Document:

TRP Blank Doc

Exhibit 4(a)

 

EXECUTED IN 60 COUNTERPARTS OF

WHICH THIS IS COUNTERPART NO. 4

This instrument was prepared by:

                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 Eleventh Supplemental Indenture

Relating to $300,000,000 Principal Amount

of First Mortgage Bonds, 5.85% Series

due May 1, 2037

Dated as of April 1, 2007

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 $1,050,000 and non-recurring intangible taxes as required by law in the amount of $77,926 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 ELEVENTH SUPPLEMENTAL INDENTURE

        INDENTURE, dated as of the 1st day of April, 2007, 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 eleventh supplemental indenture (hereinafter called the One Hundred Eleventh 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 Eleventh 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 Eleventh 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 Eleventh 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 Eleventh 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 (NH RSA 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 Eighth Series of Bonds

          Section 1.    (I)  There shall be a series of bonds designated "5.85% Series due May 1, 2037", herein sometimes referred to as the "One Hundred Eighth 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 Eighth Series shall mature on May 1, 2037 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 5.85% per annum, payable semi-annually on May 1 and November 1 of each year (each an "Interest Payment Date") commencing on November 1, 2007; 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 Eighth 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 Eighth Series are in book-entry only form, registered in the name of The Depository Trust Company ("DTC") or any other successor depositary or a nominee thereof or (2) the 15th calendar day immediately preceding each Interest Payment Date if the bonds of the One Hundred Eighth Series are not in book-entry only form, registered in the name of DTC or any other successor depositary or a nominee thereof.  Interest on the bonds of the One Hundred Eighth Series will accrue from and including April 17, 2007 to but excluding November 1, 2007 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 Eighth Series, from April 17, 2007) to, but excluding, the next succeeding Interest Payment Date.  No interest will accrue on a bond of the One Hundred Eighth 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 Eighth 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 Eighth 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 bond of the One Hundred Eighth 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 Eighth 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 Eighth Series (or portion thereof) being redeemed; over

(2)    the principal amount of the bond of the One Hundred Eighth 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 15 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 ABN AMRO Incorporated, Barclays Capital Inc. or Citigroup Global Markets 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 Eighth Series to be redeemed, calculated to the nearest 1/12th of a year (the "Remaining Term").  The Treasury Yield will be determined 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 Eighth 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 Eighth 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 Eighth 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 Eighth 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 Eighth Series" immediately before the words "remain Outstanding".

ARTICLE III

Miscellaneous Provisions

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

        Section 4.  The holders of bonds of the One Hundred Eighth 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 Eighth 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 Eleventh 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 Eleventh 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 Eleventh Supplemental Indenture.

        Section 6.  Whenever in this One Hundred Eleventh 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 Eleventh 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 Eleventh 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 Eleventh Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this One Hundred Eleventh 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 Eleventh 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/ Edward F. Tancer

	
	
	

	

 
	
Edward F. Tancer

Senior Vice President & General Counsel

700 Universe Boulevard

Juno Beach, FL 33408

Attest:

	
/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 J. McCarthy

	

	 
	 
	
/s/ Amy A. Black

	

 

	 	
Deutsche Bank Trust Company Americas

                                     As Trustee

	 	

By:
	

/s/ Wanda Camacho

	
	
	

	 	
Wanda Camacho

Vice President

60 Wall Street, 27th Floor

New York, NY 10005

	 	
By:
	
/s/ Christina Van-Ryzin

	
	
	

	 	
Christina Van-Ryzin

Vice President

60 Wall Street, 27th Floor

New York, NY 10005

Attest:

	
/s/ Jennifer Davis

	

	
Jennifer Davis

Associate

60 Wall Street, 27th Floor

New York, NY 10005

Executed, sealed and delivered by

  Deutsche Bank Trust Company Americas

  in the presence of:

	
MICHELLE BURLEY

	

	

HEATHER LONG

	

 

	
State of Florida

County of Palm Beach
	 	
ss:

        On the 12th day of April, in the year 2007, before me personally came Edward F. Tancer, to me known, who, being by me duly sworn, did depose and say that he is the Senior Vice President & General Counsel 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 12th day of April, 2007, before me personally appeared Edward F. Tancer and Paul I. Cutler, respectively, the Senior Vice President & General Counsel 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

	

	
Charlotte Colacino

Notary Public -
 State of Florida

My Commission Expires May 1, 2011

Commission # DD646085

Bonded Through National Notary Assn.

