Common use of Payment of Interest; Rights to Interest Preserved Clause in Contracts

Payment of Interest; Rights to Interest Preserved. Interest on any Treasury Note which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Certificate (or one or more Predecessor Security Certificates) of which such Treasury Note is a part is registered at the close of business on the Record Date next preceding such Payment Date. Each Security Certificate evidencing Treasury Notes delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Certificate shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by the Treasury Notes underlying such other Security Certificate. In the case of any Security with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date after any Record Date and on or prior to the next succeeding Payment Date, interest on the Treasury Notes underlying such Security otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Early Settlement, and such interest shall, subject to receipt thereof by the Agent, be paid to the Person in whose name the Security Certificate (or one or more Predecessor Security Certificates) is registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date, interest on the related Treasury Notes that would otherwise be payable after the Early Settlement Date shall not be payable hereunder to the Holder of such Security.

Payment of Interest; Rights to Interest Preserved. Interest INTEREST RATE RESET; NOTICE. A payment of interest on any Debt Securities or distribution with respect to the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Income PRIDES Certificate (or one or more Predecessor Security Income PRIDES Certificates) of which such Debt Securities or the appropriate Applicable Ownership Interest in the Treasury Note is Portfolio, as the case may be, are a part is registered at the close of business on the Record Date next preceding for such Payment Date. Each Security Income PRIDES Certificate evidencing Treasury Notes Debt Securities delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Income PRIDES Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were is carried by the Treasury Notes Debt Securities underlying such other Security Income PRIDES Certificate. In the case of any Security Income PRIDES with respect to which Cash Settlement of the underlying applicable portion of the Purchase Contract is effected on the Business Day immediately preceding the applicable Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date Date, or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debt Securities or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, underlying such Security Income PRIDES otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement or Early SettlementSettlement or Collateral Substitution, and such interest interests shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Income PRIDES Certificate (or one or more Predecessor Security CertificatesIncome PRIDES Certificate) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Income PRIDES with respect to which Cash Settlement or Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the applicable Purchase Contract Settlement Date or an Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debt Securities or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the applicable Purchase Contract Settlement Date or Early Settlement Date shall not be payable hereunder to the Holder of such SecurityIncome PRIDES; provided, however, that to the extent that such Holder continues to hold the separated Debt Securities that formerly comprised a part of such Holder's Income PRIDES, such Holder shall be entitled to receive the payment of interest on such separated Debt Securities. The applicable Coupon Rate on the Series D Notes to be in effect on and after the First Purchase Contract Settlement Date will be reset on the third Business Day immediately preceding the First Purchase Contract Settlement Date to the Series D Reset Rate (such Series D Reset Rate to be effective from and after the First Purchase Contract Settlement Date). On the Reset Announcement Date, the Series D Reset Spread and the Two-Year Benchmark Treasury to be used to determine the Series D Reset Rate will be announced by the Company. On the Business Day immediately following the Reset Announcement Date, the Company will cause a notice of such Series D Reset Spread and Two-Year Benchmark Treasury to be published in an Authorized Newspaper. The applicable Coupon Rate on the Series E Notes to be in effect on and after the Second Purchase Contract Settlement Date will be reset on the third Business Day immediately preceding the Second Purchase Contract Settlement Date to the Series E Reset Rate (such Series E Reset Rate to be in effect from and after the Second Purchase Contract Settlement Date). On the Reset Announcement Date the Series E Reset Spread and the Two-Year Benchmark Treasury to be used to determine the Series E Reset Rate will be announced by the Company. On the Business Day immediately following the Reset Announcement Date, the Company will cause a notice of such Series E Reset Spread and Two-Year Benchmark Treasury to be published in an Authorized Newspaper. Not later than 7 calendar days nor more than 15 calendar days prior to each Reset Announcement Date, the Company will request that the Depositary notify (or any successor Clearing Agency or its nominee) by first-class mail, postage prepaid, the Beneficial Owners or Clearing Agency Participants holding Income PRIDES or Growth PRIDES, of such Reset Announcement Date and any procedures to be followed by such Holders of Securities, who intend to settle their obligation under the applicable portion of the Purchase Contract with separate cash on the applicable Purchase Contract Settlement Date.

