This excerpt taken from the PGN 8-K filed Oct 5, 2005.
Section 1.4. No Impairment.
The obligations, covenants, agreements and duties of Florida Progress Corporation and Progress Energy, Inc. under this Agreement shall in no way be affected or impaired by reason of the happening from time to time of any of the following:
(a) the extension of time for the payment by the Trust of all or any portion of the Obligations or for the performance of any other obligation under, arising out of, or in connection with, the obligations;
(b) any failure, omission, delay or lack of diligence on the part of the Beneficiaries to enforce, assert or exercise any right, privilege, power or remedy conferred on the Beneficiaries with respect to the Obligations or any action on the part of the Trust granting indulgence or extension of any kind; or
(c) the voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Trust of any of the assets of the Trust.
There shall be no obligation of the Beneficiaries to give notice to, or obtain the consent of, Florida Progress Corporation or Progress Energy, Inc. with respect to the happening of any of the foregoing.