of the Authority unless such claim is based upon the bad faith, fraud or deceit of such person. 
  
 Section 9.06. No Disposition of Revenues. The Authority agrees that, except for its pledge and assignment to the Trustee hereunder, the
Authority will not pledge, assign, mortgage, encumber, convey or otherwise transfer any of its interest or rights to the Revenues or otherwise under this Agreement; provided, however, that if the laws of the State at the time shall so permit,
nothing contained in this Section shall prevent the consolidation of the Authority with, or merger of the Authority into, any public corporation the property and income of which are not subject to taxation; and provided, further, that
upon any such consolidation, merger or transfer, the due and punctual payment of the principal of, premium, if any, and interest on the Bonds according to their tenor, and the due and punctual performance and observance of all the agreements and
conditions of this Agreement to be kept and performed by the Authority, shall be expressly assumed in writing by the entity resulting from such consolidation or surviving such merger. 
  
 Section 9.07. No Extensions. In order to prevent any accumulation of claims for interest after maturity,
the Authority will not directly or indirectly extend or assent to the 

  

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extension of the time of payment of claims of interest on any of the Bonds and will not directly or indirectly be a party to or approve any such arrangement
by purchasing or funding such claims for interest or in any other manner. In case any such claim for interest shall be extended or funded in violation hereof, such claim for interest shall not be entitled, in case of any default hereunder, to the
benefit or security of this Agreement except subject to the prior payment in full of the principal of and premium, if any, on all Bonds issued and outstanding hereunder, and all claims for interest which shall not have been so extended or funded.

  
 Section 9.08. Covenant To Perform Further
Acts. The Authority covenants that it will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, such supplements and amendments to this Agreement and such further acts, instruments and transfers as
the Trustee may reasonably require in order to fully preserve, protect and perfect the rights and security of the Bondholders and the rights of the Trustee under this Agreement, provided, however, that the Authority shall not be required to
execute and deliver such documents or take such further actions unless reasonable indemnity is furnished by the Company for any expense or liability to be incurred therein in accordance with Section 5.05(b)(1) and Section 8.04. 

 
 Section 9.09. Faithful Performance. The Authority
covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions required to be performed by it and contained in this Agreement, in any and every Bond executed and delivered hereunder and in all
of its proceedings pertaining hereto. 
  
 ARTICLE X

  
 DEFAULT AND LIMITATIONS OF LIABILITY 
  
 Section 10.01. Events of Default. If any of
the following events occur, it is hereby declared to constitute an “Event of Default”; provided that, in determining whether an Event of Default has occurred under paragraph (a) or (b), no effect shall be given to
payments made on the Bonds pursuant to the Financial Guaranty Insurance Policy: 
  
 (a) Default in the due and punctual payment of interest on any Bond; 
  
 (b) Default in the due and punctual payment of the principal of, or premium, if any, on any Bond, whether at the stated maturity thereof, redemption
thereof pursuant to Section 4.01, or upon the acceleration thereof; 
  
 (c) Default in the due and punctual payment of the purchase price of any Bond required to be purchased in accordance with its terms; 
  
 (d) First Mortgage Bonds shall have been delivered in connection with the Bonds and a “default” as defined in
Section 12.01 of the First Mortgage shall have occurred and be continuing; 
  
 (e) A trustee, receiver, custodian or similar official or agent shall be appointed for the Company or for any substantial part of its property and such trustee or receiver shall not be discharged within sixty
(60) days; 
  

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 (f) The Company shall commence a voluntary case under the federal bankruptcy laws, or shall make an
assignment for the benefit of creditors, or shall apply for, consent to or acquiesce in the appointment of, or taking possession by, a trustee, receiver, custodian or similar official or agent for itself or any substantial part of its property;

  
 (g) The Company shall have an order or decree for relief in an
involuntary case under the federal bankruptcy laws entered against it, or a petition seeking reorganization, readjustment, arrangement, composition, or other similar relief as to it under the federal bankruptcy laws or any similar law for the relief
of debtors shall be brought against it and shall be consented to by it or shall remain undismissed for sixty (60) days; 
  
 (h) An “Event of Default” as defined in the Insurance Agreement shall have occurred and be continuing; and 
  
 (i) The Company or the Authority shall fail to observe or perform in any
material way any covenant, condition, agreement or provision contained in the Bonds or in this Agreement on the part of the Company or the Authority to be performed other than those set forth in clause (a), (b), (c), (d), (e), (f), (g) or
(h) of this Section, and such failure shall continue for ninety (90) days after written notice specifying such failure and requiring the same to be remedied shall have been given to the Company and the Authority by the Trustee, which
notice may be given by the Trustee in its discretion and shall be given by the Trustee at the written request of the holders of not less than twenty-five percent (25%) in aggregate principal amount of all Bonds then outstanding, unless the
Trustee and Bondholders of a principal amount of Bonds not less than the principal amount of the Bonds the Bondholders of which requested such notice, as the case may be, shall agree in writing to an extension of such period prior to its expiration;
provided however, that the Trustee and the Bondholders of such principal amount of Bonds, as the case may be, shall be deemed to have agreed to an extension of such period if corrective action is initiated by the Authority or the Company on
behalf of the Authority within such period and is being diligently pursued. 
  
 Section 10.02. Acceleration. Subject to the rights of the Bond Insurer set forth in Section 10.03 and Section 12.04, upon the occurrence and continuance of any Event of Default described
in clause (a), (b), (c), (d), (e), (h) or (i) of the preceding paragraph and further upon the condition that if any First Mortgage Bonds shall have been delivered, all first mortgage bonds outstanding under the First Mortgage shall have
become immediately due and payable in accordance with the terms of the First Mortgage, the Trustee may, and at the written request of Bondholders of not less than 25% in principal amount of the Bonds then outstanding shall, by written notice to the
Authority and to the Company declare the Bonds to be immediately due and payable, whereupon, and upon the occurrence of an Event of Default as specified in clause (f) or (g) of the preceding paragraph without any further notice or action
by the Trustee or the Authority, the Bonds shall, without further action, become and be immediately due and payable, any provisions hereof or the Bonds to the contrary notwithstanding, and the Trustee shall give notice of acceleration to the
Authority, and shall give notice thereof by mail to the Bondholders. 
  
 The provisions of the preceding paragraph, however, are subject to the condition that if, after the principal of the Bonds shall have been so declared to be due and payable, and before any judgment or decree for the payment of moneys due
shall have been obtained or entered as 

  

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hereinafter provided, the Company or the Authority shall cause to be deposited with the Trustee a sum sufficient to pay all matured installments of interest
upon all the Bonds and the principal of any and all Bonds which shall have become due otherwise than by reason of such declaration (with interest upon such principal and, to the extent permissible by law, on overdue installments of interest, at the
rate per annum specified herein) and such amounts as shall be sufficient to cover reasonable compensation and reimbursement of expenses payable to the Trustee and any paying agent, tender agent and registrar, and all Events of Default hereunder
other than nonpayment of the principal of Bonds which shall have become due by said declaration shall have been remedied, then, in every such case, such Event of Default shall be deemed waived and such declaration and its consequences rescinded and
annulled, and the Trustee shall promptly give written notice of such waiver, rescission or annulment to the Authority and the Company, and shall give notice thereof to the Bondholders; but no such waiver, rescission and annulment shall extend to or
affect any subsequent Event of Default or impair any right or remedy consequent thereon; provided, however, that if any First Mortgage Bonds shall have been delivered in connection with the Bonds, any waiver of “default” under the
First Mortgage and a rescission and annulment of its consequences shall constitute a waiver of the corresponding Event of Default under this Agreement and a rescission and annulment of the consequences thereof, and the Trustee shall promptly give
written notice of such waiver, rescission and annulment to the Authority and the Company, and notice to the Bondholders in the same manner as a notice of redemption under Section 4.04; but no such waiver, rescission and annulment shall extend
to or affect any subsequent default or Event of Default or impair any right or remedy consequent thereon. 
  
 Section 10.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the principal of and premium, if any, or interest on the Bonds or to enforce the performance of any provision of the Bonds or this Agreement. Notwithstanding anything to the contrary set forth
herein, so long as the Policy is in full force and effect and the Bond Insurer is not in default thereunder, the Bond Insurer shall be deemed to be the sole owner of all the Bonds with respect to the remedies and granting of waivers herein.

  
 The Trustee may maintain a proceeding even if it does not
possess any of the Bonds or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Bondholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. 
  
 Section 10.04. Waiver of Past Defaults. Subject to the rights of the Bond Insurer set forth in Section 10.03 and
Section 12.04, a majority in aggregate principal amount of the outstanding Bonds by notice to the Trustee may waive an existing Event of Default and its consequences. When an Event of Default is waived, it is cured and stops continuing, but no
such waiver shall extend to any subsequent or other Event of Default or impair any right consequent to it. 
  
 Section 10.05. Control by Majority. Subject to the rights of the Bond Insurer, the holders of a majority in aggregate
principal amount of Bonds outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on it. The Trustee may refuse to follow any direction that
conflicts with law or this Agreement or that the Trustee determines is unduly prejudicial to the rights of other Bondholders or if the Trustee has not been indemnified pursuant to Section 11.01(k). 
  

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 Section 10.06. Limitation on Suits. A Bondholder may not pursue any
remedy with respect to this Agreement or the Bonds unless (a) the Bondholder gives the Trustee notice stating that an Event of Default is continuing, (b) the holders of at least 25% in aggregate principal amount of the outstanding Bonds
make a written request to the Trustee to pursue the remedy, (c) such Bondholder or Bondholders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense, (d) the Trustee does not comply with the
request within 60 days after receipt of the request and the offer of indemnity and (e) with respect to the Bonds, the Policy is not in effect or the Bond Insurer has defaulted in its obligations under the Policy. 
  
 Section 10.07. Rights of Bondholders to Receive
Payment. Notwithstanding any other provision of this Agreement, the right of any Bondholder to receive payment of principal of, premium, if any, and interest on a Bond, on or after the due dates expressed in the Bond, or to bring suit for
the enforcement of any such payment on or after such dates, shall not be impaired or affected without the consent of the Bondholder. 
  
 Section 10.08. Collection Suit by Trustee. If an Event of Default under paragraph (a), (b), (c) or (h) of
Section 10.01 occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust (but only from the sources provided herein, including without limitation, the limitations under Section 9.03
hereof) for the whole amount remaining unpaid. 
  
 Section 10.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the
Bondholders allowed in any judicial proceedings relative to the Company or the Bond Insurer, their creditors or property and, unless prohibited by law or applicable regulations, may vote on behalf of the Bondholders in any election of a trustee in
bankruptcy or other person performing similar functions. 
  
 Section 10.10. Priorities. As contemplated by and provided for in this Agreement, funds drawn under the Financial Guaranty Insurance Policy will be used only for the payment of principal of and interest on
the Bonds, as provided in the Financial Guaranty Insurance Policy. If the Trustee collects any money pursuant to this Article or if any moneys shall be on deposit in the Bond Fund at the time of the acceleration of the Bonds pursuant to
Section 10.02 or shall be deposited into the Bond Fund as a result of such an acceleration, it shall pay out such moneys in the following order: first, to the Trustee for amounts to which it is entitled under Section 11.02
(provided, that if such money constitutes proceeds from the Financial Guaranty Insurance Policy, the Trustee shall only use such proceeds to pay the holders of the Bonds); second, to holders for amounts due and unpaid on the Bonds for
principal, premium and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Bonds for principal, premium and interest, respectively; third, to the Bond Insurer to the extent it
certifies that moneys are owed to it under the Insurance Agreement; and fourth, to the Company. The Trustee may fix a payment date for any payment to the Bondholders. 
  

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 Section 10.11. Undertaking for Costs. In any suit for the enforcement of
any right or remedy under this Agreement or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the cost of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section does not apply to a suit by the Trustee, a suit by a Bondholder pursuant to Section 10.06 or a suit by holders of more than 25% in aggregate principal amount of Bonds outstanding. 
  
 Section 10.12. Payment Procedures under Financial
Guaranty Insurance Policy. So long as the Financial Guaranty Insurance Policy shall be in full force and effect and no default has occurred and is occurring thereunder, the Trustee shall comply with the following provisions: 
  
 (a) If on any Interest Payment Date for the Bonds there is not on deposit
with the Trustee, as the paying agent for the Bonds, sufficient moneys available to pay all principal of and interest on the Bonds due on such date, the Trustee shall promptly notify the Bond Insurer and The Bank of New York, New York, New York or
its successor as Insurance Trustee (the “Insurance Trustee”) of the amount of such deficiency. Such notice shall specify the amount of the deficiency, the Bonds to which such deficiency is applicable and whether such Bonds will be
deficient as to principal or interest, or both. In addition, the Trustee shall simultaneously make available to the Bond Insurer and to the Insurance Trustee the registration books for the Bonds maintained by the Trustee, and all records relating to
any funds or accounts maintained under this Agreement. 
  
 (b) The
Trustee shall provide the Bond Insurer and the Insurance Trustee with a list of the Bondholders entitled to receive principal or interest payments from the Bond Insurer under the terms of the Financial Guaranty Insurance Policy and shall make
arrangements with the Insurance Trustee (i) to mail checks to Bondholders entitled to receive full or partial interest payments from the Bond Insurer and (ii) to pay principal of the Bonds surrendered to the Insurance Trustee by the
Bondholders entitled to receive full or partial payments from the Bond Insurer. 
  
 (c) The Trustee shall, at the time it provides notice to the Bond Insurer pursuant to (a) above, notify Bondholders entitled to receive the payment of principal of or interest on the Bonds from the Bond Insurer
(i) as to the fact of such entitlement, (ii) that the Bond Insurer will remit to them all or part of the interest payments coming due upon proof of Bondholder entitlement to interest payments and delivery to the Insurance Trustee, in form
satisfactory to the Insurance Trustee, of an appropriate assignment of the registered owner’s right to payment, (iii) that should they be entitled to receive full payment of principal from the Bond Insurer, they must surrender their Bonds
(along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such Bonds to be registered in the name of the Bond Insurer) for payment to the Insurance Trustee, and not the Trustee, and
(iv) that should they be entitled to receive partial payment of principal from the Bond Insurer, they must surrender their Bonds for payment thereon first to the Trustee, who shall note on such Bonds the portion of the principal paid by the
Trustee, and then, along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal. 
  

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 (d) In the event that the Trustee has notice that any payment of principal of or interest on a Bond which
has become due for payment and which is made to a Bondholder by or on behalf of the Company has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code by a trustee in
bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Trustee shall, at the time the Bond Insurer is notified pursuant to (a) above, notify all registered owners that in the event that any
registered owner’s payment is so recovered, such registered owner will be entitled to payment from the Bond Insurer to the extent of such recovery if sufficient funds are not otherwise available, and the Trustee shall furnish to the Bond
Insurer its records evidencing the payments of principal of and interest on the Bonds which have been made by the Trustee and subsequently recovered from registered owners and the dates on which such payments were made. 
  
 (e) The Bond Insurer shall, to the extent it makes payment of principal of or
interest on the Bonds, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Financial Guaranty Insurance Policy and, to evidence such subrogation, (i) in the case of subrogation as to claims for
past due interest, the Trustee shall note the Bond Insurer’s rights as subrogee on the registration books maintained by the Trustee upon receipt from the Bond Insurer of proof of the payment of interest thereon to the registered owners of such
Bonds and (ii) in the case of subrogation as to claims for past due principal, the Trustee shall note the Bond Insurer’s rights as subrogee on the registration books for the Bonds maintained by the Trustee upon surrender of the Bonds by
the registered owners thereof plus proof of the payment of principal thereof. 
  
 Section 10.13. Agreement To Pay Attorneys’ Fees and Expenses. In the event the Company should default under any of the provisions of this Agreement or the First Mortgage if any
First Mortgage Bonds shall have been delivered to the Trustee and the Authority should employ attorneys or incur other expenses for the collection of any amounts due from the Company hereunder or the enforcement of performance or observance of any
obligation or agreement of the Company herein contained, the Company agrees that it will on demand therefor pay to the Authority the reasonable fees and expenses of such attorneys and such other reasonable expenses so incurred by the Authority.

  
 Section 10.14. Remedies in Article X in
Addition to Remedies in the First Mortgage. The remedies conferred in this Article shall be in addition to any remedies available to the Trustee as holder of the First Mortgage Bonds, if any, under the First Mortgage. 
  
 ARTICLE XI 
  
 THE TRUSTEE AND THE REMARKETING AGENT 
  
 Section 11.01. Conditions of Trust. The
Trustee (which term shall be deemed to include for purposes of this Section 11.01 the paying agent and registrar, unless the context otherwise requires) hereby accepts the trusts imposed upon it by this Agreement, and agrees to perform said
trusts, but only upon and subject to the following express terms and conditions: 
  

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 (a) The Trustee may execute any of the obligations or powers hereof and perform any of its duties either
directly or by or through attorneys, agents, receivers or employees and the Trustee shall not be responsible for any misconduct or negligence on the part of any attorney, agent, receiver or employee appointed with due care by it hereunder.

  
 (b) The Trustee may consult with counsel of its selection
concerning all matters of trust hereof and duties hereunder, and the written advice of such counsel or any opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon. 
  
 (c) The
Trustee shall not be responsible for, nor have any liability with respect to, any recital herein or in the Bonds (except in respect of the certificate of the Trustee endorsed on the Bonds), the validity of this Agreement or of any supplements hereto
or instruments of further assurance, the maintenance, validity or sufficiency of the security for the Bonds issued hereunder or intended to be secured hereby, or any lien or property to be created hereby, but the Trustee may require of the Authority
or the Company full information and advice as to the performance of the covenants, conditions and agreements aforesaid. 
  
 (d) The Trustee shall not be accountable for, or have any liability with respect to, the use of any Bonds authenticated or delivered hereunder after such
Bonds shall have been delivered in accordance with instructions of the Authority. The Trustee may become the owner of Bonds secured hereby with the same rights that it would have if it were not the Trustee. 
  
 (e) The Trustee shall be fully protected in acting upon any notice, request,
consent, certificate, order, affidavit, letter, telegram or other paper or document believed in good faith to be genuine and correct and to have been signed or sent by the proper person or persons. Any action taken by the Trustee pursuant to this
Agreement upon the request or authority or consent of any person who at the time of making such request or giving such authority or consent is the owner of any Bond shall be conclusive and binding upon all future owners of the same Bond or portions
thereof and upon Bonds issued in exchange therefor or for portions thereof or in place thereof. 
  
