Form of 2nd Amended and Restated Declaration of Trust of Alterra Capital Trust I



 EXHIBIT 4.18 

 
  

FORM OF 

SECOND AMENDED AND RESTATED DECLARATION 

OF TRUST 

ALTERRA CAPITAL TRUST I 

Dated as of [                    ]

  
  







 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
		  	ARTICLE 1. INTERPRETATION AND DEFINITIONS	  	
	 Section 1.01
	  	 Definitions
	  	1
			
		  	ARTICLE 2. TRUST INDENTURE ACT	  	
			
	 Section 2.01
	  	 Trust Indenture Act; Application
	  	7
	 Section 2.02
	  	 Lists of Holders of Securities
	  	8
	 Section 2.03
	  	 Reports by the Institutional Trustee
	  	8
	 Section 2.04
	  	 Periodic Reports to Institutional Trustee
	  	8
	 Section 2.05
	  	 Evidence of Compliance with Conditions Precedent
	  	8
	 Section 2.06
	  	 Events of Default; Waiver
	  	9
	 Section 2.07
	  	 Event of Default; Notice
	  	10
			
		  	ARTICLE 3. ORGANIZATION	  	
			
	 Section 3.01
	  	 Name
	  	11
	 Section 3.02
	  	 Office
	  	11
	 Section 3.03
	  	 Purpose
	  	11
	 Section 3.04
	  	 Authority
	  	11
	 Section 3.05
	  	 Title to Property of the Trust
	  	11
	 Section 3.06
	  	 Powers and Duties of the Administrative Trustees
	  	11
	 Section 3.07
	  	 Prohibition of Actions by the Trust and the Trustees
	  	14
	 Section 3.08
	  	 Powers and Duties of the Institutional Trustee
	  	15
	 Section 3.09
	  	 Certain Duties and Responsibilities of the Institutional Trustee
	  	16
	 Section 3.10
	  	 Rights of Institutional Trustee
	  	18
	 Section 3.11
	  	 Delaware Trustee
	  	20
	 Section 3.12
	  	 Execution of Documents
	  	21
	 Section 3.13
	  	 Not Responsible for Recitals or Issuance of Securities
	  	21
	 Section 3.14
	  	 Duration of Trust
	  	21
	 Section 3.15
	  	 Mergers
	  	21
			
		  	ARTICLE 4. SPONSOR	  	
			
	 Section 4.01
	  	 Sponsor’s Purchase of Common Securities
	  	23
	 Section 4.02
	  	 Responsibilities of the Sponsor
	  	23
			
		  	ARTICLE 5. TRUSTEES	  	
			
	 Section 5.01
	  	 Number of Trustees
	  	23
	 Section 5.02
	  	 Delaware Trustee
	  	24
	 Section 5.03
	  	 Institutional Trustee; Eligibility
	  	24
	 Section 5.04
	  	 Qualifications of Administrative Trustees and Delaware
	  	
		  	 Trustee Generally
	  	25
	 Section 5.05
	  	 Initial Trustees
	  	25
	 Section 5.06
	  	 Appointment, Removal and Resignation of Trustees
	  	25
	 Section 5.07
	  	 Vacancies among Trustees
	  	27
	 Section 5.08
	  	 Effect of Vacancies
	  	27

  

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	 Section 5.09
	  	 Meetings
	  	27
	 Section 5.10
	  	 Delegation of Power
	  	28
	 Section 5.11
	  	 Merger, Conversion, Consolidation or Succession to Business
	  	28
			
		  	ARTICLE 6. DISTRIBUTIONS	  	
			
	 Section 6.01
	  	 Distributions
	  	28
			
		  	ARTICLE 7. INSURANCE OF SECURITIES	  	
			
	 Section 7.01
	  	 General Provisions Regarding Securities
	  	28
	 Section 7.02
	  	 Execution and Authentication
	  	29
	 Section 7.03
	  	 [Reserved]
	  	29
	 Section 7.04
	  	 Registrar, Paying Agent and Conversion Agent
	  	30
	 Section 7.05
	  	 Paying Agent to Hold Money in Trust
	  	30
	 Section 7.06
	  	 [Reserved]
	  	30
	 Section 7.07
	  	 [Reserved]
	  	30
	 Section 7.08
	  	 Outstanding Preferred Securities
	  	30
	 Section 7.09
	  	 Preferred Securities in Treasury
	  	31
	 Section 7.10
	  	 [Reserved]
	  	31
	 Section 7.11
	  	 Cancellation
	  	31
	 Section 7.12
	  	 CUSIP Numbers
	  	31
			
		  	ARTICLE 8. TERMINATION OF TRUST	  	
			
	 Section 8.01
	  	 Termination of Trust
	  	31
			
		  	ARTICLE 9. TRANSFER AND EXCHANGE	  	
			
	 Section 9.01
	  	 General
	  	32
	 Section 9.02
	  	 Transfer of Certificates
	  	33
	 Section 9.03
	  	 Deemed Security Holders
	  	33
	 Section 9.04
	  	 Book Entry Interests
	  	34
	 Section 9.05
	  	 Notices to Clearing Agency
	  	34
	 Section 9.06
	  	 Appointment of Successor Clearing Agency
	  	34
	 Section 9.07
	  	 Definitive Preferred Security Certificates
	  	35
	 Section 9.08
	  	 Mutilated, Destroyed, Lost or Stolen Certificates
	  	35
			
		  	ARTICLE 10. LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS	  	
			
	 Section 10.01
	  	 Liability
	  	36
	 Section 10.02
	  	 Exculpation
	  	36
	 Section 10.03
	  	 Fiduciary Duty
	  	37
	 Section 10.04
	  	 Indemnification
	  	37
	 Section 10.05
	  	 Outside Businesses
	  	38
			
		  	ARTICLE 11. ACCOUNTING	  	
			
	 Section 11.01
	  	 Fiscal Year
	  	38
	 Section 11.02
	  	 Certain Accounting Matters
	  	38
	 Section 11.03
	  	 Banking
	  	39
	 Section 11.04
	  	 Withholding
	  	39

  

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		  	ARTICLE 12. AMENDMENTS AND MEETINGS	  	
			
	 Section 12.01
	  	 Amendments
	  	40
	 Section 12.02
	  	 Meetings of the Holders of Securities; Action by Written Consent
	  	41
			
		  	ARTICLE 13. REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE	  	
			
	 Section 13.01
	  	 Representations and Warranties of Institutional Trustee
	  	43
	 Section 13.02
	  	 Representations and Warranties of Delaware Trustee
	  	43
			
		  	ARTICLE 14. [RESERVED]	  	
			
	 Section 14.01
	  	 [Reserved]
	  	44
			
		  	ARTICLE 15. MISCELLANEOUS	  	
			
	 Section 15.01
	  	 Notices
	  	44
	 Section 15.02
	  	 Governing Law; Waiver of Jury Trial
	  	45
	 Section 15.03
	  	 Intention of the Parties
	  	45
	 Section 15.04
	  	 Headings
	  	45
	 Section 15.05
	  	 Successors and Assigns
	  	45
	 Section 15.06
	  	 Partial Enforceability
	  	46
	 Section 15.07
	  	 Counterpart
	  	46
	 Section 15.08
	  	 Force Majeure
	  	46
	 Section 15.09
	  	 Submission to Jurisdiction (NY) and Appointment of Agent for Service of Process
	  	46
			
	 ANNEX
	  	 TERMS OF SECURITIES
	  	I-1
	 EXHIBIT A-1
	  	 FORM OF PREFERRED SECURITY CERTIFICATE
	  	A1-1
	 EXHIBIT A-2
	  	 FORM OF COMMON SECURITY CERTIFICATE
	  	A2-1

  

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 CROSS-REFERENCE TABLE(1) 

 

			
	 Section of
 Trust
Indenture Act,
 as amended
	 	 Section of Declaration

		
	 310
	 	 2.01(c)

	 310(a)
	 	 Inapplicable

	 310(b)
	 	 5.03(c), 5.03(d)

	 311(a)
	 	 2.02(b)

	 311(b)
	 	 2.02(b)

	 311(c)
	 	 Inapplicable

	 312(a)
	 	 Inapplicable

	 312(b)
	 	 2.02(b)

	 313
	 	 2.03

	 314
	 	 2.04

	 314(a)
	 	 3.06(j)

	 314(b)
	 	 Inapplicable

	 314(c)
	 	 2.05

	 314(d)
	 	 Inapplicable

	 314(f)
	 	 Inapplicable

	 315(a)
	 	 Inapplicable

	 315(c)
	 	 Inapplicable

	 315(d)
	 	 Inapplicable

	 316(a)
	 	 Inapplicable

	 316(c)
	 	 3.06(e)

	 317
	 	 2.01(c)

	 317(b)
	 	 3.08(h)



 

	(1)	This Cross-Reference Table does not constitute part of the Declaration and shall not affect the interpretation of any of its terms or provisions.


  

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 SECOND AMENDED AND RESTATED 

DECLARATION OF TRUST 

OF ALTERRA CAPITAL TRUST I 

This SECOND AMENDED AND RESTATED DECLARATION OF TRUST (“Declaration”) dated and effective as of
[                    ], by the Trustees (as defined herein), the Sponsor (as defined herein), and by the holders, from time to time, of undivided
beneficial interests in the Trust issued pursuant to this Declaration; 
 WHEREAS, the Trustees and the Sponsor established
Alterra Capital Trust I (formerly known as Max Capital Trust I) (the “Trust”) under the Delaware Statutory Trust Act (as defined herein) pursuant to a Declaration of Trust dated as of August 10, 2007, (the “Original
Declaration”) and a Certificate of Trust filed with the Secretary of State of the State of Delaware on August 10, 2007, for the sole purpose of issuing and selling certain securities representing undivided beneficial interests in the
assets of the Trust and investing the proceeds thereof in certain Debentures of the Debenture Issuer; 
 WHEREAS, the Original
Declaration was subsequently amended by an Amended and Restated Declaration of Trust dated as of May 19, 2010 (the “Amended and Restated Declaration”) and an Amended and Restated Certificate of Trust was filed with the Secretary of State
of the State of Delaware on May 19, 2010, for the purpose of changing the name of the Trust. 
 WHEREAS, as of the date hereof,
no interests in the Trust have been issued; 
 WHEREAS, all of the Trustees and the Sponsor, by this Declaration, amend and
restate each and every term and provision of the Amended and Restated Declaration; and 
 NOW, THEREFORE, it being the intention
of the parties hereto to continue the Trust as a statutory trust under the Statutory Trust Act and that this Declaration constitute the governing instrument of such statutory trust, the Trustees declare that all assets contributed to the Trust will
be held in trust for the benefit of the holders, from time to time, of the securities representing undivided beneficial interests in the assets of the Trust issued hereunder, subject to the provisions of this Declaration. 

ARTICLE 1. 

INTERPRETATION AND DEFINITIONS 

Section 1.01 Definitions. Unless the context otherwise requires: 

(a) Capitalized terms used in this Declaration but not defined in the preamble above have the respective meanings assigned to them in
this Section 1.01; 
 (b) a term defined anywhere in this Declaration has the same meaning throughout; 

(c) all references to “the Declaration” or “this Declaration” are to this Declaration as modified, supplemented or
amended from time to time; 
  

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 (d) all references in this Declaration to Articles and Sections and Annexes and Exhibits are
to Articles and Sections and Annexes and Exhibits to this Declaration unless otherwise specified; 
 (e) a term defined in the
Trust Indenture Act has the same meaning when used in this Declaration unless otherwise defined in this Declaration or unless the context otherwise requires; and 

(f) a reference to the singular includes the plural and vice versa. 

“Additional Amounts” shall mean any additional amounts which are required hereby or by any Security, under circumstances
specified herein or therein, to be paid by the Issuer, in respect of certain taxes, assessments or other governmental charges imposed on Holders specified therein and which are owing to such Holders. 

“Administrative Trustee” has the meaning set forth in Section 5.01. 

“Affiliate” has the same meaning as given to that term in Rule 405 of the Securities Act or any successor rule thereunder.

 “Agent” means any Registrar, Paying Agent, conversion agent or co- registrar. 

“Authorized Officer” of a Person means any Person that is authorized to bind such Person. 

“Book Entry Interest” means a beneficial interest in a Global Certificate, ownership and transfers of which shall be maintained
and made through book entries by a Depositary as described in Section 9.04. 
 “Business Day” means any day other
than a Saturday, Sunday or a day on which banking institutions in New York, New York are authorized or required by law to close. 

“Certificate” means a certificate in global or definitive form representing a Preferred Security substantially in the form of
Exhibit A-1 or a Common Security substantially in the form of Exhibit A-2. 
 “Clearing Agency” means an organization
registered as a “clearing agency” pursuant to Section 17A of the Exchange Act that is acting as depositary for the Preferred Securities and in whose name or in the name of a nominee of that organization shall be registered a Global
Certificate and which shall undertake to effect book entry transfers and pledges of the Preferred Securities. The Depository Trust Company will be the initial Clearing Agency. 

“Closing Date” means
[                        ]. 

Code” means the Internal Revenue Code of 1986 as amended from time to time, or any successor legislation. 

 

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 “Commission” means the Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act, or, if at any time after the date on which this Declaration was originally executed such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act on such date
of original execution, then the body performing such duties at such time. 
 “Common Securities” has the meaning set
forth in Section 7.01(a). 
 “Conversion Agent” has the meaning set forth in Section 7.04. 

Covered Person” means: (a) any officer, director, shareholder, partner, member, representative, employee or agent of
(i) the Trust or (ii) the Trust’s Affiliates; and (b) any Holder of Securities. 
 “Debenture
Issuer” means the Sponsor in its capacity as issuer of the Debentures. 
 “Debenture Trustee” means
[                    ], a [                    ]
banking corporation, as trustee under the Indenture until a successor is appointed thereunder, and thereafter means such successor trustee. 

“Debentures” means the series of Debentures to be issued by the Debenture Issuer under the Indenture to be held by the
Institutional Trustee, a specimen certificate for such series of Debentures being Exhibit B. 
 “Definitive Preferred
Securities” means the Preferred Securities in definitive form issued by the Trust. 
 “Definitive Preferred Security
Certificate” has the meaning set forth in Section 9.04. 
 “Delaware Trustee” has the meaning set forth in
Section 5.02. 
 “Distribution” means a distribution payable to Holders of Securities in accordance with
Section 6.01. 
 Depositary” means The Depository Trust Company, the initial Clearing Agency. 

“Event of Default” in respect of the Securities means an Event of Default (as defined in the Indenture) has occurred and is
continuing in respect of the Debentures. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, or any successor legislation. 
 “Global Certificate” has the meaning set forth in Section 9.04.

 “Holder” means a Person in whose name a Certificate representing a Security is registered, such Person being a
beneficial owner within the meaning of the Statutory Trust Act. 
  

