Document:

ex102.htm

    SUPPLEMENTAL RETIREMENT PLAN
AGREEMENT

    

    

    This sets
forth the Supplemental Retirement Plan Agreement made effective as of December
30, 2008 between (i) COMMUNITY BANK SYSTEM, INC., a Delaware corporation and
registered bank holding company, and COMMUNITY BANK, N.A., a national banking
association, both having offices located in Dewitt, New York (collectively, the
“Employer”), and (ii) MARK E. TRYNISKI, an individual currently residing at 1964
Penfold Way, Baldwinsville, New York (“Employee”).  This Agreement
supersedes the Supplemental Retirement Plan Agreement between the parties dated
as of August 1, 2006.

    RECITALS

    
      	
               
      

            	
              A.

            	
              Employer
      and Employee are parties to an Employment Agreement dated and effective as
      of December 1, 2005 (“Employment
Agreement”).

            

    

    
      	
               
      

            	
              B.

            	
              The
      Employment Agreement provides that Employer and Employee shall enter into
      a separate agreement regarding supplemental retirement
      benefits.

            

    

    
      	
               
      

            	
              C.

            	
              This
      Agreement sets forth the terms of the parties’ agreement regarding
      supplemental retirement benefits.

            

    

    TERMS

    IN
CONSIDERATION of the premises and mutual agreements and covenants contained
herein, and other good and valuable consideration, the parties agree as
follows:

    1.           Supplemental Retirement
Benefit.

    (a)           Subject
to the minimum benefit provisions of paragraph 1(b) and the vesting provisions
of paragraph 5, Employer shall pay Employee an annual supplemental retirement
benefit equal to the product of (i) 3 percent, times (ii) Employee’s years of
service with Employer, times (iii) Employee’s final average compensation, with
the product of (i) times (ii) times (iii) reduced by Employee’s other retirement
benefits.  (The terms “years of service,” “final average
compensation,” and “other retirement benefits” are defined in paragraph 2
below).  Subject to the adjustments described in paragraph 4, the
benefit described in this paragraph 1(a) initially shall be expressed as a
single life annuity (payable for Employee’s life) commencing as of the date
determined pursuant to paragraph 4.

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    (b)           The
annual supplemental retirement benefit payable pursuant to this Agreement shall
not be less than the excess (if any) of:  (i) the annual benefit that
Employee would have earned pursuant to the Community Bank System, Inc. Pension
Plan (“Pension Plan”) if the compensation limit imposed by Internal Revenue Code
Section 401(a)(17) and the maximum benefit limit imposed by Internal Revenue
Code Section 415 are disregarded; minus (ii) the annual benefit actually payable
to Employee pursuant to the Pension Plan.  For purposes of calculating
the annual benefit described in clause (i) of this paragraph 1(b), the
provisions of the Pension Plan that describe a minimum annual normal retirement
benefit and a supplemental account balance for Employee shall be
disregarded.  Any such minimum annual normal retirement benefit (but
not any supplemental account balance benefit) actually payable pursuant to the
Pension Plan, however, shall be taken into account for purposes of clause (ii)
of this paragraph 1(b).  Subject to the adjustments described in
paragraph 4, the benefit described in this paragraph 1(b) initially shall be
expressed as a single life annuity (payable for Employee’s life) commencing as
of the date determined pursuant to paragraph 4.

    2.           Definitions.

    (a)           For
purposes of paragraph 1(a), “years of service with Employer” shall be credited
to Employee in the same manner as years of service are credited to Employee
under the Pension Plan, provided that no more than 20 years of service will be
taken into account under clause (ii) of paragraph 1(a).

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (b)           For
purposes of paragraph 1(a), Employee’s “final average compensation” shall be the
annual average of Employee’s Base Salary (as defined in the Employment
Agreement) and cash incentive payment awarded during the five consecutive
calendar years preceding the calendar year of Employee’s
termination.  In no event will “final average compensation” take into
account any lump sum payment made to Employee in connection with a “Change of
Control” (as that term is defined in the Employment Agreement).

    (c)           For
purposes of paragraph 1(a), Employee’s “other retirement benefits” shall mean
the sum of

    
      	
               
      

            	
              (i)

            	
              the
      annual benefit earned by Employee pursuant to the Pension Plan
      (disregarding any supplemental account balance in the Pension Plan to the
      extent such account balance is attributable to Employee’s elective
      deferrals to the Deferred Compensation Plan for Certain Executive
      Employees of Community Bank System, Inc.),
plus

            

    

    
      	
               
      

            	
              (ii)

            	
              the
      annual benefit that could be provided by Employer contributions (other
      than elective deferrals) made on Employee’s behalf under (A) the Community
      Bank System, Inc. 401(k) Employee Stock Ownership Plan, and (B) the
      Deferred Compensation Plan for Certain Executive Employees of Community
      Bank System, Inc., adjusted to reflect actual earnings, losses and
      expenses credited to and charged against such Employer contributions, if
      such contributions (as adjusted) were converted to a single life annuity
      benefit payable commencing as of the last day of the calendar quarter
      immediately preceding the date benefit payments begin under this
      Agreement, using the factors applied to determine actuarial equivalents
      under the Pension Plan as of such
date.