 (f) As to the existence or nonexistence of any fact or as to the sufficiency or validity of any instrument, paper or proceeding, the Trustee shall be
entitled to rely upon a certificate of the Authority signed by an Authority Representative or any certificate of the Company signed by a Company Representative as sufficient evidence of the facts therein contained, and prior to the occurrence of a
default of which the Trustee has been notified as provided in subsection (h) of this section, or of which by said subsection it is deemed to have notice, the Trustee shall also be at liberty to accept a similar certificate to the effect that
any particular dealing, transaction or action is necessary or expedient, but may at its discretion secure such further evidence deemed necessary or advisable, but shall in no case be bound to secure the same. The Trustee may accept a certificate of
the Secretary of the Authority under its seal to the effect that a resolution has been duly adopted, and is in full force and effect. 
  
 (g) The permissive right of the Trustee to do things enumerated in this Agreement shall not be construed as a duty, and the Trustee shall not be
answerable for other than its gross negligence or willful misconduct. After the occurrence and during the continuance of a default 

  

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hereunder, in the exercise of such of the rights and powers vested in it by this Agreement, the Trustee shall use the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
  
 (h) The Trustee shall not be required to take notice or be deemed to have notice of any default hereunder except (i) failure by the Authority to
cause to be made any of the payments to the Trustee required to be made by Article V hereof and (ii) default of which the Trustee has actual knowledge, unless the Trustee shall be specifically notified in writing of such default by the
Authority or by the holders of at least 25% in aggregate principal amount of Bonds then Outstanding; and in the absence of such notice so delivered the Trustee may conclusively assume there is no default except as aforesaid. For the purposes hereof,
the Trustee shall not be deemed to have actual knowledge of any default or Event of Default unless a trust officer, assistant trust officer or other person charged with the administration of the obligations of the Trustee hereunder shall during the
course of his duties have actual knowledge thereof. 
  
 (i) The
Trustee shall not be personally liable for any debts contracted or for damages to persons or to personal property injured or damaged or for salaries or nonfulfillment of contracts during any period in which it may be in the possession of or managing
the real and tangible personal property as in this Agreement provided. 
  
 (j) The Trustee shall not be required to give any bond or surety in respect of the execution of the said trusts and powers or otherwise in respect of the premises. 
  
 (k) No provision of this Agreement shall require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers. The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it
against any loss, liability or expense, but the Trustee shall not require indemnity as a condition to making payment on the Bonds, provided that moneys are available for such purpose in the Bond Fund, or declaring the principal of and interest on
the Bonds to be due immediately under Section 10.02, or requesting payment under the Financial Guaranty Insurance Policy, or with respect to its duties under Section 5.07. 
  
 (l) All money received by the Trustee or any paying agent shall, until used or applied or invested as herein provided, be
held in trust for the purposes for which it was received but need not be segregated from other funds except to the extent required by this Agreement or by law. 
  

(m) The Trustee shall not be bound to make an investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties, but the Trustee, in its discretion, may make
such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine during normal business hours and upon reasonable
notice the books, records and premises of the Authority, personally or by agent or by attorney. 
  

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 (n) In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss
or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
  
 Section 11.02. Reimbursement of Administrative Expenses.

  
 (a) The Trustee, any paying agent, tender agent and
registrar shall be entitled to payment and/or reimbursement for Administrative Expenses, including such fees as shall be agreed in writing between the Company and the Trustee for their services rendered hereunder and all advances, counsel fees and
other expenses reasonably and necessarily made or incurred by them in connection with such services under this Agreement. The Trustee and any paying agent shall be entitled to payment and reimbursement for their reasonable fees and charges as paying
agents for the Bonds as hereinabove provided. Upon the occurrence of an Event of Default, but only upon an Event of Default, the Trustee and any paying agent shall have a first lien with right of payment prior to payment on account of interest or
principal of any Bond for the foregoing advances, fees, costs and expenses incurred by them, respectively, or any indemnification due, on moneys held by the Trustee hereunder, other than moneys held for the payment of Bonds which are deemed to have
been purchased or paid (including payment upon acceleration of maturity) under the terms of this Agreement. 
  
 (b) All fees, charges and other compensation to which the Trustee, any paying agent, tender agent or registrar may be entitled under the provisions of
this Agreement are required to be paid by the Company, and, accordingly, the Authority shall not be liable in any respect to indemnify such entities for fees, charges and other compensation to which they may be entitled and, by acceptance of the
trusts hereunder, each entity shall be deemed to have agreed to the foregoing. 
  
 (c) The provisions of this Section shall survive the termination of this Agreement. 
  
 Section 11.03. Notice of Defaults. If an Event of Default occurs and is continuing, the Trustee will mail, first class,
postage prepaid, notice of the Event of Default to the Bondholders and the Bond Insurer as promptly as practicable after the Trustee has knowledge of the Event of Default. The Trustee shall not be deemed to have knowledge of any event which, with
the giving of notice or lapse of time or both, would be an Event of Default or of any Event of Default, except an Event of Default pursuant to Section 10.01(a), Section 10.01(b), or Section 10.01(c), unless a responsible
representative of the Trustee receives written notice of such event or Event of Default. 
  
 Section 11.04. Trustee’s Right To Intervene; First Mortgage Bonds. 
  
 (a) In any judicial proceedings to which the Authority is a party and which in the opinion of the Trustee and its counsel has a substantial bearing on the
interests of the Bondholders, the Trustee may intervene on behalf of Bondholders and shall do so if requested in writing by the holders of at least 25% of the aggregate principal amount of Bonds then outstanding. The rights and obligations of the
Trustee under this Section are subject to the approval of a court of competent jurisdiction. 
  

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 (b) Except as required to effect an assignment to a successor Trustee, the Trustee shall not sell, assign
or transfer any First Mortgage Bond, if any, and the Trustee is authorized to enter into an agreement with the Company to such effect, including a consent to the issuance of stop transfer instructions to the First Mortgage Trustee. 
  
 (c) If First Mortgage Bonds shall have been delivered in connection with the
Bonds, the Trustee, as a holder of such First Mortgage Bonds, shall attend any meeting of first mortgage bondholders under the First Mortgage as to which it receives due notice. Either at such meeting, or otherwise where consent of holders of first
mortgage bonds of the Company is sought without a meeting, the Trustee shall vote as such holder, or shall consent with respect thereto, proportionately with what the Trustee reasonably believes will be the vote or consent of all other holders of
first mortgage bonds of the Company then outstanding and eligible to vote or consent. 
  
 Notwithstanding the foregoing, the Trustee shall not vote as such holder in favor of, or give its consent to, any action which would materially adversely affect the interests of the Bondholders, except upon
notification by the Trustee to the Bondholders of such proposal and consent thereto of the holders of at least two-thirds (2/3) in aggregate principal amount of the Bonds then outstanding or, if such proposal would so affect the rights of some but
less than all the outstanding Bonds, the consent thereto of the holders of at least two-thirds (2/3) in aggregate principal amount of all Bonds so affected voting as a class. 
  
 Section 11.05. Successor Trustee Upon Merger, Etc. Any corporation or association into
which the Trustee may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from
any such conversion, sale, merger, consolidation or transfer to which it is a party, ipso facto, shall be and become successor Trustee hereunder and vested with all the trusts, powers, discretions, immunities, privileges and all other matters as was
its predecessor, without the execution or filing of any instrument or any further acts, deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding. The successor Trustee shall give the Authority, the
Company, the Remarketing Agent, the Auction Agent, each Broker-Dealer, the Bond Insurer, and each Bondholder written notice of its succession as successor Trustee promptly after such succession. 
  
 Section 11.06. Resignation of Trustee. A
Trustee and any successor Trustee may resign by giving 60 days’ written notice by first class mail to the Authority, the Company, the Remarketing Agent, the Auction Agent, each Broker-Dealer, the Bond Insurer, and each Bondholder as shown on
the records of the Trustee, prior to the date specified in such notice when such resignation shall take effect. Such notice to the Authority, the Company, the Remarketing Agent, the Auction Agent, the Bond Insurer, and each Bondholder may be served
personally or sent by registered mail or telegram. Such resignation shall take effect only upon the appointment of a successor or temporary Trustee by the Bondholders or by the Authority as hereinafter provided. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition, at the expense of the Company, any court of competent jurisdiction for the appointment
of a successor Trustee. 
  

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 Section 11.07. Removal of Trustee. The Trustee may be removed at any
time by an instrument or concurrent instruments in writing delivered to the Trustee, the Authority, the Company, the Remarketing Agent, the Auction Agent, each Broker-Dealer, and the Bond Insurer and signed by the owners of a majority in aggregate
principal amount of Bonds then outstanding. In addition, provided that no Event of Default, or event or circumstance which with the passage of time or the giving of notice could become an Event of Default, has occurred and is continuing, the Trustee
may be removed at any time by an instrument or concurrent instruments in writing delivered to the Authority, the Trustee, the Remarketing Agent, the Auction Agent, each Broker-Dealer, the Bond Insurer and the Bondholders and signed by the Company,
such removal to be effective only upon the acceptance of such appointment by a qualified successor Trustee in accordance with Section 11.09. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee
within 30 days after the giving of such notice of removal, the Trustee being removed may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 Section 11.08. Appointments of Successor
Trustee. In case the Trustee hereunder shall resign or be removed, or be dissolved, or shall be in the course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in the case it shall be taken under control of
any public officer or officers, or of a receiver appointed by a court, a successor may be appointed by the owners of a majority in aggregate principal amount of Bonds then outstanding, by an instrument or concurrent instruments in writing signed by
such owners, or by their attorneys in fact, duly authorized; provided, however, that in case of such vacancy the Company shall forthwith appoint a temporary successor Trustee to fill such vacancy until a successor Trustee shall be appointed
by the Bondholders in the manner above provided, and any such temporary successor Trustee as appointed by the Company shall immediately and without further act be superseded by the successor Trustee so appointed by such Bondholders. Every such
successor Trustee and temporary successor Trustee appointed pursuant to the provisions of this Section shall be a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such
laws to exercise corporate trust powers having a reported capital and surplus of not less than $100,000,000, subject to supervision or examination by federal or state authority, if there be such an institution willing, qualified and able to accept
the trust upon reasonable or customary terms. 
  
 Section 11.09. Acceptance by Successor Trustee. Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor and also to the Authority, the Company, the Remarketing
Agent, the Auction Agent, and the Bond Insurer an instrument in writing accepting such appointment hereunder, and thereupon such successor, without any further act, deed or conveyance, shall become fully vested with all the estates, properties,
rights, powers, trusts, duties and obligations of its predecessors; but such predecessor Trustee shall nevertheless, upon payment of its charges hereunder, on the written request of the Company, or of its successor, execute and deliver an instrument
transferring to such successor Trustee all the estate, properties, rights, powers and trusts, duties and obligations of such predecessor hereunder, and every predecessor Trustee shall deliver all securities and money held by it as Trustee hereunder
to its successor. Should any instrument in writing from the Company be required by a successor Trustee for more fully and certainly vesting in such successor the estate, rights, powers and duties hereby vested or intended to be vested in the
predecessor, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Company. 
  

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 Section 11.10. Reliance Upon Instruments. The resolutions, opinions,
certificates and other instruments provided for in this Agreement may be accepted by the Trustee as conclusive evidence of the facts and conclusions stated therein and shall be full protection and authority to the Trustee for the withdrawal of cash
hereunder, and the taking or omitting to take of any other action under this Agreement. 
  
 Section 11.11. Former Trustee No Longer Custodian or Paying Agent. Any Trustee which has resigned or been removed shall cease to be custodian of the funds and, if it has been so
appointed, paying agent, and the successor Trustee shall become such custodian, and a successor paying agent shall be appointed under Section 11.14. 
  
 Section 11.12. Directions From Company; Company May Perform. 
  
 (a) Whenever after a reasonable written request by the Company the Authority shall fail, refuse or neglect to give any
direction to the Trustee or to require the Trustee to take any other action which the Authority is required to have the Trustee take pursuant to the provisions of this Agreement, the Company instead of the Authority may give any such direction to
the Trustee or require the Trustee to take any such action, and the Trustee, upon receipt of proof of delivery of the request to the Authority and unless otherwise instructed by the Authority, is hereby irrevocably empowered and directed to accept
such direction from the Company as sufficient for all purposes of this Agreement. The Company shall have the right to cause the Trustee to comply with any of the Trustee’s obligations under this Agreement to the same extent that the Authority
is empowered so to do. 
  
 (b) The Authority and the Trustee
acknowledge that certain actions or failures to act by the Authority under this Agreement may create or result in a default hereunder. The Authority hereby agrees that the Company may perform any and all acts or take such action as may be necessary
for and on behalf of the Authority to prevent or correct said default, and the Trustee agrees that it shall take or accept such performance by the Company as performance by the Authority in such event. 
  
 Section 11.13. Trading in Bonds by Trustee, Paying
Agent, Tender Agent or Registrar. The Trustee, any paying agent, tender agent or registrar, in its individual capacity, may in good faith buy, sell, own, hold and deal in any of the Bonds issued hereunder, and may join in any action which
any Bondholders may be entitled to take with like effect as if it did not act in any capacity hereunder. The Trustee, any paying agent, tender agent or registrar, in its individual capacity, either as principal or agent, may also engage in or be
interested in any financial or other transaction with the Authority or the Company, and may act as depositary, trustee, or agent for any committee or body of Bondholders secured hereby or other obligation of the Authority as freely as if it did not
act in any capacity hereunder. 
  
 Section 11.14. Appointment of Separate Paying Agent and/or Tender Agent. If, at any time, the Securities Depository ceases to hold the Bonds, with the effect that the Bonds are no longer subject to the Book
Entry System, then the Authority and the Trustee, acting at the request of the Company, may appoint one or more banks or trust companies to act as paying agent and/or tender agent for the Bonds hereunder. Any such paying agent or tender agent shall
be a bank or trust company organized under the laws of the United States of America or any state thereof, shall 

  

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have a reported capital and surplus of at least $100,000,000 and a corporate trust office located in New York, New York at which Bonds may be presented for
payment or purchase and shall perform such duties and responsibilities as may be delegated to it hereunder. If such a paying agent or tender agent is appointed, then all references herein to the “Trustee” shall include such paying agent or
tender agent to the extent of the duties performed by such entity. 
  
 Section 11.15. Entities Serving in More Than One Capacity. Anything in this Agreement to the contrary notwithstanding, the same entity may serve hereunder as the Trustee, the paying agent, tender agent and
the registrar and in any other combination of such capacities, to the extent permitted by law. 
  
 Section 11.16. Duties of Remarketing Agent. Except as otherwise described herein, the Remarketing Agent will set the interest rates on the Bonds and perform the other duties provided
for in Section 3.02 and will remarket the Bonds as provided in Section 4.11, subject to any provisions of a remarketing agreement between the Company and the Remarketing Agent. The Remarketing Agent may for its own account or as broker or
agent for others deal in Bonds and may do anything any other Bondholder may do to the same extent as if the Remarketing Agent were not serving as such. 
  
 Section 11.17. Eligibility of Remarketing Agent. The Remarketing Agent shall be a bank, trust company or member of the
National Association of Securities Dealers, Inc. organized and doing business under the laws of the United States or any state or the District of Columbia, will have a combined capital stock, surplus and undivided profits of at least $15,000,000 as
shown in its most recently published annual report, will be a Participant in the Securities Depository and will be authorized by law to perform all the duties imposed upon it by this Agreement. Any Remarketing Agent shall be rated at least Baa3/P-3
or otherwise qualified by Moody’s or have an equivalent rating of another rating agency. 
  
 Section 11.18. Replacement of Remarketing Agent. The Remarketing Agent may resign by notifying the Authority, the Trustee and the Company. Such resignation will take effect on the day
a successor Remarketing Agent appointed in accordance with this Section 11.18 has accepted the appointment. The Company may remove the Remarketing Agent at any time by an instrument signed by the Company and filed with the Remarketing Agent,
the Authority and the Trustee at least 30 days prior to the effective date of such removal (which will not in any event occur prior to the appointment of a successor Remarketing Agent). A new Remarketing Agent may be appointed by the Company upon
the resignation or removal of the Remarketing Agent. The Trustee shall promptly notify the Bondholders of any change in the Remarketing Agent. 
  
 Section 11.19. Compensation of Remarketing Agent. The Remarketing Agent will not be entitled to any compensation from the
Authority or the Trustee or to any property held under this Agreement but must make separate arrangements with the Company for compensation. 
  
 Section 11.20. Successor Remarketing Agent. If the Remarketing Agent consolidates with, merges or converts into, or
transfers all or substantially all its assets (or, in the case of a bank or trust company, its corporate trust assets) to another corporation, the resulting, surviving or transferee corporation without any further act shall be the successor
Remarketing Agent, provided that such successor shall be eligible under the applicable provisions in this Article. 
  

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 Section 11.21. Inapplicability of Provisions Relating to Remarketing
Agent. The provisions of this Agreement relating to the Remarketing Agent, including, but not limited to, Section 11.16, Section 11.17, Section 11.18, Section 11.19 and Section 11.20, shall not apply when the Bonds
are in an Auction Rate Period. 
  
 ARTICLE XII 

 
 AMENDMENT OF OR SUPPLEMENT TO THE AGREEMENT; RIGHTS OF BOND INSURER

  
 Section 12.01. Supplemental
Agreements Without Notice to or Consent of Bondholders. The Authority, the Company and the Trustee may without the consent of, or notice to, any of the Bondholders, enter into an agreement or agreements supplemental to this Agreement for any
one or more of the following purposes: 
  
 (a) to cure any
ambiguity, defect or omission in this Agreement, or otherwise amend this Agreement, in such manner as shall not in the opinion of the Trustee impair the security hereof; 
  
 (b) to grant to or confer upon the Trustee for the benefit of the Bondholders any additional rights, remedies, powers or
authorities that may lawfully be granted to or conferred upon the Bondholders or the Trustee; 
  
 (c) (i) to evidence any succession to the Authority and the assumption by its successor of the covenants, agreements and obligations of the Authority under this Agreement and the Bonds, (ii) to add
additional covenants of the Authority, or (iii) to surrender any right or power herein conferred upon the Authority; 
  
 (d) to subject to this Agreement additional revenues, properties or collateral, which may be accomplished by, among other things, entering into
instruments with the Company and/or other persons providing for further security, covenants, limitations or restrictions for the benefit of the Bonds; 
  
 (e) to modify, amend or supplement this Agreement or any Agreement supplemental hereto in such manner as may be required to permit the qualification
hereof and thereof under the Trust Agreement Act of 1939 or any similar federal statute hereafter in effect, and to add to this Agreement or any Agreement supplemental hereto such other terms, conditions and provisions as may be required by said
Trust Agreement Act of 1939 or similar federal statute; 
  
 (f) to
amend any provision pertaining to matters under Federal income tax laws, including Section 148(f) of the Code; 
  
 (g) to authorize different authorized denominations of the Bonds and to make correlative amendments and modifications to this Agreement regarding
exchangeability of Bonds of different authorized denominations, redemptions of portions of Bonds of particular authorized denominations and similar amendments and modifications of a technical nature; 
  

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 (h) to increase or decrease the number of days specified for the giving of notices in Section 4.06
and to make corresponding changes to the period for notice of mandatory tender of the Bonds; provided that no decreases in any such number of days shall become effective except while the Bonds bear interest at a Daily Rate or a Weekly Rate and until
30 days after the Trustee has given notice to the owners of the Bonds; 
  
 (i) to provide for an uncertificated system of registering the Bonds or to provide for the change to or from a Book Entry System for the Bonds; 
  
 (j) to evidence the succession of a new Trustee or the appointment by the Trustee or the Authority of a co trustee; 
  
 (k) to make any change related to the Bonds that does not materially
adversely affect the rights of any Bondholder; 
  
 (l) prior to,
or concurrently with, the conversion of the Bonds to an Auction Rate Period, to make any change appropriate or necessary with respect to the procedures, definitions or provisions herein or in Exhibit C hereto related to the Auction Mode Rate
in order to provide for or facilitate the marketability of Bonds in the Auction Mode Rate; and 
  
 (m) to make any other changes to this Agreement that take effect as to any or all remarketed Bonds following a mandatory tender. 
  

