Document:

<PAGE>   1
                                                                   EXHIBIT 10.11

                                 THIRD AMENDMENT
                                       TO
                           LOAN AND SECURITY AGREEMENT

                  THIS AMENDMENT, made as of April 27, 2001, by and among the
parties identified as "Lenders" on the signature pages to this Amendment
("LENDERS"), CITICORP USA, INC., as agent for the Lenders (herein, in such
capacity as agent, called "AGENT"), and MAYOR'S JEWELERS, INC., formerly known
as JAN BELL MARKETING, INC., a Delaware corporation ("JAN BELL"), individually
and as "Borrowers' Agent", as defined in the "Loan Agreement" referenced below,
JBM RETAIL COMPANY, INC., a Delaware corporation ("JBM"), and MAYOR'S JEWELERS,
INC., a Florida corporation ("MAYOR'S") (Jan Bell, JBM and Mayor's hereinafter
referred to collectively as the "BORROWERS" and each individually as a
"Borrower").

                              W I T N E S S E T H :
                              - - - - - - - - - -

                  WHEREAS, Borrowers, Lenders and the Agent are parties to a
Loan and Security Agreement, dated as of July 28, 1998 (herein, as amended to
date, the "LOAN AGREEMENT"), pursuant to which Lenders have agreed to extend
certain credit to Borrowers upon the terms and conditions contained therein; and

                  WHEREAS, an "Event of Default" (as defined in the Loan
Agreement) has occurred and is continuing as a result of Borrowers' failure to
comply with the requirements of Section 5.3(B) of the Loan Agreement with
respect to the Fiscal Quarter ending on or about January 31, 2001 ("EXISTING
EVENT OF DEFAULT"); and

                  WHEREAS, Borrowers have requested that Lenders waive the
Existing Event of Default and, subject to the terms and conditions set forth
herein, Lenders are willing to do so; and

                  WHEREAS, Borrowers, Lenders and the Agent have agreed to amend
the Loan Agreement in certain respects as hereinafter set forth; and

                  WHEREAS, Borrowers, Lenders and the Agent desire to enter into
this Amendment in order to give effect to the foregoing;

                  NOW, THEREFORE, in consideration of the foregoing premises,
Borrowers, the Agent and Lenders agree as follows:

         1. DEFINITIONS. Unless otherwise expressly provided herein, all
capitalized terms used herein (without definition) shall have the meanings given
to such terms in the Loan Agreement.

<PAGE>   2

         2. WAIVER. Pursuant to Borrowers' request, Lenders hereby waive the
Existing Event of Default; PROVIDED, however, that such waiver is limited to the
Existing Event of Default and shall not be, or be deemed to be, a waiver of any
other Default or Event of Default presently or hereafter existing.

         3. AMENDMENT TO INTEREST MARGIN DEFINITION. The definition of "Interest
Margin" set forth in Section 1.1 of the Loan Agreement is hereby deleted in its
entirety and the following revised definition of "Interest Margin" is hereby
substituted in lieu thereof:

         "INTEREST MARGIN" - an interest rate per annum, to be added to the Base
Rate or the LIBOR Rate, as the case may be, in order to determine, respectively,
the Base Margined Rate and the LIBOR Margined Rate, which shall be determined in
accordance with the following grid:

<TABLE>
<CAPTION>
                                             Margin used to Determine Base         Margin used to Determine LIBOR
        Average Leverage Ratio                       Margined Rate                          Margined Rate
        ----------------------               -----------------------------         ------------------------------

<S>                                                      <C>                                    <C>
          less than 2.00:1.00                            1.00%                                  2.25%

greater than or equal to 2.00:1.00 but                   1.25%                                  2.50%
          less than 3.00:1.00

 greater than or equal to 3.00:1.0 but                   1.50%                                  2.75%
          less than 4:00:1.00

        greater than 4.00:1.00                           1.75%                                  3.00%