            

    

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (d)           For
the purposes of paragraph 1(b) and paragraph 2(c)(i), Employee’s Pension Plan
benefit will be Employee’s accrued benefit under the Pension Plan, determined as
of the earlier of (i) the date Employee begins to receive such Pension Plan
benefit, or (ii) the date Employee begins to receive the supplemental retirement
plan benefit, expressed (in either case) in the form of a single life annuity
(payable for Employee’s life) commencing as of the date determined pursuant to
paragraph 4.  In the event payments of supplemental retirement
benefits commence before payments of Employee’s Pension Plan benefit commence,
the supplemental retirement benefit shall be adjusted (if necessary) to reflect
any difference between the Pension Plan benefit calculated pursuant to the
preceding sentence and the actual benefit paid to Employee pursuant to the
Pension Plan.

    3.           Change of
Control.

    (a)           If
Employee’s employment with Employer (as an employee) shall cease for any reason,
including Employee’s voluntary termination for “good reason”, but not including
Employee’s termination for “cause” or Employee’s voluntary termination without
“good reason,” within 2 years following a “Change of Control” that occurs during
the “Period of Employment” (as all of the foregoing quoted terms are defined in
the Employment Agreement), then Employer shall credit Employee under this
Agreement with 5 additional years of service for purposes of determining
Employee’s supplemental retirement benefit described in paragraph 1(a), subject
to the 20-year maximum described in paragraph 2(a).

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (b)           Notwithstanding
the foregoing of this paragraph 3, and to the extent consistent with Internal
Revenue Code Section 409A and this Agreement, the Board of Directors of Employer
may elect, in its sole discretion, to terminate this Agreement and pay all
benefits due Employee pursuant to this Agreement in a single lump sum payment
within 90 days following a Change of Control and Employee’s termination of
employment with Employer.

    4.           Time and Form of
Payment.

    (a)           If
vested pursuant to paragraph 5, the supplemental retirement benefit described in
paragraph 1 shall be payable in monthly installments commencing on the first day
of the seventh month following the later of (i) Employee’s 55th birthday, or
(ii) Employee’s termination of employment with Employer; provided, however,
that, if Employee separates from service with Employer due to Employee’s death,
then the survivor portion of the supplemental retirement benefit (as described
in paragraph 4(c)) shall be payable commencing on the first day of the seventh
month that follows the month during which Employee dies.

    (b)           If
vested pursuant to paragraph 5, the supplemental retirement benefit described in
paragraph 1 shall be paid in the form of a single life annuity for Employee’s
lifetime or, if elected by Employee prior to the date payments commence, in any
form of actuarially equivalent life annuity benefit (using the factors applied
to determine actuarial equivalents under the Pension Plan at the time payments
begin), with Employee’s spouse as survivor annuitant of any elected joint and
survivor annuity.  However, if Employee retires in good standing from
Employer after attaining at least age 62, then the benefit described in
paragraph 1(a) (before reduction for “other retirement benefits”), and the
benefit described in clause (i) of paragraph 1(b), shall be determined without
reduction for early retirement.

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (c)           Notwithstanding
the foregoing, if Employee dies prior to commencing receipt of payments under
this Agreement, Employee’s surviving spouse shall receive an actuarially reduced
100 percent survivor benefit determined as if Employee retired on the day prior
to his death and immediately commenced receipt of payments under both this
Agreement and the Pension Plan in the form of an actuarially reduced joint and
100 percent survivor benefit with his spouse as survivor
annuitant.  If Employee has no spouse at the time of Employee’s death,
no survivor benefits shall be paid pursuant to this Agreement.

    (d)           As
provided in paragraph 1(a) and paragraph 1(b), Employee is entitled to the
greater of the two benefits described in those paragraphs.  The
determination of which paragraph produces the greater benefit shall be made as
of the date payments commence pursuant to this Agreement and the applicable
paragraph shall govern all future payments.  The comparison of
benefits described in paragraph 1(a) and paragraph 1(b) shall not apply after
the date payments commence pursuant to this Agreement.

    5.           Vesting.

    (a)           Except
as provided in 5(b), Employee’s right to the supplemental retirement benefit
described in paragraph 1(a) shall be considered vested upon Employee’s
satisfactory completion of 36 consecutive months of service as President and
Chief Executive Officer of Employer.

    (b)           In
the event of Employee’s termination of employment due to his death or total
disability prior to completion of the 36-month service period described in (a)
above, Employee shall be deemed to be 100 percent vested in the benefit earned
pursuant to paragraph 1(a) through the date of termination.

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (c)           Employee
shall be 100 percent vested at all times in any benefit Employee may earn
pursuant to paragraph 1(b).

    6.           Funding.  Employer
shall establish a “grantor trust” (as that term is defined in Internal Revenue
Code Section 671) to aid it in the accumulation and payment of the supplemental
retirement benefit described in this Agreement; provided that the trust shall be
established with the intention that the creation and funding of the trust shall
not result in the recognition of gross income by Employee of any amount credited
under the trust prior to the date the amount is paid or made
available.  Assets of the trust, and any other assets set aside by
Employer to satisfy its obligations under this Agreement, shall remain at all
times subject to the claims of Employer’s general creditors.  Employee
and his beneficiaries shall not have any rights under this Agreement that are
senior to the claims of general unsecured creditors of
Employer.  Notwithstanding any other term or provision of this
Agreement or the trust, and to the extent consistent with Internal Revenue Code
Section 409A and this Agreement, within ten business days following Employee’s
termination of employment with Employer due to Employee’s retirement, disability
or death, or, if earlier, immediately prior to the effective date of a “Change
of Control” (as defined in the Employment Agreement), Employer shall fully fund
the trust (using the same actuarial assumptions used to establish funding in the
Pension Plan) for all benefits earned pursuant to this Agreement through the
date of Employee’s termination of employment or the effective date of the Change
of Control, as applicable.