Payment of Interest; Rights to Interest Preserved. INTEREST RATE RESET; NOTICE. A payment of interest on the Debentures or distribution with respect to the appropriate Applicable Ownership Interest on any in the Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Corporate Unit Certificate (or one or more Predecessor Security Corporate Unit Certificates) of which such Debentures or the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, is a part is registered at the close of business on the Record Date next preceding such Payment Date. Each Security Corporate Unit Certificate evidencing Treasury Notes Debentures delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Corporate Unit Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were is carried by the Treasury Notes Debentures underlying such other Security Corporate Unit Certificate. In the case of any Security Corporate Unit with respect to which Cash Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debentures or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, underlying such Security Corporate Units otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement or Early SettlementSettlement or Collateral Substitution, and such interest or distributions shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Corporate Unit Certificate (or one or more Predecessor Security Corporate Unit Certificates) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Corporate Units with respect to which Cash Settlement or Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date or an Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debentures or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the Purchase Contract Settlement Date or Early Settlement Date shall not be payable hereunder to the Holder of such SecurityCorporate Units; provided, however, that to the extent that such Holder continues to hold the separated Debentures that formerly comprised a part of such Holder's Corporate Units, such Holder shall be entitled to receive the payment of interest on such separated Debentures. The Coupon Rate on the Debentures to be in effect on and after the Reset Date will be determined on the third Business Day immediately preceding the Reset Date to the Reset Rate (such Reset Rate to be effective from and after the Reset Date). If the [Initial Remarketing] and the [Secondary Remarketing] result in Failed Remarketings, the Coupon Rate on the Debentures will not be reset but will continue at the initial Coupon Rate. On the Reset Announcement Date, the Reset Spread and the Applicable Benchmark Treasury to be used to determine the Reset Rate will be announced by the Company or FPL Group Capital. In addition, on any Reset Announcement Date with respect to an [Initial Reset Date] occurring prior to ____________, 200__, the percentage undivided beneficial ownership interest determined by the Reset Agent for purposes of clause (2)(c) of the definition of "Applicable Ownership Interest" will be announced by the Company or FPL Group Capital. On the Business Day immediately following the Reset Announcement Date, the Company will cause a notice of the Reset Spread and Applicable Benchmark Treasury and, if applicable, the percentage undivided beneficial ownership interest determined by the Reset Agent to be published in an Authorized Newspaper. Not later than 7 calendar days nor more than 15 calendar days prior to the Reset Announcement Date and the Purchase Contract Settlement Date, if such Purchase Contract Settlement Date is not also a Reset Date, the Company or FPL Group Capital will request that the Depositary (or any successor Clearing Agency or its nominee) notify by first-class mail, postage prepaid, the Beneficial Owners or Clearing Agency Participants holding Corporate Units or Treasury Units, of the Reset Announcement Date and any procedures to be followed by such Holders of Corporate Units who intend to settle their obligation under the Purchase Contract with separate cash on the Purchase Contract Settlement Date.

Payment of Interest; Rights to Interest Preserved. Interest INTEREST RATE RESET; NOTICE. A payment of interest on any Debt Securities or distribution with respect to the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Type A Certificate (or one or more Predecessor Security Type A Certificates) of which such Debt Securities or the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, is a part is registered at the close of business on the Record Date next preceding for such Payment Date. Each Security Type A Certificate evidencing Treasury Notes Debt Securities delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Type A Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were is carried by the Treasury Notes Debt Securities underlying such other Security Type A Certificate. In the case of any Type A Security with respect to which Cash Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date Date, or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debt Securities or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, underlying such Security Type A Securities otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement or Early SettlementSettlement or Collateral Substitution, and such interest interests shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Type A Certificate (or one or more Predecessor Security Type A Certificates) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Type A Securities with respect to which Cash Settlement or Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date or an Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debt Securities or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the Purchase Contract Settlement Date or Early Settlement Date shall not be payable hereunder to the Holder of such SecurityType A Securities; provided, however, that to the extent that such Holder continues to hold the separated Debt Securities that formerly comprised a part of such Holder's Type A Securities, such Holder shall be entitled to receive the payment of interest on such separated Debt Securities. The applicable Coupon Rate on the Debt Securities on and after the Purchase Contract Settlement Date will be reset on the third Business Day immediately preceding the Purchase Contract Settlement Date to the Reset Rate (such Reset Rate to be in effect on and after the Purchase Contract Settlement Date). On the Reset Announcement Date the Reset Spread and the Two-Year Benchmark Treasury to be used to determine the Reset Rate will be announced by the Company. On the Business Day immediately following the Reset Announcement Date, the Company will cause a notice of such Series ___ Reset Spread and Two-Year Benchmark Treasury to be published in an Authorized Newspaper. Not later than 7 calendar days nor more than 15 calendar days prior to the Reset Announcement Date, the Company will notify the DTC or its nominee (or any successor Clearing Agency or its nominee) by first-class mail, postage prepaid, to notify the Beneficial Owners or Clearing Agency Participants holding Type A Securities or Type B Securities, of such Reset Announcement Date and the procedures to be followed by such Holders of Type A Securities or Type B Securities who intend to settle their obligation under the Purchase Contract with separate cash on the Purchase Contract Settlement Date.

