Document:

ex102061608.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    

     

     

    SECOND
AMENDMENT AGREEMENT

     

    SECOND AMENDMENT AGREEMENT
(this “Agreement”) dated
as of April 28, 2008 by and among (1) Seneca Foods Corporation, Seneca Snack
Company and Seneca Foods, LLC (formerly known as Signature Fruit Company, LLC)
(collectively, the “Borrowers”), (2) the lending
institutions party to the Credit Agreement (as defined below) as lenders
(collectively, the “Lenders” and individually, a
“Lender”), (3) Bank of
America, N.A. (“Bank of
America”) as administrative agent (the “Administrative Agent”) for the Lenders and
(4) Bank of America as collateral agent for the Lenders and as an Issuing Bank
and as Swing Line Lender (in such respective capacities, the “Collateral Agent”, an “Issuing Bank” and/or “Swing Line Lender” as the case
may be) with respect to a certain Amended and Restated Revolving Credit
Agreement dated as of August 18, 2006, by and among the Borrowers, the Lenders,
the Administrative Agent, the Collateral Agent, the Issuing Bank and the
Documentation Agent party thereto, as amended by that certain First Amendment
Agreement dated as of November 20, 2006 (as amended from time to time, the
“Credit
Agreement”).

     

    W
I T N E S S E T H:

     

    WHEREAS, the Borrowers have
requested that the Lenders agree to amend certain provisions of the Credit
Agreement; and

     

    WHEREAS, the Lenders have
agreed to such amendments, on the terms and conditions set forth
herein.

     

    NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    §1. Definitions.  Capitalized
terms used herein without definition that are defined in the Credit Agreement
shall have the same meanings herein as therein.

     

    §2. Ratification
of Existing Agreements.  All of the Borrowers’ obligations and
liabilities to the Administrative Agent, the Collateral Agent, the Issuing Bank
and the Lenders as evidenced by or otherwise arising under the Credit Agreement,
the Notes and the other Loan Documents, are, by each Borrower’s execution of
this Agreement, ratified and confirmed in all respects.  In addition,
by each Borrower’s execution of this Agreement, each of the Borrowers represents
and warrants that no Borrower has any counterclaim, right of set-off or defense
of any kind with respect to such obligations and liabilities.

     

    §3. Representations
and Warranties.  Each of the Borrowers hereby represents and
warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank and
Lenders that all of the representations and warranties made by the Borrowers in
the Credit Agreement, the Notes and the other Loan Documents are true in all
material respects on the date hereof as if made on and as of the date hereof,
except to the extent there are changes resulting from transactions contemplated
or permitted by the Credit Agreement and the other Loan Documents, changes
occurring in the ordinary course of business that singly or in the aggregate are
not materially adverse, and to the extent such representations and warranties
relate expressly to an earlier date.

     

    §4. Conditions
Precedent.  The effectiveness of the amendments contemplated
hereby shall be subject to the satisfaction on or before the date hereof of each
of the following conditions precedent:

     

    (a) Representations and
Warranties.  All of the representations and warranties made by
the Borrowers herein, whether directly or incorporated by reference, shall be
true and correct on the date hereof except as provided in §3
hereof.

     

    (b) Performance; No Event of
Default.  The Borrowers shall have performed and complied in
all respects with all terms and conditions herein required to be performed or
complied with by them prior to or at the time hereof, and there shall exist no
Default or Event of Default.

     

    (c) Action.  All
requisite corporate or other action necessary for the valid execution, delivery
and performance by the Borrowers of this Agreement and all other instruments and
documents delivered by the Borrowers in connection therewith shall have been
duly and effectively taken.

     

    (d) Expenses and
Fees.  The Borrowers shall have paid to the Administrative
Agent the reasonable fees and expenses of counsel to the Administrative Agent in
connection with the preparation of this Agreement.