    7.           Construction and
Severability.  The invalidity of any one or more provisions of
this Agreement or any part thereof, all of which are inserted conditionally upon
their being valid in law, shall not affect the validity of any other provisions
to this Agreement;  and in the event that one or more provisions
contained herein shall be invalid, as determined by a court of competent
jurisdiction, this instrument shall be construed as if such invalid provisions
had not been inserted.  This Agreement shall be interpreted and
applied in all circumstances in a manner that is consistent with the intent of
the parties that amounts earned and payable pursuant to this Agreement shall not
be subject to the premature income recognition or adverse tax provisions of
Internal Revenue Code Section 409A.

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    8.           Governing
Law.  This Agreement was executed and delivered in the State of
New York and shall be construed and governed in accordance with the laws of the
State of New York.

    9.           Assignability and
Successors.  The right to receive the supplemental retirement
benefit described in this Agreement shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge or encumbrance, nor
subject to attachment, garnishment, levy, execution or other legal or equitable
process for the debts, contracts or liabilities of Employee or his
beneficiaries.  However, this Agreement shall be binding upon and
shall inure to the benefit of the successor of Employer through merger or
corporate reorganization.

    10.           Miscellaneous.  This
Agreement constitutes the entire understanding and agreement between the parties
with respect to the subject matter hereof and shall supersede all prior
understandings and agreements, including the August 1, 2006 Supplemental
Retirement Plan Agreement between the parties.  This Agreement cannot
be amended, modified, or supplemented in any respect, except by a subsequent
written agreement entered into by the parties.

    11.           Counterparts.  This
Agreement may be executed in counterparts (each of which need not be executed by
each of the parties), which together shall constitute one and the same
instrument.

    12.           Jurisdiction and
Venue.  The jurisdiction of any proceeding between the parties
arising out of, or with respect to, this Agreement shall be in a court of
competent jurisdiction in New York State, and venue shall be in Onondaga
County.  Each party shall be subject to the personal jurisdiction of
the courts of New York State.

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
 

    The
foregoing Supplemental Retirement Plan Agreement is established by the following
signatures of the parties.

    

                            COMMUNITY BANK
SYSTEM, INC.

    

    

    
      	 
      	
              By:

            	
              /s/
      Paul M. Cantwell

            
	 
      	 
      	 
      
	 
      	
              Its:

            	
              Chair
      of Board

            
	 
      	 
      	 
      

    

    

    

                            COMMUNITY BANK,
N.A.

    

    
      	 
      	
              By:

            	
              /s/
      Bernadette R. Barber

            
	 
      	 
      	 
      
	 
      	
              Its:

            	
              Senior
      Vice President, Chief HR Officer

            
	 
      	 
      	 
      

    

    

    

    
      	 
      	 
      	
              /s/
      Mark E. Tryniski

            

    

    

    
      
         

      

      
        9exhibit4a.htm

     

    
      

      

    

    Exhibit
4(a)

    

    

    
      
        
          	
                  This
      instrument was prepared by:

                	 
      	
                    EXECUTED
      IN 60 COUNTERPARTS OF

                    WHICH
      THIS IS COUNTERPART NO. 4

                
	
                  Paul
      I. Cutler

                  Florida
      Power & Light Company

                  700
      Universe Boulevard

                  Juno
      Beach, Florida 33408

                	 
      	 
      

        

      

    

    

    
      

       

      FLORIDA
POWER & LIGHT COMPANY

       

      

    

    to

     

    DEUTSCHE
BANK TRUST COMPANY AMERICAS

     

    (formerly
known as Bankers Trust Company)

     

    As
Trustee under Florida Power & Light

     

    Company’s
Mortgage and Deed of Trust,

     

    Dated
as of January 1, 1944.

     

    One
Hundred Fourteenth Supplemental Indenture

     

    Relating
to $500,000,000 Principal Amount

     

    of
First Mortgage Bonds, 5.96% Series

     

    due
April  1, 2039

     

    

    Dated
as of March 1, 2009

     

    
      

       

      

    

    This
Supplemental Indenture has been executed in several counterparts, all of which
constitute but one and the same instrument.  This Supplemental
Indenture has been recorded in several counties and documentary stamp taxes as
required by law in the amount of $1,750,000 and non-recurring intangible taxes
as required by law in the amount of $120,359.37 were paid on the Supplemental
Indenture recorded in the public records of Palm Beach County,
Florida.

     

    Note to
Examiner:  The new bonds (“New Bonds”) being issued in
connection with this Supplemental Indenture are secured by real property and
personal property located both within Florida and outside of
Florida.  The aggregate fair market value of the collateral exceeds
the aggregate principal amount of (y) the New Bonds plus (z) the other
outstanding bonds secured by the mortgage supplemented hereby and all previous
supplemental indentures thereto.  The intangible tax has been computed
pursuant to Section 199.133 (2), Florida Statutes, by (i) determining the
percentage of the aggregate fair market value of the collateral constituting
real property situated in Florida and by multiplying that percentage times the
principal amount of the New Bonds (the result hereinafter defined as the “Tax
Base”) and (ii) multiplying the tax rate times the Tax Base.

