Common use of Pledge of Bonds Clause in Contracts

Pledge of Bonds. As security for the payment of the obligations of the Company pursuant to Paragraph 3(a)(iii) hereof, the Company shall pledge to the Bank, and grant to the Bank a security interest in, all of the Company's right, title and interest in and to the Bonds delivered to the Trustee in connection with Purchase Drawings (the Pledged Bonds), pursuant to a Pledge and Security Agreement dated the date hereof between the Bank and the Company (the Bond Pledge Agreement). At such time as the Bank determines that the Pledged Bonds should be remarketed, it shall deliver to the Trustee the notice required by Section 309 of the Trust Agreement. Upon the sale of the Pledged Bonds or the cancellation of Pledged Bonds that cannot be remarketed and the payment to the Bank of an amount equal to the Purchase Drawing corresponding to the principal amount of Pledged Bonds sold or cancelled, together with (x) accrued interest thereon, as set forth in clause (B) of Paragraph 3(a)(iii) hereof, to the date of such payment or cancellation and (y) all amounts owing in respect of the Interest Drawing, if any, made in conjunction with such Purchase Drawing, then (1) the outstanding obligations of the Company under Paragraph 3(a)(iii) hereof shall be reduced by the amount of such payment, (2) interests shall cease to accrue on the amount paid and (3) the Bank shall release from the pledge and security interest created by the Bond Pledge Agreement a principal amount of Pledged Bonds equal to the principal amount of Pledged Bonds to be sold or cancelled.

Pledge of Bonds. (i) As security for the payment of the obligations of the Company pursuant to Paragraph 3(a)(iii) hereof3A above, the Company shall pledge hereby pledges to the Bank, and grant grants to the Bank a security interest in, all of the Company's its right, title and interest in and to the Bonds delivered to the Trustee Bank in connection with Purchase A Drawings (the herein called "Pledged Bonds"), . Any amounts from time to time owing to the bank pursuant to a Pledge paragraph 3A above may be paid (a) at any time by the Company in accordance with the terms of the Line of Credit Agreement on one Business Day's notice stating the amount to be paid (which shall be $5,000 or an integral multiple thereof) and Security Agreement dated (b) at any time on behalf of the date hereof between Company on one Business Day's notice from the Company directing the Bank and the Company to deliver (the Bond Pledge Agreement). At such time as the Bank determines that the Pledged Bonds should be remarketed, it shall deliver or to cause the Trustee the notice required by Section 309 of the Trust Agreement. Upon the sale of the Pledged Bonds or the cancellation to deliver) a specified principal amount of Pledged Bonds that cannot be remarketed and held by or on behalf of the Bank for sale pursuant to the Indenture. Upon payment to the Bank of an the amount equal to the Purchase Drawing corresponding be paid pursuant to the principal amount of Pledged Bonds sold clause (a) or cancelled(b) above, together with (x) accrued interest thereon, as set forth provided in clause (B) of Paragraph 3(a)(iii) hereof3A, to the date of such payment on the amount to be paid, the outstanding obligations of the Company under Paragraph 3A above shall be reduced by the amount of such payment, interest shall cease to accrued on the amount paid and the Bank shall release (or cancellation shall be deemed to have released) from the pledge and (y) all amounts security interest created hereby a principal amount of Pledged Bonds equal to the amount of such payment, provided that prior to such release from the pledge and security interest created hereby of Bonds delivered to or for the benefit of the Bank in connection with an A Drawing, the Company shall have paid to the Bank the amount owing in respect of the Interest C Drawing, if any, made in conjunction with such Purchase A Drawing. Such Bonds shall be delivered to the Company on payment to the Bank as aforesaid or to the Trustee for sale pursuant to the Indenture. Notwithstanding the foregoing, then no payment of amounts owing to the Bank pursuant to Paragraph 3A may be made, and no Pledged Bonds shall be released, during the period commencing two Business Days prior to an Interest Payment Date with respect to the Bonds and ending at the close of business on such Interest Payment Date. (1ii) The Company hereby pledges, assigns, hypothecates, transfers, and delivers to the outstanding Bank all its right, title and interest to, and hereby grants to the Bank a first lien on, and security interest in, all right, title and interest of the Company in and to (a) all Pledged Bonds; (b) all income, earnings, profits, interest, premium or other payments in whatever form in respect of the Pledged Bonds; and (c) all proceeds (cash and non-cash) arising out of the sale, exchange, collection, enforcement or other disposition of all or any portion of the Pledged Bonds (collectively, the "Pledged Bond Collateral"). The Pledged Bond Collateral shall serve as security for the payment and performance when due of the obligations of the Company under Paragraph 3(a)(iii) hereof hereunder. The Company shall deliver, or cause to be reduced delivered, the Pledged Bonds to the Bank or to an agent designated by the amount of such paymentBank immediately upon receipt thereof or, (2) interests shall cease to accrue on in the amount paid and (3) the Bank shall release from the pledge and security interest created by the Bond Pledge Agreement a principal amount case of Pledged Bonds equal to held under a book-entry system administered by the principal amount of Securities Depository, the Company shall cause the Pledged Bonds to be sold reflect on the records of the Securities Depository as a position held by the Bank (or cancelledan agent accepted to the Bank) as a Participant and the Bank (or its agent) shall reflect on its records that the Pledged Bonds are owned beneficially by the Company subject to the pledge in favor of the Bank. (iii) If any Event of Default shall have occurred and be continuing, the Bank, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public or private sale) to or upon the Company or any other person (all and each of which demands, advertisements and/or notices are hereby expressly waived) may forthwith collect, receive, appropriate and realize upon the Pledged Bond Collateral, or any part thereof, and/or may forthwith sell, assign, give option or options to purchase, contract to sell or otherwise dispose of and deliver said Pledged Bond Collateral, or any part thereof, in one or more parcels at public or private sale or sales, at any exchange, broker's board or at any of the Bank's offices or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk, with the right to the Bank upon any such sale or sales, public or private, to purchase the whole or any part of said Pledged Bond Collateral so sold, free of any right or equity of redemption in the Company, which right or equity is hereby expressly waived or released. The Bank shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable costs and expenses of every kind incurred therein or incidental to the care, safekeeping or otherwise o any and all of the Pledged Bond Collateral or in any way relating to the rights of the Bank hereunder, including reasonable attorneys' fees and legal expenses, to the payment in whole or in part of the obligations of the Company hereunder in such order as the Bank may elect, the Company remaining liable for any deficiency remaining unpaid after such application, and only after so applying such net proceeds and after the payment by the Bank of any other amount required by any provision of law, including, without limitation, Section 9-504(1)(c) of the Uniform Commercial Code, need the Bank account for the surplus, if any, to the Company. The Company agrees that the Bank need not give more than ten (10) days written notice of the time and place of any public sale or of the time after which a private sale or other intended disposition is to take place and that such notice is reasonable notification of such matters. No notification need be given to the Company if it has signed after Default a statement renouncing or modifying any right to notification of sale or other intended disposition. In addition to the rights and remedies granted to the Bank in this Agreement and in any other instrument or agreement securing, evidencing or relating to any of the obligations of the Company hereunder, the Bank shall have all the rights and remedies of a secured party under the Uniform Commercial Code in effect in the State of Florida at that time. (iv) The Company covenants that the pledge, assignment and delivery of the Pledged Bond Collateral hereunder will create a valid, perfect, first priority security interest in all right, title and interest of the Company in or to such Pledged Bond Collateral, and the proceeds thereof, subject to no prior pledge, lien, mortgage, hypothecation, security interest, charge, option or encumbrance or to any agreement purporting to grant to any third party a security interest in the property or assets of the Company which would include the Pledged Bond Collateral. The Company covenants and agrees that it will defend the Bank's right, title and security interest in and to the Pledged Bond Collateral and the proceeds thereof against the claims and demands of all persons whomsoever. (v) Pledged Bonds shall be released from the security interest created hereunder upon satisfaction of the obligations of the Company with respect to such Pledged Bonds as provided in Paragraph 3 hereof.