</TABLE>

The "Interest Margin" shall be determined (and adjusted, as appropriate) by
Agent quarterly from the financial statements and Compliance Certificate
delivered to Agent pursuant to Section 5.1 for the Fiscal Quarter then most
recently ended, with each such determination to be made effective as of the
first day of the second Fiscal Month following the end of such Fiscal Quarter
and with such determination to remain effective until the first day of the
second Fiscal Month following the next succeeding Fiscal Quarter; PROVIDED,
HOWEVER, that in the event that any such financial statements are not delivered
prior to such adjustment date, then any such adjustment shall be made upon the
delivery of such financial statements, but shall be effective retroactive to
such adjustment date (without limitation of Lenders' rights and remedies
hereunder regarding the Event of Default resulting from Borrowers' failure to
deliver such financial statements on a timely basis). Borrowers shall cause to
be included in each Compliance Certificate a calculation of Average Leverage
Ratio for purposes hereof.

                                      -2-
<PAGE>   3

         4. AMENDMENTS TO FINANCIAL COVENANTS. Section 5.3 of the Loan Agreement
is hereby deleted in its entirety and the following revised Section 5.3 is
hereby substituted in lieu thereof:

                  5.3 FINANCIAL COVENANTS. During the term of this Agreement,
and thereafter for so long as there are any Obligations outstanding, Jan Bell
and its Subsidiaries shall:

                  (A) FIXED CHARGE. Maintain a Fixed Charge Coverage of not less
than 1.00:1.00 as of the end of the second Fiscal Quarter 2002, 2.00:1.00 as of
the end of the third Fiscal Quarter 2002, and 2.50:1.00 as of the end of each
Fiscal Quarter thereafter, in each case for the period of four (4) Fiscal
Quarters ending on such date.

                  (B) CONSOLIDATED EBITDA. Achieve Consolidated EBITDA of at
least (i) $750,000, as of the end of the second Fiscal Quarter 2001, for the
period of two (2) Fiscal Quarters ending on such date, (ii) $1,000,000, as of
the end of the third Fiscal Quarter 2001, for the period of three (3) Fiscal
Quarters ending on such date, (iii) $8,000,000, as of the end of the fourth
Fiscal Quarter 2001, for the period of four (4) Fiscal Quarters ending on such
date, and (iv) $8,000,000, as of the end of the first Fiscal Quarter 2002, for
the period of four (4) Fiscal Quarters ending on such date.

                  (C) INTEREST COVERAGE. Maintain a ratio of Consolidated EBITDA
to Consolidated Interest Expense of (i) .25:1.00, as of the end of the second
Fiscal Quarter 2001, for the period of two (2) Fiscal Quarters ending on such
date, (ii) .50:1.00, as of the end of the third Fiscal Quarter 2001, for the
period of three (3) Fiscal Quarters ending on such date, (iii) 2.00:1.00, as of
the end of the fourth Fiscal Quarter 2001, for the period of four (4) fiscal
quarters ending on such date and (iv) 2.00:1.00 as of the end of the first
Fiscal Quarter 2002 for the period of four Fiscal Quarters ending on such date.

                  (D) TANGIBLE NET WORTH. Maintain Tangible Net Worth of not
less than the applicable amount set forth below as of the last day of each
Fiscal Month set forth below:

              Fiscal Month                                        Amount
              ------------                                     ------------

         1st Fiscal Month 2001                                 $110,000,000
         2nd Fiscal Month 2001                                 $110,000,000
         3rd Fiscal Month 2001                                 $110,000,000
         4th Fiscal Month 2001                                 $108,000,000
         5th Fiscal Month 2001                                 $108,000,000
         6th Fiscal Month 2001                                 $108,000,000
         7th Fiscal Month 2001                                 $105,000,000
         8th Fiscal Month 2001                                 $105,000,000
         9th Fiscal Month 2001                                 $105,000,000
         10th Fiscal Month 2001                                $105,000,000
         11th Fiscal Month 2001                                $110,000,000
         12th Fiscal Month 2001                                $110,000,000

                                      -3-
<PAGE>   4

              Fiscal Month                                        Amount
              ------------                                     ------------