 3 








 “Indemnified Person” means (a) any Trustee; (b) any Affiliate of any
Trustee; (c) any officers, directors, shareholders, members, partners, employees, representatives or agents of any Trustee; or (d) any employee or agent of the Trust or its Affiliates. 

“Indenture” means the Indenture dated as of
[                    ], between the Debenture Issuer and
[                    ], as trustee, and any indenture supplemental thereto pursuant to which the Debentures are to be issued. 

“Institutional Trustee” means the Trustee meeting the eligibility requirements set forth in Section 5.03. 

Institutional Trustee Account” has the meaning set forth in Section 3.08(c). 

“Investment Company” means an investment company as defined in the Investment Company Act. 

“Investment Company Act” means the U.S. Investment Company Act of 1940, as amended from time to time, or any successor
legislation. 
 “Investment Company Event” means that the Administrative Trustees shall have received an opinion of a
nationally recognized independent counsel experienced in practice under the Investment Company Act to the effect that, as a result of the occurrence of a change in law or regulation or a written change in interpretation or application of law or
regulation by any legislative body, court, governmental agency or regulatory authority (a “Change in 1940 Act Law”), there is a more than an insubstantial risk that the Trust is or will be considered an Investment Company that is required
to be registered under the Investment Company Act, which Change in 1940 Act Law becomes effective on or after the date of the issuance of the Preferred Securities. 

“Legal Action” has the meaning set forth in Section 3.06(g). 

“Majority in liquidation preference of the Securities” means, except as provided in the terms of the Preferred Securities or by
the Trust Indenture Act, Holders of outstanding Securities voting together as a single class or, as the context may require, Holders of outstanding Preferred Securities or Holders of outstanding Common Securities voting separately as a class, who
are the record owners of more than 50% of the aggregate liquidation preference (including the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to the date upon which the voting
percentages are determined) of all outstanding Securities of the relevant class. 
 Ministerial Action” has the meaning set
forth in the terms of the Securities as set forth in Annex I. 
 “Officers’ Certificate” means, with respect to
any Person, a certificate signed by two Authorized Officers of such Person. Any Officers’ Certificate delivered with respect to compliance with a condition or covenant provided for in this Declaration shall include: 

(a) a statement that each officer signing the Certificate has read the covenant or condition and the definition relating
thereto; 
  

 4 








 (b) a brief statement of the nature and scope of the examination or
investigation undertaken by each officer in rendering the Certificate; 
 (c) a statement that each such officer
has made such examination or investigation as, in such officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

(d) a statement as to whether, in the opinion of each such officer, such condition or covenant has been complied with.

 “Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time
a Clearing Agency effects book-entry transfers and pledges or securities deposited with the Clearing Agency. 
 “Paying
Agent” has the meaning specified in Section 3.08(h). 
 “Person” means a legal person, including any
individual, corporation, estate, company, limited liability company, trust, partnership, limited liability partnership, joint venture, association, joint stock company, unincorporated association, or government or any agency or political subdivision
thereof, or any other entity of whatever nature. 
 “Preferred Securities” has the meaning specified in
Section 7.01(a). 
 “Preferred Security Beneficial Owner” means, with respect to a Book Entry Interest, a Person
who is the beneficial owner of such Book Entry Interest, as reflected on the books of the Depositary, or on the books of a Person maintaining an account with such Depositary (directly as a Participant or as an indirect participant, in each case in
accordance with the rules of such Depositary). 
 “Preferred Securities Guarantee” means the guarantee agreement to be
dated as of [                    ], of the Sponsor in respect of the Preferred Securities. 

“Prospectus Supplement,” as used in Annex I hereto, means the prospectus supplement, dated as of
[                    ], relating to the issuance and sale by the Trust of Preferred Securities. 

“Quorum” means a majority of the Administrative Trustees or, if there are only two Administrative Trustees, both of them.

 “Registrar” has the meaning set forth in Section 7.04. 

“Related Party” means, with respect to the Sponsor, any direct or indirect wholly owned subsidiary of the Sponsor or any other
Person that owns, directly or indirectly, 100% of the outstanding voting securities of the Sponsor. 
  

 5 








 “Responsible Officer” means, with respect to the Preferred Guarantee Trustee, any
vice-president, any assistant vice-president, any assistant treasurer, any trust officer or assistant trust officer or any other officer of the Preferred Guarantee Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Declaration. 
 “Rule 3a-5” means Rule 3a-5 under the
Investment Company Act. 
 “Securities” means the Common Securities and the Preferred Securities. 

“Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor legislation. 

“Securities Custodian” means the custodian with respect to the Global Preferred Security and any other Preferred Security in
global form. 

“66 
2/3% in liquidation preference of the Securities” means, except as provided in the terms of the Preferred Securities and by the Trust
Indenture Act, Holders of outstanding Securities voting together as a single class or, as the context may require, Holders of Preferred Securities or Holders of outstanding Common Securities voting separately as a class, representing at least 66
2/3% of the aggregate liquidation preference (including the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions, to the date upon which the voting percentages are determined) of all
outstanding Securities of the relevant class. 
 “Sponsor” means Alterra Capital Holdings Limited., a company
incorporated in Bermuda as a holding company, in its capacity as sponsor of the Trust. 
 “Statutory Trust Act” means
Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code Section 3801 et seq., as it may be amended from time to time, or any successor legislation. 

“Successor Delaware Trustee” has the meaning set forth in Section 5.06(c). 

“Successor Entity” has the meaning set forth in Section 3.15(b). 

“Successor Institutional Trustee” has the meaning set forth in Section 5.06(b). 

“Super Majority” has the meaning set forth in Section 2.06(a)(ii). 

“Tax Event” means the Administrative Trustees shall have received an opinion of nationally recognized independent tax counsel
experienced in such matters to the effect that, as a result of (a) any amendment to, or change (including any announced prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing
authority thereof or therein or (b) any amendment to or change in an interpretation or application of such laws or regulations by any legislative body, court, governmental agency or regulatory authority (including the enactment of any
legislation and the publication of any judicial decision 
  

 6 








 
or regulatory determination on or after the effective date of the issuance of the Preferred Securities), in either case after the effective date of the issuance of the Preferred Securities, there
is more than an insubstantial risk that (i) the Trust would be subject to United States federal income tax with respect to income accrued or received on the Debentures, or (ii) the Trust would be subject to more than a de minimis amount of
other taxes, duties or other governmental charges. 
 “10% in liquidation preference of the Securities” means, except
as provided in the terms of the Preferred Securities or by the Trust Indenture Act, Holders of outstanding Securities voting together as a single class or, as the context may require, Holders of outstanding Preferred Securities or Holders of
outstanding Common Securities, voting separately as a class, representing 10% of the aggregate liquidation preference (including the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all outstanding Securities of the relevant class. 

“Treasury Regulations” means the income tax regulations, including temporary and proposed regulations, promulgated under the
Code by the United States Treasury, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 

“Trustee” or “Trustees” means each Person who has signed this Declaration as a trustee, so long as such Person shall
continue in office in accordance with the terms hereof, and all other Persons who may from time to time be duly appointed, qualified and serving as Trustees in accordance with the provisions hereof, and references herein to a Trustee or the Trustees
shall refer to such Person or Persons solely in their capacity as trustees hereunder. 
 “Trust Indenture Act” means
the U.S. Trust Indenture Act of 1939, as amended from time to time, or any successor legislation. 
 ARTICLE 2.

 TRUST INDENTURE ACT 

Section 2.01 Trust Indenture Act; Application. 

(a) This Declaration is subject to the provisions of the Trust Indenture Act that are required to be part of this Declaration and shall,
to the extent applicable, be governed by such provisions. 
 (b) The Institutional Trustee shall be the only Trustee that is a
Trustee for the purposes of the Trust Indenture Act. 
 (c) If and to the extent that any provision of this Declaration limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control. 
  

 7 








 (d) The application of the Trust Indenture Act to this Declaration shall not affect the
nature of the Securities as equity securities representing undivided beneficial interests in the assets of the Trust. 

Section 2.02 Lists of Holders of Securities. 

(a) Each of the Sponsor and the Administrative Trustees on behalf of the Trust shall provide the Institutional Trustee (i) within 15
days after each record date for payment of Distributions, a list, in such form as the Institutional Trustee may reasonably require, of the names and addresses of the Holders of the Securities (“List of Holders”) as of such record date,
provided that neither the Sponsor nor the Administrative Trustees on behalf of the Trust shall be obligated to provide such List of Holders at any time the List of Holders does not differ from the most recent List of Holders given to the
Institutional Trustee by the Sponsor and the Administrative Trustees on behalf of the Trust, and (ii) at any other time, within 30 days of receipt by the Trust of a written request for a List of Holders as of a date no more than 15 days before
such List of Holders is given to the Institutional Trustee. The Institutional Trustee shall preserve, in as current a form as is reasonably practicable, all information contained in Lists of Holders given to it or which it receives in the capacity
as Paying Agent (if acting in such capacity) provided that the Institutional Trustee may destroy any List of Holders previously given to it on receipt of a new List of Holders. 

(b) The Institutional Trustee shall comply with its obligations under Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act.

 Section 2.03 Reports by the Institutional Trustee. Within 60 days after May 15 of each year, the
Institutional Trustee shall provide to the Holders of the Preferred Securities such reports, if any, as are required by Section 313 of the Trust Indenture Act in the form and in the manner provided by Section 313 of the Trust Indenture
Act. The Institutional Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture Act. 

Section 2.04 Periodic Reports to Institutional Trustee. Each of the Sponsor and the Administrative Trustees on behalf of the
Trust shall provide to the Institutional Trustee such documents, reports and information (if any) as required by Section 314 of the Trust Indenture Act and the compliance certificate required by Section 314 of the Trust Indenture Act in
the form, in the manner and at the times required by Section 314 of the Trust Indenture Act. Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or determinable from information contained therein, including the Sponsor’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates). 
 Section 2.05 Evidence of Compliance with Conditions Precedent. Each
of the Sponsor and the Administrative Trustees on behalf of the Trust shall provide to the Institutional Trustee such evidence of compliance with any conditions precedent, if any, provided for in this Declaration that relate to any of the matters
set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion required to be given by an officer pursuant to Section 314(c)(1) of the Trust Indenture Act may be given in the form of an Officers’ Certificate.

  

 8 








 Section 2.06 Events of Default; Waiver. 

(a) The Holders of a Majority in liquidation preference of Preferred Securities may, by vote, on behalf of the Holders of all of the
Preferred Securities, waive any past Event of Default in respect of the Preferred Securities and its consequences, provided that, if the underlying Event of Default under the Indenture: 

(i) is not waivable under the Indenture, such Event of Default under the Declaration shall also not be waivable; or

 (ii) is waivable only with the consent or vote of holders of greater than a majority in principal amount of
the Debentures (a “Super Majority”) affected thereby, such Event of Default under the Declaration may be waived only by the vote of the Holders of at least the proportion in liquidation preference of the Preferred Securities that the
relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. 
 The foregoing provisions
of this Section 2.06(a) shall be in lieu of §316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of the Trust Indenture Act is hereby expressly excluded from this Declaration and the Securities, as permitted by the
Trust Indenture Act. Upon such waiver, any such default shall cease to exist, and any Event of Default with respect to the Preferred Securities arising therefrom shall be deemed to have been cured, for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other default or an Event of Default with respect to the Preferred Securities or impair any right consequent thereon. Any waiver by the Holders of the Preferred Securities of an Event of Default with respect
to the Preferred Securities shall also be deemed to constitute a waiver by the Holders of the Common Securities of any such Event of Default with respect to the Common Securities for all purposes of this Declaration without any further act, vote, or
consent of the Holders of the Common Securities. 
 (b) The Holders of a Majority in liquidation preference of the Common
Securities may, by vote, on behalf of the Holders of all of the Common Securities, waive any past Event of Default with respect to the Common Securities and its consequences, provided that, if the underlying Event of Default under the Indenture:

 (i) is not waivable under the Indenture, except where the Holders of the Common Securities are deemed to have
waived such Event of Default under the Declaration as provided in this Section 2.06(b), the Event of Default under the Declaration shall also not be waivable; or 

(ii) is waivable only with the consent or vote of a Super Majority to be waived, except where the Holders of the Common
Securities are deemed to have waived such Event of Default under the Declaration as provided in this Section 2.06(b), the Event of Default under the Declaration may be waived only by the vote of the Holders of at least the proportion in
liquidation preference of the Common Securities that the relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding; provided further, each Holder of Common Securities will be deemed to have

  

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waived any such Event of Default and all Events of Default with respect to the Common Securities and its consequences until all Events of Default with respect to the Preferred Securities have
been cured, waived or otherwise eliminated, and until such Events of Default with respect to the Preferred Securities have been so cured, waived or otherwise eliminated, the Institutional Trustee will be deemed to be acting solely on behalf of the
Holders of the Preferred Securities and only the Holders of the Preferred Securities will have the right to direct the Institutional Trustee in accordance with the terms of the Securities. The foregoing provisions of this Section 2.06(b) shall
be in lieu of Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act and such Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act are hereby expressly excluded from this Declaration and the Securities, as permitted
by the Trust Indenture Act. Subject to the foregoing provisions of this Section 2.06(b), upon the waiver of an Event of Default by the Holders of a Majority in liquidation preference of the Common Securities, any such default shall cease to
exist and any Event of Default with respect to the Common Securities arising therefrom shall be deemed to have been cured for every purpose of this Declaration, but no such waiver shall extend to any subsequent or other default or Event of Default
with respect to the Common Securities or impair any right consequent thereon. 
 (c) A waiver of an Event of Default under the
Indenture by the Institutional Trustee at the direction of the Holders of the Preferred Securities, constitutes a waiver of the corresponding Event of Default under this Declaration. The foregoing provisions of this Section 2.06(c) shall be in
lieu of Section 316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of the Trust Indenture Act is hereby expressly excluded from this Declaration and the Securities, as permitted by the Trust Indenture Act. 

Section 2.07 Event of Default; Notice. 

(a) The Institutional Trustee shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders of the Securities, notices of (i) all defaults with respect to the Securities known to a Responsible Officer of the Institutional Trustee, unless such defaults have been cured before the giving of such notice (the term
“defaults” for the purposes of this Section 2.07(a) being hereby defined to be an Event of Default as defined in the Indenture, not including any periods of grace provided for therein and irrespective of the giving of any notice
provided therein) and (ii) any notice of default received from the Institutional Trustee with respect to the Debentures, which notice from the Institutional Trustee to the Holders shall state that an Event of Default under the Indenture also
constitutes an Event of Default with respect to the Securities; provided that, except for a default in the payment of principal of (or premium, if any) or interest or Additional Amounts on any of the Debentures or in the payment of any sinking fund
installment established for the Debentures, the Institutional Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the Institutional Trustee in good faith determines that the withholding of such notice is
in the interests of the Holders of the Securities. 
 (b) The Institutional Trustee shall not be deemed to have knowledge of any
default except: 
 (i) a default under Sections 6.1(a) and 6.1(b) of the Indenture; or 

 

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 (ii) any default as to which the Institutional Trustee shall have received
written notice or of which a Responsible Officer of the Institutional Trustee charged with the administration of the Declaration shall have actual knowledge. 