     

    (e) Delivery.  The
Borrowers, the Required Lenders and the Issuing Bank shall have executed and
delivered this Agreement.  In addition, the Borrowers shall have
executed and delivered such further instruments and taken such further action as
the Administrative Agent and the Required Lenders may have reasonably requested,
in each case further to effect the purposes of this Agreement, the Credit
Agreement and the other Loan Documents.

     

    §5. Amendments
to the Credit Agreement.

     

    (a) Amendment to clause (a) of
Section 8.3.  Clause (a) of Section 8.3 of the Credit Agreement
is hereby amended and restated in its entirety to read as follows:

     

    “(a)
keep, and cause each of their Subsidiaries to keep, true and accurate records
and books of account in which full, true and correct entries will be made in
accordance with GAAP (except that they may at their option use the last-in,
first-out method of accounting so long as they also keep records and books of
account sufficient for them to make the computations required to be made by
them, and to comply with their obligations, under this Agreement as if they were
still using a first-in, first-out method of accounting),”

     

    (b) Amendment to subsection (c)
of Section 8.4.  Subsection (c) of Section 8.4 of the Credit
Agreement is hereby amended by adding the following to the end of such
subsection:

     

    “;
without limiting the generality of the foregoing, with respect to any fiscal
period as to which any of the Borrowers use a last-in, first-out method of
accounting, the computations set forth in Appendix I attached to each Compliance
Certificate shall set forth, in addition to all other computations required to
be set forth therein, computations of EBITDA and the Fixed Charge Coverage Ratio
as if the Borrowers were using a first-in, first-out method of
accounting.”

     

    (c) Amendment to subsection (e)
of Section 8.4.  Subsection (e) of Section 8.4 of the Credit
Agreement is hereby amended and restated in its entirety to read as
follows:

     

    “(e)           within
twenty (20) days after the end of each fiscal month or at such earlier time as
the Administrative Agent may reasonably request, (i) a Borrowing Base Report
setting forth the Borrowing Base as at the end of such fiscal month or other
date so requested by the Administrative Agent and (ii) a listing of all
locations where inventory of Signature Fruit is located and the value of the
inventory located thereon, in form and detail satisfactory to the Administrative
Agent (which value shall be computed on a first-in, first-out basis); provided
that the Borrowing Base Report will be delivered weekly setting forth the
Borrowing Base as at the end of each calendar week within five (5) days after
the ending of each week during which the Excess Availability Percentage is less
than 30% for each Business Day of such week (or for any period of five (5)
consecutive Business Days ending during such week); (it being understood that
such weekly Borrowing Base Reports shall reflect changes in Accounts Receivable
and that changes in inventory and ineligible Accounts Receivable and inventory
will continue to be updated on a monthly basis);”

     

    §6. Miscellaneous
Provisions.

     

    (a) Except as
otherwise expressly provided by this Agreement, all of the respective terms,
conditions and provisions of the Credit Agreement, the Notes and the other Loan
Documents shall remain the same.  The Credit Agreement, as amended
hereby, shall continue in full force and effect, and this Agreement and the
Credit Agreement, shall be read and construed as one instrument.

     

    (b) This
Agreement is intended to take effect under, and shall be construed according to
and governed by, the laws of the State of New York, excluding any choice of law
or conflicts of law principles that would permit or require the applications of
the laws of another jurisdiction.

     

    (c) This
Agreement may be executed in any number of counterparts, but all such
counterparts shall together constitute but one instrument.  In making
proof of this Agreement it shall not be necessary to produce or account for more
than one counterpart signed by each party hereto by and against which
enforcement hereof is sought.  A facsimile of an executed counterpart
shall have the same effect as the original executed counterpart.

     

    [Remainder
of Page Intentionally Left Blank; Signature Page Follows]

     

    
      
        
          A/72495885.2 

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
undersigned have duly executed this Second Amendment Agreement as of the date
first set forth above.