	
State of New York

County of New York
	 	
ss:

        On the 12th day of April, in the year 2007, before me personally came Wanda Camacho and Christina Van-Ryzin, 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 12th day of April, 2007, before me personally appeared Wanda Camacho, Christina Van-Ryzin and Jennifer Davis, respectively, a Vice President, a Vice President and an Associate 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, 2009Exhibit 4.2

 

 

 

 

ALABAMA POWER COMPANY

 

TO

 

THE BANK OF NEW YORK,

TRUSTEE

 

 

 

THIRTY-EIGHTH SUPPLEMENTAL INDENTURE

 

DATED AS OF APRIL 18, 2007

 

 

 

 

SERIES 2007B 5.875% SENIOR NOTES

 

DUE APRIL 1, 2047

 

 

 

 

 

 

 

 

TABLE OF CONTENTS1

 

Page

	
            Article 1 Series 2007B Senior Notes
 	
            2
 
	
            SECTION 101.
 	
            Establishment.
 	
            2
 
	
            SECTION 102.
 	
            Definitions.
 	
            2
 
	
            SECTION 103.
 	
            Payment of Principal and Interest.
 	
            3
 
	
            SECTION 104.
 	
            Denominations.
 	
            4
 
	
            SECTION 105.
 	
            Global Securities.
 	
            4
 
	
            SECTION 106.
 	
            Transfer.
 	
            5
 
	
            SECTION 107.
 	
            Redemption at the Company’s Option.
 	
            5
 
	
            Article 2 Special Insurance Provisions
 	
            6
 
	
            SECTION 201.
 	
            Supplemental Indentures.
 	
            6
 
	
            SECTION 202.
 	
            Events of Default and Remedies.
 	
            6
 
	
            SECTION 203.
 	
            Insurance Policy Payment Procedures.
 	
            7
 
	
            SECTION 204.
 	
            Application of Term “Outstanding” to Series 2007B Notes.
 	
            7
 
	
            SECTION 205.
 	
            Insurer as Third Party Beneficiary.
 	
            7
 
	
            SECTION 206.
 	
            Concerning the Special Insurance Provisions.
 	
            7
 
	
            Article 3 Miscellaneous Provisions
 	
            7
 
	
            SECTION 301.
 	
            Recitals by Company.
 	
            7
 
	
            SECTION 302.
 	
            Ratification and Incorporation of Original Indenture.
 	
            7
 
	
            SECTION 303.
 	
            Executed in Counterparts.
 	
            7
 
	
             
 	
             
 	
             
 
	
            EXHIBIT A  FORM OF SERIES 2007B NOTE
 
	
             
 	
             
 	
             
 
	
            EXHIBIT B  CERTIFICATE OF AUTHENTICATION

 
 

 

 

 

_________________________

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

 

 

	
            2
 

 

 

 

 

 

THIS THIRTY-EIGHTH SUPPLEMENTAL INDENTURE is made as of the 18th day of April, 2007, by and between ALABAMA POWER COMPANY, an Alabama corporation, 600 North 18th Street, Birmingham, Alabama 35291 (the “Company”), and THE BANK OF NEW YORK, a New York banking corporation, 101 Barclay Street, Floor 8W, New York, New York  10286 (the “Trustee”).

W I T N E S S E T H:

 

WHEREAS, the Company has heretofore entered into a Senior Note Indenture, dated as of December 1, 1997 (the “Original Indenture”), with The Bank of New York (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as heretofore supplemented;

WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as heretofore supplemented and as further supplemented by this Thirty-Eighth Supplemental Indenture, is herein called the “Indenture”

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

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

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

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

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

ARTICLE 1

Series 2007B Senior Notes

	
            SECTION 101.
 	
            Establishment.
 

There is hereby established a new series of Senior Notes to be issued under the Indenture, to be designated as the Company’s Series 2007B 5.875% Senior Notes due April 1, 2047 (the “Series 2007B Notes”).