ARTICLE 3. 

ORGANIZATION 

Section 3.01 Name. The Trust is named “Alterra Capital Trust I,” as such name may be modified from time to time by
the Administrative Trustees following written notice to the Institutional Trustee, the Delaware Trustee and the Holders of Securities. The Trust’s activities may be conducted under the name of the Trust or any other name deemed advisable by the
Administrative Trustees. 
 Section 3.02 Office. The address of the principal office of the Trust is c/o Alterra
Capital Holdings Limited, 2 Front Street, Hamilton, HM 11, Bermuda. At any time, the Administrative Trustees may designate another principal office. 

Section 3.03 Purpose. The exclusive purposes and functions of the Trust are (a) to issue and sell Securities and use the
proceeds from such sale to acquire the Debentures, and (b) except as otherwise limited herein, to engage in only those other activities necessary, or incidental thereto. The Trust shall not borrow money, issue debt or reinvest proceeds derived
from investments, pledge any of its assets, or otherwise undertake (or permit to be undertaken) any activity that would cause the Trust not to be classified for United States federal income tax purposes as a grantor trust. 

Section 3.04 Authority. Subject to the limitations provided in this Declaration and to the specific duties of the
Institutional Trustee, the Administrative Trustees shall have exclusive and complete authority to carry out the purposes of the Trust. An action taken by the Administrative Trustees in accordance with their powers shall constitute the act of and
serve to bind the Trust and an action taken by the Institutional Trustee on behalf of the Trust in accordance with its powers shall constitute the act of and serve to bind the Trust. In dealing with the Trustees acting on behalf of the Trust, no
person shall be required to inquire into the authority of the Trustees to bind the Trust. Persons dealing with the Trust are entitled to rely conclusively on the power and authority of the Trustees as set forth in this Declaration. 

Section 3.05 Title to Property of the Trust. Except as provided in Section 3.08 with respect to the Debentures and the
Institutional Trustee Account or as otherwise provided in this Declaration, legal title to all assets of the Trust shall be vested in the Trust. The Holders shall not have legal title to any part of the assets of the Trust, but shall have an
undivided beneficial interest in the assets of the Trust. 
 Section 3.06 Powers and Duties of the Administrative
Trustees. The Administrative Trustees shall have the exclusive power, duty and authority to cause the Trust to engage in the following activities: 

(a) to issue and sell the Securities in accordance with this Declaration; provided, however, that the Trust may issue no more than one
series of Preferred Securities and no more than one series of Common Securities, and, provided further, that there shall be no interests in the Trust other than the Securities, and the issuance of Securities shall be limited to a one-time,
simultaneous issuance of both Preferred Securities and Common Securities on the Closing Date; 
  

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 (b) in connection with the issue and sale of the Preferred Securities, at the direction of
the Sponsor, to: 
 (i) execute and file with the Commission on behalf of the Trust, at such time as determined
by the Sponsor, a registration statement on Form S-3 or on another appropriate form, or a registration statement under Rule 462(b) of the Securities Act, in each case prepared by the Sponsor, including all pre-effective or post-effective
amendments thereto in relation to the Preferred Securities; 
 (ii) prepare and file with the Commission, at such
time as determined by the Sponsor, any preliminary prospectus or prospectus or supplement thereto relating to the Preferred Securities of the Trust required to be filed pursuant to the Securities Act, 

(iii) execute and file any documents prepared by the Sponsor, or take any acts as determined by the Sponsor to be
necessary in order to qualify or register all or part of the Preferred Securities in any State or foreign jurisdiction in which the Sponsor has determined to qualify or register such Preferred Securities for sale; 

(iv) execute and file an application, prepared by or on behalf of the Sponsor, at such time as determined by the Sponsor,
to the Private Offerings, Resale and Trading through Automated Linkages (“PORTAL”) Market to the New York Stock Exchange or any other national stock exchange or the Nasdaq Global Select Market for listing or quotation of the Preferred
Securities; 
 (v) to execute and deliver letters, documents, or instruments with The Depository Trust Company
relating the Preferred Securities; 
 (vi) execute and file with the Commission on behalf of the Trust, at such
time as determined by the Sponsor, a registration statement on Form 8-A, including any pre-effective or post-effective amendments thereto, prepared by the Sponsor relating to the registration of the Preferred Securities under Section 12(b)
of the Exchange Act; and 
 (vii) execute and enter into the purchase agreement, registration rights agreement
and other related agreements providing for the sale of the Preferred Securities; 
 (c) to acquire the Debentures with the
proceeds of the sale of the Securities; provided, however, that the Administrative Trustees shall cause legal title to the Debentures to be held of record in the name of the Institutional Trustee for the benefit of the Holders of the Preferred
Securities and the Holders of Common Securities; 
 (d) to give the Sponsor and the Institutional Trustee prompt written notice
of the occurrence of a Tax Event or Investment Company Event; provided that the Administrative Trustees shall consult with the Sponsor and the Institutional Trustee before taking or refraining from taking any Ministerial Action in relation to a Tax
Event or Investment Company Event; 
  

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 (e) to establish a record date with respect to all actions to be taken hereunder that
require a record date be established, including and with respect to, for the purposes of Section 316(c) of the Trust Indenture Act, Distributions, voting rights, redemptions and exchanges, and to issue relevant notices to the Holders of
Preferred Securities and Holders of Common Securities as to such actions and applicable record dates; 
 (f) to take all actions
and perform such duties as may be required of the Administrative Trustees pursuant to the terms of the Securities; 
 (g) to
bring or defend, pay, collect, compromise, arbitrate, resort to legal action, or otherwise adjust claims or demands of or against the Trust (“Legal Action”), unless pursuant to Section 3.08(e), the Institutional Trustee has the
exclusive power to bring such Legal Action; 
 (h) to employ or otherwise engage employees and agents (who may be designated as
officers with titles) and managers, contractors, advisors, and consultants and pay reasonable compensation for such services; 

(i) to cause the Trust to comply with the Trust’s obligations under the Trust Indenture Act; 

(j) to give the certificate required by Section 314(a)(4) of the Trust Indenture Act to the Institutional Trustee, which certificate
may be executed by any Administrative Trustee; 
 (k) to incur expenses that are necessary or incidental to carry out any of the
purposes of the Trust; 
 (l) to act as, or appoint another Person to act as, registrar and transfer agent for the Securities;

 (m) to give prompt written notice to the Holders of the Securities of any notice received from the Debenture Issuer of its
election (i) to defer payments of interest on the Debentures by extending the interest payment period under the Indenture or (ii) to extend the scheduled maturity date on the Debentures; 

(n) to take all action that may be necessary or appropriate for the preservation and the continuation of the Trust’s valid
existence, rights, franchises and privileges as a statutory trust under the laws of the State of Delaware and of each other jurisdiction in which such existence is necessary to protect the limited liability of the Holders of the Preferred Securities
or to enable the Trust to effect the purposes for which the Trust was created; 
 (o) to take any action, not inconsistent with
this Declaration or with applicable law, that the Administrative Trustees determine in their discretion to be necessary or desirable in carrying out the activities of the Trust as set out in this Section 3.06, including, but not limited to:

 (i) causing the Trust not to be deemed to be an Investment Company required to be registered under the
Investment Company Act; 
  

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 (ii) causing the Trust to be classified for United States federal income tax
purposes as a grantor trust; and 
 (iii) cooperating with the Debenture Issuer to ensure that the Debentures
will be treated as indebtedness of the Debenture Issuer for United States federal income tax purposes, provided that such action does not adversely affect the interests of Holders; 

(p) to take all action necessary to cause all applicable tax returns and tax information reports that are required to be filed with
respect to the Trust to be duly prepared and filed by the Administrative Trustees, on behalf of the Trust; and 
 (q) to execute
all documents or instruments, perform all duties and powers, and do all things for and on behalf of the Trust in all matters necessary or incidental to the foregoing. 

The Administrative Trustees must exercise the powers set forth in this Section 3.06 in a manner that is consistent with the purposes
and functions of the Trust set out in Section 3.03, and the Administrative Trustees shall not take any action that is inconsistent with the purposes and functions of the Trust set forth in Section 3.03. 

Subject to this Section 3.06, the Administrative Trustees shall have none of the powers or the authority of the Institutional
Trustee set forth in Section 3.08. Any expenses incurred by the Administrative Trustees pursuant to this Section 3.06 shall be reimbursed by the Debenture Issuer. 

Section 3.07 Prohibition of Actions by the Trust and the Trustees. 

(a) The Trust shall not, and the Trustees (including the Institutional Trustee) shall not cause the Trust to, engage in any activity other
than as required or authorized by this Declaration. In particular, the Trust shall not and the Trustees (including the Institutional Trustee) shall not cause the Trust to: 

(i) invest any proceeds received by the Trust from holding the Debentures, but shall distribute all such proceeds to
Holders of Securities pursuant to the terms of this Declaration and of the Securities; 
 (ii) acquire any assets
other than as expressly provided herein; 
 (iii) possess Trust property for other than a Trust purpose;

 (iv) make any loans or incur any indebtedness other than loans represented by the Debentures; 

(v) possess any power or otherwise act in such a way as to vary the Trust assets or the terms of the Securities in any way
whatsoever; 
  

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 (vi) issue any securities or other evidences of beneficial ownership of, or
beneficial interest in, the Trust other than the Securities; or 
 (vii) (A) other than as provided in this
Declaration or Annex I, direct the time, method and place of exercising any trust or power conferred upon the Debenture Trustee with respect to the Debentures, (B) waive any past default that is waivable under the Indenture, (C) exercise
any right to rescind or annul any declaration that the principal of all the Debentures shall be due and payable, or (D) consent to any amendment, modification or termination of the Indenture or the Debentures where such consent shall be
required unless the Trust shall have received an opinion of tax counsel to the effect that as a result of such modification, the Trust will not fail to be classified as a grantor trust for United States Federal income tax purposes. 

Section 3.08 Powers and Duties of the Institutional Trustee. 

(a) The legal title to the Debentures shall be owned by and held of record in the name of the Institutional Trustee in trust for the
benefit of the Holders of the Securities. The right, title and interest of the Institutional Trustee to the Debentures shall vest automatically in each Person who may hereafter be appointed as Institutional Trustee in accordance with
Section 5.06. Such vesting and cessation of title shall be effective whether or not conveyancing documents with regard to the Debentures have been executed and delivered. 

(b) The Institutional Trustee shall not transfer its right, title and interest in the Debentures to the Administrative Trustees or to the
Delaware Trustee (if the Institutional Trustee does not also act as Delaware Trustee). 
 (c) The Institutional Trustee shall:

 (i) establish and maintain a segregated non-interest bearing trust account (the “Institutional Trustee
Account”) in the name of and under the exclusive control of the Institutional Trustee on behalf of the Holders of the Securities and, upon the receipt of payments of funds made in respect of the Debentures held by the Institutional Trustee,
deposit such funds into the Institutional Trustee Account and make payments to the Holders of the Preferred Securities and Holders of the Common Securities from the Institutional Trustee Account in accordance with Section 6.01. Funds in the
Institutional Trustee Account shall be held uninvested until disbursed in accordance with this Declaration. The Institutional Trustee Account shall be an account that is maintained with a banking institution the rating on whose long-term unsecured
indebtedness assigned by a “nationally recognized statistical rating organization,” as that term is defined for purposes of Rule 436(g)(2) under the Securities Act, is at least equal to the rating assigned to the Preferred Securities
by a nationally recognized statistical rating organization; 
 (ii) engage in such ministerial activities and as
shall be necessary or appropriate to effect the redemption of the Preferred Securities and the Common Securities to the extent the Debentures are redeemed or mature; and 
  


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 (iii) upon notice of distribution issued by the Administrative Trustees in
accordance with the terms of the Securities, engage in such ministerial activities as shall be necessary or appropriate to effect the distribution of the Debentures to Holders of Securities upon the occurrence of certain special events (as may be
defined in the terms of the Securities) arising from a change in law or a change in legal interpretation or other specified circumstances pursuant to the terms of the Securities. 

(d) The Institutional Trustee shall take all actions and perform such duties as may be specifically required of the Institutional Trustee
pursuant to the terms of the Securities. 
 (e) Subject to Section 2.06, the Institutional Trustee shall take any Legal
Action which arises out of or in connection with an Event of Default or the Institutional Trustee’s duties and obligations under this Declaration or the Trust Indenture Act. 

(f) The Institutional Trustee shall not resign as a Trustee unless either: 

(i) the Trust has been completely liquidated and the proceeds of the liquidation distributed to the Holders of Securities
pursuant to the terms of the Securities; or 
 (ii) a Successor Institutional Trustee has been appointed and has
accepted that appointment in accordance with Section 5.06. 
 (g) The Institutional Trustee shall have the legal power to
exercise all of the rights, powers and privileges of a holder of Debentures under the Indenture and, if an Event of Default occurs and is continuing, the Institutional Trustee shall, for the benefit of Holders of the Securities, enforce its rights
as holder of the Debentures subject to the rights of the Holders pursuant to the terms of such Securities, this Declaration, the Statutory Trust Act and the Trust Indenture Act. 

(h) The Institutional Trustee will act as Paying Agent and Registrar in New York (the “Paying Agent”) to pay Distributions,
redemption payments or liquidation payments on behalf of the Trust with respect to all securities and any such Paying Agent shall comply with Section 317(b) of the Trust Indenture Act. Any Paying Agent may be removed by the Institutional
Trustee at any time and a successor Paying Agent or additional Paying Agents may be appointed at any time by the Institutional Trustee. 