         1st Fiscal Month 2002                                 $110,000,000
         2nd Fiscal Month 2002                                 $110,000,000
         3rd Fiscal Month 2002                                 $110,000,000
         4th Fiscal Month 2002                                 $110,000,000
         5th Fiscal Month 2002                                 $110,000,000
         6th Fiscal Month 2002                                 $110,000,000
         7th Fiscal Month 2002                                 $110,000,000
         8th Fiscal Month 2002                                 $110,000,000
         9th Fiscal Month 2002                                 $110,000,000
         10th Fiscal Month 2002                                $110,000,000
         11th Fiscal Month 2002                                $115,000,000
         12th Fiscal Month 2002                                $115,000,000
         Each Fiscal Month thereafter                          $115,000,000

Notwithstanding the foregoing, at all times when "Excess Borrowing Availability"
(as defined below) is at least Ten Million Dollars ($10,000,000), Jan Bell's and
its Subsidiaries' compliance with the minimum Tangible Net Worth requirement
shall be tested on a quarterly basis (rather than on a monthly basis as set
forth above), such that Jan Bell and its Subsidiaries shall maintain Tangible
Net Worth of not less than the applicable amount set forth below as of the last
day of each Fiscal Quarter set forth below:

           Fiscal Quarter                                       Amount
           --------------                                    ------------

      1st Fiscal Quarter 2001                                $110,000,000
      2nd Fiscal Quarter 2001                                $108,000,000
      3rd Fiscal Quarter 2001                                $105,000,000
      4th Fiscal Quarter 2001                                $110,000,000
      1st Fiscal Quarter 2002                                $110,000,000
      2nd Fiscal Quarter 2002                                $110,000,000
      3rd Fiscal Quarter 2002                                $110,000,000
      4th Fiscal Quarter 2002                                $115,000,000
      Each Fiscal Quarter thereafter                         $115,000,000

For purposes hereof "Excess Borrowing Availability" shall mean the excess (if
any) at any one time of (i) the Maximum Revolver Loan Amount over (ii) the total
amount of outstanding Revolver Loans.

                  (E) CAPITAL EXPENDITURES. Not make Capital Expenditures in
excess of (a) $11,550,000 during its Fiscal Year ending on or about January 31,
2002, (b) $8,000,000 during its Fiscal Year ending on or about January 31, 2003
and (c) $3,000,000 during its Fiscal Year ending on or about January 31, 2004.

                                      -4-
<PAGE>   5

         5. ADDITIONAL INTEREST. On the date hereof Borrower shall pay to the
Agent for the account of Lenders, the sum of $26,934 which constitutes
additional interest payable on the Obligations for the period from December 1,
2000 through March 1, 2001.

         6. MISCELLANEOUS.

         (a) EFFECT OF AMENDMENT. Except as set forth expressly herein, all
terms of the Loan Agreement, as amended hereby, shall be and remain in full
force and effect and shall constitute the legal, valid, binding and enforceable
obligations of Borrowers to the Agent and Lenders. To the extent any terms and
conditions in any of the Loan Documents shall contradict or be in conflict with
any terms or conditions of the Loan Agreement, after giving effect to this
Amendment, such terms and conditions are hereby deemed modified and amended
accordingly to reflect the terms and conditions of the Loan Agreement as
modified and amended hereby. This Amendment may be signed in multiple
counterparts, all of which shall constitute one and the same agreement.

         (b) RATIFICATION. Borrowers hereby restate, ratify and reaffirm each
and every term and condition set forth in the Loan Agreement, as amended hereby,
and the Loan Documents, effective as of the date hereof.

         (c) ESTOPPEL. To induce the Agent and Lenders to enter into this
Amendment, Borrowers hereby acknowledge and agree that, as of the date hereof,
no Default or Event of Default has occurred and is continuing and, in addition,
there exists no right of offset, defense, counterclaim or objection in favor of
Borrowers with respect to any Obligations.