Section 12.02. Supplemental Agreements Requiring Consent of Bondholders. 
  
 (a) Exclusive of supplemental agreements covered by Section 12.01 and
subject to the terms and provisions contained in this Section, and not otherwise, the holders of not less than a majority in aggregate principal amount of the Bonds outstanding shall have the right, from time to time, to consent to and approve the
execution by the Company, the Authority and the Trustee of such other agreement or agreements supplemental hereto as shall be deemed necessary and desirable by the Trustee for the purpose of modifying, altering, amending, adding to or rescinding, in
any particular, any of terms or provisions contained in this Agreement or in any agreement supplemental hereto; provided, however, that nothing in this Section contained shall permit, or be construed as permitting (i) without
the consent of the holder of the affected Bond an extension of the maturity of the principal of or the interest on any Bond issued hereunder, or a reduction in the principal amount of, or redemption premium on, any Bond or the rate or rates of
interest thereon, or (ii) without the consent of the holders of all Bonds outstanding a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental agreement. 
  
 (b) If at any time the Company or the Authority shall request the Trustee to
enter into any such supplemental agreement for any of the purposes of this Section, the Trustee shall, upon being satisfactorily indemnified with respect to expenses, cause notice of the proposed execution of such supplemental agreement to be mailed
to the holder of each Bond at his address as it appears on the registration books hereinabove provided for. Such notice shall be prepared by the Company and shall briefly set forth the nature of the proposed supplemental agreement and shall state
that copies thereof are on file at the designated office of the Trustee for inspection by all Bondholders. If, within sixty (60) days or such longer period as shall be prescribed by the 

  

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Company following the mailing of such notice, the holders of the requisite aggregate principal amount of the Bonds outstanding at the time of the execution
of any such supplemental agreement shall have consented to and approved the execution thereof as herein provided, no holder of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or
in any manner to question the propriety of the execution thereof, or to enjoin or restrain the Trustee, the Company or the authority from executing the same or from taking any action pursuant to the provisions thereof. Upon the execution of any such
supplemental agreement as in this Section permitted and provided, this Agreement shall be and be deemed to be modified and amended in accordance therewith and without the necessity for notation on the outstanding Bonds. 
  
 Section 12.03. Reliance on Opinion of Counsel;
Favorable Opinion of Tax Counsel Required. The Trustee and the Authority are authorized to join in the execution and delivery of any supplemental agreement pursuant to Section 12.01 and Section 12.02 and in so doing they shall be
fully protected by an Opinion of Counsel that such supplemental agreement is so permitted and has been duly authorized by the Company, that all things necessary to make it a valid and binding supplemental agreement have been done and that upon
execution it will be valid and binding upon the Company and the Authority in accordance with its terms; provided, however, that neither the Trustee nor the Authority shall be required to enter into any supplemental agreement that it
reasonably deems to be prejudicial to its interests. Before the Authority and the Trustee shall enter into any supplemental agreement pursuant to Section 12.01 or Section 12.02 there shall have been delivered to the Authority, the Bond
Insurer and the Trustee a Favorable Opinion of Tax Counsel. 
  
 Section 12.04. Bond Insurer to Be Deemed Bondholder; Rights of Bond Insurer; Notices. Notwithstanding anything in this Agreement to the contrary, for so long as the Financial Guaranty Insurance Policy shall
be in full force and effect and provided that the Bond Insurer shall not have defaulted and is not continuing to default on its obligations under the Financial Guaranty Insurance Policy, (1) the Bond Insurer shall be deemed to be the sole owner
of all Bonds for all purposes of the provisions in this Agreement relating to default by the Company and actions for protection of the Bondholders and (2) the Bond Insurer shall be deemed to be the sole owner of all Bonds at all times for the
purpose of giving consent and direction when consent of the Bondholders is required by this Agreement, other than for the purpose of making amendments which pursuant to this Agreement require the unanimous written consent of the affected
Bondholders. Provided that the Bond Insurer has not failed to make a payment under the Financial Guaranty Insurance Policy, the following provisions shall apply with respect to the Bonds: 
  
 (a) Consent of the Bond Insurer. Any provision of this
Agreement expressly recognizing or granting rights in or to the Bond Insurer may not be amended in any manner which affects the rights of the Bond Insurer hereunder without the prior written consent of the Bond Insurer. The Bond Insurer reserves the
right to charge the Company a fee for any consent or amendment to the Agreement while the Financial Guaranty Insurance Policy is outstanding. 
  
 (b) Consent of the Bond Insurer in lieu of Bondholder Consent. Unless otherwise provided in this Section and except for a supplemental
agreement or amendment providing for a modification described in the proviso in Section 12.02(a), the Bond Insurer’s consent shall be 

  

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required in lieu of Bondholder consent, when required, for the following purposes: (i) execution and delivery of any supplemental agreement or any
amendment, supplement or change to or modification of this Agreement (ii) removal of the Trustee and selection and appointment of any successor trustee or paying agent, if any; and (iii) initiation or approval of any action not described
in (i) or (ii) above which requires Bondholder consent. 
  
 (c) Consent of the Bond Insurer in the Event of Insolvency. In the event of any reorganization or liquidation of the Company, the Bond Insurer shall have the right to vote on behalf of all Bondholders who hold the Bond
Insurer-insured Bonds with respect to any plan of reorganization or liquidation for the Company absent a default by the Bond Insurer under the applicable Financial Guaranty Insurance Policy insuring such Bonds. 
  
 (d) Consent of the Bond Insurer Upon Default. Anything in this
Agreement to the contrary notwithstanding, upon the occurrence and continuance of an Event of Default, the Bond Insurer shall be entitled to control and direct the enforcement of all rights and remedies granted to the Bondholders or the Trustee for
the benefit of the Bondholders under this Agreement, including, without limitation: (i) the right to accelerate the principal of the Bonds as described in this Agreement, and (ii) the right to annul any declaration of acceleration, and the
Bond Insurer shall also be entitled to approve all waivers of events of default. 
  
 (e) Acceleration Rights. Upon the occurrence of an Event of Default, the Trustee may, with the consent of the Bond Insurer, and shall, at the direction of the Bond Insurer or 25% of the
Bondholders with the consent of the Bond Insurer, by written notice to the Company and the Bond Insurer, declare the principal of the Bonds to be immediately due and payable, whereupon that portion of the principal of the Bonds thereby coming due
and the interest thereon accrued to the date of payment shall, without further action, become and be immediately due and payable, anything in this Agreement or in the Bonds to the contrary notwithstanding. 
  
 (f) Notices to be sent to the attention of the Surveillance
Department: 
  
 (1) While the Financial Guaranty
Insurance Policy is in effect, the Trustee shall furnish to the Bond Insurer, upon request, at the Company’s expense to the attention of the Surveillance Department, unless otherwise indicated, the following: 
  
 (i) a copy of any notice to be given to the registered owners of the Bonds,
including, without limitation, notice of any redemption of or defeasance of Bonds, and any certificate rendered pursuant to this Agreement relating to the security for the Bonds; and 
  
 (ii) such additional information the Bond Insurer may reasonably request. 
  
 (2) To the extent that the Company has entered into a continuing disclosure
agreement with respect to the Bonds, the Bond Insurer shall be included as party to be notified. 
  

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 (g) Notices to be sent to the attention of the General Counsel Office: 
  
 (1) The Trustee shall notify the Bond Insurer of any failure of the Company
to provide notices, certificates or other documents required to be delivered pursuant to this Agreement. 
  
 (2) Notwithstanding any other provision of this Agreement, the Trustee shall immediately notify the Bond Insurer if at any time there are insufficient
moneys to make any payments of principal and/or interest as required and immediately upon the occurrence of any Event of Default hereunder. 
  
 (h) Other Information to be given to the Bond Insurer. The Company will permit the Bond Insurer to discuss the affairs, finances and
accounts of the Company or any information the Bond Insurer may reasonably request regarding the security for the Bonds with appropriate officers of the Company. The Trustee or Company, as appropriate, will permit the Bond Insurer to have access to
the Project and have access to and to make copies of all books and records relating to the Bonds at any reasonable time. 
  
 The Bond Insurer shall have the right to direct an accounting at the Company’s expense, and the Company’s failure to comply with such direction
within thirty (30) days after receipt of written notice of the direction from the Bond Insurer shall be deemed a default hereunder; provided, however, that if compliance cannot occur within such period, then such period will be extended
so long as compliance is begun within such period and diligently pursued, but only if such extension would not materially adversely affect the interests of any registered owner of the Bonds. 
  
 (i) Trustee Related Provisions. 
  
 (1) The Trustee may be removed at any time, at the request of the Bond
Insurer, for any breach of the trust set forth herein. 
  
 (2) The
Bond Insurer shall receive prior written notice of any Trustee or any paying agent resignation. 
  
 (3) Every successor Trustee appointed pursuant to Section 11.08 shall be acceptable to the Bond Insurer. No paying agent shall be appointed pursuant
to Section 11.14 unless the Bond Insurer approves such appointment in writing. 
  
 (4) Notwithstanding any other provision of this Agreement, in determining whether the rights of the Bondholders will be adversely affected by any action taken pursuant to the terms and provisions of this Agreement,
the Trustee shall consider the effect on the Bondholders as if there were no Financial Guaranty Insurance Policy. 
  
 (5) Notwithstanding any other provision of this Agreement, no removal, resignation or termination of the Trustee or any paying agent shall take effect
until a successor, acceptable to the Bond Insurer, shall be appointed. 
  

 62 








 (j) The Bond Insurer As Third Party Beneficiary. To the extent that this Agreement confers
upon or gives or grants to the Bond Insurer any right, remedy or claim under or by reason of this Agreement, the Bond Insurer is hereby explicitly recognized as being a third-party beneficiary hereunder and may enforce any such right, remedy or
claim conferred, given or granted hereunder. 
  
 (k) Parties
Interested Herein. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon, or to give or grant to, any person or entity, other than the Company, the Trustee, the Bond Insurer, and the registered
owners of the Bonds, any right, remedy or claim under or by reason of this Agreement or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Agreement contained by and on behalf of the
Company shall be for the sole and exclusive benefit of the Company, the Trustee, the Bond Insurer and the registered owners of the Bonds. 
  
 ARTICLE XIII 
  
 DEFEASANCE 
  
 Section 13.01. Defeasance. If and when the Bonds secured hereby shall become due and payable in accordance with their terms or through redemption proceedings as provided in this Agreement, or otherwise, and
the whole amount of the principal, or Redemption Price and the interest so due and payable upon all of the Bonds shall be paid, or provision shall have been made for the payment of the same, together with all other sums payable under this Agreement
by the Company on behalf of the Authority, including all fees and expenses of the Trustee and the Authority, then and in that case, this Agreement and the lien created hereby shall be discharged and satisfied and the Authority shall be released from
the covenants, agreements and obligations contained in this Agreement, and the Trustee shall assign and transfer to or upon the order of the Company all property (in excess of the amounts required for the foregoing) then held by the Trustee free and
clear of any encumbrances and shall execute such documents as may be reasonably required by the Authority and the Company in this regard. 
  
 Subject to the provisions of the above paragraph, when any of the Bonds shall have been paid and if, at the time of such payment, all the covenants and
promises in such Bonds and in this Agreement required or contemplated to be kept, performed and observed by the Authority (or by the Company on behalf of the Authority) or on its part on or prior to that time, then this Agreement shall be considered
to have been discharged in respect of such Bonds and such Bonds shall cease to be entitled to the lien of this Agreement and such lien and all covenants, agreements and other obligations hereunder shall cease, terminate, become void and be
completely discharged as to such Bonds. 
  
 Notwithstanding the
satisfaction and discharge of this Agreement or the discharge of this Agreement in respect of any Bonds, those provisions of this Agreement relating to the maturity of the Bonds, interest payments and dates thereof, tender and exchange provisions,
exchange and transfer of Bonds, replacement of mutilated, destroyed, lost or stolen Bonds, the safekeeping and cancellation of Bonds, nonpresentment of Bonds and the duties of the Trustee in connection with all of the foregoing, and compliance with
the covenants contained in Section 8.07, shall remain in effect and shall be binding upon the Authority, the Trustee and the holders of the Bonds and 

  

 63 








 
the Trustee shall continue to be obligated to hold in trust any moneys or investments then held by the Trustee for the payment of the principal of,
Redemption Price of and interest on the Bonds, to pay to the Bondholders the funds so held by the Trustee as and when such payment becomes due. 
  
 Section 13.02. Bonds Deemed to Have Been Paid. Any outstanding Bond shall, prior to the maturity or redemption date
thereof, be deemed to have been paid within the meaning and with the effect expressed in Section 13.01 if (a) in case said Bonds are to be redeemed on any date prior to their maturity, the Company shall have given to the Trustee in form
satisfactory to the Trustee irrevocable instructions to mail, in accordance with the provisions of ARTICLE IV of this Agreement, notice of redemption of such Bonds on said Redemption Date, (b) there shall have been deposited with the Trustee
either moneys (insured at all times by the Federal Deposit Insurance Corporation or otherwise collateralized with Government Obligations), in an amount which shall be sufficient, or Government Obligations, the principal of and the interest on which
when due, and without any reinvestment thereof, will provide moneys which, together with the moneys, if any, deposited with or held by the Trustee at the same time, shall be sufficient (as verified by a report of an independent certified public
accountant), to pay when due the principal or Redemption Price (as applicable) of, and interest due and to become due on, said Bonds on and prior to the Redemption Date or Maturity Date thereof, as the case may be, and (c) in the event any of
said Bonds are not to be redeemed within the next succeeding sixty (60) days, the Company shall have given the Trustee in form satisfactory to the Trustee irrevocable instructions to mail, as soon as practicable in the same manner as a notice
of redemption is mailed pursuant to ARTICLE IV of this Agreement, a notice to the holders of such Bonds and to the Securities Depository and an Information Service that the deposit required by (b) above has been made with the Trustee and that
said Bonds are deemed to have been paid in accordance with this Section and stating such maturity or redemption dates upon which moneys are to be available for the payment of the principal or Redemption Price (as applicable) of said Bonds.
Neither the securities nor moneys deposited with the Trustee pursuant to this Section nor principal or interest payments on any such securities shall be withdrawn or used for any purpose other than, and shall be held in trust for, the payment
of the principal or Redemption Price (as applicable) of, and interest on said Bonds; provided that any cash received from such principal or interest payments on such obligations deposited with the Trustee, if not then needed for such purpose,
shall, to the extent practicable and consistent with the terms of this Agreement and any escrow agreement pertaining thereto, and at the written direction of the Company, be reinvested in Government Obligations maturing at times and in amounts,
together with the other moneys and payments with respect to Government Obligations then held by the Trustee pursuant to this Section, sufficient to pay when due the principal or Redemption Price (as applicable) of, and interest to become due on said
Bonds on and prior to such Redemption Date or Maturity Date, as the case may be, and interest earned from such reinvestments shall, upon receipt by the Trustee of a written direction of a Company Representative, be paid over to the Company, as
received by the Trustee, free and clear of any trust, lien or pledge. 
  
 Any release under this Section shall be without prejudice to the right of the Trustee to be paid the agreed upon compensation for all services rendered by it under this Agreement and all its reasonable expenses, charges and other
disbursements and those of its attorneys, agents and employees, incurred on and about the administration of trusts by this Agreement created and the performance of its powers and duties under this Agreement; provided, however, that the
Trustee shall have no right, title or interest in, or lien on, any moneys or securities deposited pursuant to this ARTICLE XIII. 
  

 64 








 Section 13.03. Moneys Held for Particular Bonds. Except as otherwise
provided in Section 13.02, the amounts held by the Trustee for the payment of the interest, principal, or Redemption Price due on any date with respect to particular Bonds shall, on and after such date and pending such payment, be set aside on
its books and held in trust by it for the holders of the Bonds entitled thereto. 
  
 Section 13.04. Insured Bonds; Defeasance. Notwithstanding anything herein to the contrary, in the event that the principal and/or interest due on the Bonds shall be paid by the Bond
Insurer pursuant to the Financial Guaranty Insurance Policy, the Bonds shall remain outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by and the assignment and pledge of the Revenues and Funds and all
rights to receive them, and all covenants, agreements and other obligations under this Agreement to the registered owners shall continue to exist and shall run to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the
rights of such registered owners. 
  
 ARTICLE XIV

  
 MISCELLANEOUS 
  
 Section 14.01. Benefits of This Agreement Limited to
Parties. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon, or to give to, any person other than the Company, the Authority, the Trustee, the Remarketing Agent, the Auction Agent, the
Broker-Dealers, the Bond Insurer, the Indemnified Persons and the holders of the Bonds, including their respective agents, any right, remedy or claim under or by reason of this Agreement or any covenant, condition or stipulation hereof. All the
covenants, stipulations, promises and agreements in this Agreement contained by or on behalf of the Authority shall be for the sole benefit of the Trustee, the Remarketing Agent, the Auction Agent, the Bond Insurer, the Company and the holders of
the Bonds, including their respective agents. 
  
 Section 14.02. No Recourse Against Authority. No recourse under or upon any obligations, covenants or agreement of this Agreement, or of any Bond, or in any way based thereon or otherwise in respect thereof,
shall be had against any past, present or future member or officer, as such, of the Authority or any successor body politic, either directly or through the Authority, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability being hereby expressly waived and released as a conclusion of and as consideration for, the execution of this Agreement and the issue of the Bonds. 
  