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ONE
HUNDRED FOURTEENTH SUPPLEMENTAL INDENTURE

     

    INDENTURE, dated as of the 1st
day of March, 2009, made and entered into by and between Florida Power &
Light Company, a corporation of the State of Florida, whose post office address
is 700 Universe Boulevard, Juno Beach, Florida 33408 (hereinafter sometimes
called FPL), and
Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company),
a corporation of the State of New York, whose post office address is 60 Wall
Street, 27th Floor, New York, New York 10005 (hereinafter called the Trustee),
as the one hundred fourteenth supplemental indenture (hereinafter called
the One Hundred Fourteenth
Supplemental Indenture) to the Mortgage and Deed of Trust, dated as of
January 1, 1944 (hereinafter called the Mortgage), made and entered
into by FPL, the Trustee and The Florida National Bank of Jacksonville, as
Co-Trustee (now resigned), the Trustee now acting as the sole trustee under the
Mortgage, which Mortgage was executed and delivered by FPL to secure the payment
of bonds issued or to be issued under and in accordance with the provisions
thereof, and which Mortgage was incorporated by reference in the One Hundredth
Sixth Supplemental Indenture and Mortgage, dated as of September 1, 2004,
and recorded in the Rockingham County, New Hampshire Registry of Deeds at Book
4362, Page 1879, reference to which Mortgage and to which One Hundredth Sixth
Supplemental Indenture and Mortgage is hereby made, this One Hundred Fourteenth
Supplemental Indenture being supplemental thereto;

     

    Whereas,
by an instrument, dated as of April 15, 2002, filed with the Banking Department
of the State of New York, Bankers Trust Company effected a corporate name change
pursuant to which, effective such date, it is known as Deutsche Bank Trust
Company Americas; and

     

    Whereas,
Section 8 of the Mortgage provides that the form of each series of bonds
(other than the first series) issued thereunder shall be established by
Resolution of the Board of Directors of FPL and that the form of such series, as
established by said Board of Directors, shall specify the descriptive title of
the bonds and various other terms thereof, and may also contain such provisions
not inconsistent with the provisions of the Mortgage as the Board of Directors
may, in its discretion, cause to be inserted therein expressing or referring to
the terms and conditions upon which such bonds are to be issued and/or secured
under the Mortgage; and

     

    Whereas,
Section 120 of the Mortgage provides, among other things, that any power,
privilege or right expressly or impliedly reserved to or in any way conferred
upon FPL by any provision of the Mortgage, whether such power, privilege or
right is in any way restricted or is unrestricted, may be in whole or in part
waived or surrendered or subjected to any restriction if at the time
unrestricted or to additional restriction if already restricted, and FPL may
enter into any further covenants, limitations or restrictions for the benefit of
any one or more series of bonds issued thereunder, or FPL may cure any ambiguity
contained therein, or in any supplemental indenture, or may establish the terms
and provisions of any series of bonds other than said first series, by an
instrument in writing executed and acknowledged by FPL in such manner as would
be necessary to entitle a conveyance of real estate to be recorded in all of the
states in which any property at the time subject to the Lien of the Mortgage
shall be situated; and

     

    Whereas,
FPL now desires to create the series of bonds described in Article I hereof
and to add to its covenants and agreements contained in the Mortgage certain
other covenants and agreements to be observed by it and to alter and amend in
certain respects the covenants and provisions contained in the Mortgage;
and

     

    Whereas,
the execution and delivery by FPL of this One Hundred Fourteenth Supplemental
Indenture, and the terms of the bonds, hereinafter referred to in
Article I, have been duly authorized by the Board of Directors of FPL by
appropriate resolutions of said Board of Directors;

     

    Now,
Therefore, This Indenture Witnesseth:  That FPL, in consideration of
the premises and of One Dollar to it duly paid by the Trustee at or before the
ensealing and delivery of these presents, the receipt whereof is hereby
acknowledged, and in further evidence of assurance of the estate, title and
rights of the Trustee and in order further to secure the payment of both the
principal of and interest and premium, if any, on the bonds from time to time
issued under the Mortgage, according to their tenor and effect, and the
performance of all the provisions of the Mortgage (including any instruments
supplemental thereto and any modification made as in the Mortgage provided) and
of said bonds, hereby grants, bargains, sells, releases, conveys, assigns,
transfers, mortgages, pledges, sets over and confirms (subject, however, to
Excepted Encumbrances as defined in Section 6 of the Mortgage) unto
Deutsche Bank Trust Company Americas, as Trustee under the Mortgage, and to its
successor or successors in said trust, and to said Trustee and its successors
and assigns forever, all property, real, personal and mixed, acquired by FPL
after the date of the execution and delivery of the Mortgage (except any herein
or in the Mortgage, as heretofore supplemented, expressly excepted), now owned
(except any properties heretofore released pursuant to any provisions of the
Mortgage and in the process of being sold or disposed of by FPL) or, subject to
the provisions of Section 87 of the Mortgage, hereafter acquired by FPL and
wheresoever situated, including (without in anywise limiting or impairing by the
enumeration of the same the scope and intent of the foregoing) all lands, power
sites, flowage rights, water rights, water locations, water appropriations,
ditches, flumes, reservoirs, reservoir sites, canals, raceways, dams, dam sites,
aqueducts, and all rights or means for appropriating, conveying, storing and
supplying water; all rights of way and roads; all plants for the generation of
electricity by steam, water and/or other power; all power houses, gas plants,
street lighting systems, standards and other equipment incidental thereto,
telephone, radio and television systems, air-conditioning systems and equipment
incidental thereto, water works, water systems, steam heat and hot water plants,
substations, lines, service and supply systems, bridges, culverts, tracks, ice
or refrigeration plants and equipment, offices, buildings and other structures
and the equipment thereof; all machinery, engines, boilers, dynamos, electric,
gas and other machines, regulators, meters, transformers, generators, motors,
electrical, gas and mechanical appliances, conduits, cables, water, steam heat,
gas or other pipes, gas mains and pipes, service pipes, fittings, valves and
connections, pole and transmission lines, wires, cables, tools, implements,
apparatus, furniture, chattels, and choses in action; all municipal and other
franchises, consents or permits; all lines for the transmission and distribution
of electric current, gas, steam heat or water for any purpose including towers,
poles, wires, cables, pipes, conduits, ducts and all apparatus for use in
connection therewith; all real estate, lands, easements, servitudes, licenses,
permits, franchises, privileges, rights of way and other rights in or relating
to real estate or the occupancy of the same and (except as herein or in the
Mortgage, as heretofore supplemented, expressly excepted) all the right, title
and interest of FPL in and to all other property of any kind or nature
appertaining to and/or used and/or occupied and/or enjoyed in connection with
any property hereinbefore or in the Mortgage, as heretofore supplemented,
described.