         (d) GOVERNING LAW. This Amendment shall be governed by, and construed
in accordance with, the internal laws (and not the laws of conflicts) of the
State of New York.

         (e) COSTS AND EXPENSES. Borrowers agree to pay on demand all costs and
expenses of the Agent in connection with the preparation, execution, delivery
and enforcement of this Amendment and all other Loan Documents executed in
connection herewith, the closing hereof, and any other transactions contemplated
hereby, including the fees and out-of-pocket expenses of the Agent's counsel.

                                      -5-
<PAGE>   6

         IN WITNESS WHEREOF, this Amendment has been duly executed by the
parties hereto as of the date first above written.

                                   "BORROWER"

                                   MAYOR'S JEWELERS, INC., formerly known as
                                   Jan Bell Marketing, Inc.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   MAYOR'S JEWELERS, INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   JBM RETAIL COMPANY, INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   "AGENT"

                                   CITICORP USA, INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                      -6-
<PAGE>   7

                                   "LENDERS"

                                   CITICORP USA, INC.

                                   By:
                                       -----------------------------------------
                                       Name:    Miles D. McManus
                                       Title:   Vice President

                                   BANKBOSTON RETAIL FINANCE INC.

                                   By:
                                       -----------------------------------------
                                       Name:    Michael L. Pizette
                                       Title:   Managing Director

                                   FOOTHILL CAPITAL CORPORATION

                                   By:
                                       -----------------------------------------
                                       Name:    Michael Baranowski
                                       Title:   Vice President

                                   FIRST UNION NATIONAL BANK

                                   By:
                                       -----------------------------------------
                                       Name:    Richard Preskenis
                                       Title:   Vice President

                                   NATIONAL CITY COMMERCIAL FINANCE, INC.

                                   By:
                                       -----------------------------------------
                                       Name:    Elizabeth M. Lynch
                                       Title:   Vice President

                                      -7-
<PAGE>   8

                          ACKNOWLEDGMENT OF GUARANTORS

         Each of the undersigned, being a guarantor, pursuant to certain
Corporate Guaranty and Security Agreement, dated as of July 28, 1998
(collectively, the "GUARANTY"), of the obligations of Jan Bell Marketing, Inc.,
JBM Retail Company, Inc. and Mayor's Jewelers, Inc. (collectively, "BORROWERS")
under the "Loan Agreement" referenced in the within and foregoing Third
Amendment to Loan and Security Agreement among, the lenders named therein,
Citicorp USA, Inc., as agent for such lenders, and Borrowers (the "THIRD
AMENDMENT") hereby (a) acknowledges its receipt of a copy of, and consents to
the Third Amendment, (b) agrees to be bound thereby and (c) acknowledges and
agrees that the Guaranty shall continue in full force and effect from and after
the execution and delivery of the Third Amendment without modification,
diminution or impairment.

         IN WITNESS WHEREOF, the undersigned have set their hands as of the 27th
day of April, 2001.

                                   JBM VENTURE CO., INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   ULTIMATE FINE JEWELRY INTERNATIONAL, INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   JBM INTERNATIONAL, INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                      -8-
<PAGE>   9

                                   MAIER & BERKELE, INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   MAYOR'S JEWELERS INTELLECTUAL PROPERTY
                                   HOLDING COMPANY

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   MAYOR'S JEWELERS RECEIVABLES HOLDING COMPANY

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   AMERICAN HOROGICAL CORPORATION

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                   JAN BELL MARKETING/PUERTO RICO, INC.

                                   By:
                                       -----------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                      -9-<PAGE>   1
                                                                     EXHIBIT 4.1

                                    REVISED
                                    FORM OF
                                   PODS, INC.
                   SERIES A SUBORDINATED CONVERTIBLE DEBENTURE

$__________________                                        _______________, 2001

         FOR VALUE RECEIVED, PODS, INC., a Florida corporation (the "Company"
which term includes any successor corporation under the "Indenture" defined
below), for value received, hereby promises to pay to _________________ or
registered assigns, the principal sum of ______________ Dollars ($_____________)
(the "Principal Amount"), in twelve (12) equal quarterly installments in the
amount of __________________ Dollars ($_____________), plus interest as provided
for herein, commencing on July 15, 2007 and on the fifteenth day of each of the
next succeeding eleven (11) calendar quarters, unless sooner due and payable as
provided herein, including but not limited to payment as a result of a Holder
Payment Acceleration Notice or a Conversion Event. All then accrued but unpaid
interest shall be due and payable concurrently with each installment of the
Principal Amount.