Payment of Interest; Rights to Interest Preserved. INTEREST RATE RESET; NOTICE. A payment of interest on the Debt Securities or distribution with respect to the Applicable Ownership Interest on any in the appropriate Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Corporate Unit Certificate (or one or more Predecessor Security Corporate Unit Certificates) of which such Debt Securities or the Applicable Ownership Interest in the appropriate Treasury Note is Portfolio, as the case may be, are a part is registered at the close of business on the Record Date next preceding for such Payment Date. Each Security Corporate Unit Certificate evidencing Treasury Notes Debt Securities delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Corporate Unit Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were are carried by the Treasury Notes Debt Securities underlying such other Security Corporate Unit Certificate. In the case of any Security Corporate Unit with respect to which Cash Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date Date, or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debt Securities or distributions with respect to the Applicable Ownership Interest in the appropriate Treasury Notes Portfolio, as the case may be, underlying such Security Corporate Unit otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement or Early SettlementSettlement or Collateral Substitution, and such interest or distributions shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Corporate Unit Certificate (or one or more Predecessor Security Corporate Unit Certificates) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Corporate Unit with respect to which Cash Settlement or Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the applicable Purchase Contract Settlement Date or an Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debt Securities or distributions with respect to the Applicable Ownership Interest in the appropriate Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the Purchase Contract Settlement Date or Early Settlement Date shall not be payable hereunder to the Holder of such Corporate Unit; provided, however, that to the extent that such Holder continues to hold the separated Debt Security that formerly comprised a part of such Holder's Corporate Unit, such Holder shall be entitled to receive the payment of interest on such separated Debt Security. The Reset Rate on the Debt Securities to be in effect on and after the Reset Date will be determined on the third Business Day immediately preceding the Reset Date (such Reset Rate to be effective from and after the Reset Date). If the Initial Remarketing results in a Failed Remarketing, the Coupon Rate on the Debt Securities will not be reset to the Reset Rate but will continue at the initial Coupon Rate. If the Secondary Remarketing results in a Failed Remarketing, the Reset Rate will be the rate determined by the Reset Agent as the rate the Debt Securities should bear in order for each Senior Note to have an approximate market value of [_____%] of the principal amount of the Debt Securities. The Company may limit the reset rate to [___] basis points over the yield on the Applicable Benchmark Treasury. In addition, the Reset Rate will in no event exceed the maximum rate permitted by applicable law. On each Reset Announcement Date, the Reset Spread and the Applicable Benchmark Treasury to be used to determine the Reset Rate will be announced by the Company. In addition, on any Reset Announcement Date relating to an Initial Reset Date occurring prior to _________________, the percentage undivided beneficial ownership interest determined by the Reset Agent for purposes of clause (1)(iii) of the definition of "Applicable Ownership Interest" will be announced by the Company. On the Business Day immediately following the Reset Announcement Date, the Company will cause a notice of the Reset Spread, Applicable Benchmark Treasury and, if applicable, percentage undivided beneficial ownership interest in the to be published in an Authorized Newspaper. Not later than 7 calendar days nor more than 15 calendar days prior to each Reset Announcement Date and the Purchase Contract Settlement Date, if the Purchase Contract Settlement Date is not also a Reset Date, the Company will request that the Depositary (or any successor Clearing Agency or its nominee) notify by first-class mail, postage prepaid, the Beneficial Owners or Clearing Agency Participants holding Corporate Units or Treasury Units, of each Reset Announcement Date and any procedures to be followed by such Holders of Securities, who intend to settle their obligation under the Purchase Contract with separate cash on the Purchase Contract Settlement Date.