     

    SENECA
FOODS CORPORATION

     

    

     

    

     

    By:  /s/Roland E.
Breunig

     

    Name:
Roland E. Breunig

     

    Title:   CFO

     

    SENECA
SNACK COMPANY

     

    

     

    

     

    By:  /s/ Jeffrey Van
Riper

     

    Name:
Jeffrey Van Riper

     

    Title:   Secretary

     

    SENECA
FOODS, LLC

     

    

     

    

     

    By:  /s/ Jeffrey Van
Riper

     

    Name:  Jeffrey
Van Riper

     

    Title:    Secretary

     

    The
undersigned acknowledges and accepts the foregoing and ratifies and confirms its
obligations under the Marion Guaranty:

     

    MARION
FOODS, INC.

     

    

     

    

     

    By:  /s/ Jeffrey Van
Riper                                                                

     

    Name:  Jeffrey
Van Riper

     

    Title:    Secretary

     

    
      
        
          A/72421228.1 

           

          A/72495885.2 

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    BANK
OF AMERICA, N.A.,

     

    individually,
as a Lender, as Administrative Agent, as Collateral Agent and as Issuing
Bank

     

    

     

    

     

    By:   /s/Lisa Freeman

     

    Name:  Lisa
Freeman

     

    Title:    Senior
Vice President

     

    GENERAL
ELECTRIC CAPITAL CORPORATION,

     

    as
a Lender and as Syndication Agent

     

    

     

    

     

    By:  /s/ Meeno
Sameer

     

    Name:
Meeno Sameer

     

    Title:   Duly
Authorized Signatory

     

    COOPERATIEVE
CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL”, NEW YORK
BRANCH, as a Lender and as Documentation Agent

    

    

    By:  /s/Betty Mills

    Name:  Betty
Mills

    Title:    Executive
Director

    

     

    

     

    By:  /s/Brett
Delfino

                                    Name:  Brett
Delfino

                                    Title:    Executive
Director

     

    M&T
TRUST COMPANY,

     

    as
a Lender

     

    

     

    

     

    By:  /s/ Jon M.
Fogle

     

    Name:  Jon
M. Fogle

     

    Title:    Vice
President

     

    U.S.
BANK NATIONAL ASSOCIATION,

     

    as a
Lender

     

    

     

    

     

    By:  /s/James CD.
Pegues

     

    Name:
James CD. Pegues

     

    Title:   Vice
President

     

    
      
        
          A/72495885.2_

Exhibit 4(a)

FPL GROUP CAPITAL INC

OFFICER'S CERTIFICATE

Creating the 5.35% Debentures, Series due June 15, 2013

Paul I. Cutler, the Vice President, Treasurer and Assistant Secretary of FPL Group Capital Inc (the "Company"), pursuant to the authority granted in the accompanying Board Resolutions (all capitalized terms used herein which are not defined herein or in Exhibit A hereto, but are defined in the Indenture referred to below, shall have the meanings specified in the Indenture), and Sections 201 and 301 of the Indenture, does hereby certify to The Bank of New York (the "Trustee"), as Trustee under the Indenture of the Company (For Unsecured Debt Securities) dated as of June 1, 1999 (the "Indenture") that:

	The securities to be issued under the Indenture shall be designated "5.35% Debentures, Series due June 15, 2013" (the "Debentures of the Eleventh Series") and shall be issued in substantially the form set forth in Exhibit A hereto;

	The Debentures of the Eleventh Series shall be issued by the Company in the initial aggregate principal amount of $250,000,000.  Additional Debentures of the Eleventh Series, without limitation as to amount, having substantially the same terms as the Outstanding Debentures of the Eleventh Series (except for the payment of interest accruing prior to the issue date of the additional Debentures of the Eleventh Series or except for the first payments of interest following the issue date of the additional Debentures of the Eleventh Series) may also be issued by the Company pursuant to the Indenture without the consent of the existing Holders of the Debentures of the Eleventh Series.  Any such additional Debentures of the Eleventh Series shall be part of the same series as the Outstanding Debentures of the Eleventh Series;