     

    Together
With all and singular the tenements, hereditaments and appurtenances belonging
or in anywise appertaining to the aforesaid property or any part thereof, with
the reversion and reversions, remainder and remainders and (subject to the
provisions of Section 57 of the Mortgage) the tolls, rents, revenues,
issues, earnings, income, products and profits thereof, and all the estate,
right, title and interest and claim whatsoever, at law as well as in equity,
which FPL now has or may hereinafter acquire in and to the aforesaid property
and franchises and every part and parcel thereof.

     

    It
Is Hereby Agreed by FPL that, subject to the provisions of Section 87 of the
Mortgage, all the property, rights, and franchises acquired by FPL after the
date hereof (except any herein or in the Mortgage, as heretofore supplemented,
expressly excepted) shall be and are as fully granted and conveyed hereby and as
fully embraced within the Lien of the Mortgage and the lien and operation of the
One Hundred Sixth Supplemental Indenture and Mortgage, as if such property,
rights and franchises were now owned by FPL and were specifically described
herein and conveyed hereby.

     

    Provided
that the following are not and are not intended to be now or hereafter granted,
bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged,
set over or confirmed hereunder and are hereby expressly excepted from the Lien
and operation of this One Hundred Fourteenth Supplemental Indenture and
from the Lien and operation of the Mortgage, as heretofore supplemented, viz:
(1) cash, shares of stock, bonds, notes and other obligations and other
securities not hereafter specifically pledged, paid, deposited, delivered or
held under the Mortgage or covenanted so to be; (2) merchandise, equipment,
materials or supplies held for the purpose of sale in the usual course of
business and fuel (including Nuclear Fuel unless expressly subjected to the Lien
and operation of the Mortgage by FPL in a future Supplemental Indenture), oil
and similar materials and supplies consumable in the operation of any properties
of FPL; rolling stock, buses, motor coaches, automobiles and other vehicles;
(3) bills, notes and accounts receivable, and all contracts, leases and
operating agreements not specifically pledged under the Mortgage or covenanted
so to be; (4) the last day of the term of any lease or leasehold which may
hereafter become subject to the Lien of the Mortgage; (5) electric energy,
gas, ice, and other materials or products generated, manufactured, produced or
purchased by FPL for sale, distribution or use in the ordinary course of its
business; all timber, minerals, mineral rights and royalties; (6) FPL’s
franchise to be a corporation; and (7) the properties already sold or in
the process of being sold by FPL and heretofore released from the Mortgage and
Deed of Trust, dated as of January 1, 1926, from Florida Power &
Light Company to Bankers Trust Company and The Florida National Bank of
Jacksonville, trustees, and specifically described in three separate releases
executed by Bankers Trust Company and The Florida National Bank of
Jacksonville, dated July 28, 1943, October 6, 1943 and
December 11, 1943, which releases have heretofore been delivered by
the said trustees to FPL and recorded by FPL among the Public Records of all
Counties in which such properties are located; provided, however, that the
property and rights expressly excepted from the Lien and operation of the
Mortgage in the above subdivisions (2) and (3) shall (to the extent permitted by
law) cease to be so excepted in the event and as of the date that the Trustee or
a receiver or trustee shall enter upon and take possession of the Mortgaged and
Pledged Property in the manner provided in Article XIII of the Mortgage by
reason of the occurrence of a Default as defined in Section 65
thereof.

     

    To
Have And To Hold all such properties, real, personal and mixed, granted,
bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged,
set over or confirmed by FPL as aforesaid, or intended so to be, unto Deutsche
Bank Trust Company Americas, the Trustee, and its successors and assigns
forever.

     

    In
Trust Nevertheless, for the same purposes and upon the same terms, trusts and
conditions and subject to and with the same provisos and covenants as are set
forth in the Mortgage, as heretofore supplemented, this One Hundred Fourteenth
Supplemental Indenture being supplemental thereto.

     

    And
It Is Hereby Covenanted by FPL that all terms, conditions, provisos, covenants
and provisions contained in the Mortgage shall affect and apply to the property
hereinbefore described and conveyed and to the estate, rights, obligations and
duties of FPL and the Trustee and the beneficiaries of the trust with respect to
said property, and to the Trustee and its successors as Trustee of said property
in the same manner and with the same effect as if said property had been owned
by FPL at the time of the execution of the Mortgage, and had been specifically
and at length described in and conveyed to said Trustee, by the Mortgage as a
part of the property therein stated to be conveyed.