(i) Subject to this Section 3.08, the Institutional Trustee shall have none of the duties, liabilities, powers or the authority of
the Administrative Trustees set forth in Section 3.06. 
 The Institutional Trustee must exercise the powers set forth in
this Section 3.08 in a manner that is consistent with the purposes and functions of the Trust set out in Section 3.03, and the Institutional Trustee shall not take any action that is inconsistent with the purposes and functions of the
Trust set out in Section 3.03. 
 Section 3.09 Certain Duties and Responsibilities of the Institutional
Trustee. 
 (a) The Institutional Trustee, before the occurrence of any Event of Default and after the curing of all Events
of Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Declaration and no implied covenants shall be read into 

 

 16 








 
this Declaration against the Institutional Trustee. In case an Event of Default has occurred (that has not been cured or waived pursuant to Section 2.06), the Institutional Trustee shall
exercise such of the rights and powers vested in it by this Declaration, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

 (b) No provision of this Declaration shall be construed to relieve the Institutional Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful misconduct, except that: 
 (i) prior to
the occurrence of an Event of Default and after the curing or waiving of all such Events of Default that may have occurred: 

(A) the duties and obligations of the Institutional Trustee shall be determined solely by the express provisions of this
Declaration and the Institutional Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Declaration, and no implied covenants or obligations shall be read into this Declaration
against the Institutional Trustee; and 
 (B) in the absence of bad faith on the part of the Institutional
Trustee, the Institutional Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Institutional Trustee and conforming to the
requirements of this Declaration; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Institutional Trustee, the Institutional Trustee shall be under a duty to examine
the same to determine whether or not they conform to the requirements of this Declaration (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein, unless specifically required by this
Declaration); 
 (ii) the Institutional Trustee shall not be liable for any error of judgment made in good faith
by a Responsible Officer of the Institutional Trustee, unless it shall be proved that the Institutional Trustee was negligent in ascertaining the pertinent facts; 

(iii) the Institutional Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of the Holders of not less than a Majority in liquidation preference of the Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Institutional Trustee,
or exercising any trust or power conferred upon the Institutional Trustee under this Declaration; 
 (iv) no
provision of this Declaration shall require the Institutional Trustee to expend or risk its own funds or otherwise incur any liability in the performance of any of its duties or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Declaration or adequate indemnity satisfactory to it against such risk or liability is not reasonably assured to
it; 
  

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 (v) the Institutional Trustee’s sole duty with respect to the custody,
safe keeping and physical preservation of the Debentures and the Institutional Trustee Account shall be to deal with such property in a similar manner as the Institutional Trustee deals with similar property for its own account, subject to the
protections and limitations on liability afforded to the Institutional Trustee under this Declaration and the Trust Indenture Act; 

(vi) the Institutional Trustee shall have no duty or liability for or with respect to the value, genuineness, existence or
sufficiency of the Debentures or the payment of any taxes or assessments levied thereon or in connection therewith; 

(vii) the Institutional Trustee shall not be liable for any interest on any money received by it except as it may
otherwise agree with the Sponsor. Money held by the Institutional Trustee need not be segregated from other funds held by it except in relation to the Institutional Trustee Account maintained by the Institutional Trustee pursuant to
Section 3.08(c)(i)) and except to the extent otherwise required by law; and 
 (viii) the Institutional
Trustee shall not be responsible for monitoring the compliance by the Administrative Trustees or the Sponsor with their respective duties under this Declaration, nor shall the Institutional Trustee be liable for the default or misconduct of the
Administrative Trustees or the Sponsor. 
 Section 3.10 Rights of Institutional Trustee. 

(a) Subject to the provisions of Section 3.09: 

(i) the Institutional Trustee may conclusively rely, and shall be fully protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed,
sent or presented by the proper party or parties; 
 (ii) any direction or act of the Sponsor or the
Administrative Trustees contemplated by this Declaration shall be sufficiently evidenced by an Officers’ Certificate; 

(iii) whenever in the administration of this Declaration, the Institutional Trustee shall deem it desirable that a matter
be proved or established before taking, suffering or omitting any action hereunder, the Institutional Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and conclusively rely, upon
an Officers’ Certificate which, upon receipt of such request, shall be promptly delivered by the Sponsor or the Administrative Trustees; 
  

 18 








 (iv) the Institutional Trustee shall have no duty to see to any recording,
filing or registration of any instrument (including any financing or continuation statement or any filing under tax or securities laws) or any rerecording, refiling or registration thereof; 

(v) the Institutional Trustee may consult with counsel of its selection or other experts and the advice or opinion of such
counsel and experts with respect to legal matters or advice within the scope of such experts’ area of expertise shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good
faith and in accordance with such advice or opinion, such counsel may be counsel to the Sponsor or any of its Affiliates, and may include any of its employees. The Institutional Trustee shall have the right at any time to seek instructions
concerning the administration of this Declaration from any court of competent jurisdiction; 
 (vi) the
Institutional Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Declaration at the request or direction of any Holder, unless such Holder shall have provided to the Institutional Trustee adequate
security and indemnity, reasonably satisfactory to the Institutional Trustee, against the costs, expenses (including reasonable attorneys’ fees and expenses) and liabilities that might be incurred by it in complying with such request or
direction, including such reasonable advances as may be requested by the Institutional Trustee provided, that, nothing contained in this Section 3.10(a)(iv) shall be taken to relieve the Institutional Trustee, upon the occurrence of an Event of
Default, of its obligation to exercise the rights and powers vested in it by this Declaration; 
 (vii) the
Institutional Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, security, bond, debenture, note,
other evidence of indebtedness or other paper or document, but the Institutional Trustee, may make such further inquiry or investigation into such facts or matters as it may see fit and, if the Institutional Trustee shall determine to make such
further inquiry or investigation, it shall be entitled, at a time and place reasonably determined by the Administrative Trustees, to examine the books and records of the Trust, personally or by agent or attorney, and shall incur no additional
liability by reason of such inquiry or investigation; 
 (viii) the Institutional Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Institutional Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder; 
 (ix) any action taken by the Institutional Trustee or its agents hereunder
shall bind the Trust and the Holders of the Securities, and the signature of the Institutional Trustee or its agents alone shall be sufficient and effective to perform any such action and no third party shall be required to inquire as to the
authority of the Institutional Trustee to so act or as to its compliance with any of the terms and provisions of this Declaration, both of which shall be conclusively evidenced by the Institutional Trustee’s or its agent’s taking such
action; 
  

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 (x) whenever in the administration of this Declaration the Institutional
Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder the Institutional Trustee (i) may request instructions from the Holders of the Securities which
instructions may only be given by the Holders of the same proportion in liquidation preference of the Securities as would be entitled to direct the Institutional Trustee under the terms of the Securities in respect of such remedy, right or action,
(ii) may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (iii) shall be protected in relying on or acting in accordance with such instructions; 

(xi) except as otherwise expressly provided by this Declaration, the Institutional Trustee shall not be under any
obligation to take any action that is discretionary under the provisions of this Declaration; 
 (xii) the
rights, privileges, protections, immunities and benefits given to the Institutional Trustee, including, without limitation, its right to indemnification, are extended to, and shall be enforceable by, the Institutional Trustee in each of its
capacities hereunder, and each agent, custodian and other Person employed to act hereunder; 
 (xiii) the
Institutional Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Institutional Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default
is received by the Institutional Trustee, and such notice references the Securities and this Indenture; 
 (xiv)
in no event shall the Institutional Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Institutional Trustee has
been advised of the likelihood of such loss or damage and regardless of the form of action; and 
 (xv) the
Institutional Trustee may request that the Sponsor deliver a Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Declaration, which Certificate may be signed
by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded. 

(b) No provision of this Declaration shall be deemed to impose any duty or obligation on the Institutional Trustee to perform any act or
acts or exercise any right, power, duty or obligation conferred or imposed on it, in any jurisdiction in which it shall be illegal, or in which the Institutional Trustee shall be unqualified or incompetent in accordance with applicable law, to
perform any such act or acts, or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Institutional Trustee shall be construed to be a duty. 

Section 3.11 Delaware Trustee. Notwithstanding any other provision of this Declaration other than Section 5.02, the
Delaware Trustee shall not be entitled to exercise any powers, nor shall the Delaware Trustee have any of the duties and responsibilities of the 

 

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Administrative Trustees or the Institutional Trustee described in this Declaration. Except as set forth in Section 5.02, the Delaware Trustee shall be a Trustee for the sole and limited
purpose of fulfilling the requirements of Section 3807 of the Statutory Trust Act. 
 Section 3.12 Execution of
Documents. Unless otherwise determined by the Administrative Trustees, and except as otherwise required by the Statutory Trust Act, any Administrative Trustee is authorized to execute on behalf of the Trust any documents that the Administrative
Trustees have the power and authority to execute pursuant to Section 3.06; provided that, the registration statement referred to in Section 3.06(b)(i)), including any amendments thereto, shall be signed by a majority of the Administrative
Trustees. 
 Section 3.13 Not Responsible for Recitals or Issuance of Securities. The recitals contained in this
Declaration and the Securities shall be taken as the statements of the Sponsor, and the Trustees do not assume any responsibility for their correctness. The Trustees make no representations as to the value or condition of the property of the Trust
or any part thereof. The Trustees make no representations as to the validity or sufficiency of this Declaration or the Securities. 

Section 3.14 Duration of Trust. The Trust, unless terminated pursuant to the provisions of Article 8 hereof, shall exist
until 30 years from the date of its formation. 
 Section 3.15 Mergers. The Trust may not consolidate, amalgamate,
merge with or into, or be replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to any corporation or other entity or person, except as described in Section 3.15(b) and Section 3.15(c).

 (b) The Trust may, with the consent of the Administrative Trustees or, if there are more than two, a majority of the
Administrative Trustees and without the consent of the Holders of the Securities, the Delaware Trustee or the Institutional Trustee, consolidate, amalgamate, merge with or into, or be replaced by a trust organized as such under the laws of any State
or the District of Columbia; provided that: 
 (i) if the Trust is not the surviving entity, the successor entity
(the “Successor Entity”) either: 
 (A) expressly assumes all of the obligations of the Trust under the
Securities; or 
 (B) substitutes for the Securities other securities having substantially the same terms as the
Preferred Securities (the “Successor Securities”) as long as the Successor Securities rank the same as the Preferred Securities, with respect to Distributions and payments upon liquidation, redemption and otherwise; 

(ii) the Debenture Issuer expressly acknowledges a trustee of the Successor Entity that possesses the same powers and
duties as the Institutional Trustee in its capacity as the Holder of the Debentures; 
  

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 (iii) the Preferred Securities or any Successor Securities are listed, or
any Successor Securities will be listed upon notification of issuance, on any national securities exchange or with any other organization on which the Preferred Securities are then listed or quoted; 

(iv) such merger, consolidation, amalgamation or replacement does not cause the Preferred Securities (including any
Successor Securities) to be downgraded by any nationally recognized statistical rating organization; 
 (v) such
merger, consolidation, amalgamation or replacement does not adversely affect the powers, preferences and other special rights of the Holders of the Preferred Securities (including any Successor Securities) in any material respect (other than with
respect to any dilution of such Holders’ interests in the new entity as a result of such merger, consolidation, amalgamation or replacement); 

(vi) such Successor Entity has a purpose substantially identical to that of the Trust; 

(vii) prior to such merger, consolidation, amalgamation or replacement, the Sponsor has received an opinion of a
nationally recognized independent counsel (reasonably acceptable to the Institutional Trustee) to the Trust experienced in such matters to the effect that: 

(A) following such merger, consolidation, amalgamation or replacement, the Trust or the Successor Entity, as the case may
be, will be treated as a grantor trust for United States Federal income tax purposes; 
 (B) following such
merger, consolidation, amalgamation or replacement, neither the Trust nor the Successor Entity will be required to register as an Investment Company; and 

(C) such merger, consolidation, amalgamation or replacement will not materially adversely affect the rights, preferences
and privileges of the Holders of the Securities (including any Successor Securities) (other than with respect to any dilution of such Holders’ interests in the new entity as a result of such merger, consolidation, amalgamation or replacement);
and 
 (viii) the Sponsor provides a guarantee to the Holders of the Successor Securities with respect to the
Successor Entity having substantially the same terms as the Preferred Securities Guarantee. 
 (c) Notwithstanding
Section 3.15(b), the Trust shall not, except with the consent of Holders of 100% in liquidation preference of the Common Securities, consolidate, amalgamate, merge with or into, or be replaced by any other entity or permit any other entity to
consolidate, amalgamate, merge with or into, or replace it if, in the opinion of tax counsel to the Trust, such consolidation, amalgamation, merger or replacement would cause the Trust or Successor Entity to be classified as other than a grantor
trust for United States Federal income tax purposes. 
  

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 ARTICLE 4. 

SPONSOR 

Section 4.01 Sponsor’s Purchase of Common Securities. On the Closing Date the Sponsor will purchase all the Common
Securities issued by the Trust, in an aggregate liquidation preference equal to 3% or more of the total capital of the Trust, at the same time as the Preferred Securities are sold. 

Section 4.02 Responsibilities of the Sponsor. In connection with the issue and sale of the Preferred Securities, the Sponsor
shall have the exclusive right and responsibility to engage in the following activities: 
 (a) to prepare for filing by the
Trust with the Commission a registration statement on Form S-3 or on another appropriate form, or a registration statement under Rule 462(b) of the Securities Act, including any pre-effective or post-effective amendments thereto in relation to the
Preferred Securities; 
 (b) to determine when to file with the Commission any preliminary prospectus or prospectus or
supplement thereto relating to the Preferred Securities of the Trust required to be filed pursuant to the Securities Act; 
 (c)
to determine the States and foreign jurisdictions in which to take appropriate action to qualify or register for sale all or part of the Preferred Securities and to do any and all such acts, other than actions which must be taken by the Trust, and
advise the Trust of actions it must take, and prepare for execution and filing any documents to be executed and filed by the Trust, as the Sponsor deems necessary or advisable in order to comply with the applicable laws of any such States and
foreign jurisdictions; 
 (d) to prepare for filing by the Trust an application to the PORTAL Market, the New York Stock
Exchange or any other national stock exchange or the Nasdaq Global Select Market for listing or quotation of the Preferred Securities; 

(e) to prepare for filing by the Trust with the Commission a registration statement on Form 8-A relating to the registration of the
Preferred Securities under Section 12(b) of the Exchange Act, including any pre-effective or post-effective amendments thereto; and 

(f) to negotiate the terms of the purchase agreement, registration rights agreement and 

ARTICLE 5. 

TRUSTEES 

Section 5.01 Number of Trustees. The number of Trustees shall initially be five (5), and: 

(a) at any time before the issuance of any Securities, the Sponsor may, by written instrument, increase or decrease the number of
Trustees; and 
  

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 (b) after the issuance of any Securities the number of Trustees may be increased or
decreased by vote of the Holders of a Majority in liquidation preference of the Common Securities voting as a class at a meeting of the Holders of the Common Securities; provided, however, that the number of Trustees shall in no event be less than
two (2); provided further that (1) one Trustee, shall be the Delaware Trustee; (2) there shall be at least one Trustee who is an employee or officer of, or is affiliated with the Sponsor (a “Administrative Trustee”); and
(3) one Trustee shall be the Institutional Trustee for so long as this Declaration is required to qualify as an indenture under the Trust Indenture Act, and such Trustee may also serve as Delaware Trustee if it meets the applicable
requirements. 
 Section 5.02 Delaware Trustee. If required by the Statutory Trust Act, one Trustee (the
“Delaware Trustee”) shall be: 
 (a) a natural person who is a resident of the State of Delaware; or 

(b) not a natural person, an entity which has its principal place of business in the State of Delaware, and otherwise meets the
requirements of applicable law; provided, that if the Institutional Trustee has its principal place of business in the State of Delaware and otherwise meets the requirements of applicable law, then the Institutional Trustee shall also be the
Delaware Trustee and Section 3.11 shall have no application. 
 Section 5.03 Institutional Trustee;
Eligibility. 
 (a) There shall at all times be one Trustee that shall act as Institutional Trustee and shall: 

(i) not be an Affiliate of the Sponsor; 

(ii) be a corporation organized and doing business under the laws of the United States of America or any State or
Territory thereof or of the District of Columbia, or a corporation or Person permitted by the Commission to act as an institutional trustee under the Trust Indenture Act, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal, State, Territorial or District of Columbia authority. If such corporation publishes reports of condition at
least annually, pursuant to law or to the requirements of the supervising or examining authority referred to above, then for the purposes of Section 5.03(a)(i), the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published; and 
 (iii) if
the Trust is excluded from the definition of an Investment Company solely by means of Rule 3a-7 and to the extent Rule 3a-7 requires a trustee having certain qualifications to hold title to the “eligible assets” of the Trust, the
Institutional Trustee shall possess those qualifications. 
 (b) If at any time the Institutional Trustee shall cease to be
eligible to so act under Section 5.03(a), the Institutional Trustee shall immediately resign in the manner and with the effect set forth in Section 5.06(c). 