	The Debentures of the Eleventh Series shall mature and the principal shall be due and payable together with all accrued and unpaid interest thereon on June 15, 2013;

	The Debentures of the Eleventh Series shall bear interest as provided in the form thereof set forth as Exhibit A hereto;

	Each installment of interest on a Debenture of the Eleventh Series shall be payable as provided in the form thereof set forth as Exhibit A hereto;

	Registration and registration of transfers and exchanges in respect of the Debentures of the Eleventh Series may be effected at the office or agency of the Company in The City of New York, New York.  Notices and demands to or upon the Company in respect of the Debentures of the Eleventh Series may be served at the office or agency of the Company in The City of New York, New York.  The Corporate Trust Office of the Trustee will initially be the agency of the Company for such payment, registration and registration of transfers and exchanges and service of notices and demands and the Company hereby appoints the Trustee as its agent for all such purposes; provided, however, that the Company reserves the right to change, by one or more Officer's Certificates, any such office or agency and such agent.  The Trustee will initially be the Security Registrar and the Paying Agent for the Debentures of the Eleventh Series;

	The Debentures of the Eleventh Series will be redeemable at the option of the Company prior to the Stated Maturity of the principal thereof as provided in the form thereof set forth in Exhibit A hereto;

	So long as Debentures of the Eleventh Series are registered in the name of The Depository Trust Company ("DTC") or any other successor depositary or a nominee thereof, the Regular Record Date for the interest payable on any given Interest Payment Date with respect to the Debentures of the Eleventh Series shall be the close of business on the Business Day immediately preceding such Interest Payment Date; provided, however, if any of the Debentures of the Eleventh Series are not registered in the name of DTC or any other successor depositary or a nominee thereof, the Regular Record Date will be the close of business on the 15th calendar day next preceding such Interest Payment Date;

	No service charge shall be made for the registration of transfer or exchange of the Debentures of the Eleventh Series; provided, however, that the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the exchange or transfer;

	If the Company shall make any deposit of money and/or Eligible Obligations with respect to any Debentures of the Eleventh Series, or any portion of the principal amount thereof, as contemplated by Section 701 of the Indenture, the Company shall not deliver an Officer's Certificate described in clause (z) in the first paragraph of said Section 701 unless the Company shall also deliver to the Trustee, together with such Officer's Certificate, either:

	an instrument wherein the Company, notwithstanding the satisfaction and discharge of its indebtedness in respect of the Debentures of the Eleventh Series, shall assume the obligation (which shall be absolute and unconditional) to irrevocably deposit with the Trustee or Paying Agent such additional sums of money, if any, or additional Eligible Obligations (meeting the requirements of said Section 701), if any, or any combination thereof, at such time or times, as shall be necessary, together with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become due on such Debentures of the Eleventh Series or portions thereof, all in accordance with and subject to the provisions of said Section 701; provided, however, that such instrument may state that the obligation of the Company to make additional deposits as aforesaid shall be subject to the delivery to the Company by the Trustee of a notice asserting the deficiency accompanied by an opinion of an independent public accountant of nationally recognized standing, selected by the Trustee, showing the calculation thereof; or

	an Opinion of Counsel to the effect that, as a result of a change in law occurring after the date of this certificate, the Holders of such Debentures of the Eleventh Series, or portions of the principal amount thereof, will not recognize income, gain or loss for United States federal income tax purposes as a result of the satisfaction and discharge of the Company's indebtedness in respect thereof and will be subject to United States federal income tax on the same amounts, at the same times and in the same manner as if such satisfaction and discharge had not been effected;