     

    With
respect to the Property, as defined below, located in New Hampshire, FPL makes
the “mortgage covenants”, as this term is defined in the New Hampshire statute
(New Hampshire Revised Statutes Annotated §477:29,1).  The “Property” means the real
property interests described in that certain easement deed from FPL Energy
Seabrook, LLC to FPL, dated June 1, 2004 and recorded in the Rockingham
County Registry of Deeds (the “Registry”) at Book 4304, Page
945 and in the acquisition from FPL Energy Seabrook, LLC of certain fixtures
described in that certain Deed of Transfer dated June 1, 2004 and recorded
in the Registry at Book 4304, Page 950.

     

    FPL
further covenants and agrees to and with the Trustee and its successors in said
trust under the Mortgage, as follows:

     

    ARTICLE
I

     

    One
Hundred Eleventh Series of Bonds

     

    Section
1. (I)  There
shall be a series of bonds designated “5.96% Series due April 1, 2039”,
herein sometimes referred to as the “One Hundred Eleventh Series”,
each of which shall also bear the descriptive title First Mortgage Bond, and the
form thereof, which shall be established by Resolution of the Board of Directors
of FPL, shall contain suitable provisions with respect to the matters
hereinafter in this Section specified.  Bonds of the One Hundred
Eleventh Series shall mature on April 1, 2039 and shall be issued as fully
registered bonds in denominations of One Thousand Dollars and, at the option of
FPL, in integral multiples of One Thousand Dollars (the exercise of such
option to be evidenced by the execution and delivery thereof); they shall bear
interest at the rate of 5.96% per annum, payable semi-annually on April 1
and October 1 of each year (each an “Interest Payment Date”)
commencing on October 1, 2009; the principal of and interest on each said
bond to be payable at the office or agency of FPL in the Borough of Manhattan,
The City of New York, in such coin or currency of the United States of America
as at the time of payment is legal tender for public and private
debts.  Bonds of the One Hundred Eleventh Series shall be dated as in
Section 10 of the Mortgage provided.  The record date for
payments of interest on any Interest Payment Date shall be the close of business
on (1) the business day immediately preceding such Interest Payment Date so long
as the bonds of the One Hundred Eleventh Series are held by a securities
depository in book-entry only form or (2) the 15th calendar day immediately
preceding each Interest Payment Date if the bonds of the One Hundred Eleventh
Series are not held by a securities depository in book-entry only
form.  Interest on the bonds of the One Hundred Eleventh Series will
accrue from and including March 17, 2009 to but excluding October 1, 2009
and, thereafter, from and including the last Interest Payment Date to which
interest has been paid or duly provided for (and if no interest has been paid on
the bonds of the One Hundred Eleventh Series, from March 17, 2009) to, but
excluding, the next succeeding Interest Payment Date.  No interest
will accrue on a bond of the One Hundred Eleventh Series for the day on which
such bond matures.  The amount of interest payable for any period will
be computed on the basis of a 360-day year consisting of twelve 30-day
months.  The amount of interest payable for any period shorter than a
full semi-annual period for which interest is computed will be computed on the
basis of the number of days in the period using 30-day calendar
months.

     

    (II) Bonds
of the One Hundred Eleventh Series shall be redeemable either at the option of
FPL or pursuant to the requirements of the Mortgage (including, among other
requirements, the application of cash delivered to or deposited with the Trustee
pursuant to the provisions of Section 64 of the Mortgage or with proceeds of
Released Property) in whole at any time, or in part from time to time, prior to
maturity, upon notice, as provided in Section 52 of the Mortgage, mailed at
least thirty (30) days prior to the date fixed for redemption (the “Redemption Date”), at a price
(the “Redemption Price”)
equal to 100% of the principal amount thereof plus accrued and unpaid interest,
if any, to the Redemption Date plus 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 bonds of the One Hundred Eleventh Series
being redeemed plus accrued and unpaid interest, if any, to, but excluding, the
Redemption Date.

     

    The
amount of the Make-Whole Premium with respect to any bond of the One Hundred
Eleventh Series (or portion thereof) to be redeemed will be equal to the excess,
if any, of:

     

    
      	
              (1)  

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

            

    

     

    
      	
              a.  

            	
              each
      interest payment that, but for such redemption, would have been payable on
      the bond of the One Hundred Eleventh Series (or portion thereof) being
      redeemed on each Interest Payment Date occurring after the Redemption Date
      (excluding any accrued interest for the period prior to the Redemption
      Date); and

            

    

     

    
      	
              b.  

            	
              the
      principal amount that, but for such redemption, would have been payable at
      the final maturity of the bond of the One Hundred Eleventh Series (or
      portion thereof) being redeemed;
over

            

    

     

    
      	
              (2)  

            	
              the
      principal amount of the bond of the One Hundred Eleventh 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 35 basis points.

     

    The
Make-Whole Premium will be calculated by an independent investment banking
institution of national standing appointed by FPL; provided that if FPL 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 BNY Mellon Capital Markets, LLC, Calyon Securities
(USA) Inc., Greenwich Capital Markets, Inc., J.P. Morgan Securities Inc. or
Mitsubishi UFJ Securities (USA), 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 FPL (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 bonds of the One Hundred Eleventh 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
weekly average yields of United States Treasury Notes will be determined 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 Treasury Yield
will be calculated 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).  Any weekly average yields so calculated by interpolation
will be rounded 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 Treasury Yield will be calculated by interpolation of
comparable rates selected by the Independent Investment Banker.