 

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 (c) If the Institutional Trustee has or shall acquire any “conflicting interest”
within the meaning of Section 3.10(b) of the Trust Indenture Act, the Institutional Trustee and the Holder of the Common Securities (as if it were the obligor referred to in Section 310(b) of the Trust Indenture Act) shall in all respects
comply with the provisions of Section 310(b) of the Trust Indenture Act. 
 (d) The Preferred Securities Guarantee shall be
deemed to be specifically described in this Declaration for purposes of clause (i) of the first provision contained in Section 3.10(b) of the Trust Indenture Act. 

Section 5.04 Qualifications of Administrative Trustees and Delaware Trustee Generally. Each Administrative Trustee and the
Delaware Trustee (unless the Institutional Trustee also acts as Delaware Trustee) shall be either a natural person who is at least 21 years of age or a legal entity that shall act through one or more Authorized Officers. 

Section 5.05 Initial Trustees. The initial Administrative Trustees shall be: 

[                    
                    ] 

[                    
                    ] 

[                    
                    ] 

The initial Delaware Trustee shall be: 

[                    
                    ] 

[                    
                    ] 

[                    
                    ] 

The initial Institutional Trustee shall be: 

[                    
                    ] 

[                    
                    ] 

[                    
                    ] 

Section 5.06 Appointment, Removal and Resignation of Trustees. 

(a) Subject to (b), Trustees may be appointed or removed without cause at any time: 

(i) until the issuance of any Securities, by written instrument executed by the Sponsor; and 

(ii) in the case of Administrative Trustees, after the issuance of any Securities by vote of the Holders of a Majority in
liquidation preference of the Common Securities voting as a class at a meeting of the Holders of the Common Securities; 

(iii) in the case of the Institutional Trustee and the Delaware Trustee, unless an Event of Default shall have occurred
and be continuing after the issuance of any Securities, by a vote of the Holders of a Majority in liquidation preference of the Common Securities voting as a class at a meeting of the Holders of the Common Securities; and 

 

 25 








 (iv) in the case of the Institutional Trustee and the Delaware Trustee, if
an Event of Default shall have occurred and be continuing after the issuance of the Securities, by a vote of the Holders of a Majority in liquidation preference of the Preferred Securities voting as a class at a meeting of the Holders of the
Preferred Securities. 
 (b) The Trustee that acts as Institutional Trustee shall not be removed in accordance with
Section 5.06(a) until a successor Institutional Trustee possessing the qualifications to act as Institutional Trustee under Section 5.03 (the “Successor Institutional Trustee”) has been appointed and has accepted such appointment
by written instrument executed by such Successor Institutional Trustee and delivered to the Administrative Trustees and the Sponsor; and 

(c) The Trustee that acts as Delaware Trustee shall not be removed in accordance with this Section 5.06(a) until a successor Trustee
possessing the qualifications to act as Delaware Trustee under Section 5.02 and Section 5.04 (a “Successor Delaware Trustee”) has been appointed and has accepted such appointment by written instrument executed by such Successor
Delaware Trustee and delivered to the Administrative Trustees and the Sponsor. 
 (d) A Trustee appointed to office shall hold
office until his successor shall have been appointed or until his death, removal or resignation. Any Trustee may resign from office (without need for prior or subsequent accounting) by an instrument in writing signed by the Trustee and delivered to
the Sponsor and the Trust, which resignation shall take effect upon such delivery or upon such later date as is specified therein; provided, however, that: 

(i) No such resignation of the Trustee that acts as the Institutional Trustee shall be effective: 

(A) until a Successor Institutional Trustee has been appointed and has accepted such appointment by instrument executed by
such Successor Institutional Trustee and delivered to the Trust, the Sponsor and the resigning Institutional Trustee; or 

(B) until the assets of the Trust have been completely liquidated and the proceeds thereof distributed to the holders of
the Securities; and 
 (ii) no such resignation of the Trustee that acts as the Delaware Trustee shall be
effective until a Successor Delaware Trustee has been appointed and has accepted such appointment by instrument executed by such Successor Delaware Trustee and delivered to the Trust, the Sponsor and the resigning Delaware Trustee. 

(e) The Holders of the Common Securities shall use their best efforts to promptly appoint a Successor Institutional Trustee or Successor
Delaware Trustee, as the case may be, if the Institutional Trustee or the Delaware Trustee delivers an instrument of resignation in accordance with this Section 5.06. 
  


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 (f) If no Successor Institutional Trustee or Successor Delaware Trustee shall have been
appointed and accepted appointment as provided in this Section 5.06 within 60 days after delivery to the Sponsor and the Trust of an instrument of resignation, the resigning Institutional Trustee or Delaware Trustee, as applicable, may petition
any court of competent jurisdiction at the expense of the Sponsor for appointment of a Successor Institutional Trustee or Successor Delaware Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper and
prescribe, appoint a Successor Institutional Trustee or Successor Delaware Trustee, as the case may be. 
 Section 5.07
Vacancies among Trustees. If a Trustee ceases to hold office for any reason and the number of Trustees is not reduced pursuant to Section 5.01, or if the number of Trustees is increased pursuant to Section 5.01, a vacancy shall
occur. A resolution certifying the existence of such vacancy by a majority of the Administrative Trustees shall be conclusive evidence of the existence of such vacancy. The vacancy shall be filled with a Trustee appointed in accordance with
Section 5.06. 
 Section 5.08 Effect of Vacancies. The death, resignation, retirement, removal, bankruptcy,
dissolution, liquidation, incompetence or incapacity to perform the duties of a Trustee shall not operate to annul the Trust. Whenever a vacancy in the number of Administrative Trustees shall occur, until such vacancy is filled by the appointment of
a Administrative Trustee in accordance with Section 5.06, the Administrative Trustees in office, regardless of their number, shall have all the powers granted to the Administrative Trustees and shall discharge all the duties imposed upon the
Administrative Trustees by this Declaration. 
 Section 5.09 Meetings. If there is more than one Administrative
Trustee, meetings of the Administrative Trustees shall be held from time to time upon the call of any Administrative Trustee. Regular meetings of the Administrative Trustees may be held at a time and place fixed by resolution of the Administrative
Trustees. Notice of any in-person meetings of the Administrative Trustees shall be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier) not less than 48 hours before such meeting. Notice of
any telephonic meetings of the Administrative Trustees or any committee thereof shall be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier) not less than 24 hours before a meeting.
Notices shall contain a brief statement of the time, place and anticipated purposes of the meeting. The presence (whether in person or by telephone) of a Administrative Trustee at a meeting shall constitute a waiver of notice of such meeting except
where a Administrative Trustee attends a meeting for the express purpose of objecting to the transaction of any activity on the ground that the meeting has not been lawfully called or convened. Unless provided otherwise in this Declaration, any
action of the Administrative Trustees may be taken at a meeting by vote of a majority of the Administrative Trustees present (whether in person or by telephone) and eligible to vote with respect to such matter, provided that a Quorum is present, or
without a meeting by the unanimous written consent of the Administrative Trustees. In the event there is only one Administrative Trustee, any and all action of such Administrative Trustee shall be evidenced by a written consent of such
Administrative Trustee. 
  

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 Section 5.10 Delegation of Power. 

(a) Any Administrative Trustee may, by power of attorney consistent with applicable law, delegate to any other natural person over the age
of 21 his or her power for the purpose of executing any documents contemplated in Section 3.06, including any registration statement or amendment thereto filed with the Commission, or making any other governmental filing; and 

(b) the Administrative Trustees shall have power to delegate from time to time to such of their number or to officers of the Trust the
doing of such things and the execution of such instruments either in the name of the Trust or the names of the Administrative Trustees or otherwise as the Administrative Trustees may deem expedient, to the extent such delegation is not prohibited by
applicable law or contrary to the provisions of the Trust, as set forth herein. 
 Section 5.11 Merger, Conversion,
Consolidation or Succession to Business. Any corporation or national banking association into which the Institutional Trustee or the Delaware Trustee, as the case may be, may be merged or converted or with which either may be consolidated, or
any corporation or national banking association resulting from any merger, conversion or consolidation to which the Institutional Trustee or the Delaware Trustee, as the case may be, shall be a party, or any corporation or national banking
association succeeding to all or substantially all the corporate trust business of the Institutional Trustee or the Delaware Trustee, as the case may be, shall be the successor of the Institutional Trustee or the Delaware Trustee, as the case may
be, hereunder, provided such corporation or national banking association shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto.

 ARTICLE 6. 

DISTRIBUTIONS 

Section 6.01 Distributions. Holders shall receive Distributions (as defined herein) in accordance with the applicable terms
of the relevant Holder’s Securities. Distributions shall be made on the Preferred Securities and the Common Securities in accordance with the preferences set forth in their respective terms. If and to the extent that the Debenture Issuer makes
a payment of interest (including any compounded interest) and Additional Interest (as defined in the Indenture)) premium, Additional Amounts and principal on the Debentures held by the Institutional Trustee (the amount of any such payment being a
“Payment Amount”), the Institutional Trustee shall and is directed, to the extent funds are available for that purpose, to make a distribution (a “Distribution”) of the Payment Amount to Holders. 

ARTICLE 7. 

INSURANCE OF SECURITIES 

Section 7.01 General Provisions Regarding Securities. 

(a) The Administrative Trustees shall on behalf of the Trust issue one class of preferred securities, representing undivided beneficial
interests in the assets of the Trust (the “Preferred Securities”), having such terms (the “Terms”) as are set forth in Annex I and one class of common securities, representing undivided beneficial interests in the assets of the
Trust (the “Common Securities”), having such terms as are set forth in Annex I. The Trust shall issue no securities or other interests in the assets of the Trust other than the Preferred Securities and the Common Securities. 

 

 28 








 (b) The consideration received by the Trust for the issuance of the Securities shall
constitute a contribution to the capital of the Trust and shall not constitute a loan to the Trust. 
 (c) Upon issuance of the
Securities as provided in this Declaration, the Securities so issued shall be deemed to be validly issued, fully paid and non-assessable, subject to Section 10.01 with respect to the Common Securities. 

(d) Every Person, by virtue of having become a Holder of a Preferred Security Beneficial Owner in accordance with the terms of this
Declaration, shall be deemed to have expressly assented and agreed to the terms of, and shall be bound by, this Declaration. 

Section 7.02 Execution and Authentication. 

(a) The Securities shall be signed on behalf of the Trust by one Administrative Trustee. In case any Administrative Trustee of the Trust
who shall have signed any of the Securities shall cease to be such Administrative Trustee before the Securities so signed shall be delivered by the Trust, such Securities nevertheless may be delivered as though the person who signed such Securities
had not ceased to be such Administrative Trustee; and any Securities may be signed on behalf of the Trust by such persons who, at the actual date of execution of such Security, shall be the Administrative Trustees of the Trust, although at the date
of the execution and delivery of the Declaration any such person was not such a Administrative Trustee. 
 (b) One
Administrative Trustee shall sign the Preferred Securities for the Trust by manual or facsimile signature. Unless otherwise determined by the Trust, such signature shall, in the case of Common Securities, be a manual signature. 

A Preferred Security shall not be valid until authenticated by the manual signature of an authorized officer of the Institutional
Trustee. The signature shall be conclusive evidence that the Preferred Security has been authenticated under this Declaration. 

Upon a written order of the Trust signed by one Administrative Trustee, the Institutional Trustee shall authenticate the Preferred
Securities for original issue. The aggregate number of Preferred Securities outstanding at any time shall not exceed the number set forth in the Terms in Annex A. 

The Institutional Trustee may appoint an authenticating agent acceptable to the Trust to authenticate Preferred Securities. An
authenticating agent may authenticate Preferred Securities whenever the Institutional Trustee may do so. Each reference in this Declaration to authentication by the Institutional Trustee includes authentication by such agent. An authenticating agent
has the same rights as the Institutional Trustee to deal with the Sponsor or an Affiliate. 
  

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 Section 7.03 [Reserved]. 

Section 7.04 Registrar, Paying Agent and Conversion Agent. In the event that the Preferred Securities are not in book-entry
only form, the Trust shall maintain in the Borough of Manhattan, The City of New York, State of New York, (i) an office or agency where Preferred Securities may be presented for registration of transfer or exchange (“Registrar”),
(ii) an office or agency where Preferred Securities may be presented for payment (“Paying Agent”) and (iii) an office or agency where Preferred Securities may be presented for conversion (“Conversion Agent”). The
Registrar shall keep a register of the Preferred Securities and of their transfer and exchange. The Trust may appoint the Registrar, the Paying Agent and the Conversion Agent and may appoint one or more co-registrars, one or more additional paying
agents and one or more additional conversion agents in such other locations as it shall determine. The term “Paying Agent” includes any additional paying agent. The Trust may change any Paying Agent, Registrar or co-registrar without prior
notice to any Holder. The Trust shall notify the Institutional Trustee of the name and address of any Agent not a party to this Declaration. If the Trust fails to appoint or maintain another entity as Registrar or Paying Agent, the Institutional
Trustee shall act as such. The Trust or any of its Affiliates may act as Paying Agent or Registrar. The Trust shall act as Paying Agent, Registrar or co-registrar for the Common Securities. 

The Trust initially appoints the Institutional Trustee as Registrar and Paying Agent for the Preferred Securities. 

Section 7.05 Paying Agent to Hold Money in Trust. The Trust shall require each Paying Agent other than the Institutional
Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Institutional Trustee all money held by the Paying Agent for the payment of principal or distribution on the Securities, and will notify the
Institutional Trustee if there are insufficient funds to make any required payment. While any such insufficiency continues, the Institutional Trustee may require a Paying Agent to pay all money held by it to the Institutional Trustee. The Trust at
any time may require a Paying Agent to pay all money held by it to the Institutional Trustee and to account for any money disbursed by it. Upon payment over to the Institutional Trustee, the Paying Agent (if other than the Trust or an Affiliate of
the Trust) shall have no further liability for the money. If the Trust or the Sponsor or an Affiliate of the Trust or the Sponsor acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders all money
held by it as Paying Agent. 
 Section 7.06 [Reserved]. 