There are to be authenticated and delivered $250,000,000 aggregate principal amount of Series 2007B Notes, and such principal amount of the Series 2007B Notes may be increased 

 

	
            1
 

 

 

from time to time pursuant to Section 301 of the Original Indenture.  All Series 2007B Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuances of additional Series 2007B Notes.  Any such additional Series 2007B Notes will have the same interest rate, maturity and other terms, including the benefit of the Policy (appropriately increased to cover the principal amount of and interest due on the additional Series 2007B Notes), as those initially issued.  No Series 2007B Notes shall be authenticated and delivered in excess of the principal amount as so increased except as provided by Sections 203, 303, 304, 907 or 1107 of the Original Indenture.  The Series 2007B Notes shall be issued in definitive fully registered form.

The Series 2007B Notes shall be issued in the form of one or more Global Securities in substantially the form set out in Exhibit A hereto.  The Depositary with respect to the Series 2007B Notes shall be The Depository Trust Company.

The form of the Trustee’s Certificate of Authentication for the Series 2007B Notes shall be in substantially the form set forth in Exhibit B hereto.

Each Series 2007B Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.

	
            SECTION 102.
 	
            Definitions.
 

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

“Insurer” means XL Capital Assurance Inc., a New York stock insurance corporation, or any successor thereto.

“Interest Payment Dates” means January 1, April 1, July 1 and October 1 of each year, commencing on July 1, 2007.

“Original Issue Date” means April 18, 2007.

“Policy” means the financial guaranty insurance policy issued by the Insurer with respect to payments due for principal of and interest on the Series 2007B Notes as provided in such policy.

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

“Stated Maturity” means April 1, 2047.

	
            SECTION 103.
 	
            Payment of Principal and Interest.
 

 

 

	
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The principal of the Series 2007B Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the Series 2007B Notes shall bear interest at the rate of 5.875% per annum until paid or duly provided for.  Interest shall be paid quarterly in arrears on each Interest Payment Date to the Person in whose name the Series 2007B Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity of principal or on a Redemption Date as provided herein will be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons in whose name the Series 2007B Notes are
registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Series 2007B Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Series 2007B Notes shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.

Payments of interest on the Series 2007B Notes will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the Series 2007B Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the Series 2007B Notes is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.

Payment of the principal and interest due at the Stated Maturity or earlier redemption of the Series 2007B Notes shall be made upon surrender of the Series 2007B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2007B Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least
sixteen (16) days prior to the date for payment by the Person entitled thereto.

SECTION 104.       Denominations.  The Series 2007B Notes may be issued in denominations of $25, or any integral multiple thereof.

	
            SECTION 105.
 	
            Global Securities.
 

The Series 2007B Notes will be issued in the form of one or more Global Securities registered in the name of the Depositary (which shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, Series 2007B Notes represented by one or more Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series 2007B Notes in definitive form.  The Global Securities described 

 

	
            3
 

 

 

above may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.

Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Series 2007B Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee.  The rights of Holders of such Global Security shall be exercised only through the Depositary.

Neither the Company, the Trustee nor any agent of the Company or the Trustee shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

Subject to the procedures of the Depositary, a Global Security shall be exchangeable for Series 2007B Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Company, or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company, in each case within 90 days after the Company receives such notice or becomes aware of such cessation, (ii) the Company in its sole discretion determines that such Global Security shall be so exchangeable, or (iii) there shall
have occurred an Event of Default with respect to the Series 2007B Notes.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series 2007B Notes registered in such names as the Depositary shall direct.

	
            SECTION 106.
 	
            Transfer.  
 

No service charge will be made for any transfer or exchange of Series 2007B Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

The Company shall not be required (a) to issue, transfer or exchange any Series 2007B Notes during a period beginning at the opening of business fifteen (15) days before the date of the mailing of a notice pursuant to Section 1104 of the Original Indenture identifying the serial numbers of the Series 2007B Notes to be called for redemption, and ending at the close of business on the day of the mailing, or (b) to transfer or exchange any Series 2007B Notes theretofore selected for redemption in whole or in part, except the unredeemed portion of any Series 2007B Notes redeemed in part.

	
            SECTION 107.
 	
            Redemption at the Company’s Option.
 