     

    (III) At
the option of the registered owner any bonds of the One Hundred Eleventh Series,
upon surrender thereof for exchange at the office or agency of FPL in the
Borough of Manhattan, The City of New York, together with a written instrument
of transfer wherever required by FPL, duly executed by the registered owner or
by his duly authorized attorney, shall (subject to the provisions of
Section 12 of the Mortgage) be exchangeable for a like aggregate principal
amount of bonds of the same series of other authorized
denominations.

     

    Bonds
of the One Hundred Eleventh Series shall be transferable (subject to the
provisions of Section 12 of the Mortgage) at the office or agency of FPL in
the Borough of Manhattan, The City of New York.

     

    Upon
any exchange or transfer of bonds of the One Hundred Eleventh Series, FPL may
make a charge therefor sufficient to reimburse it for any tax or taxes or other
governmental charge, as provided in Section 12 of the Mortgage, but FPL hereby
waives any right to make a charge in addition thereto for any exchange or
transfer of bonds of the One Hundred Eleventh Series.

     

    ARTICLE
II

     

    Dividend
Covenant

     

    Section
2. Section
3 of the Third Supplemental Indenture, as heretofore amended, is hereby further
amended by inserting the words “or One Hundred Eleventh Series” immediately
before the words “remain Outstanding”.

     

    ARTICLE
III

     

    Miscellaneous
Provisions

     

    Section
3. Subject
to the amendments provided for in this One Hundred Fourteenth Supplemental
Indenture, the terms defined in the Mortgage, as heretofore supplemented, shall,
for all purposes of this One Hundred Fourteenth Supplemental Indenture, have the
meanings specified in the Mortgage, as heretofore supplemented.

     

    Section
4. The
holders of bonds of the One Hundred Eleventh Series consent that FPL may, but
shall not be obligated to, fix a record date for the purpose of determining the
holders of bonds of the One Hundred Eleventh Series entitled to consent to any
amendment, supplement or waiver.  If a record date is fixed, those
persons who were holders at such record date (or their duly designated proxies),
and only those persons, shall be entitled to consent to such amendment,
supplement or waiver or to revoke any consent previously given, whether or not
such persons continue to be holders after such record date.  No such
consent shall be valid or effective for more than 90 days after such record
date.

     

    Section
5. The
Trustee hereby accepts the trust herein declared, provided, created or
supplemented and agrees to perform the same upon the terms and conditions herein
and in the Mortgage, as heretofore supplemented, set forth and upon the
following terms and conditions:

     

    The
Trustee shall not be responsible in any manner whatsoever for or in respect of
the validity or sufficiency of this One Hundred Fourteenth Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made by FPL solely.  In general, each and every term and
condition contained in Article XVII of the Mortgage, as heretofore amended,
shall apply to and form part of this One Hundred Fourteenth Supplemental
Indenture with the same force and effect as if the same were herein set forth in
full with such omissions, variations and insertions, if any, as may be
appropriate to make the same conform to the provisions of this One Hundred
Fourteenth Supplemental Indenture.

     

    Section
6. Whenever
in this One Hundred Fourteenth Supplemental Indenture either of the parties
hereto is named or referred to, this shall, subject to the provisions of
Articles XVI and XVII of the Mortgage, as heretofore amended, be deemed to
include the successors and assigns of such party, and all the covenants and
agreements in this One Hundred Fourteenth Supplemental Indenture contained by or
on behalf of FPL, or by or on behalf of the Trustee, or either of them, shall,
subject as aforesaid, bind and inure to the respective benefits of the
respective successors and assigns of such parties, whether so expressed or
not.

     

    Section
7. Nothing
in this One Hundred Fourteenth Supplemental Indenture, expressed or implied, is
intended, or shall be construed, to confer upon, or to give to, any person, firm
or corporation, other than the parties hereto and the holders of the bonds and
coupons Outstanding under the Mortgage, any right, remedy or claim under or by
reason of this One Hundred Fourteenth Supplemental Indenture or any covenant,
condition, stipulation, promise or agreement hereof, and all the covenants,
conditions, stipulations, promises and agreements in this One Hundred
Fourteenth Supplemental Indenture contained by or on behalf of FPL shall be for
the sole and exclusive benefit of the parties hereto, and of the holders of the
bonds and coupons Outstanding under the Mortgage.

     

    Section
8. The
Mortgage, as heretofore supplemented and amended and as supplemented hereby, is
intended by the parties hereto, as to properties now or hereafter encumbered
thereby and located within the States of Florida, Georgia and New Hampshire, to
operate and is to be construed as granting a lien only on such properties and
not as a deed passing title thereto.

     

    Section
9. The
mortgage granted in the One Hundred Sixth Supplemental Indenture and Mortgage,
dated as of September 1, 2004, in the Seabrook Substation Property (as
defined in said One Hundred Sixth Supplemental Indenture and Mortgage), as
supplemented hereby, is upon the statutory conditions as defined in New
Hampshire Revised Statutes Annotated §477:29, and upon the further condition
that all covenants and agreements of FPL contained in said One Hundred
Sixth Supplemental Indenture and Mortgage and in the Mortgage, as supplemented
hereby, shall be kept and fully performed, for any breach of which the Trustee
shall have the statutory power of sale as defined in New Hampshire Revised
Statutes Annotated §477:29.