Section 7.07 [Reserved]. 

Section 7.08 Outstanding Preferred Securities. The Preferred Securities outstanding at any time are all the Preferred
Securities authenticated by the Institutional Trustee except for those canceled by it, those delivered to it for cancellation, and those described in this Section as not outstanding. 

If a Preferred Security is replaced, paid or purchased pursuant to Section 7.07, it ceases to be outstanding unless the
Institutional Trustee receives proof satisfactory to it that the replaced, paid or purchased Preferred Security is held by a bona fide purchaser. 
  

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 If Preferred Securities are considered paid in accordance with the terms of this
Declaration, they cease to be outstanding and interest on them ceases to accrue. 
 A Preferred Security does not cease to be
outstanding because one of the Trust, the Sponsor or an Affiliate of the Sponsor holds the Security. 
 Section 7.09
Preferred Securities in Treasury. In determining whether the Holders of the required amount of Securities have concurred in any direction, waiver or consent, Preferred Securities owned by the Trust, the Sponsor or an Affiliate of the Sponsor,
as the case may be, shall be disregarded and deemed not to be outstanding, except that for the purposes of determining whether the Institutional Trustee shall be protected in conclusively relying on any such direction, waiver or consent, only
Securities which a Responsible Officer of the Institutional Trustee actually knows are so owned shall be so disregarded. 

Section 7.10 [Reserved]. 

Section 7.11 Cancellation. The Trust at any time may deliver Preferred Securities to the Institutional Trustee for
cancellation. The Registrar, Paying Agent and Conversion Agent shall forward to the Institutional Trustee any Preferred Securities surrendered to them for registration of transfer, redemption, conversion, exchange or payment. The Institutional
Trustee shall promptly cancel all Preferred Securities surrendered for registration of transfer, redemption, conversion, exchange, payment, replacement or cancellation and shall dispose of cancelled Preferred Securities in accordance with its
customary procedures for the disposition of cancelled securities in effect at the time of such cancellation. The Trust may not issue new Preferred Securities to replace Preferred Securities that it has paid or that have been delivered to the
Institutional Trustee for cancellation or that any holder has converted. 
 Section 7.12 CUSIP Numbers. The Trust in
issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so used by the Trust, the Institutional Trustee shall use “CUSIP” numbers in notices as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice and that reliance may be placed only on the other identification numbers printed on the Securities, and
the subject of such notice shall not be affected by any defect in or omission of such numbers. The Administrative Trustees or the Sponsor will promptly notify the Trustee in writing of any change in the “CUSIP” numbers. 

ARTICLE 8. 

TERMINATION OF TRUST 

Section 8.01 Termination of Trust. 

(a) The Trust shall terminate upon the earliest to occur of the following: 

(i) the bankruptcy of any Holder of the Common Securities or the Sponsor; 

(ii) the filing of a certificate of dissolution or its equivalent with respect to any Holder of the Common Securities or
the Sponsor; the filing of a certificate of cancellation with respect to the Trust or the revocation of the charter of the Holder of the Common Securities or the Sponsor and the expiration of 90 days after the date of revocation without a
reinstatement thereof; 
  

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 (iii) the entry of a decree of judicial dissolution of any Holder of the
Common Securities, the Sponsor or the Trust; 
 (iv) all of the Securities shall have been called for redemption
and the amounts necessary for redemption thereof shall have been paid to the Holders in accordance with the terms of the Securities; 

(v) before the issuance of any Securities, with the consent of all the Administrative Trustees and the Sponsor;

 (vi) the occurrence and continuation of a Tax Event or Investment Company Event pursuant to which the Trust
shall have been dissolved in accordance with the terms of the Securities and all of the Debentures endorsed thereon shall have been distributed to the Holders of Securities in exchange for all of the Securities; or 

(vii) the expiration of the term of the Trust on 30 years from the date of its formation. 

(b) As soon as is practicable after the occurrence of an event referred to in Section 8.01(a)), the Trustees shall file a
certificate of cancellation with the Secretary of State of the State of Delaware. 
 (c) The provisions of Section 3.09 and
Article 10 shall survive the termination of the Trust. 
 ARTICLE 9. 

TRANSFER AND EXCHANGE 

Section 9.01 General. 

(a) Where Preferred Securities are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them
for an equal number of Preferred Securities represented by different certificates, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and exchanges,
the Trust shall issue and the Institutional Trustee shall authenticate Preferred Securities at the Registrar’s request. 

(b) Securities may only be transferred, in whole or in part, in accordance with the terms and conditions set forth in this Declaration
and in the terms of the Securities. Any transfer or purported transfer of any Security not made in accordance with this Declaration shall be null and void. 

Subject to this Article 9, the Sponsor and any Related Party may only transfer Common Securities to the Sponsor or a Related Party of the
Sponsor; provided that, any such transfer is subject to the condition precedent that the transferor obtain the written opinion of nationally recognized independent counsel experienced in such matters that such transfer would not cause more than an
insubstantial risk that: 
 (i) the Trust would not be classified for United States federal income tax purposes
as a grantor trust; and 
  

 32 








 (ii) the Trust would be an Investment Company or the transferee would become
an Investment Company. 
 (c) The Administrative Trustees shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with indemnity satisfactory to the Administrative Trustees) in respect of any tax or other governmental charges that may be imposed in relation to it. Upon surrender for
registration of transfer of any Securities, the Administrative Trustees shall cause one or more new Securities to be issued in the name of the designated transferee or transferees. Every Security surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the Administrative Trustees duly executed by the Holder or such Holder’s attorney duly authorized in writing. Each Security surrendered for registration of transfer shall
be canceled by the Administrative Trustees. A transferee of a Security shall be entitled to the rights and subject to the obligations of a Holder hereunder upon the receipt by such transferee of a Security. By acceptance of a Security, each
transferee shall be deemed to have agreed to be bound by this Declaration. 
 (d) The Trust shall not be required (i) to
issue, register the transfer of, or exchange, Preferred Securities during a period beginning at the opening of business 15 days before the day of any selection of Preferred Securities for redemption set forth in the terms and ending at the close of
business on the day of selection, or (ii) to register the transfer or exchange of any Preferred Security so selected for redemption in whole or in part, except the unredeemed portion of any Preferred Security being redeemed in part. 

Section 9.02 Transfer of Certificates. The Administrative Trustees shall provide for the registration of Certificates and of
transfers of Certificates, which will be effected without charge but only upon payment (with such indemnity as the Administrative Trustees may require) in respect of any tax or other government charges that may be imposed in relation to it. Upon
surrender for registration of transfer of any Certificate, the Administrative Trustees shall cause one or more new Certificates to be issued in the name of the designated transferee or transferees. Every Certificate surrendered for registration of
transfer shall be accompanied by a written instrument of transfer in form satisfactory to the Administrative Trustees duly executed by the Holder or such Holder’s attorney duly authorized in writing. Each Certificate surrendered for
registration of transfer shall be cancelled by the Administrative Trustees. A transferee of a Certificate shall be entitled to the rights and subject to the obligations of a Holder hereunder upon the receipt by such transferee of a Certificate. By
acceptance of a Certificate, each transferee shall be deemed to have agreed to be bound by this Declaration. 

Section 9.03 Deemed Security Holders. The Trustees may treat the Person in whose name any Certificate shall be registered on
the books and records of the Trust as the sole holder of such Certificate and of the Securities represented by such Certificate for purposes of receiving 
  

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Distributions and for all other purposes whatsoever and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such Certificate or in the Securities
represented by such Certificate on the part of any Person, whether or not the Trust, the Institutional Trustee, the Registrar or an co-registrar shall have actual or other notice thereof. 

Section 9.04 Book Entry Interests. Unless otherwise specified in the terms of the Preferred Securities, the Preferred
Securities Certificates, on original issuance, will be issued in the form of one or more, fully registered, global Preferred Security Certificates (each a “Global Certificate”), to be delivered to the Depositary, the initial Clearing
Agency, by, or on behalf of, the Trust. Such Global Certificates shall initially be registered on the books and records of the Trust in the name of Cede & Co., the nominee of the Depositary, and no Preferred Security Beneficial Owner will
receive a Definitive Preferred Security Certificate representing such Preferred Security Beneficial Owner’s interests in such Global Certificates, except as provided in Section 9.07 . Unless and until definitive, fully registered Preferred
Security Certificates (the “Definitive Preferred Security Certificates”) have been issued to the Preferred Security Beneficial Owners pursuant to Section 9.07: 

(a) the provisions of this Section 9.04 shall be in full force and effect; 

(b) the Trust and the Trustees shall be entitled to deal with the Depositary for all purposes of this Declaration (including the payment
of Distributions on the relevant Global Certificates and receiving approvals, votes or consents hereunder) as the Holder of the Preferred Securities and the sole holder of the Global Certificates and shall have no obligation to the Preferred
Security Beneficial Owners; 
 (c) to the extent that the provisions of this Section 9.04 conflict with any other
provisions of this Declaration, the provisions of this Section 9.04 shall control; and 
 (d) the rights of the Preferred
Security Beneficial Owners shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such Preferred Security Beneficial Owners and the Depositary and/or the Participants and receive and
transmit payments of Distributions on the Global Certificates to such Participants. The Depositary will make book entry transfers among the Participants. 

Section 9.05 Notices to Clearing Agency. Whenever a notice or other communication to the Preferred Security Holders is
required under this Declaration, unless and until Definitive Preferred Security Certificates shall have been issued to the Preferred Security Beneficial Owners pursuant to Section 9.07, the Administrative Trustees shall give all such notices
and communications specified herein to be given to the Preferred Security Holders to the Depositary, and shall have no notice obligations to the Preferred Security Beneficial Owners. 

Section 9.06 Appointment of Successor Clearing Agency. If any Clearing Agency elects to discontinue its services as
securities depositary with respect to the Preferred Securities, the Administrative Trustees may, in their sole discretion, appoint a successor Clearing Agency with respect to such Preferred Securities. 

 

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 Section 9.07 Definitive Preferred Security Certificates. 

If: 
 (a) a Clearing Agency
notifies the Sponsor and the Trust that it elects to discontinue its services as securities depositary with respect to the Preferred Securities or if at any time such Clearing Agency ceases to be a “clearing agency” registered under the
Exchange Act and a successor Clearing Agency is not appointed within 90 days after such discontinuance pursuant to Section 9.06; or 

(b) the Administrative Trustees elect after consultation with the Sponsor and the Trust to terminate the book entry system through the
Clearing Agency with respect to the Preferred Securities; or 
 (c) an Event of Default has occurred and is continuing, then:

 (i) Definitive Preferred Security Certificates shall be prepared by the Administrative Trustees on behalf of
the Trust with respect to such Preferred Securities; and 
 (ii) Upon surrender of the Global Certificates by
the Clearing Agency, accompanied by registration instructions, the Administrative Trustees shall cause Definitive Preferred Security Certificates to be delivered to Preferred Security Beneficial Owners in accordance with the instructions of the
Clearing Agency. Neither the Trustees nor the Trust shall be liable for any delay in delivery of such instructions and each of them may conclusively rely on and shall be protected in relying on, said instructions of the Clearing Agency. The
Definitive Preferred Security Certificates shall be printed, lithographed or engraved or may be produced in any other manner as is reasonably acceptable to the Administrative Trustees, as evidenced by their execution thereof, and may have such
letters, numbers or other marks of identification or designation and such legends or endorsements as the Administrative Trustees may deem appropriate, or as may be required to comply with any law or with any rule or regulation made pursuant thereto
or with any rule or regulation of any stock exchange on which Preferred Securities may be listed, or to conform to usage. 

Section 9.08 Mutilated, Destroyed, Lost or Stolen Certificates. 

If: 
 (a) any mutilated
Certificates should be surrendered to the Administrative Trustees, or if the Administrative Trustees shall receive evidence to their satisfaction of the destruction, loss or theft of any Certificate; and 

(b) there shall be delivered to the Administrative Trustees such security or indemnity satisfactory to them to keep each of them
harmless; 
 (c) then, in the absence of notice that such Certificate shall have been acquired by a bona fide purchaser, any
Administrative Trustee on behalf of the Trust shall execute and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like denomination. In connection with the issuance of any new
Certificate under 
  

 35 








 
this Section 9.08, the Administrative Trustees may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. Any
duplicate Certificate issued pursuant to this Section 9.08 shall constitute conclusive evidence of an ownership interest in the relevant Securities, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be
found at any time. 
 ARTICLE 10. 

LIMITATION OF LIABILITY OF HOLDERS OF 

SECURITIES, TRUSTEES OR OTHERS 

Section 10.01 Liability. 

(a) Except as expressly set forth in this Declaration, the Preferred Securities Guarantee and the terms of the Securities, the Sponsor
shall not be: 
 (i) personally liable for the return of any portion of the capital contributions (or any return
thereon) of the Holders of the Securities which shall be made solely from assets of the Trust; and 
 (ii)
required to pay to the Trust or to any Holder of Securities any deficit upon dissolution of the Trust or otherwise. 
 (b) The
Holder of the Common Securities shall be liable for all of the debts and obligations of the Trust (other than with respect to the Securities) to the extent not satisfied out of the Trust’s assets. 

(c) Pursuant to Section 3803(a) of the Statutory Trust Act, the Holders of the Preferred Securities shall be entitled to the same
limitation of personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of Delaware. 

Section 10.02 Exculpation. 

(a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Trust or any Covered Person for any
loss, damage or claim incurred by reason of any act or omission performed or omitted by such Indemnified Person in good faith on behalf of the Trust and in a manner such Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Declaration or by law, except that an Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such Indemnified Person’s negligence, bad faith or willful misconduct
with respect to such acts or omissions. 
 (b) An Indemnified Person shall be fully protected in relying in good faith upon the
records of the Trust and upon such information, opinions, reports or statements presented to the Trust by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence and
who has been selected with reasonable care by or on behalf of the Trust, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and
amount of assets from which Distributions to Holders of Securities might properly be paid. 
  

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 Section 10.03 Fiduciary Duty. 