	The Debentures of the Eleventh Series will be absolutely, irrevocably and unconditionally guaranteed as to payment of principal, interest and premium, if any, by FPL Group, Inc., as Guarantor (the "Guarantor"), pursuant to a Guarantee Agreement, dated as of June 1, 1999, between the Guarantor and The Bank of New York (as Guarantee Trustee) (the "Guarantee Agreement").  The following shall constitute "Guarantor Events" with respect to the Debentures of the Eleventh Series:

	the failure of the Guarantee Agreement to be in full force and effect;

	the entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Guarantor in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency or other similar law or (ii) a decree or order adjudging the Guarantor bankrupt or insolvent, or approving as properly filed a petition by one or more entities other than the Guarantor seeking reorganization, arrangement, adjustment or composition of or in respect of the Guarantor under any applicable Federal or State bankruptcy, insolvency or other similar law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official for the Guarantor or for any substantial part of its property, or ordering the winding up or liquidation of its affairs, and any such decree or order for relief or any such other decree or order shall have remained unstayed and in effect for a period of 90 consecutive days; or

	the commencement by the Guarantor of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency or other similar law or of any other case or proceeding to be adjudicated bankrupt or insolvent, or the consent by it to the entry of a decree or order for relief in respect of the Guarantor in a case or proceeding under any applicable Federal or State bankruptcy, insolvency or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable Federal or State bankruptcy, insolvency or other similar law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Guarantor or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the authorization of such action by the Board of Directors of the Guarantor.

Notwithstanding anything to the contrary contained in the Debentures of the Eleventh Series, this certificate or in the Indenture, the Company shall, if a Guarantor Event shall occur and be continuing, redeem all of the Outstanding Debentures of the Eleventh Series within 60 days after the occurrence of such Guarantor Event at a redemption price equal to the principal amount thereof plus accrued interest to the date of redemption unless, within 30 days after the occurrence of such Guarantor Event, Standard & Poor's Ratings Services (a Division of The McGraw Hill Companies, Inc.) and Moody's Investors Service, Inc. (if the Debentures of the Eleventh Series are then rated by those rating agencies, or, if the Debentures of the Eleventh Series are then rated by only one of those rating agencies, then such rating agency, or, if the Debentures of the Eleventh Series are not then rated by either one of those rating agencies but are then rated by one or more other nationally recognized rating agencies, then at least one of those other nationally recognized rating agencies) shall have reaffirmed in writing that, after giving effect to such Guarantor Event, the credit rating on the Debentures of the Eleventh Series shall be investment grade (i.e. in one of the four highest categories, without regard to subcategories within such rating categories, of such rating agency);

	With respect to the Debentures of the Eleventh Series, each of the following events shall be an additional Event of Default under the Indenture:

	the consolidation of the Guarantor with or merger of the Guarantor into any other Person, or the conveyance or other transfer or lease by the Guarantor of its properties and assets substantially as an entirety to any Person, unless

	the Person formed by such consolidation or into which the Guarantor is merged or the Person which acquires by conveyance or other transfer, or which leases, the properties and assets of the Guarantor substantially as an entirety shall be a Person organized and existing under the laws of the United States, any State thereof or the District of Columbia, and shall expressly assume the obligations of the Guarantor under the Guarantee Agreement; and

	immediately after giving effect to such transaction, no Event of Default and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and

	the failure of the Company to redeem the Outstanding Debentures of the Eleventh Series as required by paragraph 11 hereof;

	If a Guarantor Event occurs and the Company is not required to redeem the Debentures of the Eleventh Series pursuant to paragraph 11 hereof, the Company will provide to the Trustee and the Holders of the Debentures of the Eleventh Series annual and quarterly reports containing the information that the Company would be required to file with the Securities and Exchange Commission under Section 13 or Section 15(d) of the Securities Exchange Act of 1934 if it were subject to the reporting requirements of those Sections.  If the Company is, at that time, subject to the reporting requirements of those Sections, the filing of annual and quarterly reports with the Securities and Exchange Commission pursuant to those Sections will satisfy this requirement;

	The Debentures of the Eleventh Series will be initially issued in global form registered in the name of Cede & Co. (as nominee for DTC).  The Debentures of the Eleventh Series in global form shall bear the depository legend in substantially the form set forth in Exhibit A hereto.  The Debentures of the Eleventh Series in global form will contain restrictions on transfer, substantially as described in the form set forth in Exhibit A hereto;