 

 

	
            4
 

 

 

 

The Series 2007B Notes will be subject to redemption at the option of the Company in whole or in part, without premium or penalty, at any time and from time to time, on or after April 1, 2012, upon not less than 30 nor more than 60 days’ notice, at a Redemption Price equal to 100% of the principal amount of the Series 2007B Notes to be redeemed plus any accrued and unpaid interest thereon to the Redemption Date.

In the event of redemption of the Series 2007B Notes in part only, a new Series 2007B Note or Notes for the unredeemed portion will be issued in the name or names of the Holders thereof upon the surrender thereof.

The Series 2007B Notes will not have a sinking fund.

Notice of redemption shall be given as provided in Section 1104 of the Original Indenture.

Any redemption of less than all of the Series 2007B Notes shall, with respect to the principal thereof, be divisible by $25.

ARTICLE 2

Special Insurance Provisions

SECTION 201.       Supplemental Indentures.  The consent of the Insurer shall be required with respect to any indenture or indentures supplemental to the Original Indenture requiring the consent of the Holders of the Series 2007B Notes pursuant to Section 902 of the Original Indenture.

SECTION 202.       Events of Default and Remedies.  Subject to Section 107 of the Original Indenture and to the Trust Indenture Act, including, without limitation, Sections 316(a)(1) and 317(a) thereof, if an Event of Default with respect to the Series 2007B Notes occurs and is continuing, the Insurer shall be entitled to control and direct the enforcement of all rights and remedies granted to the Holders of the Series 2007B Notes or the Trustee for the benefit of the Holders of the Series 2007B Notes under the Indenture, including, without limitation, (i) the right to accelerate the principal of the Series 2007B Notes as provided in Section 502 of the Original Indenture, and (ii) the right to annul any such declaration of acceleration, and the Insurer shall also be
entitled to approve any waiver of an Event of Default with respect to the Series 2007B Notes, the obligation of the Trustee to comply with any such direction to be subject to compliance with the conditions set forth in Sections 512 and 603(e) of the Original Indenture (as if references in those Sections to Holders were references to the Insurer) and the protections provided to the Trustee by Section 601(c)(3) of the Original Indenture shall be applicable with respect to any direction from the Insurer given pursuant hereto (as if references in said Section to Holders were references to the Insurer).

	
            SECTION 203.
 	
            Insurance Policy Payment Procedures.
 

The Insurer will make payments of principal and interest due on the Series 2007B Notes in accordance with the Policy on or before the first Business Day next following the date on 

 

	
            5
 

 

 

which the Insurer shall have received notice of Nonpayment (as defined in the Policy) from the Trustee.

In the event of Nonpayment and notification thereof to the Insurer, the Trustee shall make available to the Insurer the books kept by the Trustee for the registration and for the registration of transfer of Series 2007B Notes as provided in the Indenture. 

The Trustee shall, at the time it provides notice to the Insurer pursuant to the second preceding paragraph, notify Holders of Series 2007B Notes entitled to receive the payment of principal and interest thereon from the Insurer (i) as to the fact of such entitlement, (ii) that the Insurer will remit to them all or a part of the interest payments next coming due upon proof of Holder entitlement to interest payments and delivery to the Insurer, in form satisfactory to the Insurer, of an appropriate assignment of the Holder's right to payment, (iii) that should they be entitled to receive full payment of principal from the Insurer, they must surrender their Series 2007B Notes (along with an appropriate instrument of assignment in form satisfactory to the Insurer to permit ownership of such Series 2007B Notes to be registered in the name of the Insurer) for payment to the Insurer, and not
the Trustee or any paying agent, and (iv) that should they be entitled to receive partial payment of principal from the Insurer, they must surrender their Series 2007B Notes for payment thereon first to the Trustee, who shall note on such Series 2007B Notes the portion of the principal paid by the Trustee, and then, along with an appropriate instrument of assignment in form satisfactory to the Insurer, to the Insurer, which will then pay the unpaid portion of principal. 