 Section 14.03. Successor Deemed Included in All
References to Predecessor. Whenever the Bond Insurer, the Authority, the Company, the Remarketing Agent, the Auction Agent or the Trustee or any officer thereof is named or referred to herein, such reference shall be deemed to include the
successor to the powers, duties and functions that are presently vested in the Bond Insurer, the Authority, the Company, the Remarketing Agent, the Auction Agent or the Trustee or such officer, and all agreements, conditions, covenants and terms
contained herein required to be 

  

 65 








 
observed or performed by or on behalf of the Bond Insurer, the Authority, the Company, the Remarketing Agent, the Auction Agent or the Trustee or any officer
thereof shall bind and inure to the benefit of the respective successors thereof whether so expressed or not. 
  
 Section 14.04. Extent of Covenants; No Personal Liability. All covenants, stipulations, obligations and agreements of the
Authority contained in this Agreement are and shall be deemed to be subject to the limitations set forth in Section 14.02 hereof. No covenant, stipulation, obligation or agreement of the Authority contained in this Agreement shall be deemed to
be a covenant, stipulation, obligation or agreement of any present or future member, officer, agent or employee of the Authority in other than that person’s official capacity. Neither the members of the Authority nor any official executing the
Bonds, this Agreement, or any amendment or supplement hereto or thereto shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance or execution hereof or thereof. 
  
 Section 14.05. Notices. 
  
 (a) All notices, certificates, requests, complaints, demands, consents and
other communications hereunder shall be deemed sufficiently given or filed for all purposes of this Agreement if and when sent by registered mail, return receipt requested, or by telecopy, promptly confirmed in writing: 
  
 to the Authority, if addressed to the: 
  
 Hillsborough County Industrial Development Authority 
 c/o Morrison & Mills, P.A. 
 1200
West Platt Street, Suite 100 
 Tampa, Florida 33606, 
 Attention: Thomas Morrison, Esq. 
 Telecopy No. 813-258-3209 
  
 to the Company, if addressed to: 
  
 Tampa Electric Company 
 Post Office Box 111 
 Tampa, Florida 33601

 Attention: Corporate Secretary 
 Telecopy No. 813-228-1328 
  
 to the Trustee, if
addressed to: 
  
 The Bank of New York Trust Company, N.A.

 10161 Centurion Parkway 
 Jacksonville, Florida 32256 
 Attention: Corporate Trust Department 
 Telecopy No. 904-645-1997 
  

 66 








 to the Bond Insurer, if addressed to: 
  
 Ambac Assurance Corporation 
 One State Street Plaza, 15th Floor 
 New York, New York 10004 
 Attention:
Surveillance Department 
 (or to General Counsel Office when specified in Section 12.04(g)) 

			
	 Telecopy No.
	  	212-480-3682 (Surveillance Department)
	 	  	 212-208-3558 (General Counsel Office)


  
 or, as to all of the foregoing, to
such other address as the addressee shall have indicated by prior written notice to the one giving notice. All notices to a Bondholder shall be in writing and shall be deemed sufficiently given if sent by mail, postage prepaid, to the Bondholder at
the address shown on the registration books for the Bonds maintained by the Trustee. A Bondholder may direct the Trustee to change its address as shown on the registration books by written notice to the Trustee. 
  
 (b) Notice hereunder may be waived prospectively or retrospectively by the
Person entitled to the notice, but no waiver shall affect any notice requirement as to other Persons. 
  
 (c) All documents received by the Trustee under the provisions of this Agreement, or photographic copies thereof, shall be retained in its possession
until this Agreement shall be released under the provision of this Agreement, subject at all reasonable times to the inspection of the Authority, the Company, any Bondholder and any agent or representative thereof. 
  
 Section 14.06. Notices to Rating Agencies.
Written notice shall be provided by the Trustee to Moody’s, S&P and Fitch of (i) the appointment of any successor Trustee or Remarketing Agent, (ii) any amendment or supplement to this Agreement or Financial Guaranty Insurance
Policy, (iii) the payment of all principal, interest and premium, if any, on all of the Bonds, (iv) any change in the Determination Method of the Bonds, and (v) any mandatory tender or acceleration of the Bonds. 
  
 Section 14.07. Funds. Any Fund required to be established
and maintained herein by the Trustee may be established and maintained in the account records of the Trustee either as an account or a fund, and may, for the purpose of such accounting records, any audits thereof and any reports or statements with
respect thereto, be treated either as an account or a fund; but all such records with respect to all such Funds shall at all times be maintained in accordance with sound industry practice and with due regard for the protection of the security of the
Bonds and the rights of the Bondholders. 
  
 Section 14.08. Severability. In case any Section or provision of this Agreement, or any covenant, agreement, stipulation, obligation, act or action, or part thereof, made, assumed, entered into or taken
under this Agreement, or any application thereof, is held to be illegal or invalid for any reason, or is inoperable at any time, that illegality, invalidity or inoperability shall not affect the remainder thereof or any other Section or
provision of this Agreement or any other covenant, agreement, stipulation, obligation, act or action, or part thereof, made, assumed, entered into or taken under this Agreement, all of which shall be construed and enforced at the time as if the
illegal, invalid or inoperable portion were not contained therein. 
  

 67 








 Any illegality, invalidity or inoperability shall not affect any legal, valid and operable section,
provision, covenant, agreement, stipulation, obligation, act, action, part or application, all of which shall be deemed to be effective, operative, made, assumed, entered into or taken in the manner and to the full extent permitted by law from time
to time. 
  
 Section 14.09. Florida Law
to Govern. This Agreement and each Bond shall be deemed to be a contract made under the laws of the State and for all purposes shall be construed in accordance with the laws of the State. 
  
 Section 14.10. Instruments of Bondholders.
Any writing including, without limitation, any consent, request, direction, approval, objection or other instrument or document, required under this Agreement to be executed by any Bondholder may be in any number of concurrent writings of similar
tenor and may be executed by that Bondholder in person or by an agent or attorney appointed in writing. Proof of (i) the execution of any writing including, without limitation, any consent, request, direction, approval, objection or other
instrument or document, (ii) the execution of any writing appointing any agent or attorney, and (iii) the ownership of Bonds, shall be sufficient for any of the purposes of this Agreement, if made in the following manner, and if so made,
shall be conclusive in favor of the Trustee with regard to any action taken thereunder, namely: 
  
 (a) The fact and date of the execution by any individual of any writing may be proved by the certificate of any officer in any jurisdiction, who has power
by law to take acknowledgments within that jurisdiction, that the individual signing the writing acknowledged that execution before that officer, or by affidavit of any witness to that execution; and 
  
 (b) The fact of ownership of Bonds shall be proved by the register maintained
by the Trustee. 
  
 Nothing contained herein shall be construed to
limit the Trustee to the foregoing proof, and the Trustee may accept any other evidence of the matters stated therein which it deems to be sufficient. Any writing including, without limitation, any consent, request, direction, approval, objection or
other instrument or document, of the holder of any Bond shall bind every future holder of the same Bond, with respect to anything done or suffered to be done by the Authority or the Trustee pursuant to that writing. 
  
 Section 14.11. Priority of this Agreement.
This Agreement shall be superior to any liens which may be placed upon the Revenues or any other funds or accounts created pursuant to this Agreement. 
  
 Section 14.12. Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the Authority, the
Company and the Trustee and their respective successors and assigns, subject to the limitations contained herein. 
  

 68 








 Section 14.13. Payments Due or Other Actions on Nonbusiness Days. 
  
 (a) If the date for any payment on the Bonds at a place of payment shall be
other than a Business Day, then payment shall be made on the next succeeding Business Day, and no interest shall accrue for the intervening period other than as specifically provided for herein. 
  
 (b) Unless otherwise noted in this Agreement, in the event that any day on
which any act or function is to be performed or done, other than payment on the Bonds, is not a Business Day, such act or function shall be done or performed on the next succeeding Business Day. 
  
 Section 14.14. Counterparts. This Agreement
may be executed and delivered in any number of counterparts, each of which shall be deemed to be an original, but such counterparts together shall constitute one and the same instrument. 
  
 Section 14.15. Waiver of Jury Trial. EACH OF THE AUTHORITY, THE COMPANY AND THE TRUSTEE HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE BONDS OR THE TRANSACTION CONTEMPLATED HEREBY. 
  
 Section 14.16. Force Majeure. In no event
shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it
being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 
  

 69 








 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first above
written. 
  

									
	(Official Seal)	 	 	 	HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY
				
	Attest:	 	 	 	 	 	 
					
	By:	 	 /s/ Earl Haugebook

	 	 	 	By:	 	 /s/ Mike D. Luetgert


	 	 	Earl Haugebook	 	 	 	 	 	Mike D. Luetgert
	 	 	Secretary	 	 	 	 	 	Chairman
				
	 	 	 	 	 	 	Approved by General Counsel to the Hillsborough County Industrial Development Authority as to Form and Legal Sufficiency:
				
	 	 	 	 	 	 	 /s/ Thomas K. Morrison


	 	 	 	 	 	 	Thomas K. Morrison, Esq.
				
	 	 	 	 	 	 	TAMPA ELECTRIC COMPANY
					
	 	 	 	 	 	 	By:	 	 /s/ Gordon L. Gillette


	 	 	 	 	 	 	Name:	 	Gordon L. Gillette
	 	 	 	 	 	 	Title:	 	Senior Vice President – Finance and Chief Financial Officer
				
	 	 	 	 	 	 	 THE BANK OF NEW YORK TRUST COMPANY, N.A.
 As
Trustee

					
	 	 	 	 	 	 	By:	 	 /s/ Barbara B. Buck


	 	 	 	 	 	 	Name:	 	Barbara B. Buck
	 	 	 	 	 	 	Title:	 	Vice President

  
 Signature Page of
Loan and Trust Agreement S-1 








			
	STATE OF FLORIDA	 	)
	 	 	) ss.:
	COUNTY OF HILLSBOROUGH	 	)

  
 The foregoing
instrument was acknowledged before me on January 17, 2006, by Mike D. Luetgert, personally known to me, the Chairman of the HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY, the public body corporate and politic and public instrumentality
described in and which executed the above instrument. 
  

	
	 /s/ Thomas K. Morrison


	Notary Public
	My commission expires: March 1, 2006


  
 NOTARIAL SEAL 
  

			
	STATE OF FLORIDA	 	)
	 	 	) ss.:
	COUNTY OF HILLSBOROUGH	 	)

  
 The foregoing
instrument was acknowledged before me on January 17, 2006, by Earl Haugebook, personally known to me, the Secretary of the HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY, the public body corporate and politic and public instrumentality
described in and which executed the above instrument. 
  

	
	 /s/ Thomas K. Morrison


	Notary Public
	My commission expires: March 1, 2006


  
 NOTARIAL SEAL 
  

			
	STATE OF FLORIDA	 	)
	 	 	) ss.:
	COUNTY OF HILLSBOROUGH	 	)

  
 The foregoing
instrument was acknowledged before me on January 19, 2006, by Gordon L. Gillette, personally known to me, the Senior Vice President – Finance and Chief Financial Officer of TAMPA ELECTRIC COMPANY, on behalf of said corporation. 

 

	
	 /s/ Denise A. Millovitch


	Notary Public
	My commission expires: December 7, 2009


  
 NOTARIAL SEAL 
  
 Signature Page of Loan and Trust
Agreement S-1 








			
	STATE OF FLORIDA	 	)
	 	 	) ss.:
	COUNTY OF DUVAL	 	)

  
 The foregoing
instrument was acknowledged before me on January 17, 2006, by Barbara Buck, personally known to me, a Vice President of THE BANK OF NEW YORK TRUST COMPANY, N.A., the national banking association described in and which executed the above
instrument on behalf of said national banking association. 
  

	
	 /s/ Roxanne R. Shaw


	Notary Public
	My commission expires: March 20, 2009


  
 NOTARIAL SEAL 
  
 Signature Page of Loan and Trust
Agreement S-1 







 Exhibit A 
  

Description of the Project 
  
 The following pollution control facilities acquired, constructed and installed at Unit No. 4 of the Big Bend Station of the Company in Hillsborough County, Florida,
more particularly described as follows: 
  
 A. Electrostatic
Precipitator 
  
 Particulate control for Big Bend Unit No. 4
will be accomplished by the use of a rigid frame electrostatic precipitator. The Precipitator is designed for a 99.7+% particulate removal efficiency and includes the following associated equipment: ductwork and breaching, structural steel,
foundations, pilings, hoppers/hopper heat tracing and electrical power and control devices. 
  
 1. Precipitator Flyash Storage Silo 
  
 This silo is a cylindrical tank supported by structural steel columns. The associated equipment includes bag filter, vent controls, weigh scale, pumps, supporting structural steel, foundations and piling. 
  
 2. Storage Ponds 
  
 Earthen storage ponds with dikes to a maximum elevation of 35 feet will be
provided for the storage of flyash in the event flyash cannot be marketed. These ponds will be lined to protect the ground water systems from leachate. 
  
 3. Piping 
  
 This item consists of the necessary piping, pumps and controls to convey the precipitator flyash from the precipitator hoppers by way of a dry vacuum
system to the flyash silo. From dry flyash silo, flyash is transported wet by way of piping to the above noted flyash storage ponds. 
  
 B. Bottom Ash Removal 
  
 1. Hoppers 
  
 Steel hoppers collect ash which falls out the bottom of the pulverized fuel furnace. Included with the bottom ash hopper are the necessary structural
steel supports, foundations, pilings and associated electrical controls. 
  
 2. Pond 
  
 Bottom ash storage
ponds are provided for storage of the collected bottom ash. The initial or primary settling pond receives the water from the ash hoppers. This water is then 

  

 A-1 








 
decanted and recycled to the plant for reuse. After the primary ponds are filled, they will be hydraulically dredged to a more permanent long-term storage
pond. The primary decanting or settling receiving ponds will be lined; the larger more permanent bottom ash storage pond will be unlined. 
  
 3. Piping 
  
 This item includes the necessary piping to sluice the bottom ash slurry from the hoppers to the bottom ash receiving ponds. Also included are the piping
and pumps required to return the water to the plant for reuse in this ash system. 
  
 D. Flue Gas Desulfurization System (FGD System) 
  
 1. Description of System 
  
 The
type of FGD System selected for Big Bend Unit No. 4 is a two stage forced oxidation limestone regenerable system designed to have an efficiency between eighty-five to ninety percent (85%-90%). The FGD System consists of three (3) modules
with one (1) spare. The modules will consist of booster fans, quenchers, absorbers, absorber feed tank, associated piping and pumps. Reheat fans and a reheater are provided to reheat the exiting gas flow from the FGD System to provide the
necessary buoyancy and drying requirements for the exiting stack gas. 
  
 2. Limestone Preparation 
  
 Included with the FGD
System are the raw limestone facilities required for receiving, unloading, grinding, preparation and transfer of limestone to the FGD System proper. The limestone unloading and handling system includes all necessary controls, structural supports,
foundations and piling required. 
  
 3. FGD Waste Handling

  
 Another major portion of the FGD System is the waste handling
facility. This system includes a building which houses the necessary dewatering, separation, treatment equipment and is for processing the gypsum waste from the FGD System, plus transfer facilities for moving the gypsum from the waste handling
building to the on-site storage area. This area includes a stacking system and the necessary ponding and containment ditches for the gypsum pile runoff. 
  
 E. Liquid Waste Treatment 
  
 The waste treatment system for Big Bend Unit No. 4 will be an extension of the existing waste treatment systems for Big Bend Unit Nos. 1, 2 and 3.
The floor drains are collected and transferred to a common reinforced concrete transfer sump with all necessary pumping and piping and then transported to an existing settling pond before return to the plant for use as recycle water for equipment
wash down. 
  

 A-2 








 F. Fine Mesh Screens 
  
 Fine mesh traveling water screens and associated equipment will be installed in the circulating water system to remove small
marine organisms from the circulating water system. The caught organisms will be collected with a low pressure screenwash and returned via a flume to Tampa Bay. 
  

G. Sanitary Waste Streams 
  
 Additional sanitary water treatment capacity will be installed with Unit No 4. The discharge from this system will be piped to the waste water transfer
pump described above. 
  
 H. Coal Pile Runoff System Modifications

  
 The existing coal pile runoff collection system will be
modified so as to collect the runoff from the extended and modified coal handling and blending system. The collected runoff water will be monitored prior to returning this water to the bay. 
  
 I. Dust Suppression Equipment 
  
 Dust suppression equipment will be provided at all major transfer points in
the newly installed coal handling and blending system. This suppression equipment will consist of either water sprays and/or vacuum type bag filters. A dust suppression system will also be included in the tripper room over the top of the blending
bins. 
  
 In addition, the following property
(the 1974 Improvements): 
  

					
	 	 	 Project Components

	 	 Properties of the Company
 in or on which Component is Located


	1.	 	Upgrading Electrostatic Precipitator, Unit No. 1	 	Big Bend Station
			
	2.	 	Upgrading Electrostatic Precipitator, Units Nos. 5 and 6	 	Gannon Station
			
	3.	 	Electrostatic Precipitator, Unit Nos. 2 and 3	 	Big Bend Station
			
	4.	 	Ash Reinjection Equipment, Unit No. 3	 	Big Bend Station
			
	5.	 	Ash Silos and Associated Ash Handling Equipment, Units Nos. 1, 2 and 3	 	Big Bend Station
			
	6.	 	Sanitary System (extended aeration package treatment plant), Units Nos. 1, 2 and 3	 	Big Bend Station
			
	7.	 	Circulating Cooling Water Dilution Systems, Units Nos. 1 and 2	 	Big Bend Station
			
	8.	 	Once-Through Cooling Water Dilution System, Unit No. 3	 	Big Bend Station
			
	9.	 	 Waste Treatment and Collection Equipment (excluding Waste Neutralization System),
 Units Nos. 1, 2 and 3
	 	Big Bend Station
			
	10.	 	Waste Treatment and Collection Equipment	 	Gannon Station
			
	11.	 	Waste Treatment and Collection Equipment	 	Hooker’s Point Station
			
	12.	 	Waste Neutralization System (treatment of excess acid and base), Unit No. 3	 	Big Bend Station

  

 A-3 








 Exhibit B 
  

Form of Bond 
  
 Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the
Authority or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), any transfer, pledge or other use hereof for value or otherwise by or to any person is wrongful inasmuch as the registered owner hereof,
Cede & Co. has an interest herein. 
  

			
	REGISTERED	  	REGISTERED
	No. R-            	  	 

  
 UNITED STATES OF
AMERICA 
 HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 
 POLLUTION CONTROL REVENUE REFUNDING BOND 
 (TAMPA ELECTRIC COMPANY PROJECT),

 SERIES 2006 
  

					
	 MATURITY DATE

	  	 DATED DATE

	  	 CUSIP


	December 1, 2034	  	                    , 2006	  	_______

  

	Registered	Owner: CEDE & CO. 

  
 Principal Amount: $
                     
  
 The Hillsborough County Industrial Development Authority, a public body corporate and politic and a public instrumentality created pursuant to the laws of
the State of Florida (the “Authority”), for value received, hereby promises to pay, solely from the sources described in this Bond, to the Registered Owner identified above, or registered assigns, on the Maturity Date stated above
(or if this Bond is called for earlier redemption as described herein, on the redemption date) the principal amount identified above and to pay interest as provided in this Bond. 
  