Payment of Interest; Rights to Interest Preserved. INTEREST RATE RESET; NOTICE. A payment of interest on the Debt Securities or distribution with respect to the Applicable Ownership Interest on any in the appropriate Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Corporate Unit Certificate (or one or more Predecessor Security Corporate Unit Certificates) of which such Debt Securities or the Applicable Ownership Interest in the appropriate Treasury Note is Portfolio, as the case may be, are a part is registered at the close of business on the Record Date next preceding for such Payment Date. Each Security Corporate Unit Certificate evidencing Treasury Notes Debt Securities delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Corporate Unit Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were are carried by the Treasury Notes Debt Securities underlying such other Security Corporate Unit Certificate. In the case of any Security Corporate Unit with respect to which Cash Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date Date, or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debt Securities or distributions with respect to the Applicable Ownership Interest in the appropriate Treasury Notes Portfolio, as the case may be, underlying such Security Corporate Unit otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement or Early SettlementSettlement or Collateral Substitution, and such interest or distributions shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Corporate Unit Certificate (or one or more Predecessor Security Corporate Unit Certificates) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Corporate Unit with respect to which Cash Settlement or Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the applicable Purchase Contract Settlement Date or an Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debt Securities or distributions with respect to the Applicable Ownership Interest in the appropriate Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the Purchase Contract Settlement Date or Early Settlement Date shall not be payable hereunder to the Holder of such Corporate Unit; provided, however, that to the extent that such Holder continues to hold the separated Debt Security that formerly comprised a part of such Holder's Corporate Unit, such Holder shall be entitled to receive the payment of interest on such separated Debt Security. The Reset Rate on the Debt Securities to be in effect on and after the Reset Date will be determined on the third Business Day immediately preceding the Reset Date (such Reset Rate to be effective from and after the Reset Date). If the Initial Remarketing results in a Failed Remarketing, the Coupon Rate on the Debt Securities will not be reset to the Reset Rate but will continue at the initial Coupon Rate. If the Secondary Remarketing results in a Failed Remarketing, the Reset Rate will be the rate determined by the Reset Agent as the rate the Debt Securities should bear in order for each Senior Note to have an approximate market value of 100.5% of the principal amount of the Debt Securities. The Company may limit the reset rate to 200 basis points over the yield on the Applicable Benchmark Treasury. In addition, the Reset Rate will in no event exceed the maximum rate permitted by applicable law. On each Reset Announcement Date, the Reset Spread and the Applicable Benchmark Treasury to be used to determine the Reset Rate will be announced by the Company. In addition, on any Reset Announcement Date relating to an Initial Reset Date occurring prior to February 16, 2006, the percentage undivided beneficial ownership interest determined by the Reset Agent for purposes of clause (1)(iii) of the definition of "Applicable Ownership Interest" will be announced by the Company. On the Business Day immediately following the Reset Announcement Date, the Company will cause a notice of the Reset Spread, Applicable Benchmark Treasury and, if applicable, percentage undivided beneficial ownership interest in the to be published in an Authorized Newspaper. Not later than 7 calendar days nor more than 15 calendar days prior to each Reset Announcement Date and the Purchase Contract Settlement Date, if the Purchase Contract Settlement Date is not also a Reset Date, the Company will request that the Depositary (or any successor Clearing Agency or its nominee) notify by first-class mail, postage prepaid, the Beneficial Owners or Clearing Agency Participants holding Corporate Units or Treasury Units, of each Reset Announcement Date and any procedures to be followed by such Holders of Securities, who intend to settle their obligation under the Purchase Contract with separate cash on the Purchase Contract Settlement Date.