In the event that the Trustee has notice that any payment of principal of or interest on a Series 2007B Note which has become due for payment (under the terms of the Policy) and which is made to a Holder by or on behalf of the Company has been deemed a preferential transfer and theretofore recovered from its Holder pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent jurisdiction, the Trustee shall, at the time the Insurer is notified pursuant to the third preceding paragraph, notify all Holders of the Series 2007B Notes that in the event that any Holder's payment is so recovered, such Holder will be entitled to payment from the Insurer to the extent of such recovery if sufficient funds are not otherwise available, and the Trustee shall furnish to the Insurer its records evidencing the
payments of principal of and interest on the Series 2007B Notes which have been made by the Trustee and subsequently recovered from Holders and with respect to the Series 2007B Notes the dates on which such payments were made. 

In addition to those rights granted to the Insurer under the Indenture with respect to the Series 2007B Notes, the Insurer shall, to the extent it makes payment of principal of or interest on Series 2007B Notes, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Policy, and to evidence such subrogation (i) in the case of subrogation as to claims for past due interest, the Trustee shall note the Insurer's rights as subrogee on the registration books of the Company maintained by the Trustee upon receipt from the Insurer of proof of the payment of interest thereon to the Holders of the Series 2007B Notes, and (ii) in the case of subrogation as to claims for past due principal, the Trustee shall note the Insurer's rights as subrogee on the registration books of the Company maintained by the Trustee 

 

	
            6
 

 

 

upon surrender of the Series 2007B Notes by the Holders thereof together with proof of the payment of principal thereof. 

SECTION 204.       Application of Term “Outstanding” to Series 2007B Notes.  In the event that the principal and/or interest due on the Series 2007B Notes shall be paid by the Insurer pursuant to the Policy, the Series 2007B Notes shall remain Outstanding for all purposes of the Indenture, not be considered defeased or otherwise satisfied and not be considered paid by the Company, and the Indenture and all covenants, agreements and other obligations of the Company to the Holders of the Series 2007B Notes shall continue to exist and such covenants, agreements and other obligations shall run to the benefit of the Insurer, and the Insurer shall be subrogated to the rights of such Holders to the extent of each such payment.

SECTION 205.       Insurer as Third Party Beneficiary.  To the extent that the Indenture confers upon or gives or grants to the Insurer any right, remedy or claim under or by reason of the Indenture with respect to the Series 2007B Notes, the Insurer is hereby explicitly recognized as being a third party beneficiary and may enforce any such right, remedy or claim conferred, given or granted hereunder.

SECTION 206.       Concerning the Special Insurance Provisions.  The provisions of this Article 2 shall apply notwithstanding anything in the Indenture to the contrary, but only so long as the Policy shall be in full force and effect and the Insurer is not in default thereunder.

ARTICLE 3

Miscellaneous Provisions

SECTION 301.       Recitals by Company.  The recitals in this Thirty-Eighth Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of Series 2007B Notes and of this Thirty-Eighth Supplemental Indenture as fully and with like effect as if set forth herein in full.

SECTION 302.       Ratification and Incorporation of Original Indenture.  As heretofore supplemented and as supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture as heretofore supplemented and as supplemented by this Thirty-Eighth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

SECTION 303.       Executed in Counterparts.  This Thirty-Eighth Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

 

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

 

	
            ATTEST:
 	
            ALABAMA POWER COMPANY

 

 
 
	
            By: /s/Ceila H. Shorts
             Assistant Secretary
 	
            By:  /s/Art P. Beattie
          Art P. Beattie
          Executive Vice President,
          Chief Financial Officer and Treasurer

 

 
 
	
            ATTEST:
 
 
 
 By:    /s/Francine Kincaid
             Francine Kincaid
             Vice President
 	
            THE BANK OF NEW YORK,
 as Trustee
 
 
 By:      /s/Carol Ng
              Carol Ng
              Vice President
 

 

 

 

	
            9
 

 

 

 

EXHIBIT A

 

FORM OF SERIES 2007B NOTE

 

	
            NO. __
 	
            CUSIP NO. 010392496
 

 

ALABAMA POWER COMPANY

SERIES 2007B 5.875% SENIOR NOTE

DUE APRIL 1, 2047

 

	
            Principal Amount:
 	
            $                                                                                          
 
	
            Regular Record Date:
 	
            15th calendar day prior to Interest Payment Date (whether or not a Business Day)
 
	
            Original Issue Date:
 	
            April 18, 2007
 
	
            Stated Maturity:
 	
            April 1, 2047
 
	
            Interest Payment Dates:
 	