         This Debenture is one of a duly authorized issue of Series A
Subordinated Convertible Debentures of the Company (herein called the
"Debentures") issued under an Indenture dated as of ________________, 2001
(herein called the "Indenture"), between the Company and SunTrust Bank, as
Trustee (the "Trustee," which term includes any successor Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights thereunder of the
Company, the Trustee and the holders of the Debentures, and the terms upon which
the Debentures are, and are to be, authenticated and delivered. The holder
hereof, by acceptance of this Debenture, agrees to be bound by the terms of the
Indenture. The Debentures are issuable only as registered Debentures without
coupons in denominations of $25,000 or greater that are in increments of $5,000.

         Capitalized terms which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

         1.       Interest. The then outstanding Principal Amount shall bear
interest at the rate of 12% per annum, calculated based upon a year of three
hundred sixty-five (365) days.

<PAGE>   2

         Interest only payments shall be due and paid quarterly, in arrears,
commencing on the fifteenth (15th) day of the first calendar quarter that
begins after the date hereof and continuing on the fifteenth day of each of the
following calendar quarters, until the Principal Amount has been paid in full.

         The interest so payable, and punctually paid or duly provided for, on
any interest payment date will, as provided in said Indenture, be paid to the
person in whose name this Debenture is registered at the close of business on
the record date for such interest, which shall be the last day (whether or not a
business day) of the calendar month next preceding such interest payment date.
At the option of the Company, interest so payable may be paid by check to the
order of said registered holder mailed to such holder's address appearing on the
Debenture register. Any such interest not so punctually paid or duly provided
for shall forthwith cease to be payable to the registered holder on such record
date, and may be paid to the person in whose name this Debenture is registered
at the close of business on a subsequent special record date for the payment of
such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to holders of Debentures not less than fifteen (15) days prior to such
record date, or may be paid, at any time in any other lawful manner, all as more
fully provided in said Indenture. The setting of a special record date for the
payment of interest shall not be deemed to cure or waive a default in the
payment of interest when due. Payment of the principal of and interest on this
Debenture will be made at the office or agency of the Company maintained for
that purpose 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.

         No reference herein to the Indenture and no provision of this Debenture
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional,

                                       2
<PAGE>   3

to pay principal of and interest on this Debenture at the times, place, and rate
and in the coin or currency, herein prescribed.

         2.       Holder Payment Acceleration Right. Subject to the terms and
conditions of this Section 2, the registered holder may elect to require that
the Company prepay the unpaid Principal Amount in twelve (12) equal quarterly
installments (the "Holder Payment Acceleration Right"), commencing on July 15,
2006 and on the fifteenth day of each of the next succeeding eleven (11)
calendar quarters, unless sooner due and payable as provided herein, plus
interest at 12% per annum. All then accrued but unpaid interest shall be due and
payable concurrently with each installment of the Principal Amount.

         The registered holder shall notify the Company and the Trustee of its
exercise of the Holder Payment Acceleration Right by delivery of written notice
via certified mail, return receipt requested, addressed to and received by the
Company and the Trustee after December 31, 2005 and before April 1, 2006. Any
notice given in this manner will be effective when received by the Company.