 THIS BOND AND THE PREMIUM, IF ANY, AND THE INTEREST HEREON SHALL NOT BE DEEMED TO CONSTITUTE A DEBT, LIABILITY OR OBLIGATION
OF ANY AUTHORITY OR COUNTY OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, INCLUDING, WITHOUT LIMITATION, THE AUTHORITY AND HILLSBOROUGH COUNTY, FLORIDA. NEITHER ANY AUTHORITY OR COUNTY NOR THE STATE OF
FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, SHALL BE OBLIGATED TO PAY THIS BOND OR THE PREMIUM, IF ANY, OR INTEREST HEREON EXCEPT FROM THE PAYMENTS FROM THE COMPANY, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER
OF ANY AUTHORITY OR COUNTY, INCLUDING WITHOUT LIMITATION, THE AUTHORITY AND HILLSBOROUGH COUNTY, OR OF THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, 

  

 B-1 








 
AGENCY OR INSTRUMENTALITY THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THIS BOND. THE AUTHORITY HAS NO TAXING
POWER. 
  
 1. Agreement. This Bond is one of the
Hillsborough County Industrial Development Authority Pollution Control Revenue Refunding Bonds (Tampa Electric Company Project), Series 2006 (the “Bonds”), limited to $85,950,000 in principal amount, issued under and pursuant to the
Constitution of the State of Florida, the Florida Industrial Development Financing Act, Parts II and III of Chapter 159, Florida Statutes, a resolution of the Board of County Commissioners of Hillsborough County, Florida adopted October 27,
1971 organizing the Authority, and other applicable provisions of law (the “Act”), the Loan and Trust Agreement dated as of January 5, 2006 (the “Agreement”), among the Authority, Tampa Electric Company, a
Florida corporation (the “Company”), and The Bank of New York Trust Company, N.A., trustee (the “Trustee”), and a resolution duly enacted by the Authority. The terms of the Bonds include those in the Agreement and
those contained herein. Bondholders are referred to the Agreement for a statement of certain of those terms. When used with reference to the Bonds, the term “principal” includes any premium payable on those Bonds. Capitalized terms used
herein and not otherwise defined shall have the meanings ascribed to them in the Agreement. 
  
 The proceeds of the Bonds will be used to refinance a portion of the cost of acquiring, constructing and installing certain air and water pollution and waste control facilities including any structures, machinery,
fixtures, improvements and equipment, at the Big Bend Station, the F.J. Gannon Station and Hookers Point Station of the Company, located in Hillsborough County, Florida, together with all additions thereto, substitutions therefor and deletions
therefrom, as they may at any time exist. (collectively, as more fully defined in the Agreement, the “Project”). The principal of and any premium and interest (the “Bond Service Charges”) on the Bonds are payable
solely from the Revenues, as defined and as provided for in the Agreement (being, generally, any amounts payable with respect to Bond Service Charges, and any investments and moneys in the Bond Fund created in the Agreement, and all income and
profit from the investment of the foregoing moneys), and are an obligation of the Authority only to the extent of the Revenues. 
  
 Under the Agreement, the Company is required to make payments to the Trustee in the amounts and at the times necessary to pay the Bond Service Charges on
the Bonds when due, whether at maturity, upon redemption or acceleration or otherwise until paid in full. Pursuant to the Agreement, the Authority has assigned or granted a security interest to the Trustee in all right, title and interest of the
Authority in and to (i) the Revenues, (ii) all rights to receive such Revenues and the proceeds of such rights, and all other rights and interests of the Authority provided under the Agreement, except for certain rights to reimbursement
and indemnity as defined in the Agreement. 
  
 The Agreement may
be amended or supplemented as provided by its terms, and references to it include any amendments or supplements. 
  
 The Authority has established a book-entry only system of registration for the Bonds (the “Book-Entry System”). Except as specifically
provided otherwise in the Agreement, a Securities Depository (or its nominee) will be the registered owner of this Bond. By acceptance 

  

 B-2 








 
of a confirmation of purchase, delivery or transfer, the Beneficial Owner (if any) of this Bond shall be deemed to have agreed to this arrangement. If the
Securities Depository (or its nominee) is the registered owner of this Bond, it shall be treated as the owner of it for all purposes. 
  
 2. Source of Payments. THIS BOND IS PAYABLE BOTH AS TO PRINCIPAL AND INTEREST SOLELY OUT OF THE ASSETS OF THE AUTHORITY PLEDGED THERETO AS
DESCRIBED HEREIN. Payments under the Agreement sufficient for the prompt payment when due of the principal of and premium, if any, and interest on, and any other amounts due with respect to, the Bonds are to be paid to the Trustee by the Company for
the account of the Authority and deposited in a special trust account created by the Authority and have been duly pledged and assigned for that purpose. 
  
 3. Interest Rate. Interest on this Bond will be paid at the lesser of (a) a Daily Rate, a Weekly Rate, a Commercial Paper Rate, a Long-Term
Interest Rate or an Auction Mode Rate as selected by the Company and as determined in accordance with the Agreement and (b) 14% per annum. Interest will initially be payable at an Auction Mode Rate determined in accordance with the
Agreement. The Company may change the Determination Method from time to time. A change in the Determination Method will result in mandatory tender of the Bonds (see “Mandatory Tender for Purchase” in paragraph 7 below). 

 
 When interest is payable at a Daily Rate, Weekly Rate or Commercial Paper
Rate, it will be computed on the basis of the actual number of days elapsed over a year of 365 days (366 days in leap years), when payable at an Auction Mode Rate, on the basis of the actual number of days over 360 days (during Auction Periods of
180 days or less) and on the basis of a 360-day year of twelve 30-day months (during Auction Periods greater than 180 days), and when payable at a Long Term Interest Rate, on the basis of a 360-day year of twelve 30-day months. Interest on overdue
principal and, to the extent lawful, on overdue premium and interest will be payable as provided in the Agreement. 
  
 4. Interest Payment and Record Dates. Interest will accrue on the unpaid portion of the principal of this Bond from the Dated Date stated above and
thereafter from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication hereof to which interest has been paid or duly provided for, unless the date of authentication hereof is an Interest Payment Date to which
interest has been paid or duly provided for, in which case from the date of authentication hereof, or unless no interest has been paid or duly provided for on the Bonds of this series, in which case from the Dated Date; provided,
however, that if the date of authentication is between the Record Date (as hereinafter defined) for any Interest Payment Date and such Interest Payment Date, then interest will accrue from such Interest Payment Date or, if the Company shall
default in payment of the interest due on such Interest Payment Date, then from the next preceding Interest Payment Date to which interest has been paid or duly provided for, or if no interest has been paid or duly provided for, then from the Dated
Date. 
  
  

 B-3 








 When interest is payable at the rate in the first column below, interest accrued during the period (an
“Interest Period”) shown in the second column will be paid on the date (an “Interest Payment Date”) in the third column to holders of record on the date (a “Record Date”) in the fourth column:

  

							
	 RATE

	 	 INTEREST PERIOD

	 	 INTEREST
 PAYMENT DATE

	 	 RECORD DATE


	Daily*	 	Interest Payment Date to Interest Payment Date	 	First Business Day of the next month	 	Last Business Day before Interest Payment Date
				
	Weekly*	 	Interest Payment Date to Interest Payment Date	 	First Business Day of the next month	 	Last Business Day before Interest Payment Date
				
	Commercial Paper	 	From 1 to 270 days as determined for each Bond pursuant to the Agreement (“Commercial Paper Period”)	 	Day after the last day of Commercial Paper Period	 	Last Business Day before Interest Payment Date
				
	Long-Term**	 	270 days or longer	 	Each first day of each sixth calendar month after effective date of Long-Term Interest Rate	 	Fifteenth of the month before the Interest Payment Date***
				
	Auction Mode	 	From 1 day to 5 years as determined for each Bond pursuant to the Agreement	 	The Business Day immediately following each Auction Period, and, in addition, for an Auction Period of 92 or more days, each 13th Wednesday after the first day of such Auction Period****	 	The second Business Day preceding an Interest Payment Date therefor



	*	If there shall be a change from a Daily Rate or a Weekly Rate on a day other than the first Business Day of a calendar month, the then current Interest Period relating to such Daily
Rate or Weekly Rate shall end on the day immediately preceding the date on which the new interest rate on the Bonds shall become effective, which date in the case of a change from a Daily Rate or a Weekly Rate, shall be the Interest Payment Date for
such Interest Period, for which the Record Date shall be the immediately preceding Business Day. If such new interest rate shall be a Daily Rate or a Weekly Rate, the first Interest Period relating thereto shall begin on the effective date of such
new interest rate and end on the day immediately preceding the first Business Day of the next month, for which the Interest Payment Date and the Record Date shall be as prescribed in this Table. 


	**	If there shall be a change from a Long-Term Interest Rate on a day other than a regularly scheduled Interest Payment Date for a Long-Term Interest Rate Period, or if there shall be
an early termination of such Long-Term Interest Rate Period and a new Long-Term Interest Rate shall be set, such Long-Term Interest Rate Period shall end on the day immediately preceding the date on which the new interest rate shall become
effective, which date shall be the Interest Payment Date for such Long-Term Interest Rate Period, for which the Record Date shall be the last day of such Long-Term Interest Rate Period or, if sooner, the first day of such Long-Term Interest Rate
Period. If such new interest rate shall be a Daily Rate or a Weekly Rate, the first Interest Period relating thereto shall begin on the effective date of such new interest rate and end on the day immediately preceding the first Business Day of the
next month, for which the Interest Payment Date and the Record Date shall be as prescribed in this Table. 


	***	If an Interest Payment Date occurs less than 15 days after the first day of a Long-Term Interest Rate Period, the first day of such Long-Term Interest Rate Period is the Record Date
for such Interest Payment Date. 


	****	The Interest Payment Date with respect to a daily Auction Period shall be the first Business Day of the month immediately succeeding such Auction Period. 


 
 “Business Day” is defined in the Agreement. Payment of
defaulted interest will be made to holders of record as of the fifth-to-last Business Day before payment. 
  

 B-4 








 5. Method of Payment. Holders must surrender Bonds to the Trustee to collect principal at maturity
or upon redemption. (See “Optional Tenders” and “Mandatory Tender for Purchase” below for the payment of purchase price of tendered Bonds.) Interest on Bonds bearing interest at a Commercial Paper Rate (other than
Bonds in the Book Entry System) is payable only upon presentation of such Bonds to the Trustee. Interest on Bonds bearing interest at a Daily, Weekly, Auction Mode or Long Term Interest Rate (other than Bonds in the Book-Entry System) will be paid
to the registered holder as of the Record Date by check mailed by first class mail on the Interest Payment Date to such holder’s registered address. A holder of $1,000,000 or more in principal amount of Bonds may be paid interest at a Daily,
Weekly, Auction Mode or Commercial Paper Rate by wire transfer in immediately available funds to an account in the continental United States if the holder makes a written request of the Trustee (in form satisfactory to the Trustee) at least two
Business Days before the Record Date specifying the account address. The notice may provide that it will remain in effect for later interest payments until changed or revoked by another written notice. Principal and interest will be paid in money of
the United States that at the time of payment is legal tender for payment of public and private debts or by checks or wire transfers payable in such money. If any payment on the Bonds is due on a non-Business Day, it will be made on the next
Business Day, and no interest will accrue as a result. 
  
 6.
Optional Tenders. “Tender” means to require, or the act of requiring, the Trustee to purchase a Bond at the holder’s option under the provisions of this paragraph 6 at 100% of the principal amount plus interest accrued
to (but excluding) the date of purchase. While the Bonds bear interest at a Long Term Interest Rate, a Commercial Paper Rate or an Auction Mode Rate, the owner of a Bond does not have the option to require the Trustee to purchase its Bond.

  
 Daily Rate Tender. When interest on the Bonds is
payable at a Daily Rate and a Book-Entry System is in effect, a Beneficial Owner (through its direct Participant in the Securities Depository) may tender its interest in a Bond (or portion of Bond) by delivering an irrevocable written notice by
telecopy, facsimile transmission or e-mail transmission to the Trustee (any such notice to be delivered to a Responsible Officer of the Trustee) and an irrevocable notice by telephone, telegraph or facsimile transmission to the Remarketing Agent, in
each case prior to 11:00 a.m., New York City time, on a Business Day, stating the principal amount of the Bond (or portion of Bond) being tendered, payment instructions for the purchase price and the Business Day (which may be the date the notice is
delivered) the Bond (or portion of Bond) is to be purchased. The Beneficial Owner shall effect delivery of such Bond by causing such direct Participant to transfer its interest in the Bond equal to such Beneficial Owner’s interest on the
records of the Securities Depository to the participant account of the Trustee with the Securities Depository. Any notice received by the Trustee after 11:00 a.m., New York City time, shall be deemed to have been given on the next Business Day.

  
 When interest on the Bonds is payable at a Daily Rate and a
Book Entry System is not in effect, a holder of a Bond may tender the Bond (or portion of Bond) by delivering the notices as described above (which shall include the certificate number of the Bond), and shall also deliver the Bond to the Trustee by
1:00 p.m., New York City time, on the date of purchase (see additional requirements below). 
  

 B-5 








 Weekly Rate Tender. When interest on the Bonds is payable at a Weekly Rate and a Book-Entry System
is in effect, a Beneficial Owner (through its direct Participant in the Securities Depository) may tender his interest in a Bond (or portion of Bond) by delivering an irrevocable written notice by telecopy, facsimile transmission or e-mail
transmission to the Trustee (any such notice to be delivered to a Responsible Officer of the Trustee) and an irrevocable notice by telephone, telegraph or facsimile transmission to the Remarketing Agent, in each case prior to 5:00 p.m., New York
City time, on a Business Day stating the principal amount of the Bond (or portion of Bond) being tendered, payment instructions for the purchase price and the date, which must be a Business Day at least seven days after the notice is delivered, on
which the Bond (or portion of Bond) is to be purchased. The Beneficial Owner shall effect delivery of such Bond by causing such direct Participant to transfer its interest in the Bond equal to such Beneficial Owner’s interest on the records of
the Securities Depository to the participant account of the Trustee or its agent with the Securities Depository. 
  
 When interest on the Bonds is payable at a Weekly Rate and a Book-Entry System is not in effect, a holder of a Bond may tender the Bond (or portion of
Bond) by delivering the notices as described above (which shall include the certificate number of the Bond), and shall also deliver the Bond to the Trustee by 1:00 p.m., New York City time, on the date of purchase (see additional requirements
below). 
  
 Payment of Purchase Price. The purchase price
for a Bond tendered under this paragraph 6 or under paragraph 7 “Mandatory Tender for Purchase” will be paid in immediately available funds to the registered owner of the Bond by 4:00 p.m., New York City time, on the date of
purchase. No purchase of Bonds by the Trustee shall be deemed to be a payment or redemption of the Bonds or of any portion thereof and such purchase will not operate to extinguish or discharge the indebtedness evidenced by such Bonds. 
  
 7. Mandatory Tender for Purchase. As provided below, the Bonds are
subject to mandatory tender for purchase under certain circumstances. BY ACCEPTANCE OF THIS BOND, THE OWNER AGREES TO SELL AND SURRENDER THIS BOND, PROPERLY ENDORSED, UNDER THE CONDITIONS DESCRIBED BELOW. All purchases will be made in funds
immediately available on the purchase date and will be at the Purchase Price. Bonds tendered for purchase on a date after a call for redemption but before the redemption date will be purchased pursuant to the tender. No purchase of Bonds shall be
deemed to be a payment or redemption of the Bonds or of any portion thereof and such purchase will not operate to extinguish or discharge the indebtedness evidenced by such Bonds. 
  
 Mandatory Tender at Beginning of a New Long Term Interest Rate Period. When the Bonds bear interest at a Long Term
Interest Rate and a new Long Term Interest Rate is to be determined, the Bonds will be subject to mandatory tender for purchase on the effective date of the new Long Term Interest Rate. In the case of a change prior to the day originally established
as the day after the last day of a Long Term Interest Rate Period, the Bonds will be purchased at the percentage of their principal amount which would be payable upon the applicable redemption described under “Optional Redemption During
Long-Term Interest Rate Period” below. 
  

 B-6 








 Mandatory Tender on Each Interest Payment Date During Commercial Paper Mode. When Bonds bear
interest at a Commercial Paper Rate, each Bond must be tendered for purchase on the Interest Payment Date for such Bond. 
  
 Mandatory Tender Upon a Change in the Determination Method. Subject to the provisions of Section 3.02(b) of the Agreement, on the effective
date of the change in the Determination Method (the methods being Daily, Weekly, Commercial Paper, Long-Term or Auction Mode Interest Rates) (the “Conversion Date”), the Bonds will be subject to mandatory tender for purchase on the
Conversion Date at the Purchase Price, except that in the case of a change prior to the day originally established as the date after the last day of a Long Term Interest Rate Period, the Bonds will be purchased at the percentage of their principal
amount which would be payable upon the applicable redemption described under “Optional Redemption During Long-Term Interest Rate Period” below. 
  

Notice of Tender. At least 15 days before each mandatory tender (except for the tender described under “Mandatory Tender on Each
Interest Payment Date During Commercial Paper Mode” described above, for which no notice will be given and except that such notice shall be given at least 30 days prior to the effective date if a Long-Term Interest Rate Period is in effect
and the effective date is before the end of the Long-Term Interest Rate Period), the Trustee will mail a notice of tender by first-class mail to each Bondholder at the holder’s registered address. Failure to give any required notice of tender
as to any particular Bonds, or any defect therein, will not affect the validity of the tender of any Bonds in respect of which no failure or defect occurs. Any notice mailed as provided in this paragraph shall be effective when sent and will be
conclusively presumed to have been given whether or not actually received by the addressee. 
  
 Effect of Notice. When notice of tender is required and given, and when Bonds are to be tendered without notice, Bonds tendered become due and payable on the purchase date; in such case when funds are deposited
with the Trustee sufficient for purchase, interest on the Bonds to be purchased ceases to accrue with respect to the holder thereof as of the date of purchase. 
  

8. Delivery Address; Additional Delivery Requirements. Notices in respect of tenders and Bonds tendered must be delivered to the Trustee, and
notices in respect of tenders must be delivered to the Remarketing Agent, as provided in the Agreement. 
  
 All tendered Bonds must be accompanied by an instrument of transfer satisfactory to the Trustee, executed in blank by the registered owner or his duly
authorized attorney, with the signature guaranteed by an eligible guarantor institution. 
  