	The Debentures of the Eleventh Series shall have such other terms and provisions as are provided in the form set forth in Exhibit A hereto;

	The undersigned has read all of the covenants and conditions contained in the Indenture relating to the issuance of the Debentures of the Eleventh Series and the definitions in the Indenture relating thereto and in respect of which this certificate is made;

	The statements contained in this certificate are based upon the familiarity of the undersigned with the Indenture, the documents accompanying this certificate, and upon discussions by the undersigned with officers and employees of the Company familiar with the matters set forth herein;

	In the opinion of the undersigned, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenants and conditions have been complied with; and

	In the opinion of the undersigned, such conditions and covenants and conditions precedent, if any (including any covenants compliance with which constitutes a condition precedent), to the authentication and delivery of the Debentures of the Eleventh Series requested in the accompanying Company Order No. 12 have been complied with.

 

IN WITNESS WHEREOF, I have executed this Officer's Certificate on behalf of the Company this 17th day of June, 2008 in New York, New York.

	 	
/s/ Paul I. Cutler

	
	

	 	
Paul I. Cutler

	 	
Vice President, Treasurer and Assistant Secretary

 

 

Exhibit A

[Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to FPL Group Capital Inc 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.]

	
No._______________
	
CUSIP No. 302570 BA3

[FORM OF FACE OF DEBENTURE]

FPL GROUP CAPITAL INC

5.35% DEBENTURES, SERIES DUE JUNE 15, 2013

FPL GROUP CAPITAL INC, a corporation duly organized and existing under the laws of the State of Florida (herein referred to as the "Company", which term includes any successor Person under the Indenture), for value received, hereby promises to pay to

or registered assigns, the principal sum of ____________________ Dollars on June 15, 2013 and to pay interest on said principal sum semi-annually on June 15 and December 15 of each, year commencing December 15, 2008 (each, an "Interest Payment Date") at the rate of 5.35% per annum until the principal hereof is paid or made available for payment.  Interest on the Securities of this series will accrue from and including June 17, 2008, to and excluding the first Interest Payment Date, and thereafter will accrue from and including the last Interest Payment Date to which interest has been paid or duly provided for.  No interest will accrue on the Securities with respect to the day on which the Securities mature.  In the event that any Interest Payment Date is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of such delay) with the same force and effect as if made on the Interest Payment Date.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be payable to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the "Regular Record Date" for such interest installment which shall be the Business Day immediately preceding such Interest Payment Date so long as the Securities are registered in the name of The Depository Trust Company ("DTC") or any other successor depositary or a nominee thereof, provided, however, that if the Securities are not registered in the name of DTC or any other successor depositary or a nominee thereof the Regular Record Date will be the close of business on the 15th calendar day next preceding such Interest Payment Date and provided further that interest payable at Maturity will be paid to the Person to whom principal is paid.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder of this Security on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture referred to on the reverse hereof.

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained for that purpose in The City of New York, the State of New York in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at the option of the Company, interest on this Security may be paid by check mailed to the address of the Person entitled thereto, as such address shall appear on the Security Register or by a wire transfer to an account designated by the Person entitled thereto.

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

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

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed in New York, New York.

	
	
FPL GROUP CAPITAL INC

	
	

	
	
By:
	

	
	
	

[FORM OF CERTIFICATE OF AUTHENTICATION]

CERTIFICATE OF AUTHENTICATION

Dated:

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

	
	
The Bank of New York, as Trustee

	
	

	
	
By:
	

	
	
	

	
	
	
Authorized Signatory

 

[FORM OF REVERSE OF DEBENTURE]

This Security is one of a duly authorized issue of securities of the Company (herein called the "Securities"), issued and to be issued in one or more series under an Indenture (For Unsecured Debt Securities), dated as of June 1, 1999 (herein, together with any amendments thereto, called the "Indenture", which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York, as Trustee (herein called the "Trustee", which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture, including the Board Resolutions and Officer's Certificate filed with the Trustee on June 17, 2008 creating the series designated on the face hereof (herein called the "Officer's Certificate"), for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof.