         3.       Holder's Conversion Right. On a date that is at least thirty
(30) days prior to the date on which the Company is obligated to close on an
"Approved Sale" (as defined below) or an "IPO" (as defined below) (each a
"Conversion Event"), the Company shall deliver to each registered holder of a
Debenture with respect to which there has been no exercise of the applicable
Holder Payment Acceleration Right (each an "Eligible Debenture"), a written
notice (the "Company Conversion Election Notice") that describes the Conversion
Event. If this Debenture is an Eligible Debenture, the registered holder by
delivery to

                                       3
<PAGE>   4

the Company of written notice via certified mail, return receipt requested,
addressed to and received by the Company no later than fifteen (15) days after
the date of the Company Conversion Election Notice (the "Holder Conversion
Notice"), shall have the right and option to elect either (i) Conversion (as
defined below) or (ii) Installment Payments (as defined below).

         "Conversion" means that all or a portion of the Eligible Debenture, as
designated by the registered holder subject to the restrictions set forth
herein, shall be paid by the Company's delivery, on the applicable Exchange Date
(as defined below), of the number of fully paid and nonassessable shares of
common stock of the Company (the "Exchange Shares") that is determined by
dividing the principal amount of the portion of the Debenture that is to be
converted by the Conversion Price (as defined below). Provided however, that no
fractional shares shall be issued upon conversion and amounts attributable to
fractional shares shall be paid in cash upon delivery of such Exchange Shares;
and provided further, that accrued but unpaid interest, if any, shall be paid in
full in cash by the Company on the Exchange Date; and provided further, that any
conversion of a portion of the Eligible Debenture may be made only with respect
to a portion of the Eligible Debenture that has a face value of at least $25,000
or any multiple thereof or in denominations in excess of $25,000 that are in
increments of $5,000.

         "Installment Payments" means that the portion of the Eligible Debenture
with respect to which the registered holder does not elect or is not deemed to
elect Conversion, shall be paid in twelve (12) equal quarterly installments of
principal, commencing on the Exchange Date and on the fifteenth day of each of
the next succeeding eleven (11) calendar quarters, unless sooner due and payable
as provided herein, plus interest from the Exchange Date at the rate set forth
in Section 1; provided, that all then accrued but unpaid interest shall be due
and payable concurrently with each installment of the Principal Amount; and
provided further, that accrued but unpaid interest, if any, shall be paid in
full by the Company on the Exchange Date.

         If the registered holder does not timely deliver a Holder Conversion
Notice, then the registered holder shall be deemed to have elected Conversion as
to the Eligible Debenture.

         On the applicable Exchange Date (as defined below) following the date
on which the Company closes on an "Approved Sale" (as

                                       4
<PAGE>   5

defined below) or an "IPO" (as defined below) (each a "Conversion Event") all
portions of Eligible Debentures with respect to which the registered holder
elects or is deemed to elect Conversion, shall be paid in the number of shares
of common stock of the Company that is calculated by dividing the outstanding
principal balance due on such Eligible Debentures by the Conversion Price
provided for below.

         The portion of Debentures for which Conversion is elected and provided
for in accordance with the Indenture shall cease to bear interest from and after
the Exchange Date.

         The Exchange Shares may be subject to a lock-up period which may be
imposed on some or all of the shareholders of the Company by the underwriters in
connection with the IPO.

         For the purposes of this Debenture, the following terms shall have the
indicated meanings:

         "Conversion Price" means Five Dollars and 10/100 ($5.10), adjusted as
follows. Upon the happening of an Extraordinary Common Stock Event (as defined
below), the Conversion Price shall, simultaneously with the happening of such
Extraordinary Common Stock Event, be adjusted for such Extraordinary Common
Stock Event by multiplying such Conversion Price by a fraction, the numerator of
which shall be the number of shares of common stock of the Company that are
outstanding immediately prior to such Extraordinary Common Stock Event
(calculated on a fully-diluted basis assuming the exercise or conversion of all
then presently exercisable options, warrants, purchase rights or convertible
securities) and the denominator of which shall be the number of shares of common
stock of the Company that are outstanding immediately after such Extraordinary
Common Stock Event (calculated on a fully-diluted basis assuming the exercise or
conversion of all then presently exercisable options, warrants, purchase rights
or convertible securities). An "Extraordinary Common Stock Event" shall mean (i)
the issuance of additional shares of common stock of the Company as a dividend
or other distribution on outstanding shares of common stock of the Company, (ii)
a stock split or other subdivision of outstanding shares of common stock of the
Company into a greater number of shares of common stock, or (iii) a combination
or reverse stock split of outstanding shares of common stock of the Company into
a smaller number of shares of the common stock.