 Limitation on Tenders. Except as provided under “Mandatory Tender Upon a Change in the Determination Method,” “Mandatory Tender at Beginning of a New Long Term Interest Rate
Period” and “Mandatory Tender on Each Interest Payment Date During Commercial Paper Mode,” no Bonds may be tendered while they bear interest at a Commercial Paper Rate, Auction Mode Rate or a Long Term Interest Rate.

  
 Irrevocable Notice Deemed to Be Tender of Bond; Undelivered
Bonds. The giving of notice by the registered owner of a Bond as provided in paragraph 6 or the occurrence of a mandatory tender for purchase as described in paragraph 7 constitutes the irrevocable tender for 

  

 B-7 








 
purchase of each Bond (or portion of Bond) with respect to which such notice was given, irrespective of whether such Bond was delivered as provided in
paragraph 6 or 7. The determination of the Trustee as to whether a notice of tender has been properly sent shall be conclusive and binding upon the Bondholders. 
  

The Trustee may refuse to accept delivery of any Bond for which a proper instrument of transfer has not been provided. If any owner of a Bond who gave
notice of optional tender or which is subject to mandatory tender fails to deliver his Bond to the Trustee at the place and on the applicable date and time specified, or fails to deliver his Bond properly endorsed, and moneys for the payment of such
Bond are on deposit with the Trustee, his Bond shall constitute an undelivered Bond as described in the Agreement and interest shall cease to accrue on his Bonds as of the tender date and such owner shall have no right under the Agreement other than
the right to receive payment of the tender price thereof. BY ACCEPTANCE OF THIS BOND, THE OWNER AGREES TO SELL AND SURRENDER THIS BOND, PROPERLY ENDORSED, TO THE TRUSTEE AFTER THE GIVING OF IRREVOCABLE NOTICE OF TENDER FOR PURCHASE AS DESCRIBED
ABOVE. 
  
 9. Redemptions. All redemptions (and purchases
in lieu of redemption) will be made in funds immediately available on the redemption date (or purchase date) and will be at a redemption price of 100% of the principal amount of the Bonds being redeemed (unless a premium is required as provided
below) plus interest accrued to the redemption date. 
  
 Optional Redemption During Long Term Interest Rate Period. During any Long-Term Interest Rate Period, if the Long Term Interest Rate Period is less than or equal to five years, the Bonds will not be redeemable pursuant to this
provision during the Long Term Interest Rate Period. 
  
 If the
Long Term Interest Rate Period is greater than five years, the Bonds will not be redeemable for five years after the date on which the Bonds begin to bear interest at the Long Term Interest Rate. After the applicable no call period, the Bonds may be
redeemed at any time in whole or in part at 100% of their principal amount plus accrued interest, if any. 
  
 As an alternative to and in lieu of the foregoing redemption provisions, if, with respect to any Long Term Interest Rate Period, a Favorable Opinion of
Tax Counsel is delivered to the Trustee not later than the date of the establishment of such Long Term Interest Rate Period, the Bonds may be redeemed during such Long Term Interest Rate Period at the option of the Company in whole or in part at any
time after a no-call period, if any, established by the Remarketing Agent, at the percentages of their principal amount, plus accrued interest, as follows: the Remarketing Agent shall, given the duration of the Long Term Interest Rate Period,
determine and inform the Trustee and the Company, on a date which is no later than the establishment of the Long Term Interest Rate, the periods during which the Bonds shall not be subject to redemption (the “Call Protection
Period”), the premium or premiums payable upon redemption (the “Call Premiums”), if any, applicable to the redemption of Bonds after the Call Protection Period, and the period or periods during which the Call Premiums shall
be effective (the “Call Premium Periods”) necessary to establish the Long Term Interest Rate. Such Call Protection Period, Call Premiums and Call Premium Periods shall be established in accordance with optional call redemption
provisions which, in the judgment of the Remarketing Agent, are generally accepted at the time of determination as the standard features for obligations such as the Bonds, given the length of the Long Term Interest Rate Period. 
  

 B-8 








 Optional Redemption During Daily or Weekly Rate Period. When interest on the Bonds is payable at a
Daily or Weekly Rate, the Bonds may be redeemed in whole or in part at the option of the Company, on any Business Day. 
  
 Optional Redemption During Auction Rate Period. When interest on the Bonds is payable at an Auction Mode Rate, the Bonds may be redeemed in whole
or in part at the option of the Company, on the first day after the last day of the Auction Period then in effect. 
  
 Extraordinary Optional Redemption. Subject to the conditions set forth in the Agreement, any Bond is subject to extraordinary optional redemption
by the Authority upon the direction of the Company, on any date, upon the occurrence of the events described in Section 4.01(b) (redemption in whole or in part) of the Agreement, at a redemption price equal to the principal amount thereof plus
accrued and unpaid interest, if any, to the date of such redemption. 
  
 Mandatory Redemption Upon Determination of Taxability. Subject to the conditions set forth in the Agreement, the Bonds are subject to mandatory redemption in whole or in part following a final determination by the Internal Revenue
Service or a court of competent jurisdiction that the interest paid or payable on any Bond is or will be includible in gross income for federal income tax purposes, at a redemption price equal to the principal amount to be redeemed plus accrued and
unpaid interest, if any, to the date of such redemption. 
  
 Notice of Redemption. At least 30 days before each redemption, the Trustee will mail a notice of redemption by first-class mail to each Bondholder with Bonds to be redeemed at such holder’s registered address. Failure to give
any required notice of redemption as to any particular Bonds, or any defect therein, will not affect the validity of the call for redemption of any Bonds in respect of which no failure or defect occurs. Any notice mailed as provided in this
paragraph shall be effective when sent and will be conclusively presumed to have been given whether or not actually received by the addressee. 
  
 Effect of Notice. When notice is required and given, Bonds called for redemption become due and payable on the redemption date; in such case when
funds are deposited with the Trustee sufficient for redemption, interest on the Bonds to be redeemed ceases to accrue as of the date of redemption. 
  
 Purchase in Lieu of Redemption. As provided in the Agreement, the Company has the right to purchase Bonds in lieu of the optional redemption
described in this paragraph under “Optional Redemption During Long-Term Interest Rate Period”, “Optional Redemption During Daily or Weekly Rate Period” and “Optional Redemption During Auction Rate
Period”. 
  
 10. Denominations; Transfer;
Exchange. The Bonds may be issued in registered form without coupons in denominations as follows: (1) when interest is payable at a Daily, Weekly or Commercial Paper Rate, $100,000 and any larger denominations constituting an integral
multiple of $5,000; (2) when interest is payable at a Long Term Interest Rate, $5,000 and integral multiples thereof; and (3) when interest is payable at an Auction Mode Rate, 

  

 B-9 








 
$25,000 and integral multiples thereof. A holder may register the transfer of or exchange Bonds in accordance with the Agreement. The Trustee may require a
holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Agreement. Except in connection with the purchase of Bonds tendered for purchase, the Trustee
will not be required to register the transfer of or exchange any Bond which has been called for redemption or during the period beginning 15 days before the mailing of notice calling the Bonds or any portion of the Bonds for redemption and ending on
the redemption date. 
  
 11. Persons Deemed Owners. The
registered holder of this Bond shall be treated as the owner of it for all purposes. 
  
 12. Funds in Trust; Unclaimed Funds. All moneys which the Trustee shall have withdrawn from the account of the Company or shall have received from any other source and set aside, or deposited with the paying
agents, for the purpose of paying any of the Bonds hereby secured, either at the maturity thereof or upon call for redemption or tender, shall be held in trust for the respective holders of such Bonds. But any moneys which shall be so set aside or
deposited by the Trustee and which shall remain unclaimed by the holders of such Bonds for a period of one year after the date on which such Bonds shall have become due and payable shall upon request in writing be paid to the Company, and thereafter
the holders of such Bonds shall look only to the Company for payment and then only to the extent of the amount so received without any interest thereon, and the Trustee, the Authority and the paying agents shall have no responsibility with respect
to such moneys. In the absence of any such written request, the Trustee shall from time to time deliver such unclaimed funds to or as directed by pertinent escheat authority, as identified by the Trustee in its sole discretion, pursuant to and in
accordance with applicable unclaimed property laws, rules or regulations. Any such delivery shall be in accordance with the customary practices and procedures of the Trustee and the escheat authority. All moneys held by the Trustee and subject to
this paragraph 12 shall be held uninvested and without liability for interest thereon. Before making any payment under this paragraph 12, the Trustee shall be entitled to receive at the Company’s expense an opinion of counsel to the effect that
said payment is permitted under applicable law. 
  
 13.
Discharge Before Redemption, Tender or Maturity. If the Company at any time deposits with the Trustee money or Government Obligations as described in the Agreement sufficient to pay at redemption, tender or maturity principal of and interest
on the outstanding Bonds, and if the Company also pays or provides for the payment of all other sums then payable by the Company under the Agreement, the lien of the Agreement will be discharged. After discharge, Bondholders must look only to the
deposited money and securities for payment except as otherwise specifically provided in the Agreement. 
  
 14. Amendment, Supplement, Waiver. Subject to certain exceptions and to rights granted to the Bond Insurer under the Agreement, the Agreement or
the Bonds may be amended or supplemented, and any past default or compliance with any provision may be waived, with the consent of the holders of at least a majority in principal amount of the Bonds then outstanding. Any such consent shall be
irrevocable and shall bind any subsequent owner of this Bond or any Bond delivered in substitution for this Bond. Without the consent of any Bondholder, the Authority may amend or supplement the Agreement or the Bonds as described in the Agreement,


  

 B-10 








 
among other things, to cure any ambiguity, omission, defect or inconsistency, to provide for uncertificated Bonds in addition to or in place of certificated
Bonds, to provide for a Book Entry System for the Bonds or to make any change that does not materially adversely affect the rights of any Bondholder. 
  
 15. Defaults and Remedies. The Agreement provides that the occurrences of certain events constitute Events of Default. If an Event of Default
occurs and is continuing, the Bonds may become or may be declared immediately due and payable, as provided in the Agreement. An Event of Default and its consequences may be waived as provided in the Agreement. Bondholders may not enforce the
Agreement or the Bonds except as provided in the Agreement. Except as specifically provided in the Agreement, the Trustee may refuse to enforce the Agreement or the Bonds unless it receives indemnity satisfactory to it. Subject to certain
limitations, holders of a majority in principal amount of the Bonds then outstanding may direct the Trustee in its exercise of any trust or power. 
  
 16. No Recourse Against Others. A member, director, officer or employee, as such, of the Authority shall not have any liability for any obligations
of the Authority or the Company under the Bonds or the Agreement or for any claim based on such obligations or their creation. Each Bondholder by accepting a Bond waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Bond. 
  
 17.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Agreement until the certificate of authentication hereon shall have been duly executed by the Trustee.

  
 18. Abbreviations. Customary abbreviations may be used
in the name of a Bondholder or an assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform
Gifts to Minors Act). 
  
 It Is Hereby Certified, Recited And
Declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the execution and delivery of the Agreement and the issuance of this Bond do exist, have happened and have been performed in due time, form
and manner as required by law. 
  
 This Bond shall not be valid or
become obligatory for any purpose or be entitled to any benefit or security under the Agreement until it shall have been authenticated by the execution by the Trustee of the certificate of authentication endorsed hereon. 
  

 B-11 








 IN WITNESS WHEREOF, HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY has caused this Bond to bear the
facsimile signatures of its Chairman and Secretary and a facsimile of its official seal to be imprinted hereon, all as of the Dated Date specified above. 
  

			
	HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY
		
	By:	 	  


	 	 	Chairman


  
 [SEAL] 
  
 Attest: 
  

	
	
	

	Secretary

  

 B-12 








 CERTIFICATE OF AUTHENTICATION 
  
 This Bond is one of the Bonds of the series designated therein and referred to in the within-mentioned Agreement.

  

									
	 	 	 	 	 	 	 THE BANK OF NEW YORK TRUST COMPANY, N.A.,
 as Trustee

					
	Date:	 	  

	 	 	 	By:	 	  


	 	 	 	 	 	 	 	 	Authorized Signatory

  

 B-13 








 STATEMENT OF INSURANCE 
  
 Financial Guaranty Insurance Policy No. 24936BE (the “Policy”) with respect to payments due for
principal of and interest on this Bond has been issued by Ambac Assurance Corporation (“Ambac Assurance”). The Policy has been delivered to The Bank of New York, New York, New York, as the Insurance Trustee under said Policy and
will be held by such Insurance Trustee or any successor insurance trustee. The Policy is on file and available for inspection at the principal office of the Insurance Trustee and a copy thereof may be secured from Ambac Assurance or the Insurance
Trustee. All payments required to be made under the Policy shall be made in accordance with the provisions thereof. The owner of this Bond acknowledges and consents to the subrogation rights of Ambac Assurance as more fully set forth in the Policy.

  

 B-14 








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

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


	 	  	 	  	 	 	(State)

  
 Additional abbreviations may also be used though not in list above. 
  
 ASSIGNMENT 
  
 For Value
Received, the undersigned sells, assigns and transfers unto 
  

			
	Please insert social security or	 	 
	other identifying number of assignee	 	 

  
  

  
  

 (Name and Address of Assignee) 
  
 the within Bond and does hereby irrevocably constitute and appoint 
  

 

 attorney to transfer the said Bond on
the books kept for registration thereof with full power of substitution in the premises. 
  

			
	 Dated:
	 	  




			
	 Signature guaranteed:
	 	  



  

			
	 Medallion Number:

	 	Notice: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within Bond in every particular, without alteration
or enlargement or any change whatever.
	  

 * Signature(s) must be guaranteed by an eligible guarantor institution which is a member of a recognized
signature guarantee program, i.e., Securities Transfer Agents Medallion Program (STAMP), or New York Stock Exchange Medallion Signature Program (MSP).
	 

  

 B-15 








 Exhibit C 
  

Auction Procedures 
  

 C-1 








 TABLE OF CONTENTS 
  

							
	 SECTION

	 	 HEADING

	  	PAGE


	ARTICLE I DEFINITIONS	  	C-3
		
	ARTICLE II AUCTION PROCEDURES	  	C-6
			
	 	 	Section 2.01. General Procedures.	  	C-6
			
	 	 	Section 2.02. Orders by Existing Owners and Potential Owners.	  	C-6
			
	 	 	Section 2.03. Submission of Orders by Broker-Dealers to Auction Agent.	  	C-8
			
	 	 	Section 2.04. Determination of Auction Mode Rate.	  	C-10
			
	 	 	Section 2.05. Allocation of Bonds.	  	C-11
			
	 	 	Section 2.06. Notice of Auction Rate.	  	C-14
			
	 	 	Section 2.07. Reference Rate.	  	C-15
			
	 	 	Section 2.08. Miscellaneous Provisions Regarding Auctions.	  	C-15
			
	 	 	Section 2.09. Changes in Auction Period or Auction Date.	  	C-16
		
	ARTICLE III AUCTION AGENT	  	C-17
			
	 	 	Section 3.01. Auction Agent.	  	C-17
			
	 	 	Section 3.02. Qualifications of Auction Agent; Resignation; Removal.	  	C-17

  

 C-2 








 ARTICLE I 
  

DEFINITIONS 
  
 In addition to the words and terms elsewhere defined in the Agreement, the following words and terms as used in this Exhibit C and elsewhere in the
Agreement have the following meanings with respect to Bonds in an Auction Rate Period unless the context or use indicates another or different meaning or intent. 
  
 “Agent Member” means a member of, or participant in, the Securities Depository who shall act on behalf of a
Bidder. 
  
 “All Hold Rate” means, as of any
Auction Date, 65% of the Reference Rate in effect on such Auction Date. 
  
 “Auction” means each periodic implementation of the Auction Procedures. 
  
 “Auction Agent” means the auctioneer appointed in accordance with Section 3.01 or 3.02 of this Exhibit C. 
  
 “Auction Agreement” means an agreement among the Company,
the Auction Agent and the Trustee pursuant to which the Auction Agent agrees to follow the procedures specified in this Exhibit C with respect to the Bonds while bearing interest at an Auction Mode Rate, as such agreement may from time to
time be amended or supplemented. 
  
 “Auction
Date” means during any period in which the Auction Procedures are not suspended in accordance with the provisions hereof, (i) if the Bonds are in a daily Auction Period, each Business Day, (ii) if the Bonds are in an Auction
Period of 92 or more days, the last Business Day in such Auction Period and (iii) if the Bonds are in any other Auction Period, the Business Day next preceding each Interest Payment Date for such Bonds (whether or not an Auction shall be
conducted on such date); provided, however, that the last Auction Date with respect to the Bonds in an Auction Period other than a daily Auction Period shall be the earlier of (a) the Business Day next preceding the Interest Payment Date
next preceding the Conversion Date for the Bonds and (b) the Business Day next preceding the Interest Payment Date next preceding the final maturity date for the Bonds; and provided, further, that if the Bonds are in a daily Auction
Period, the last Auction Date shall be the earlier of (x) the Business Day next preceding the Conversion Date for the Bonds and (y) the Business Day next preceding the final maturity date for the Bonds. On the Business Day preceding the
conversion from a daily Auction Period to another Auction Period, there shall be two Auctions, one for the last daily Auction Period and one for the first Auction Period following the conversion. The first Auction Date for the Bonds is
January 24, 2006. 
  
 “Auction Mode Rate”
means the rate of interest to be borne by the Bonds during each Auction Period determined in accordance with Section 2.04 of this Exhibit C; provided, however, in no event may the Auction Mode Rate exceed the Maximum Interest
Rate. 
  
 “Auction Period” means any period from
one day to five years during which the Bonds bear interest at a single Auction Mode Rate, as established pursuant to the Agreement. 
  

 C-3 








 “Auction Procedures” means the procedures for conducting Auctions for Bonds during an
Auction Rate Period set forth in this Exhibit C. 
  
 “Auction Rate” means for each Auction Period, (i) if Sufficient Clearing Bids exist, the Winning Bid Rate, provided, however, if all of the Bonds are the subject of Submitted Hold Orders, the All Hold Rate and
(ii) if Sufficient Clearing Bids do not exist, the Maximum Interest Rate. 
  
 “Authorized Denominations” means $25,000 and integral multiples thereof, notwithstanding anything else in this Agreement to the contrary, so long as the Bonds bear interest at an Auction Mode Rate.

  
 “Available Bonds” means on each Auction Date,
the aggregate principal amount of Bonds that are not the subject of Submitted Hold Orders. 
  
 “Bid” has the meaning specified in subsection (a) of Section 2.02 of this Exhibit C. 
  
 “Bidder” means each Existing Owner and Potential Owner who places an Order. 
  
 “Broker-Dealer” means any entity that is permitted by law to perform the function required of a
Broker-Dealer described in this Exhibit C, that is a member of, or a direct participant in, the Securities Depository, that has been selected by the Company, and that is a party to a Broker-Dealer Agreement with the Company and the Auction
Agent. 
  