Payment of Interest; Rights to Interest Preserved. INTEREST RATE RESET; NOTICE. A payment of interest on the Debt Securities or distribution with respect to the Applicable Ownership Interest on any in the appropriate Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Income PRIDES Certificate (or one or more Predecessor Security Income PRIDES Certificates) of which such Debt Securities or the Applicable Ownership Interest in the appropriate Treasury Note is Portfolio, as the case may be, are a part is registered at the close of business on the Record Date next preceding for such Payment Date. Each Security Income PRIDES Certificate evidencing Treasury Notes Debt Securities delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Income PRIDES Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were are carried by the Treasury Notes Debt Securities underlying such other Security Income PRIDES Certificate. In the case of any Security Income PRIDES with respect to which Cash Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date Date, or with respect to which Cash Merger Early Settlement of the underlying Purchase Contract is effected on the Cash Merger Early Settlement Date, or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debt Securities or distributions with respect to the Applicable Ownership Interest in the appropriate Treasury Notes Portfolio, as the case may be, underlying such Security Income PRIDES otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement, Early Settlement, Cash Merger Early Settlement or Collateral Substitution, and such interest or distributions shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Income PRIDES Certificate (or one or more Predecessor Security Income PRIDES Certificates) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Income PRIDES with respect to which Cash Settlement, Early Settlement or Cash Merger Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the applicable Purchase Contract Settlement Date, an Early Settlement Date or a Cash Merger Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debt Securities or distributions with respect to the Applicable Ownership Interest in the appropriate Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the Purchase Contract Settlement Date, Early Settlement Date or Cash Merger Early Settlement Date shall not be payable hereunder to the Holder of such Income PRIDES; provided, however, that to the extent that such Holder continues to hold the separated Debt Security that formerly comprised a part of such Holder's Income PRIDES, such Holder shall be entitled to receive the payment of interest on such separated Debt Security. The Debt Securities shall bear interest at the Reset Rate from the Reset Date. The Reset Rate shall equal the sum of (i) the Reset Spread and (ii) the yield on the Applicable Benchmark Treasury in effect on the third Business Day immediately preceding the Reset Date and shall be determined by the Reset Agent; provided that the Reset Rate will in no event exceed the maximum rate permitted by applicable law. On each Remarketing Announcement Date, the Reset Agent will establish the Reset Spread to be added to the yield on the Applicable Benchmark Treasury expected to be in effect on the Remarketing Date. In addition, the Reset Agent will determine on such Remarketing Announcement Date, the percentage undivided beneficial ownership interest for purposes of clause (1)(ii) and (iii) of the definition of "Applicable Ownership Interest," which will be announced by the Company. On the Business Day immediately following the Remarketing Announcement Date, the Company will cause a notice of (a) the Reset Spread and the Applicable Benchmark Treasury, (b) any change in the scheduled Interest Payment Dates and maturity date of the Debt Securities that will become effective on the Reset Date upon a successful remarketing, to be published in an Authorized Newspaper and (c) if applicable, the percentage of the undivided beneficial ownership interest to be published in an Authorized Newspaper. In the event of a Failed Remarketing, the Coupon Rate will not be reset and the Debt Securities will continue to bear interest at the Coupon Rate effective at the time the Debt Securities were initially issued. In addition, the Company will request, not later than seven nor more than 15 calendar days prior to each Remarketing Announcement Date, that the Depositary (or any successor Clearing Agency or its nominee) notify by first-class mail, postage prepaid, the Beneficial Owners or Clearing Agency Participants holding Debt Securities, Income PRIDES and Growth PRIDES of each Remarketing Announcement Date and the remarketing, including, if the Remarketing Announcement is being made on the seventh Business Day immediately preceding August 16, 2006, the procedures that must be followed in the event of a Failed Remarketing if (1) any holder of PRIDES wishes to settle the related purchase contract with cash on the Business Day immediately preceding August 16, 2006, or (2) any holder of Debt Securities wishes to exercise its right to put such Debt Securities to the Company pursuant to the Indenture.