                                       5
<PAGE>   6

         Upon the occurrence of each adjustment or readjustment of the
Conversion Price pursuant to this Section 3, the Company at its expense shall
promptly compute such adjustment or readjustment in accordance with the terms
hereof and furnish to the holder of this Debenture a certificate setting forth
such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based.

         "Approved Sale" means the sale or disposition of all of the equity
interests in the Company or of all or substantially all of the Company's assets
and business to an independent third party in an arm's-length transaction
approved by the Board of Directors of the Company, with approval of the holders
of a majority of each class of stock of the Company that is entitled to vote
thereon, whether by sale of assets, merger, consolidation, share exchange,
recapitalization or other business combination or the sale and transfer and/or
the issuance and sale of securities representing all of the voting securities of
the Company.

         "IPO" means the closing of an underwritten public offering of Company
common stock for cash pursuant to an effective registration statement under the
Securities Act of 1933.

         "Exchange Date" means (i) with respect to an Approved Sale, the date of
the closing of the Approved Sale, or (ii) with respect to an IPO, the date of
the closing of the IPO.

         4.       Prepayment. The Company may prepay all or any part of the
amounts due pursuant to this Debenture, without penalty, on or after the
occurrence of the earlier of (i) July 15, 2007, (ii) an Exchange Date, or (iii)
April 1, 2006, if the holder of this Debenture exercised a Holder Payment
Acceleration Right. Any prepayment shall be in accordance with the Indenture.

         5.       Acceleration. If an Event of Default, as defined in the
Indenture, shall occur, the principal of all the Debentures may be declared due
and payable in the manner and with the effect provided in the Indenture.

         6.       Subordination. The indebtedness evidenced by this Debenture is
subordinated to the prior payment in full of all Senior Indebtedness, as
provided in the Indenture.

         7.       Limited Assignment; Registered. As provided in the Indenture
and subject to certain limitations therein set forth,

                                       6
<PAGE>   7

this Debenture is transferable on the register of the Company, upon surrender of
this Debenture for transfer at the office or agency of the Company in any place
where the principal hereof and interest hereon are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Debenture registrar, duly executed by the registered holder
hereof or his attorney duly authorized in writing, a copy of which authorization
shall be delivered with any such instrument of transfer, and thereupon one or
more new Debentures, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees. No
service charge will be made for any such transfer or exchange, but the Company
may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

         The Company, the Trustee and any agent of the Company or the Trustee
may treat the person in whose name this Debenture is registered as the owner
hereof for the purpose of receiving payment as herein provided and for all other
purposes whether or not this Debenture be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         8.       Amendment; Waiver. 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
Debentures under the Indenture at any time by the Company with the consent of
the holders of a majority in aggregate principal amount of the Debentures at the
time outstanding, as defined in the Indenture. The Indenture also contains
provisions permitting the holders of a majority in aggregate principal amount of
the Debentures at the time outstanding, as defined in the Indenture, on behalf
of the holders of all Debentures, 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 Debenture shall be conclusive and binding upon such holder and upon all
future holders of this Debenture and of any Debenture issued upon the transfer
hereof or in exchange herefor or in lieu hereof whether or not notation of such
consent or waiver is made upon this Debenture.

         9.       Construction. This Note shall be governed and construed in
accordance with the laws of the State of Florida.

                                       7
<PAGE>   8

The forum for any litigation instituted hereunder shall be Pinellas County,
Florida.

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

                                   PODS, INC.

                                   By:
                                       ---------------------------------
                                       Peter S. Warhurst,
                                       President

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Debentures referred to in the above referenced
Indenture.

Authentication Date:                          SIGNATURE BLANK FOR
                    -------------------       TRUSTEE

                                       8

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