 “Broker-Dealer Agreement” means an
agreement among the Auction Agent, the Company and a Broker-Dealer pursuant to which such Broker-Dealer agrees to follow the procedures described in this Exhibit C, as such agreement may from to time be amended or supplemented. 
  
 “Business Day” shall mean any day other than a Saturday or
Sunday or other than a day on which commercial banks located in all of the cities in which the designated offices of the Trustee and each Broker-Dealer and the Principal Office of the Auction Agent are located are authorized by law or regulation to
close or on which the New York Stock Exchange is closed. 
  
 “Conversion Date” means the date on which the Bonds begin to bear interest at a Daily Rate, a Weekly Rate, a Commercial Paper Rate or a Long-Term Interest Rate. 
  
 “Existing Owner” means a Person who is listed from time to time as the beneficial owner of Bonds in the
records of the Auction Agent. 
  
 “Failed
Auction” means an Auction for which there were not Sufficient Clearing Bids. 
  
 “Hold Order” has the meaning specified in subsection (a) of Section 2.02 of this Exhibit C. 
  
 “Initial Period” means the period from the date of original issuance of the Bonds to, but not including,
January 25, 2006. 
  

 C-4 








 “Interest Payment Date” with respect to Bonds bearing interest at Auction Mode Rates,
means January 25, 2006, and thereafter (a) when used with respect to any Auction Period of less than 92 days (other than a daily Auction Period), the Business Day immediately following such Auction Period, (b) when used with respect
to a daily Auction Period, the first Business Day of the month immediately succeeding such Auction Period, (c) when used with respect to an Auction Period of 92 or more days, each 13th Wednesday after the first day of such Auction Period or the
next Business Day if such Wednesday is not a Business Day and on the Business Day immediately following such Auction Period, (d) each Conversion Date and (e) the Maturity Date. 
  
 “Maximum Interest Rate” means (i) 14% on the date hereof and (ii) to the extent the maximum rate
permitted by applicable law shall become less than 14%, then the maximum rate permitted by applicable law. 
  
 “Order” means a Hold Order, Bid or Sell Order. 
  

“Potential Owner” means any Person, including any Existing Owner, who may be interested in acquiring a beneficial interest in the
Bonds in addition to the Bonds currently owned by such Person, if any. 
  
 “Principal Office” means, with respect to the Auction Agent, the office thereof designated in writing to the Company, the Trustee and each Broker-Dealer. 
  
 “Rating Agencies” means Fitch, Moody’s and S&P. 
  
 “Reference Rate” shall have the meaning specified in
Section 2.07 of this Exhibit C. 
  
 “Securities Depository” means The Depository Trust Company and its successors and assigns or any other securities depository selected by the Company which agrees to follow the procedures required to be followed by such
securities depository in connection with the Bonds. 
  
 “Sell Order” has the meaning specified in subsection (a) of Section 2.02 of this Exhibit C. 
  
 “Submission Deadline” means 1:00 p.m., New York City time, on each Auction Date not in a daily Auction Period and 11:00 a.m., New York
City time, on each Auction Date in a daily Auction Period, or such other time on such date as shall be specified from time to time by the Auction Agent pursuant to the Auction Agreement as the time by which Broker-Dealers are required to submit
Orders to the Auction Agent. 
  
 “Submitted Bid”
has the meaning specified in subsection (b) of Section 2.04 of this Exhibit C. 
  
 “Submitted Hold Order” has the meaning specified in subsection (b) of Section 2.04 of this Exhibit C. 
  
 “Submitted Order” has the meaning specified in subsection
(b) of Section 2.04 of this Exhibit C. 
  

 C-5 








 “Submitted Sell Order” has the meaning specified in subsection (b) of
Section 2.04 of this Exhibit C. 
  
 “Successful Auction” means an Auction for which there were Sufficient Clearing Bids. 
  
 “Sufficient Clearing Bids” means an Auction for which the aggregate principal amount of Bonds that are the subject of Submitted Bids by
Potential Owners specifying one or more rates not higher than the Maximum Interest Rate is not less than the aggregate principal amount of Bonds that are the subject of Submitted Sell Orders and of Submitted Bids by Existing Owners specifying rates
higher than the Maximum Interest Rate. 
  
 “Winning Bid
Rate” means the lowest rate specified in any Submitted Bid which if selected by the Auction Agent as the Auction Rate, subject to the All Hold Rate, would cause the aggregate principal amount of Bonds that are the subject of Submitted Bids
specifying a rate not greater than such rate to be not less than the aggregate principal amount of Available Bonds. 
  
 ARTICLE II 
  
 AUCTION PROCEDURES 
  
 Section 2.01.
General Procedures. While the Bonds bear interest at the Auction Mode Rate, Auctions shall be conducted on each Auction Date (other than the Auction Date immediately preceding each Auction Rate Period commencing after the ownership of the Bonds
is no longer maintained in the Book-Entry System pursuant to this Agreement). If there is an Auction Agent on such Auction Date, Auctions shall be conducted in the manner set forth in this Exhibit C. 
  
 Section 2.02. Orders by Existing Owners and Potential Owners.
(a) Prior to the Submission Deadline on each Auction Date: 
  
 (i) each Existing Owner may submit to a Broker-Dealer, in writing or by such other method as shall be reasonably acceptable to such Broker-Dealer, information as to: 
  
 (A) the principal amount of Bonds, if any, held by such Existing Owner which such Existing Owner irrevocably commits to
continue to hold for the next succeeding Auction Period without regard to the rate determined by the Auction Procedures for such Auction Period, 
  
 (B) the principal amount of Bonds, if any, held by such Existing Owner which such Existing Owner irrevocably commits to continue to hold for the next
succeeding Auction Period if the rate determined by the Auction Procedures for such Auction Period shall not be less than the rate per annum then specified by such Existing Owner (and which such Existing Owner irrevocably offers to sell on the next
succeeding Auction Date (or the same day in the case of a daily Auction Period) if the rate determined by the Auction Procedures for the next succeeding Auction Period shall be less than the rate per annum then specified by such Existing Owner),
and/or 
  

 C-6 








 (C) the principal amount of Bonds, if any, held by such Existing Owner which such Existing Owner
irrevocably offers to sell on the next succeeding Auction Date (or on the same day in the case of a daily Auction Period) without regard to the rate determined by the Auction Procedures for the next succeeding Auction Period; and 
  
 (ii) for the purpose of implementing the Auctions and thereby to achieve the
lowest possible interest rate on the Bonds, the Broker-Dealers shall contact Potential Owners, including Persons that are Existing Owners, to determine the principal amount of Bonds, if any, which each such Potential Owner irrevocably offers to
purchase if the rate determined by the Auction Procedures for the next succeeding Auction Period is not less than the rate per annum then specified by such Potential Owner. 
  
 For the purposes hereof an Order containing the information referred to in clause (i)(A) above is herein referred to as a
“Hold Order,” an Order containing the information referred to in clause (i)(B) or (ii) above is herein referred to as a “Bid,” and an Order containing the information referred to in clause (i)(C) above is
herein referred to as a “Sell Order.” 
  
 (b)
(i) Subject to the provisions of Section 2.03 of this Exhibit C, a Bid by an Existing Owner shall constitute an irrevocable offer to sell: 
  
 (A) the principal amount of Bonds specified in such Bid if the rate determined by the Auction Procedures on such Auction Date shall be less than the rate
specified therein; or 
  
 (B) such principal amount or a lesser
principal amount of Bonds to be determined as set forth in subsection (a)(v) of Section 2.05 of this Exhibit C if the rate determined by the Auction Procedures on such Auction Date shall be equal to such specified rate; or 
  
 (C) a lesser principal amount of Bonds to be determined as set forth in
subsection (b)(iv) of Section 2.05 of this Exhibit C if such specified rate shall be higher than the Maximum Interest Rate and Sufficient Clearing Bids do not exist. 
  
 (ii) Subject to the provisions of Section 2.03 of this Exhibit C, a Sell Order by an Existing Owner shall
constitute an irrevocable offer to sell: 
  
 (A) the principal
amount of Bonds specified in such Sell Order; or 
  
 (B) such
principal amount or a lesser principal amount of Bonds as set forth in subsection (b)(iv) of Section 2.05 of this Exhibit C if Sufficient Clearing Bids do not exist. 
  
 (iii) Subject to the provisions of Section 2.03 of this Exhibit C, a Bid by a Potential Owner shall constitute
an irrevocable offer to purchase: 
  
 (A) the principal amount
of Bonds specified in such Bid if the rate determined by the Auction Procedures on such Auction Date shall be higher than the rate specified therein; or 
  

 C-7 








 (B) such principal amount or a lesser principal amount of Bonds as set forth in subsection (a)(vi) of
Section 2.05 of this Exhibit C if the rate determined by the Auction Procedures on such Auction Date shall be equal to such specified rate. 
  
 (c) Anything herein to the contrary notwithstanding: 
  
 (i) for purposes of any Auction, any Order which specifies Bonds to be held, purchased or sold in a principal amount which is not $25,000 or an integral
multiple thereof shall be rounded down to the nearest $25,000, and the Auction Agent shall conduct the Auction Procedures as if such Order had been submitted in such lower amount; 
  
 (ii) for purposes of any Auction other than during a daily Auction Period, any portion of an Order of an Existing Owner
which relates to a Bond which has been called for redemption on or prior to the Interest Payment Date next succeeding such Auction shall be invalid with respect to such portion and the Auction Agent shall conduct the Auction Procedures as if such
portion of such Order had not been submitted; 
  
 (iii) for
purposes of any Auction other than during a daily Auction Period, no portion of a Bond which has been called for redemption on or prior to the Interest Payment Date next succeeding such Auction shall be included in the calculation of Available Bonds
for such Auction; and 
  
 (iv) the Auction Procedures shall be
suspended during the period commencing on the date of the Auction Agent’s receipt of notice from the Trustee of an occurrence of an Event of Default resulting from the failure to pay the principal or interest on any Bond when due followed by
the failure of the Bond Insurer to pay a proper claim under the Policy related to the Bonds, but shall resume two Business Days after the date on which the Auction Agent receives notice from the Trustee that such Event of Default or failure by the
Bond Insurer to pay has been waived or cured, with the next Auction to occur on the next regularly scheduled Auction Date occurring thereafter. 
  
 Section 2.03. Submission of Orders by Broker-Dealers to Auction Agent. (a) Each Broker-Dealer shall submit to the Auction Agent in
writing or by such other method as shall be reasonably acceptable to the Auction Agent, prior to the Submission Deadline on each Auction Date, all Orders obtained by such Broker-Dealer and specifying, with respect to each Order: 
  
 (i) the aggregate principal amount of Bonds, if any, that are the subject of
such Order; 
  
 (ii) to the extent that such Bidder is an Existing
Owner: 
  
 (A) the principal amount of Bonds, if any, subject to
any Hold Order placed by such Existing Owner; 
  
 (B) the
principal amount of Bonds, if any, subject to any Bid placed by such Existing Owner and the rate specified in such Bid; and 
  

 C-8 








 (C) the principal amount of Bonds, if any, subject to any Sell Order placed by such Existing Owner; and

  
 (iii) to the extent such Bidder is a Potential Owner, the rate
and amount specified in such Potential Owner’s Bid. 
  
 (b)
If any rate specified in any Bid contains more than three figures to the right of the decimal point, the Auction Agent shall round such rate up to the next highest one thousandth of one percent (0.001%). 
  
 (c) If an Order or Orders covering all of the Bonds held by an Existing Owner
is not submitted to the Auction Agent prior to the Submission Deadline, the Auction Agent shall deem a Hold Order to have been submitted on behalf of such Existing Owner covering the principal amount of Bonds held by such Existing Owner and not
subject to Orders submitted to the Auction Agent; provided, however, that if there is a conversion from one Auction Period to another Auction Period and Orders have not been submitted to the Auction Agent prior to the Submission Deadline
covering the aggregate principal amount of Bonds to be converted held by such Existing Owner, the Auction Agent shall deem a Sell Order to have been submitted on behalf of such Existing Owner covering the principal amount of Bonds to be converted
held by such Existing Owner not subject to Orders submitted to the Auction Agent. 
  
 (d) If one or more Orders covering in the aggregate more than the principal amount of outstanding Bonds held by any Existing Owner are submitted to the Auction Agent, such Orders shall be considered valid as follows
and in the following order of priority: 
  
 (i) all Hold Orders
shall be considered valid Hold Orders, but only up to and including in the aggregate the principal amount of Bonds held by such Existing Owner, and if the aggregate principal amount of Bonds subject to such Hold Orders exceeds the aggregate
principal amount of Bonds held by such Existing Owner, the aggregate principal amount of Bonds subject to each such Hold Order shall be reduced pro rata to cover the aggregate principal amount of outstanding Bonds held by such Existing Owner;

  
 (ii)       (A) any Bid of
an Existing Owner shall be considered valid as a Bid of an Existing Owner up to and including the excess of the principal amount of Bonds held by such Existing Owner over the aggregate principal amount of the Bonds subject to Hold Orders referred to
in paragraph (i) above; 
  
 (B) subject to clause
(A) of this paragraph (ii), all Bids of an Existing Owner with the same rate shall be aggregated and considered a single Bid of an Existing Owner up to and including the excess of the principal amount of Bonds held by such Existing Owner over
the principal amount of Bonds held by such Existing Owner subject to Hold Orders referred to in paragraph (i) of this subsection (d); 
  
 (C) subject to clause (A) of this paragraph (ii), if more than one Bid with different rates is submitted on behalf of such Existing Owner, such Bids
shall be considered valid Bids of an Existing Owner in the ascending order of their respective rates up to the amount of the excess of the principal amount of Bonds held by such Existing Owner over the principal amount of Bonds held by such Existing
Owner subject to Hold Orders referred to in paragraph (i) of this subsection (d); and 
  

 C-9 








 (D) the principal amount, if any, of such Bonds subject to Bids not considered to be Bids of an Existing
Owner under this paragraph (ii) shall be treated as the subject of a Bid by a Potential Owner at the rate specified therein; and 
  
 (iii) all Sell Orders shall be considered valid Sell Orders, but only up to and including a principal amount of Bonds equal to the excess of the principal
amount of Bonds held by such Existing Owner over the sum of the principal amount of the Bonds considered to be subject to Hold Orders pursuant to paragraph (i) of this subsection (d) and the principal amount of Bonds considered to be
subject to Bids of such Existing Owner pursuant to paragraph (ii) of this subsection (d). 
  
 (e) If more than one Bid is submitted on behalf of any Potential Owner, each Bid submitted with the same rate shall be aggregated and considered a single Bid and each Bid submitted with a different rate shall be
considered a separate Bid with the rate and the principal amount of Bonds specified therein. 
  
 (f) None of the Authority, the Company, the Trustee, the Remarketing Agent nor the Auction Agent shall be responsible for the failure of any Broker-Dealer to submit an Order to the Auction Agent on behalf of any
Existing Owner or Potential Owner. 
  
 (g) Notwithstanding
Section 2.02(b)(iii), a Bid may be revoked or amended prior to the Submission Deadline. 
  
 Section 2.04. Determination of Auction Mode Rate. (a) Not later than 9:30 a.m., New York City time, on each Auction Date, the Auction Agent shall advise the Broker-Dealers and the Trustee by telephone
of the All Hold Rate and the Reference Rate. 
  
 (b) Promptly
after the Submission Deadline on each Auction Date, the Auction Agent shall assemble all Orders submitted or deemed submitted to it by the Broker-Dealers (each such Order as submitted or deemed submitted by a Broker-Dealer being hereinafter referred
to as a “Submitted Hold Order,” a “Submitted Bid” or a “Submitted Sell Order,” as the case may be, and collectively as a “Submitted Order”) and shall determine (i) the
Available Bonds, (ii) whether there are Sufficient Clearing Bids and (iii) the Auction Rate. 
  
 (c) Promptly after the Auction Agent has made the determinations pursuant to subsection (b) of this Section 2.04, the Auction Agent shall advise
the Trustee and the Company by telex, facsimile or other electronic transmission of the Auction Rate for the next succeeding Auction Period and the Trustee shall promptly notify DTC of such Auction Rate. 
  
 (d) In the event the Auction Agent fails to calculate or, for any reason,
fails to timely provide the Auction Rate for any Auction Period, (i) if the preceding Auction Period was a period of 35 days or less, the new Auction Period shall be the same as the preceding Auction Period, and the Auction Mode Rate for the
new Auction Period shall be the same as the Auction Mode Rate for the preceding Auction Period, and (ii) if the preceding Auction Period was a period of greater than 35 days, the new Auction Period will be a seven-day Auction Period and 

  

 C-10 








 
the Auction Mode Rate for the new Auction Period will be the same as the Auction Mode Rate for the preceding Auction Period. In the event an Auction Period
is extended as set forth in clause (i) or (ii) of the preceding sentence, an Auction shall be held on the last Business Day of the Auction Period as so extended to take effect for an Auction Period beginning on the Business Day immediately
following the last day of the Auction Period as extended which Auction Period will end on the date it would otherwise have ended on had the prior Auction Period not been extended. Notwithstanding the foregoing, no Auction Mode Rate shall be extended
for more than 35 days. If, at the end of 35 days, the Auction Agent fails to calculate or provide the Auction Mode Rate, the Auction Mode Rate shall be the Maximum Interest Rate. 
  
 (e) In the event the Auction Procedures are suspended as provided in Section 2.02(c)(iv) of this Exhibit C, the
Auction Rate for the period from the date of such suspension until the next succeeding regularly scheduled Auction Period shall be the Maximum Interest Rate. 
  
 (f) In the event of a failed conversion from a Auction Mode Rate Determination Method to another Determination Method or in the event of a failure to
change the length of the current Auction Period due to the lack of Sufficient Clearing Bids at the Auction on the Auction Date for the first new Auction Period or a failure to deliver a required Favorable Opinion of Tax Counsel, (i) if the
preceding Auction Period was a period of one year or less, the new Auction Period shall be seven days (or if the seventh day is not followed by a Business Day then the new Auction Period shall be extended to the next succeeding day which is followed
by a Business Day), and the Auction Mode Rate for the new Auction Period shall be the same as the Auction Mode Rate for the preceding Auction Period, and (ii) if the preceding Auction Period was a period of greater than one year, the preceding
Auction Period shall be extended to the seventh day following the day that would have been the last day of such Auction Period had it not been extended (or if such seventh day is not followed by a Business Day then to the next succeeding day which
is followed by a Business Day) and the Auction Mode Rate in effect for the preceding Auction Period will continue in effect for the Auction Period as so extended. In the event an Auction Period is extended as set forth in clause (i) or
(ii) of the preceding sentence, an Auction shall be held on the last Business Day of the Auction Period as so extended to take effect for an Auction Period beginning on the Business Day immediately following the last day of the Auction Period
as extended, which new Auction Period will end on the date it would otherwise have ended on had the prior Auction Period not been extended. Notwithstanding the foregoing, no Auction Mode Rate shall be extended for more than 35 days. If, at the end
of 35 days, the Auction Agent fails to calculate or provide the Auction Mode Rate, the Auction Mode Rate shall be the Maximum Interest Rate. 
  