(a) To the extent that, at law or in equity, an Indemnified Person has duties (including fiduciary duties) and liabilities relating
thereto to the Trust or to any other Covered Person, an Indemnified Person acting under this Declaration shall not be liable to the Trust or to any other Covered Person for its good faith reliance on the provisions of this Declaration. The
provisions of this Declaration, to the extent that they restrict the duties and liabilities of an Indemnified Person otherwise existing at law or in equity (other than the duties imposed on the Institutional Trustee under the Trust Indenture Act),
are agreed by the parties hereto to replace such other duties and liabilities of such Indemnified Person. 
 (b) Unless
otherwise expressly provided herein: 
 (i) whenever a conflict of interest exists or arises between an
Indemnified Person and any Covered Person; or 
 (ii) whenever this Declaration or any other agreement
contemplated herein or therein provides that an Indemnified Person shall act in a manner that is, or provides terms that are, fair and reasonable to the Trust or any Holder of Securities, the Indemnified Person shall resolve such conflict of
interest, take such action or provide such terms, considering in each case the relative interest of each party (including its own interest) to such conflict, agreement, transaction or situation and the benefits and burdens relating to such
interests, any customary or accepted industry practices, and any applicable generally accepted accounting practices or principles. In the absence of bad faith by the Indemnified Person, the resolution, action or term so made, taken or provided by
the Indemnified Person shall not constitute a breach of this Declaration or any other agreement contemplated herein or of any duty or obligation of the Indemnified Person at law or in equity or otherwise. 

(c) Whenever in this Declaration an Indemnified Person is permitted or required to make a decision: 

(i) in its “discretion” or under a grant of similar authority, the Indemnified Person shall be entitled to
consider such interests and factors as it desires, including its own interests, and shall have no duty or obligation to give any consideration to any interest of or factors affecting the Trust or any other Person; or 

(ii) in its “good faith” or under another express standard, the Indemnified Person shall act under such express
standard and shall not be subject to any other or different standard imposed by this Declaration or by applicable law. 

Section 10.04 Indemnification. 

(a) To the fullest extent permitted by applicable law, the Sponsor shall indemnify and hold harmless each Indemnified Person from and
against any and all loss, liability, damage or 
  

 37 








 
claim or expense, including taxes (other than taxes measured by the income of any Indemnified Person, or otherwise applicable to the Indemnified Person for operations outside the scope of this
Declaration) incurred by such Indemnified Person by reason of any act or omission performed or omitted by such Indemnified Person in good faith on behalf of the Trust and in a manner such Indemnified Person reasonably believed to be within the scope
of authority conferred on such Indemnified Person by this Declaration, except that no Indemnified Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Indemnified Person by reason of negligence, bad
faith or willful misconduct with respect to such acts or omissions. 
 (b) To the fullest extent permitted by applicable law,
expenses (including reasonable legal fees and expenses) incurred by an Indemnified Person in defending any claim, demand, action, suit or proceeding shall be advanced by the Sponsor prior to the final disposition of such claim, demand, action, suit
or proceeding upon receipt by the Sponsor of an undertaking by or on behalf of the Indemnified Person to repay such amount if it shall be determined that the Indemnified Person is not entitled to be indemnified as authorized in
Section 10.03(a). The indemnification shall survive the termination of this Declaration. 
 Section 10.05 Outside
Businesses. Any Covered Person, the Sponsor, the Delaware Trustee and the Institutional Trustee may engage in or possess an interest in other business ventures of any nature or description, independently or with others, similar or dissimilar to
the business of the Trust, and the Trust and the Holders of Securities shall have no rights by virtue of this Declaration in and to such independent ventures or the income or profits derived therefrom and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or improper. No Covered Person, the Sponsor, the Delaware Trustee, or the Institutional Trustee shall be obligated to present any particular investment or other opportunity to
the Trust even if such opportunity is of a character that, if presented to the Trust, could be Sponsor, the Delaware Trustee and the Institutional Trustee shall have the right to take for its own account (individually or as a partner or fiduciary)
or to recommend to others any such particular investment or other opportunity. Any Covered Person, the Delaware Trustee and the Institutional Trustee may engage or be interested in any financial or other transaction with the Sponsor or any Affiliate
of the Sponsor, or may act as depositary for, trustee or agent for, or act on any committee or body of holders of, securities or other obligations of the Sponsor or its Affiliates. 

ARTICLE 11. 

ACCOUNTING 

Section 11.01 Fiscal Year. The fiscal year of the Trust (“Fiscal Year”) shall be the calendar year, or such other
year as is required by the Code. 
 Section 11.02 Certain Accounting Matters. 

(a) At all times during the existence of the Trust, the Administrative Trustees shall keep, or cause to be kept, full books of account,
records and supporting documents, which shall reflect in reasonable detail, each transaction of the Trust. The books of account shall be maintained on the accrual method of accounting, in accordance with generally accepted accounting principles,
consistently applied. The Trust shall use the accrual method of accounting 
  

 38 








 
for United States federal income tax purposes. The books of account and the records of the Trust shall be examined by and reported upon as of the end of each Fiscal Year by a firm of independent
certified public accountants selected by the Administrative Trustees. 
 (b) The Administrative Trustees shall cause to be
prepared and delivered to each of the Holders of Securities to the extent, if any, required by the Trust Indenture Act, within 90 days after the end of each Fiscal Year of the Trust, annual financial statements of the Trust, including a balance
sheet of the Trust as of the end of such Fiscal Year, and the related statements of income or loss; 
 (c) The Administrative
Trustees shall cause to be duly prepared and delivered to each of the Holders of Securities, any annual United States federal income tax information statement, required by the Code, containing such information with regard to the Securities held by
each Holder as is required by the Code and the Treasury Regulations. Notwithstanding any right under the Code to deliver any such statement at a later date, the Administrative Trustees shall endeavor to deliver all such statements within 30 days
after the end of each Fiscal Year of the Trust. 
 (d) The Administrative Trustees shall cause to be duly prepared and filed
with the appropriate taxing authority, an annual United States federal income tax return, on a Form 1041, Form 3520-A or such other form required by United States federal income tax law, and any other annual income tax returns required to be filed
by the Administrative Trustees on behalf of the Trust with any state or local taxing authority. 
 Section 11.03
Banking. The Trust shall maintain one or more bank accounts in the name and for the sole benefit of the Trust; provided, however, that all payments of funds in respect of the Debentures held by the Institutional Trustee shall be made directly
to the Institutional Trustee Account and no other funds of the Trust shall be deposited in the Institutional Trustee Account. The sole signatories for such accounts shall be designated by the Administrative Trustees; provided, however, that the
Institutional Trustee shall designate the signatories for the Institutional Trustee Account. 
 Section 11.04
Withholding. The Trust and the Administrative Trustees shall comply with all withholding requirements under United States federal, state and local law. The Trust shall request, and the Holders shall provide to the Trust, such forms or
certificates as are necessary to establish an exemption from withholding with respect to each Holder, and any representations and forms as shall reasonably be requested by the Trust to assist it in determining the extent of, and in fulfilling, its
withholding obligations. The Administrative Trustee shall file required forms with applicable jurisdictions and, unless an exemption from withholding is properly established by a Holder, shall remit amounts withheld with respect to the Holder to
applicable jurisdictions. To the extent that the Trust is required to withhold and pay over any amounts to any authority with respect to distributions or allocations to any Holder, the amount withheld shall be deemed to be a distribution in the
amount of the withholding to the Holder. In the event of any claimed over withholding, Holders shall be limited to an action against the applicable jurisdiction. If the amount required to be withheld was not withheld from actual Distributions made
to any Holder, the Trust may reduce subsequent Distributions to such Holder by the amount of such withholding. 
  

 39 








 ARTICLE 12. 

AMENDMENTS AND MEETINGS 

Section 12.01 Amendments. 

(a) Except as otherwise provided in this Declaration or by any applicable terms of the Securities, this Declaration may only be amended by
a written instrument approved and executed by: 
 (i) the Administrative Trustees (or, if there are more than two
Administrative Trustees a majority of the Administrative Trustees); 
 (ii) if the amendment affects the rights,
powers, duties, obligations or immunities of the Institutional Trustee, the Institutional Trustee; and 
 (iii)
if the amendment affects the rights, powers, duties, obligations or immunities of the Delaware Trustee, the Delaware Trustee; 

(b) no amendment shall be made, and any such purported amendment shall be void and ineffective: 

(i) unless, in the case of any proposed amendment, the Institutional Trustee shall have first received an Officers’
Certificate from each of the Trust and the Sponsor that such amendment is permitted by, and conforms to, the terms of this Declaration (including the terms of the Securities); 

(ii) unless, in the case of any proposed amendment which affects the rights, powers, duties, obligations or immunities of
the Institutional Trustee, the Institutional Trustee shall have first received: 
 (A) an Officers’
Certificate from each of the Trust and the Sponsor that such amendment is permitted by, and conforms to, the terms of this Declaration (including the terms of the Securities); and 

(B) an opinion of counsel (who may be counsel to the Sponsor or the Trust) that such amendment is permitted by, and
conforms to, the terms of this Declaration (including the terms of the Securities); and 
 (iii) to the extent
the result of such amendment would be to: 
 (A) cause the Trust to fail to continue to be classified for
purposes of United States federal income taxation as a grantor trust; 
 (B) reduce or otherwise adversely
affect the powers of the Institutional Trustee in contravention of the Trust Indenture Act; or 
 (C) cause the
Trust to be deemed to be an Investment Company required to be registered under the Investment Company Act. 
  

 40 








 (c) at such time after the Trust has issued any Securities that remain outstanding, any
amendment that would adversely affect the rights, privileges or preferences of any Holder of Securities may be effected only with such additional requirements as may be set forth in the terms of such Securities; 

(d) Section 9.01(a) and this Section 12.01 shall not be amended without the consent of all of the Holders of the Securities;

 (e) Article 4 shall not be amended without the consent of the Holders of a Majority in liquidation preference of the Common
Securities and; 
 (f) the rights of the holders of the Common Securities under Article 5 to increase or decrease the number of,
and appoint and remove Trustees shall not be amended without the consent of the Holders of a Majority in liquidation preference of the Common Securities; and 

(g) subject to Section 12.01(c), this Declaration may be amended without the consent of the Holders of the Securities to:

 (i) cure any ambiguity; 

(ii) correct or supplement any provision in this Declaration that may be defective or inconsistent with any other
provision of this Declaration; 
 (iii) add to the covenants, restrictions or obligations of the Sponsor;

 (iv) conform to any change in Rule 3a-5 or written change in interpretation or application of Rule 3a-5 by any
legislative body, court, government agency or regulatory authority which amendment does not have a material adverse effect on the rights, preferences or privileges of the Holders; and 

(v) to modify, eliminate and add to any provision of the Declaration to such extent as may be reasonably necessary to
effectuate any of the foregoing or to otherwise comply with applicable law. 
 Section 12.02 Meetings of the Holders of
Securities; Action by Written Consent. 
 (a) Meetings of the Holders of any class of Securities may be called at any time by
the Administrative Trustees (or as provided in the terms of the Securities) to consider and act on any matter on which Holders of such class of Securities are entitled to act under the terms of this Declaration, the terms of the Securities or the
rules of any stock exchange on which the Preferred Securities are listed or admitted for trading. The Administrative Trustees shall call a meeting of the Holders of such class if directed to do so by the Holders of Securities representing at least
10% in liquidation preference of such class of Securities. Such direction shall be given by delivering to the Administrative Trustees one or more requests in a writing stating that the signing Holders of Securities wish to call a meeting and
indicating the general or specific purpose for which the meeting is to be called. Any Holders of Securities calling a meeting shall specify in writing the Certificates held by the Holders of Securities exercising the right to call a meeting and only
those Securities represented by the Certificates so specified shall be counted for purposes of determining whether the required percentage set forth in the second sentence of this paragraph has been met. 

 

 41 








 (b) Except to the extent otherwise provided in the terms of the Securities, the following
provisions shall apply to meetings of Holders of Securities: 
 (i) notice of any such meeting shall be given to
all the Holders of Securities having a right to vote thereat at least 7 days and not more than 60 days before the date of such meeting. Whenever a vote, consent or approval of the Holders of Securities is permitted or required under this Declaration
or the rules of any stock exchange on which the Preferred Securities are listed or admitted for trading, such vote, consent or approval may be given at a meeting of the Holders of Securities. Any action that may be taken at a meeting of the Holders
of Securities may be taken without a meeting if a consent in writing setting forth the action so taken is signed by the Holders of Securities owning not less than the minimum aggregate liquidation preference of Securities that would be necessary to
authorize or take such action at a meeting at which all Holders of Securities having a right to vote thereon were present and voting. Prompt notice of the taking of action without a meeting shall be given to the Holders of Securities entitled to
vote who have not consented in writing. The Administrative Trustees may specify that any written ballot submitted to the Security Holders for the purpose of taking any action without a meeting shall be returned to the Trust within the time specified
by the Administrative Trustees; 
 (ii) each Holder of a Security may authorize any Person to act for it by proxy
on all matters in which a Holder of Securities is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. No proxy shall be valid after the expiration of 11 months from the date thereof unless
otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Holder of Securities executing it. Except as otherwise provided herein, all matters relating to the giving, voting or validity of proxies shall be governed by the
General Corporation Law of the State of Delaware relating to proxies, and judicial interpretations thereunder, as if the Trust were a Delaware corporation and the Holders of the Securities were stockholders of a Delaware corporation; 

(iii) each meeting of the Holders of the Securities shall be conducted by the Administrative Trustees or by such other
Person that the Administrative Trustees may designate; and 
 (iv) unless the Statutory Trust Act, this
Declaration, the terms of the Securities, the Trust Indenture Act or the listing rules of any stock exchange on which the Preferred Securities are then listed or trading, provide otherwise, the Administrative Trustees, in their sole discretion,
shall establish all other provisions relating to meetings of Holders of Securities, including notice of the time, place or purpose of any meeting at which any matter is to be voted on by any Holders of Securities, waiver of any such notice, action
by consent without a meeting, the establishment of a record date, quorum requirements, voting in person or by proxy or any other matter with respect to the exercise of any such right to vote. 

 

 42 








 ARTICLE 13. 

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE 

Section 13.01 Representations and Warranties of Institutional Trustee. The Trustee that acts as initial Institutional Trustee
represents and warrants to the Trust and to the Sponsor at the date of this Declaration and at the time of Closing, and each Successor Institutional Trustee represents and warrants to the Trust and the Sponsor at the time of the Successor
Institutional Trustee’s acceptance of its appointment as Institutional Trustee that: 
 (a) The Institutional Trustee is a
New York banking corporation with trust powers, duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with corporate power and authority to execute and deliver, and to carry out and perform its
obligations under the terms of, the Declaration. 
 (b) The execution, delivery and performance by the Institutional Trustee of
the Declaration has been duly authorized by all necessary corporate action on the part of the Institutional Trustee. The Declaration has been duly executed and delivered by the Institutional Trustee, and constitutes a legal, valid and binding
obligation of the Institutional Trustee, enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency, and other similar laws affecting creditors’ rights generally and to general
principles of equity and the discretion of the court (regardless of whether the enforcement of such remedies is considered in a proceeding in equity or at law). 