Securities of this series shall be redeemable at the option of the Company in whole at any time, or in part from time to time, prior to the Stated Maturity, upon notice mailed at least 30 days but not more than 60 days prior to the date fixed for redemption (the "Redemption Date"), at a price (the "Redemption Price") equal to the sum of (i) 100% of the principal amount thereof plus (ii) accrued and unpaid interest, if any, to the Redemption Date plus (iii) a premium, if any (the "Make-Whole Premium").  In no event will the Redemption Price be less than 100% of the principal amount of the Securities of this series being redeemed plus accrued and unpaid interest, if any, to the Redemption Date.

The amount of the Make-Whole Premium with respect to any Security of this series (or portion thereof) to be redeemed will be equal to the excess, if any, of:

	the sum of the present values, calculated as of the Redemption Date, of:

	each interest payment that, but for such redemption, would have been payable on the Security of this series (or portion thereof) being redeemed on each Interest Payment Date occurring after the Redemption Date (excluding any accrued interest from and including the last Interest Payment Date to which interest has been paid prior to the Redemption Date); and

	the principal amount that, but for such redemption, would have been payable at the Stated Maturity of the Security of this series (or portion thereof) being redeemed; over

	the principal amount of the Security of this series (or portion thereof) being redeemed.

The present values of interest and principal payments referred to in clause (1) above will be determined in accordance with generally accepted principles of financial analysis.  Such present values will be calculated by discounting the amount of each payment of interest or principal from the date that each such payment would have been payable, but for the redemption, to the Redemption Date at a discount rate equal to the Treasury Yield (as defined below) plus 30 basis points.

The Company will appoint an independent investment banking institution of national standing to calculate the Make-Whole Premium; provided that if the Company fails to make such appointment at least 30 days prior to the Redemption Date, or if the institution so appointed is unwilling or unable to make such calculation, such calculation will be made by Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Greenwich Capital Markets, Inc. or Lehman Brothers Inc. or, if such firms are unwilling or unable to make such calculation, by an independent investment banking institution of national standing appointed by the Trustee at the expense of the Company (in any such case, an "Independent Investment Banker").

For purposes of determining the Make-Whole Premium, "Treasury Yield" means a rate of interest per annum equal to the weekly average yield to maturity of United States Treasury Notes that have a constant maturity that corresponds to the remaining term to maturity of the Securities of this series to be redeemed, calculated to the nearest 1/12th of a year (the "Remaining Term").  The Independent Investment Banker will determine the Treasury Yield as of the third Business Day immediately preceding the applicable Redemption Date.

The Independent Investment Banker will determine the weekly average yields of United States Treasury Notes by reference to the most recent statistical release published by the Federal Reserve Bank of New York and designated "H.15(519) Selected Interest Rates" or any successor release (the "H.15 Statistical Release").  If the H.15 Statistical Release sets forth a weekly average yield for the United States Treasury Notes having a constant maturity that is the same as the Remaining Term, then the Treasury Yield will be equal to such weekly average yield.  In all other cases, the Independent Investment Banker will calculate the Treasury Yield by interpolation, on a straight-line basis, between the weekly average yields on the United States Treasury Notes that have a constant maturity closest to and greater than the Remaining Term and the United States Treasury Notes that have a constant maturity closest to and less than the Remaining Term (in each case as set forth in the H.15 Statistical Release).  The Independent Investment Banker will round any weekly average yields so calculated to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded upward.  If weekly average yields for United States Treasury Notes are not available in the H.15 Statistical Release or otherwise, then the Independent Investment Banker will select comparable rates and calculate the Treasury Yield by reference to those rates.

If at the time notice of redemption is given, the redemption moneys are not on deposit with the Trustee, then the redemption shall be subject to their receipt on or before the Redemption Date and such notice shall be of no effect unless such moneys are received.