            January 1, April 1, July 1 and October 1 of each year, beginning July 1, 2007
 
	
            Interest Rate:
 	
            5.875%
 
	
            Authorized Denomination:
 	
            $25 or any integral multiple thereof
 
	
            Initial Redemption Date
 	
            April 1, 2012
 

Alabama Power Company, an Alabama corporation (the “Company”, which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to ________, or registered assigns, the principal sum of ___________________________ DOLLARS ($___________) on the Stated Maturity shown above (or upon earlier redemption), and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, quarterly in arrears on each Interest Payment Date as specified above, commencing on July 1, 2007, and on the Stated Maturity (or upon earlier redemption) at the rate per annum shown above until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment of interest.
The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or on a Redemption Date) will, as provided in such Indenture, be paid to the Person in whose name this Note (the “Note”) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at the Stated Maturity or on any Redemption 

 

 

Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Notes of this series shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.

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

Payment of the principal of and interest due at the Stated Maturity or earlier redemption of the Series 2007B Notes shall be made upon surrender of the Series 2007B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2007B Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payment of interest (including interest on an Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 16
days prior to the date for payment by the Person entitled thereto.

XL Capital Assurance Inc. (the "Insurer"), New York, New York, has delivered its financial guaranty insurance policy (the "Policy") with respect to the scheduled payments due of principal of and interest on this Note to the principal Corporate Trust Office of the Trustee. Said Policy is on file and available for inspection at the principal Corporate Trust Office of the Trustee and a copy thereof may be obtained from the Insurer or the Trustee. 

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

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

 

 

 

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

 

Dated: 

 

 

	
            ALABAMA POWER COMPANY
 

 

 

 

	
            By:
 

Name: 

	
            Title:  
 

 

Attest:

 

 

	
            Assistant Secretary
 

 

 

{Seal of ALABAMA POWER COMPANY appears here}

 

 

 

 

 

CERTIFICATE OF AUTHENTICATION

 

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

 

THE BANK OF NEW YORK,

                                          
                                       as Trustee

 

By:                                          
                            
                                          
                                        Authorized Signatory

 

 

 

(Reverse Side of Note)

This Note is one of a duly authorized issue of Senior Notes of the Company (the “Notes”), issued and issuable in one or more series under a Senior Note Indenture, dated as of December 1, 1997, as supplemented (the “Indenture”), between the Company and The Bank of New York (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof as Series 2007B
5.875% Senior Notes due April 1, 2047 (the “Series 2007B Notes”) which is unlimited in aggregate principal amount.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.

The Company shall have the right, subject to the terms and conditions of the Indenture, to redeem this Note at any time on or after April 1, 2012 at the option of the Company, without premium or penalty, in whole or in part, at a Redemption Price equal to 100% of the principal amount to be redeemed plus accrued but unpaid interest to the Redemption Date. 

In the event of redemption of this Note in part only, a new Note or Notes of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.  The Series 2007B Notes will not have a sinking fund.

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

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

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

 

 

 

 

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

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

The Notes of this series are issuable only in registered form without coupons in denominations of $25 and any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Note or Notes to be exchanged at the office or agency of the Company.

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

 

 

 

 ABBREVIATIONS

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

	
            TEN COM-
 	
            as tenants in
 	
            UNIF GIFT MIN ACT- _______ Custodian ________
 	
             

	
             
	
            common
 	
            (Cust)
 	
            (Minor)
 	
             

	
            TEN ENT-
 	
            as tenants by the
 	
             

	
             
	
            entireties
 	
            under Uniform Gifts to
 	
             

	
            JT TEN-
 	
            as joint tenants
 	
            Minors Act
 	
             

	
             
	
            with right of
 	
             

	
             
	
            survivorship and
 	
            ________________________
 
	
             
	
            not as tenants
 	
            (State)
 	
             

	
             
	
            in common
 	
             

															

Additional abbreviations may also be used

though not on the above list.

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

 

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

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

 

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

 

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

	
            Dated:
 

 

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

 

 

 

EXHIBIT B

 

CERTIFICATE OF AUTHENTICATION

 

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

 

	
            THE BANK OF NEW YORK,
 
	
            as Trustee
 	
             

 

 

	
            By:
 	
             

	
             
	
            Authorized Signatory

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