 (g) If the Bonds are not rated, the interest rate for the next Auction Period shall be the Maximum Interest Rate. If the Bonds are no longer maintained in
book entry only form by the Securities Depository, the Auction Mode Rate shall be the interest rate for the preceding Auction Period. In both cases, the Auction Period shall be a seven day Auction Period. 
  

 C-11 








 Section 2.05. Allocation of Bonds. (a) In the event of Sufficient Clearing Bids, subject
to the further provisions of subsections (c) and (d) below, Submitted Orders shall be accepted or rejected as follows in the following order of priority: 
  
 (i) the Submitted Hold Order of each Existing Owner shall be accepted, thus requiring each such Existing Owner to continue
to hold the Bonds that are the subject of such Submitted Hold Order; 
  
 (ii) the Submitted Sell Order of each Existing Owner shall be accepted, and the Submitted Bid of each Existing Owner specifying any rate that is higher than the Winning Bid Rate shall be rejected, thus requiring each such Existing Owner to
sell the Bonds that are the subject of such Submitted Sell Order or Submitted Bid; 
  
 (iii) the Submitted Bid of each Existing Owner specifying any rate that is lower than the Winning Bid Rate shall be accepted, thus requiring each such Existing Owner to continue to hold the Bonds that are the subject
of such Submitted Bid; 
  
 (iv) the Submitted Bid of each
Potential Owner specifying any rate that is lower than the Winning Bid Rate shall be accepted, thus requiring each such Potential Owner to purchase the Bonds that are the subject of such Submitted Bid; 
  
 (v) the Submitted Bid of each Existing Owner specifying a rate that is equal
to the Winning Bid Rate shall be accepted, thus requiring each such Existing Owner to continue to hold the Bonds that are the subject of such Submitted Bid, but only up to and including the principal amount of Bonds obtained by multiplying
(A) the aggregate principal amount of Bonds outstanding which are not the subject of Submitted Hold Orders described in paragraph (i) of this subsection (a) or of Submitted Bids described in paragraphs (iii) and (iv) of this
subsection (a) by (B) a fraction the numerator of which shall be the principal amount of Bonds outstanding held by such Existing Owner subject to such Submitted Bid and the denominator of which shall be the aggregate principal amount of
Bonds outstanding subject to such Submitted Bids made by all such Existing Owners that specified a rate equal to the Winning Bid Rate, and the remainder, if any, of such Submitted Bid shall be rejected, thus requiring each such Existing Owner to
sell any excess amount of Bonds; 
  
 (vi) the Submitted Bid of
each Potential Owner specifying a rate that is equal to the Winning Bid Rate shall be accepted, thus requiring each such Potential Owner to purchase the Bonds that are the subject of such Submitted Bid, but only in an amount equal to the principal
amount of Bonds obtained by multiplying (A) the aggregate principal amount of Bonds outstanding which are not the subject of Submitted Hold Orders described in paragraph (i) of this subsection (a) or of Submitted Bids described in
paragraph (iii), (iv) or (v) of this subsection (a) by (B) a fraction the numerator of which shall be the principal amount of Bonds outstanding subject to such Submitted Bid and the denominator of which shall be the sum of the
aggregate principal amount of Bonds outstanding subject to such Submitted Bids made by all such Potential Owners that specified a rate equal to the Winning Bid Rate, and the remainder of such Submitted Bid shall be rejected; and 
  
 (vii) the Submitted Bid of each Potential Owner specifying any rate that is
higher than the Winning Bid Rate shall be rejected. 
  

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 (b) In the event there are not Sufficient Clearing Bids, subject to the further provisions of subsections
(c) and (d) below, Submitted Orders shall be accepted or rejected as follows in the following order of priority: 
  
 (i) the Submitted Hold Order of each Existing Owner shall be accepted, thus requiring each such Existing Owner to continue to hold the Bonds that are the
subject of such Submitted Hold Order; 
  
 (ii) the Submitted Bid
of each Existing Owner specifying any rate that is not higher than the Maximum Interest Rate shall be accepted, thus requiring each such Existing Owner to continue to hold the Bonds that are the subject of such Submitted Bid; 
  
 (iii) the Submitted Bid of each Potential Owner specifying any rate that is
not higher than the Maximum Interest Rate shall be accepted, thus requiring each such Potential Owner to purchase the Bonds that are the subject of such Submitted Bid; 
  
 (iv) the Submitted Sell Orders of each Existing Owner shall be accepted as Submitted Sell Orders and the Submitted Bids of
each Existing Owner specifying any rate that is higher than the Maximum Interest Rate shall be deemed to be and shall be accepted as Submitted Sell Orders, in both cases only up to and including the principal amount of Bonds obtained by multiplying
(A) the aggregate principal amount of Bonds subject to Submitted Bids described in paragraph (iii) of this subsection (b) by (B) a fraction the numerator of which shall be the principal amount of Bonds outstanding held by such
Existing Owner subject to such Submitted Sell Order or such Submitted Bid deemed to be a Submitted Sell Order and the denominator of which shall be the principal amount of Bonds outstanding subject to all such Submitted Sell Orders and such
Submitted Bids deemed to be Submitted Sell Orders, and the remainder of each such Submitted Sell Order or Submitted Bid shall be deemed to be and shall be accepted as a Hold Order and each such Existing Owner shall be required to continue to hold
such excess amount of Bonds; and 
  
 (v) the Submitted Bid of each
Potential Owner specifying any rate that is higher than the Maximum Interest Rate shall be rejected. 
  
 (c) If, as a result of the procedures described in subsection (a) or (b) of this Section 2.05, any Existing Owner or Potential Owner would
be required to purchase or sell an aggregate principal amount of Bonds which is not an integral multiple of $25,000 on any Auction Date, the Auction Agent shall by lot, in such manner as it shall determine in its sole discretion, round up or down
the principal amount of Bonds to be purchased or sold by any Existing Owner or Potential Owner on such Auction Date so that the aggregate principal amount of Bonds purchased or sold by each Existing Owner or Potential Owner on such Auction Date
shall be an integral multiple of $25,000, even if such allocation results in one or more of such Existing Owners or Potential Owners not purchasing or selling any Bonds on such Auction Date. 
  
 (d) If, as a result of the procedures described in subsection (a) of
this Section 2.05, any Potential Owner would be required to purchase less than $25,000 in principal amount of Bonds on any Auction Date, the Auction Agent shall by lot, in such manner as it shall determine in its sole discretion,
allocate Bonds for purchase among Potential Owners so that the principal 

  

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amount of Bonds purchased on such Auction Date by any Potential Owner shall be an integral multiple of $25,000, even if such allocation results in one or
more of such Potential Owners not purchasing Bonds on such Auction Date. 
  
 Section 2.06. Notice of Auction Rate. (a) On each Auction Date, the Auction Agent shall notify by telephone or other electronic means or in writing each Broker-Dealer that participated in the Auction
held on such Auction Date and submitted an Order on behalf of any Existing Owner or Potential Owner of the following: 
  
 (i) the Auction Rate determined on such Auction Date for the succeeding Auction Period; 
  
 (ii) whether Sufficient Clearing Bids existed for the determination of the Winning Bid Rate; 
  
 (iii) if such Broker-Dealer submitted a Bid or a Sell Order on behalf of an
Existing Owner, whether such Bid or Sell Order was accepted or rejected, in whole or in part, and the principal amount of Bonds, if any, to be sold by such Existing Owner; 
  
 (iv) if such Broker-Dealer submitted a Bid on behalf of a Potential Owner, whether such Bid was accepted or rejected, in
whole or in part, and the principal amount of Bonds, if any, to be purchased by such Potential Owner; 
  
 (v) if the aggregate principal amount of the Bonds to be sold by all Existing Owners on whose behalf such Broker-Dealer submitted Bids or Sell Orders is
different from the aggregate principal amount of Bonds to be purchased by all Potential Owners on whose behalf such Broker-Dealer submitted a Bid, the name or names of one or more Broker-Dealers (and the Agent Member, if any, of each such other
Broker-Dealer) and the principal amount of Bonds to be (A) purchased from one or more Existing Owners on whose behalf such other Broker-Dealers submitted Bids or Sell Orders or (B) sold to one or more Potential Owners on whose behalf such
Broker-Dealer submitted Bids; and 
  
 (vi) the immediately
succeeding Auction Date. 
  
 (b) On each Auction Date, each
Broker-Dealer that submitted an Order on behalf of any Existing Owner or Potential Owner shall: 
  
 (i) advise each Existing Owner and Potential Owner on whose behalf such Broker-Dealer submitted an Order as to (A) the Auction Rate determined on
such Auction Date, (B) whether any Bid or Sell Order submitted on behalf of each such Owner was accepted or rejected and (C) the immediately succeeding Auction Date; 
  
 (ii) instruct each Potential Owner on whose behalf such Broker-Dealer submitted a Bid that was accepted, in whole or in
part, to instruct such Potential Owner’s Agent Member to pay to such Broker-Dealer (or its Agent Member) through the Securities Depository the amount necessary to purchase the principal amount of Bonds to be purchased pursuant to such Bid
(including, with respect to the Bonds in a daily Auction Period, accrued interest if the purchase date is not an Interest Payment Date for such Bond) against receipt of such Bonds; and 
  

 C-14 








 (iii) instruct each Existing Owner on whose behalf such Broker-Dealer submitted a Sell Order that was
accepted or a Bid that was rejected in whole or in part to instruct such Existing Owner’s Agent Member to deliver to such Broker-Dealer (or its Agent Member) through the Securities Depository the principal amount of Bonds to be sold pursuant to
such Bid or Sell Order against payment therefor. 
  
 Section 2.07. Reference Rate. (a) The Reference Rate on any Auction Date with respect to Bonds in any Auction Period of 35 days or less shall be the offered rate for deposits in U.S. dollars for a one-month period (LIBOR)
which appears on the MoneyLine Telerate Page 3750 at approximately 11:00 A.M., London time, on such date, or if such date is not a date on which dealings in U.S. dollars are transacted in the London interbank market, then on the next preceding day
on which such dealings were transacted in such market. The Reference Rate with respect to Bonds in any Auction Period of more than 35 days shall be the rate on Treasury securities having a maturity which most closely approximates the length of the
Auction Period, as last published in The Wall Street Journal. If either rate is unavailable, the Reference Rate shall be an index or rate agreed to by all Broker-Dealers and consented to by the Company. 
  
 (b) If for any reason on any Auction Date the Reference Rate shall not be
determined as hereinabove provided in this Section, the Reference Rate shall be the Reference Rate for the Auction Period ending on such Auction Date. 
  
 (c) The determination of the Reference Rate as provided herein shall be conclusive and binding upon the Authority, the Company, the Trustee, the
Remarketing Agent, the Broker-Dealers, the Auction Agent and the Owners and Beneficial Owners of the Bonds. 
  
 Section 2.08. Miscellaneous Provisions Regarding Auctions. (a) In this Exhibit C, each reference to the purchase, sale or holding
of Bonds shall refer to beneficial interests in Bonds, unless the context clearly requires otherwise. 
  
 (b) During an Auction Rate Period, the provisions of the Agreement concerning the Auction Procedures and the definitions contained therein and described
in this Exhibit C, including without limitation the definitions of All Hold Rate, Interest Payment Date, Reference Rate and Auction Mode Rate, may be amended pursuant to the Agreement by obtaining the consent of the Bond Insurer and the
owners of all Bonds bearing interest at a Auction Mode Rate, as follows. If, on the first Auction Date occurring at least 20 days after the date on which the Trustee mailed notice of such proposed amendment to the registered owners of the Bonds as
required by the Agreement, (i) the Auction Mode Rate which is determined on such date is the Winning Bid Rate and (ii) there is delivered to the Company and the Trustee an Opinion of Tax Counsel to the effect that such amendment shall not
adversely affect the validity of the Bonds or any exemption from federal income tax to which the interest on the Bonds would otherwise be entitled, the proposed amendment shall be deemed to have been consented to by the owners of all affected Bonds
affected by such amendment. 
  
 (c) During an Auction Rate Period,
so long as the ownership of the Bonds is maintained in book-entry form by the Securities Depository, an Existing Owner or a beneficial owner may sell, transfer or otherwise dispose of a Bond only pursuant to a Bid or Sell Order in accordance with
the Auction Procedures or to or through a Broker-Dealer, provided that (i) in the 

  

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case of all transfers other than pursuant to Auctions, such Existing Owner or its Broker-Dealer or its Agent Member advises the Auction Agent of such
transfer and (ii) a sale, transfer or other disposition of Bonds from a customer of a Broker-Dealer who is listed on the records of that Broker-Dealer as the Existing Owner of such Bonds to that Broker-Dealer or another customer of that Broker
Dealer shall not be deemed to be a sale, transfer or other disposition for purposes of this Section 2.08 if such Broker-Dealer remains the Existing Owner of the Bonds so sold, transferred or disposed of immediately after such sale, transfer or
disposition. 
  
 Section 2.09. Changes in Auction Period
or Auction Date. (a) Changes in Auction Period. 
  
 (i) During any Auction Rate Period, the Company, may, from time to time on any Interest Payment Date, change the length of the Auction Period with respect to all of the Bonds in order to accommodate economic and financial factors that may
affect or be relevant to the length of the Auction Period and the interest rate borne by such Bonds. The Company shall initiate the change in the length of the Auction Period by giving seven days’ prior written notice to the Trustee, the
Auction Agent, the Authority, the Broker-Dealers and the Securities Depository. If the change is from an Auction Period of one year or less to an Auction Period longer than one year, or vice versa, the Company shall also provide the Trustee with a
Favorable Opinion of Tax Counsel as to such change in the Auction Period. 
  
 (ii) The change in the length of the Auction Period shall not be effective unless Sufficient Clearing Bids existed at both the Auction before the date on which the notice of the proposed change was given as provided
in this subsection (a) and the Auction immediately preceding the proposed change. 
  
 (iii) The change in length of the Auction Period shall take effect only if (A) Sufficient Clearing Bids exist at the Auction on the Auction Date for such first Auction Period and (B) if the Favorable Opinion
of Tax Counsel as to such change in the Auction Period, if required, is confirmed on the effective date of such change. For purposes of the Auction for such first Auction Period only, each Existing Owner shall be deemed to have submitted Sell Orders
with respect to all of its Bonds except to the extent such Existing Owner submits an Order with respect to such Bonds. If the conditions referred to in the first sentence of this paragraph (iii) are not met, the Trustee shall notify the Auction
Agent and then (C) if the preceding Auction Period was a period of one year or less, the new Auction Period shall be seven days (or if the seventh day is not followed by a Business Day then the new Auction Period shall be extended to the
succeeding day which is followed by a Business Day), and the Auction Mode Rate for the new Auction Period shall be the same as the Auction Mode Rate for the preceding Auction Period, and (D) if the preceding Auction Period was a period of
greater than one year, the preceding Auction Period shall be extended to the seventh day following the day that would have been the last day of such Auction Period had it not been extended (or if such seventh day is not followed by a Business
Day, then the Auction Period shall be extended to the next succeeding day which is followed by a Business Day) and the Auction Mode Rate in effect for the preceding Auction Period will continue in effect for the Auction Period as so extended.
In the event an Auction Period is extended as set forth in clause (C) or (D) of the preceding sentence, an Auction shall be held on the last Business Day of the Auction Period as so extended to take effect for an Auction Period beginning
on the Business Day immediately following the last day of the Auction Period 

  

 C-16 








 
as extended, which new Auction Period will end on the date it would otherwise have ended on had the prior Auction Period not been extended. Notwithstanding
the foregoing, no Auction Mode Rate shall be extended for more than 35 days. If, at the end of 35 days, the Auction Agent fails to calculate or provide the Auction Mode Rate, the Auction Mode Rate shall be the Maximum Interest Rate. 
  
 (iv) On the conversion date of the Bonds selected for conversion from one
Auction Period to another, any Bonds which are not the subject of a specific Hold Order or Bid will be deemed to be subject to a Sell Order. 
  
 (b) Changes in Auction Date. During any Auction Rate Period, the Auction Agent, at the written direction of the Company, shall specify an earlier
Auction Date (but in no event more than five Business Days earlier) than the Auction Date that would otherwise be determined in accordance with the definition of “Auction Date” in order to conform with then current market practice with
respect to similar securities or to accommodate economic and financial factors that may affect or be relevant to the day of the week constituting an Auction Date and the interest rate borne on the Bonds. The Company shall provide notice of its
determination to specify an earlier Auction Date for an Auction Period by means of a written notice delivered at least 45 days prior to the proposed changed Auction Date to the Trustee, the Authority, the Auction Agent, the Broker-Dealers and the
Securities Depository. 
  
 ARTICLE III 
  
 AUCTION AGENT 
  
 Section 3.01. Auction Agent. (a) The Auction Agent shall be
appointed by the Company to perform the functions specified herein. The Auction Agent shall designate its Principal Office and signify its acceptance of the duties and obligations imposed upon it hereunder by a written instrument, delivered to the
Company, the Trustee, the Authority and each Broker-Dealer which shall set forth such procedural and other matters relating to the implementation of the Auction Procedures as shall be satisfactory to the Company and the Trustee. 
  
 (b) Subject to any applicable governmental restrictions, the Auction Agent
may be or become the owner of or trade in Bonds with the same rights as if such entity were not the Auction Agent. 
  
 Section 3.02. Qualifications of Auction Agent; Resignation; Removal. The Auction Agent shall be (a) a bank or trust company organized
under the laws of the United States or any state or territory thereof having a combined capital stock, surplus and undivided profits of at least $30,000,000 or (b) a member of NASD having a capitalization of at least $30,000,000 and, in either
case, authorized by law to perform all the duties and obligations imposed upon it by this Agreement and a member of or a participant in the Securities Depository. The Auction Agent may at any time resign and be discharged of the duties and
obligations created by this Agreement by giving at least 90 days notice to the Company, the Authority and the Trustee. The Auction Agent may be removed at any time by the Company by written notice, delivered to the Auction Agent, the Authority and
the Trustee. Upon any such resignation or removal, the Company shall appoint a successor Auction Agent meeting the requirements of this section. In the event of the 

  

 C-17 








 
resignation or removal of the Auction Agent, the Auction Agent shall pay over, assign and deliver any moneys and Bonds held by it in such capacity to its
successor. The Auction Agent shall continue to perform its duties hereunder until its successor has been appointed by the Company. In the event that the Auction Agent has not been compensated for its services, the Auction Agent may resign by giving
forty-five (45) days notice to the Company, the Authority and the Trustee even if a successor Auction Agent has not been appointed. 
  

 C-18