Payment of Interest; Rights to Interest Preserved. Interest INTEREST RATE RESET; NOTICE. A payment of interest on any Debentures or distribution with respect to the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Type A Certificate (or one or more Predecessor Security Type A Certificates) of which such Debentures or the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, is a part is registered at the close of business on the Record Date next preceding for such Payment Date. Each Security Type A Certificate evidencing Treasury Notes Debentures delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Type A Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were is carried by the Treasury Notes Debentures underlying such other Security Type A Certificate. In the case of any Type A Security with respect to which Cash Settlement of the underlying applicable portion of the Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date Date, or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debentures or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, underlying such Security Type A Securities otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement or Early SettlementSettlement or Collateral Substitution, and such interest or distributions shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Type A Certificate (or one or more Predecessor Security Type A Certificates) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Type A Securities with respect to which Cash Settlement or Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date or an Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debentures or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the Purchase Contract Settlement Date or Early Settlement Date shall not be payable hereunder to the Holder of such SecurityType A Securities; provided, however, that to the extent that such Holder continues to hold the separated Debentures that formerly comprised a part of such Holder's Type A Securities, such Holder shall be entitled to receive the payment of interest on such separated Debentures. The applicable Coupon Rate on the Debentures on and after the Purchase Contract Settlement Date will be reset on the third Business Day immediately preceding the Purchase Contract Settlement Date to the Reset Rate (such Reset Rate to be in effect on and after the Purchase Contract Settlement Date). On the Reset Announcement Date, the Reset Spread and the Two-Year Benchmark Treasury to be used to determine the Reset Rate will be announced by FPL Group Capital or the Company. On the Business Day immediately following the Reset Announcement Date, FPL Group Capital or the Company will cause a notice of the Reset Spread and Two-Year Benchmark Treasury to be published in an Authorized Newspaper. Not later than 7 calendar days nor more than 15 calendar days prior to the Reset Announcement Date, the Company or FPL Group Capital will request that the Depositary (or any successor Clearing Agency or its nominee) notify by first-class mail, postage prepaid, the Beneficial Owners or Clearing Agency Participants holding Type A Securities or Type B Securities, of such Reset Announcement Date and the procedures to be followed by such Holders of Type Securities A who intend to settle their obligation under the Purchase Contract with separate cash on the Purchase Contract Settlement Date.

Payment of Interest; Rights to Interest Preserved. Interest INTEREST RATE RESET; NOTICE. A payment of interest on any Debt Securities or distribution with respect to the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Agent from the Collateral Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Security Type A Certificate (or one or more Predecessor Security Type A Certificates) of which such Debt Securities or the appropriate Applicable Ownership Interest in the Treasury Note Portfolio, as the case may be, is a part is registered at the close of business on the Record Date next preceding for such Payment Date. Each Security Type A Certificate evidencing Treasury Notes Debt Securities delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Security Type A Certificate shall carry the rights to payment of interest accrued and unpaid, and to accrueaccrue interest, which were is carried by the Treasury Notes Debt Securities underlying such other Security Type A Certificate. In the case of any Type A Security with respect to which Cash Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date pursuant to prior notice, or with respect to which Early Settlement of the underlying Purchase Contract is effected on an Early Settlement Date Date, or with respect to which a Collateral Substitution is effected, in each case on a date that is after any Record Date and on or prior to the next succeeding Payment Date, interest on the Debt Securities or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, underlying such Security Type A Securities otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement or Early SettlementSettlement or Collateral Substitution, and such interest interests shall, subject to receipt thereof by the Agent, be paid payable to the Person in whose name the Security Type A Certificate (or one or more Predecessor Security Type A Certificates) is was registered at the close of business on the Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security Type A Securities with respect to which Cash Settlement or Early Settlement of the underlying Purchase Contract is effected on the Business Day immediately preceding the Purchase Contract Settlement Date or an Early Settlement Date, as the case may be, or with respect to which a Collateral Substitution has been effected, payment of interest on the related Debt Securities or distributions with respect to the appropriate Applicable Ownership Interest in the Treasury Notes Portfolio, as the case may be, that would otherwise be payable after the Purchase Contract Settlement Date or Early Settlement Date shall not be payable hereunder to the Holder of such SecurityType A Securities; provided, however, that to the extent that such Holder continues to hold the separated Debt Securities that formerly comprised a part of such Holder's Type A Securities, such Holder shall be entitled to receive the payment of interest on such separated Debt Securities. The applicable Coupon Rate on the Debt Securities on and after the Purchase Contract Settlement Date will be reset on the third Business Day immediately preceding the Purchase Contract Settlement Date to the Reset Rate (such Reset Rate to be in effect on and after the Purchase Contract Settlement Date). On the Reset Announcement Date the Reset Spread and the Two-Year Benchmark Treasury to be used to determine the Reset Rate will be announced by the Company. On the Business Day immediately following the Reset Announcement Date, the Company will cause a notice of such Series ___ Reset Spread and Two-Year Benchmark Treasury to be published in an Authorized Newspaper. Not later than 7 calendar days nor more than 15 calendar days prior to the Reset Announcement Date, the Company will notify the DTC or its nominee (or any successor Clearing Agency or its nominee) by first-class mail, postage prepaid, to notify the Beneficial Owners or Clearing Agency Participants holding Type A Securities or Type B Securities, of such Reset Announcement Date and the procedures to be followed by such Holders of Type Securities A who intend to settle their obligation under the Purchase Contract with separate cash on the Purchase Contract Settlement Date.