Pledge of Bonds. As security for the payment --------------- of the obligations of the Company pursuant to Paragraph 3(a)(iiiSection 1.02(a)(ii) hereofabove, the Company shall will pledge to the Bank, and grant to the Bank a security interest in, all of the Company's its right, title and interest in and to the Bonds delivered to the Trustee or the Paying Agent for the account of the Bank in connection with Purchase Drawings any C Drawing (the herein called "Pledged Bonds"), pursuant to a pledge and security agreement in the form of Exhibit B attached hereto (the "Pledge and Security Agreement dated the date hereof between Agreement"). Any amounts from time to time owing to the Bank and pursuant to Section 1.02(a) (ii) above may be prepaid (a) at any time by the Company on one Business Day's notice stating the amount to be prepaid (which shall be $5,000 or a whole multiple thereof) and (b) at any time on behalf of the Bond Pledge Agreement). At such time as Company on one Business Day's notice from the Company directing the Bank determines that the Pledged Bonds should be remarketed, it shall to deliver to the Trustee the notice required by Section 309 of the Trust Agreement. Upon the sale of the Pledged Bonds or the cancellation a specified principal amount of Pledged Bonds that cannot be remarketed and held by or on behalf of the Bank for sale pursuant to Section 4.08 of the Indenture. Upon payment to the Bank of an the amount equal to the Purchase Drawing corresponding be prepaid pursuant to the principal amount of Pledged Bonds sold clause (a) or cancelled(b) above, together with (x) accrued interest thereoninterest, as set forth in clause Section 1.02(a) (B) of Paragraph 3(a)(iii) hereofii), to the date of such payment or cancellation and (y) all amounts owing in respect of prepayment on the Interest Drawingamount to be prepaid, if any, made in conjunction with such Purchase Drawing, then (1) the outstanding obligations of the Company under Paragraph 3(a)(iii) hereof Section 1.02 above shall be reduced by the amount of such paymentprepayment, (2) interests interest shall cease to accrue on the amount paid prepaid and (3) the Bank shall release from the pledge and security interest created by the Bond Pledge Agreement a principal amount of Pledged Bonds equal to the principal amount of Pledged such prepayment; provided, however, that prior ----------------- such release from the pledge and security interest created by the Pledge Agreement of Bonds delivered to or on behalf of the Bank in connection with a C Drawing, the Company shall have paid to the Bank the amount owing in respect of the D Drawing, if any, made in conjunction with such C Drawing. Such Bonds shall be sold delivered to the Company, in the event of a prepayment pursuant to clause (a) above, or cancelledto the Paying Agent pursuant to Sections 4.06 and 4.08 of the Indenture, in the event of a prepayment pursuant to clause (b) above, as appropriate.