Upon payment of the Redemption Price, on and after the Redemption Date interest will cease to accrue on the Securities of this series or portions thereof called for redemption.

The Securities will be absolutely, irrevocably and unconditionally guaranteed as to payment of principal, interest and premium, if any, by FPL Group, Inc., as Guarantor (the "Guarantor"), pursuant to a Guarantee Agreement, dated as of June 1, 1999, between the Guarantor and The Bank of New York (as Guarantee Trustee) (the "Guarantee Agreement").  The following shall constitute "Guarantor Events" with respect to the Securities:

	the failure of the Guarantee Agreement to be in full force and effect;

	the entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Guarantor in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency or other similar law or (ii) a decree or order adjudging the Guarantor bankrupt or insolvent, or approving as properly filed a petition by one or more entities other than the Guarantor seeking reorganization, arrangement, adjustment or composition of or in respect of the Guarantor under any applicable Federal or State bankruptcy, insolvency or other similar law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official for the Guarantor or for any substantial part of its property, or ordering the winding up or liquidation of its affairs, and any such decree or order for relief or any such other decree or order shall have remained unstayed and in effect for a period of 90 consecutive days; or

	the commencement by the Guarantor of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency or other similar law or of any other case or proceeding to be adjudicated bankrupt or insolvent, or the consent by it to the entry of a decree or order for relief in respect of the Guarantor in a case or proceeding under any applicable Federal or State bankruptcy, insolvency or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable Federal or State bankruptcy, insolvency or other similar law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Guarantor or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the authorization of such action by the Board of Directors of the Guarantor.

Notwithstanding anything to the contrary contained in the Securities, the Officer's Certificate dated June 17, 2008, establishing the Securities, or in the Indenture, the Company shall, if a Guarantor Event shall occur and be continuing, redeem all of the Outstanding Securities within 60 days after the occurrence of such Guarantor Event at a redemption price equal to the principal amount thereof plus accrued interest to the date of redemption unless, within 30 days after the occurrence of such Guarantor Event, Standard & Poor's Ratings Services (a Division of The McGraw Hill Companies, Inc.) and Moody's Investors Service, Inc. (if the Securities are then rated by those rating agencies, or, if the Securities are then rated by only one of those rating agencies, then such rating agency, or, if the Securities are not then rated by either one of those rating agencies but are then rated by one or more other nationally recognized rating agencies, then at least one of those other nationally recognized rating agencies) shall have reaffirmed in writing that, after giving effect to such Guarantor Event, the credit rating on the Securities shall be investment grade (i.e. in one of the four highest categories, without regard to subcategories within such rating categories, of such rating agency).

If a Guarantor Event occurs and the Company is not required to redeem the Securities pursuant to the preceding paragraph, the Company will provide to the Trustee and the Holders of the Securities annual and quarterly reports containing the information that the Company would be required to file with the Securities and Exchange Commission under Section 13 or Section 15(d) of the Securities Exchange Act of 1934 if it were subject to the reporting requirements of those Sections.  If the Company is, at that time, subject to the reporting requirements of those Sections, the filing of annual and quarterly reports with the Securities and Exchange Commission pursuant to those Sections will satisfy the requirements of this paragraph.

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security upon compliance with certain conditions set forth in the Indenture, including the Officer's Certificate described above.

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

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

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of a majority in aggregate principal amount of the Securities of all series at the time Outstanding in respect of which an Event of Default shall have occurred and be continuing shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in aggregate principal amount of Securities of all series at the time Outstanding in respect of which an Event of Default shall have occurred and be continuing a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

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

The Securities of this series are issuable only in registered form without coupons in denominations of $1,000 and integral multiples thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor and of authorized denominations, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

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

All terms used in this Security which are defined in the Indenture and/or in the Officer's Certificate shall have the meanings assigned to them in the Indenture and/or in the Officer's Certificate.

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