     

    Section
10. This
One Hundred Fourteenth Supplemental Indenture shall be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

     

    In
Witness Whereof, FPL has caused its corporate name to be hereunto affixed, and
this instrument to be signed and sealed by its President or one of its Vice
Presidents, and its corporate seal to be attested by its Secretary or one of its
Assistant Secretaries for and in its behalf, and Deutsche Bank Trust Company
Americas has caused its corporate name to be hereunto affixed, and this
instrument to be signed and sealed by its Vice Presidents or Assistant Vice
Presidents, and its corporate seal to be attested by one of its Vice Presidents,
Assistant Vice Presidents, one of its Assistant Secretaries or one of its
Associates, all as of the day and year first above written.

    

    
      
        
          	
                  Florida
      Power & Light Company

                   

                   

                
	
                  By:

                	
                  /s/
      K. Michael Davis

                
	 
      	
                  K.
      Michael Davis

                  Vice
      President, Accounting

                  and
      Chief Accounting Officer

                  9250
      West Flagler Street

                  Miami,
      FL 33102

                   

                

        

      

    

    Attest:

     

    
      
        
          	
                  By:

                	
                  /s/
      Paul I. Cutler

                
	 
      	
                  Paul
      I. Cutler

                  Treasurer
      and Assistant Secretary

                  700
      Universe Boulevard

                  Juno
      Beach, FL 33408

                

        

      

    

    

    

    Executed,
sealed and delivered by

      Florida
Power & Light Company

      in
the presence of:

     

    
      
        	
                /s/
      Harold McCarthy

              

      

    

    

    

    
      
        	
                /s/
      Daniel Lotano

              

      

    

    

     

     

    
      
        	
                Deutsche
      Bank Trust Company Americas

                                                               As
      Trustee

                 

                 

              
	
                By:

              	
                /s/
      Carol Ng

              
	 
      	
                Carol
      Ng

                Vice
      President

                60
      Wall Street, 27th Floor

                New
      York, NY 10005

              

      

    

    

    

    

    
      
        	
                By:

              	
                /s/
      Wanda Camacho

              
	 
      	
                Wanda
      Camacho

                Vice
      President

                60
      Wall Street, 27th Floor

                New
      York, NY 10005

              

      

    

     

    Attest:

    

    
      
        	
                /s/
      Jennifer Davis

              
	
                Jennifer
      Davis

                Assistant
      Vice President

                60
      Wall Street, 27th Floor

                New
      York, NY 10005

              

      

    

    

    

    Executed,
sealed and delivered by

      Deutsche
Bank Trust Company Americas

      in
the presence of:

    

    

    
      
        	
                /s/
      Alyssa R. Sullivan

              
	
                Alyssa
      R. Sullivan

              

      

    

    

    

    
      
        	
                /s/
      Anabella Roa

              
	
                Anabella
      Roa

              

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              State
      of Florida

              County
      of Palm Beach

            	
              }

            	
               

                   SS:

            

    

     

    On
the 13th day of March, in the year 2009 before me personally came K. Michael
Davis, to me known, who, being by me duly sworn, did depose and say that he is
the Vice President, Accounting and Chief Accounting Officer of Florida Power
& Light Company, one of the corporations described in and which executed the
above instrument; that he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
order of the Board of Directors of said corporation, and that he signed his name
thereto by like order.

     

    I
Hereby Certify, that on this 13th day of March, 2009, before me personally
appeared K. Michael Davis and Paul I. Cutler, respectively, the Vice President,
Accounting and Chief Accounting Officer and the Treasurer and Assistant
Secretary of Florida Power & Light Company, a corporation under the laws of
the State of Florida, to me known to be the persons described in and who
executed the foregoing instrument and severally acknowledged the execution
thereof to be their free act and deed as such officers, for the uses and
purposes therein mentioned; and that they affixed thereto the official seal of
said corporation, and that said instrument is the act and deed of said
corporation.

     

    Witness
my signature and official seal at Juno Beach, in the County of Palm Beach, and
State of Florida, the day and year last aforesaid.

     

    

    
      
        	
                /s/
      Charlotte Colacino

              
	
                Notary
      Public – State of Florida

              
	
                 

                Charlotte
      Colacino

                Notary
      Public – State of Florida

                My
      Commission Expires May 1, 2011

                Commission
      # DD 646085

                Bonded
      Through National Notary Assn.

              

      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
          
            
              
                
                  	
                          State
      of New York

                          County
      of New York

                        	
                          }

                        	
                           

                          SS:

                        

                

              

            

          

        

      

    On
the 11th day of March in the year 2009, before me personally came Carol Ng and
Wanda Camacho, to me known, who, being by me duly sworn, did depose and say that
they are respectively a Vice President and a Vice President of Deutsche Bank
Trust Company Americas, one of the corporations described in and which executed
the above instrument; that they know the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
order of the Board of Directors of said corporation, and that they signed their
names thereto by like order.

     

    I
Hereby Certify, that on this 11th day of March, 2009, before me personally
appeared Carol Ng, Wanda Camacho and Jennifer Davis, respectively, a Vice
President, a Vice President and an Assistant Vice President of Deutsche Bank
Trust Company Americas, a corporation under the laws of the State of New York,
to me known to be the persons described in and who executed the foregoing
instrument and severally acknowledged the execution thereof to be their free act
and deed as such officers, for the uses and purposes therein mentioned; and that
they affixed thereto the official seal of said corporation, and that said
instrument is the act and deed of said corporation.

     

    Witness
my signature and official seal at New York, in the County of New York, and State
of New York, the day and year last aforesaid.

     

    

     

    
      
        	
                /s/
      Annie Jaghatspanyan

              
	
                Annie
      Jaghatspanyan

                Notary
      Public, State of New York

                No
      01JA6062022

                Qualified
      in New York County

                Commission
      Expires September 23, 2009

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