(c) The execution, delivery and performance of the Declaration by the Institutional Trustee does not conflict with or constitute a breach
of the certificate of incorporation or By-laws of the Institutional Trustee. 
 (d) No consent, approval or authorization of, or
registration with or notice to, any State or Federal banking authority is required for the execution, delivery or performance by the Institutional Trustee of the Declaration. 

Section 13.02 Representations and Warranties of Delaware Trustee. The Trustee that acts as initial Delaware Trustee
represents and warrants to the Trust and to the Sponsor at the date of this Declaration and at the time of Closing, and each Successor Delaware Trustee represents and warrants to the Trust and the Sponsor at the time of the Successor Institutional
Trustee’s acceptance of its appointment as Delaware Trustee that: 
 (a) The Delaware Trustee is a banking corporation with
trust powers, duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with corporate power and authority to execute and deliver, and to carry out and perform its obligations under the terms of,
the Declaration. 
 (b) The execution, delivery and performance by the Delaware Trustee of the Declaration has been duly
authorized by all necessary corporate action on the part of the Delaware Trustee. The Declaration has been duly executed and delivered by the Delaware Trustee, and constitutes a legal, valid and binding obligation of the Delaware Trustee,
enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency, and other similar laws affecting creditors’ rights generally and to general principles of equity and the discretion
of the court (regardless of whether the enforcement of such remedies is considered in a proceeding in equity or at law). 
  

 43 








 (c) The execution, delivery and performance of the Declaration by the Delaware Trustee does
not conflict with or constitute a breach of the certificate of incorporation or By-laws of the Delaware Trustee. 
 (d) No
consent, approval or authorization of, or registration with or notice to, any State or Federal banking authority is required for the execution, delivery or performance by the Delaware Trustee, of the Declaration. 

(e) The Delaware Trustee is an entity which has its principal place of business in the State of Delaware. 

(f) The Delaware Trustee has been authorized to perform its obligations under the Certificate of Trust and the Declaration. The
Declaration under Delaware law constitutes a legal, valid and binding obligation of the Delaware Trustee, enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency, and other
similar laws affecting creditors’ rights generally and to general principles of equity and the discretion of the court (regardless of whether the enforcement of such remedies is considered in a proceeding in equity or at law). 

ARTICLE 14. 

[RESERVED] 

Section 14.01 [Reserved]. 

ARTICLE 15. 

MISCELLANEOUS 

Section 15.01 Notices. All notices provided for in this Declaration shall be in writing, duly signed by the party giving such
notice, and shall be delivered, telecopied or mailed by registered or certified mail, as follows: 
 (a) if given to the Trust,
in care of the Administrative Trustees at the Trust’s mailing address set forth below (or such other address as the Trust may give notice of to the Holders of the Securities): 

c/o Alterra Capital Group Ltd. 

Alterra House 

2 Front Street 

Hamilton, HM 11, Bermuda 

Attention: General Counsel 

(b) if given to the Institutional Trustee, at the mailing address set forth below (or such other address as the Institutional Trustee may
give notice of to the Holders of the Securities): 

[                    
                                         
 ] 

[                    
                                         
 ] 

[                    
                                         
 ] 
 Attention:
[                                         
 ] 
  

 44 








 (c) if given to the Holder of the Common Securities, at the mailing address of the Sponsor
set forth below (or such other address as the Holder of the Common Securities may give notice to the Trust): 

[                    
                                         
 ] 

[                    
                                         
 ] 

[                    
                                         
 ] 
 Attention:
[                                         
 ] 
 (d) if given to any other Holder, at the address set forth on the books and records of the Trust or the Registrar, as
applicable. 
 ll such notices shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first
class mail, postage prepaid except that if a notice or other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the
date of such refusal or inability to deliver. 
 Section 15.02 Governing Law; Waiver of Jury Trial. This Declaration
and the rights of the parties hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware and all rights and remedies shall be governed by such laws without regard to principles of conflict of laws.

 EACH OF THE DEBENTURE ISSUER, THE DELAWARE TRUSTEE, THE ADMINISTRATIVE TRUSTEE AND THE INSTITUTIONAL TRUSTEE HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS DECLARATION OF TRUST, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

 Section 15.03 Intention of the Parties. It is the intention of the parties hereto that the Trust be classified
for United States federal income tax purposes as a grantor trust. The provisions of this Declaration shall be interpreted to further this intention of the parties. 

Section 15.04 Headings. Headings contained in this Declaration are inserted for convenience of reference only and do not
affect the interpretation of this Declaration or any provision hereof. 
 Section 15.05 Successors and Assigns.
Whenever in this Declaration any of the parties hereto is named or referred to, the successors and assigns of such party shall be deemed to be included, and all covenants and agreements in this Declaration by the Sponsor and the Trustees shall bind
and inure to the benefit of their respective successors and assigns, whether so expressed. 
  

 45 








 Section 15.06 Partial Enforceability. If any provision of this Declaration, or
the application of such provision to any Person or circumstance, shall be held invalid, the remainder of this Declaration, or the application of such provision to persons or circumstances other than those to which it is held invalid, shall not be
affected thereby. 
 Section 15.07 Counterparts. This Declaration may contain more than one counterpart of the
signature page and this Declaration may be executed by the affixing of the signature of each of the Trustees to one of such counterpart signature pages. All of such counterpart signature pages shall be read as though one, and they shall have the
same force and effect as though all of the signers had signed a single signature page. 
 Section 15.08 Force
Majeure. In no event shall the Institutional Trustee or the Delaware Trustee be responsible or liable for any failure or delay in the performance of their obligations hereunder arising out of or caused by, directly or indirectly, forces beyond
their control, including, without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being understood that the Institutional Trustee and the Delaware Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances. 
 Section 15.09 Submission to Jurisdiction (NY) and
Appointment of Agent for Service of Process. The Company agrees that any judicial proceedings instituted in relation to any matter arising under this Declaration, the Securities appertaining thereto may be brought in any United States Federal or
New York State court sitting in the Borough of Manhattan, The City of New York, New York to the extent that such court has subject matter jurisdiction over the controversy, and, by execution and delivery of this Declaration, the Company hereby
irrevocably accepts, generally and unconditionally, the jurisdiction of the aforesaid courts, acknowledges their competence and irrevocably agrees to be bound by any judgment rendered in such proceeding. The Company also irrevocably and
unconditionally waives for the benefit of the Trustee and the Holders of the Securities any immunity from jurisdiction and any immunity from legal process (whether through service or notice, attachment prior to judgment, attachment in the aid of
execution, execution or otherwise) in respect of this Declaration. The Company hereby irrevocably designates and appoints for the benefit of the Trustee and the Holders of the Securities for the term of this Declaration CT Corporation System, 111
Eighth Avenue, New York, New York 10011, as its agent to receive on its behalf service of all process (with a copy of all such service of process to be delivered to Alterra Capital Holdings Limited, Alterra House, 2 Front Street, Hamilton, HM 11,
Bermuda, Attention: General Counsel) brought against it with respect to any such proceeding in any such court in The City of New York, such service being hereby acknowledged by the Company to be effective and binding service on it in every respect
whether or not the Company shall then be doing or shall have at any time done business in New York. Such appointment shall be irrevocable so long as any of the Securities or the obligations of the Company hereunder remain outstanding until the
appointment of a successor by the Company and such successor’s acceptance of such appointment. Upon such acceptance, the Company shall notify the Trustee in writing of the name and address of such successor. The Company further agrees for the
benefit of the Trustee and the Holders of the Securities to take any and all action, including the execution and filing of any and all such documents and instruments, as its agent in 

 

 46 








 
full force and effect so long as any of the Securities or the obligations of the Company hereunder shall be outstanding. The Trustee shall not be obligated and shall have no responsibility with
respect to any failure by the Company to take any such action. Nothing herein shall affect the right to serve process in any other manner permitted by any law or limit the right of the Trustee or any Holder to institute proceedings against the
Company in the courts of any other jurisdiction or jurisdictions. 
  

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 IN WITNESS WHEREOF, the undersigned has caused these presents to be executed as of the day
and year first above written. 
  

			
	 ALTERRA CAPITAL HOLDINGS LIMITED

	as Sponsor
		
	By:	 	  

		 	[                             
                                         
      ]
		 	Name:
[                                         
                       ]
		 	Title:
	
	[                            
                                         
  ]
	as Institutional Trustee
		
	By:	 	  

		 	[                             
                                         
      ]
		 	Name:
[                                         
                       ]
		 	Title:
[                                         
                         ]
	
	[                            
                                         
   ]
	as Delaware Trustee
		
	By:	 	  

		 	Name:
[                                         
                       ]
		 	Title:
[                                         
                         ]
	
	  

	as Administrative Trustee
		 	Name:
[                                         
                       ]
	
	  

	as Administrative Trustee
		 	Name:
[                                         
                       ]
	
	  

	as Administrative Trustee
		 	Name:
[                                         
                       ]


  

 48 








 ANNEX I 

TERMS OF 

[    ]% PREFERRED SECURITIES 

[    ]% COMMON SECURITIES 

Pursuant to Section 7.01 of the Second Amended and Restated Declaration of Trust, dated as of
[                        ] (as amended from time to time, the “Declaration”), the designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Preferred Securities and the Common Securities are set out below (each capitalized term used but not defined herein has the meaning set forth in the Declaration or, if not defined in
such Declaration, as defined in the Prospectus Supplement referred to below): 
  

	1.	Designation and Number. 


(a) Preferred Securities. [        ] Preferred Securities of the Trust with an aggregate
liquidation preference with respect to the assets of the Trust of [        ] Dollars ($[        ])[, plus up to an additional
[        ] Preferred Securities of the Trust with an aggregate liquidation preference with respect to the assets of the Trust of [        ] Dollars
($[        ]) solely to cover over-allotments, as provided for in the purchase agreement (the “Additional Preferred Securities”),] and a liquidation preference with respect to the assets of the Trust
of $[        ] per Preferred Security, are hereby designated for the purposes of identification only as “[        ]% Preferred Securities (liquidation preference
$[        ] per Preferred Security)” (the “Preferred Securities”). The Certificates evidencing the Preferred Securities shall be substantially in the form attached as Exhibit A-1 to the
Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice or to conform to the rules of any stock exchange or other organization on which the Preferred Securities are listed.

 (b) Common Securities. [        ] Common Securities of the Trust with an
aggregate liquidation preference with respect to the assets of the Trust of [        ] Dollars ($[        ])[, plus up to an additional
[        ] Common Securities of the Trust with an aggregate liquidation preference with respect to the assets of the Trust of [        ] Dollars
($[        ]) to meet the capital requirements of the Trust in the event of an issuance of Additional Preferred Securities,] and a liquidation amount with respect to the assets of the Trust of
$[            ] per Common Security, are hereby designated for the purposes of identification only as “[        ]% Common Securities
(liquidation amount $[        ] per Common Security)” (the “Common Securities”). The Certificates evidencing the Common Securities shall be substantially in the form attached as Exhibit A-2 to
the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice. 
  

	2.	Distributions. 

 (a)
Distributions payable on each Security will be fixed at a rate per annum of [            ]% (the “Coupon Rate”) of the stated liquidation amount of
$[        ] per Security, such rate being the rate of interest payable on the Debentures to be held by the Institutional Trustee. Distributions in arrears for more than one [semi-annual period] [quarter] will
bear interest thereon compounded [semi-annually] [quarterly] at the Coupon Rate (to the extent permitted by applicable law). The term “Distributions” as used herein includes such cash

  

 I-1 








 
distributions and any such interest payable unless otherwise stated. A Distribution is payable only to the extent that payments are made in respect of the Debentures held by the Institutional
Trustee and to the extent the Institutional Trustee has funds available therefor. The amount of Distributions payable for any period will be computed for any full [semi-annually] [quarterly] Distribution period on the basis of a 360- day year of
twelve 30-day months, and for any period shorter than a full [semi-annually] [quarterly] Distribution period for which Distributions are computed, Distributions will be computed on the basis of the actual number of days elapsed per 30-day month.

 (b) Distributions on the Securities will be cumulative, will accrue from the date of original issuance and will be payable
[semi-annually] [quarterly] in arrears, on the following dates, which dates correspond to the interest payment dates on the Debentures: [        ], of each year, commencing on
[        ], except as otherwise described below. When, as and if available for payment, Distributions will be made by the Institutional Trustee. The Debenture Issuer has the right under the Indenture to defer
payments of interest on the Debentures by extending the interest payment period from time to time on the Debentures for a period not exceeding [        ] consecutive [semi-annual periods] [quarters] (each an
“Extension Period”), during which Extension Period no interest shall be due and payable on the Debentures, provided, that no Extension Period may extend beyond the date of maturity of the Debentures. As a consequence of such deferral,
Distributions will also be deferred. Despite such deferral, [semi-annually] [quarterly] Distributions will continue to accrue with interest thereon (to the extent permitted by applicable law) at the Coupon Rate compounded [semi-annually] [quarterly]
during any such Extension Period. Prior to the termination of any such Extension Period, the Debenture Issuer may further extend such Extension Period; provided that such Extension Period together with all such previous and further extensions
thereof may not exceed [        ] consecutive [semi-annual periods] [quarters]. And provided further, that no Extension Period may extend beyond the maturity of the Debentures. Payments of accrued
Distributions will be payable to Holders as they appear on the books and records of the Trust on the first record date after the end of the Extension Period. Upon the termination of any Extension Period and the payment of all amounts then due, the
Debenture Issuer may commence a new Extension Period, subject to the above requirements. The Administrative Trustees will give notice to each Holder of any Extension Period upon their receipt of notice thereof from the Debenture Issuer. 

(c) Distributions on the Securities will be payable to the Holders thereof as they appear on the books and records of the Trust at the
close of business on the relevant record dates. The relevant record dates shall be 15 days prior to the relevant payment dates, which payment dates shall correspond to the interest payment dates on the Debentures. Subject to any applicable laws and
regulations and the provisions of the Declaration, each such payment in respect of Preferred Securities being held in book-entry form through The Depository Trust Company (the “Depositary”) will be made as described under the heading
[“Description of the Preferred Securities—Book-Entry Only Issuance—The Depository Trust Company”] in the Prospectus Supplement. The relevant record dates for the Common Securities shall be the same record dates as for the
Preferred Securities. Distributions payable on any Securities that are not punctually paid on any Distribution payment date, as a result of the Debenture Issuer having failed to make a payment under the Debentures, will cease to be payable to the
Person in whose name such Securities are registered on the relevant record date, and such defaulted Distribution will instead be payable to the Person in whose name such Securities are registered on the special record date

  

 I-2 








 
or other specified date determined in accordance with the Indenture. If any date on which Distributions are payable on the Securities is not a Business Day, then payment of the Distribution
payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay) except that, if such Business Day is in the next succeeding calendar year, such payment
shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on such date. 

(d) In the event that there is any money or other property held by or for the Trust that is not accounted for hereunder, such property
shall be distributed Pro Rata (as defined herein) among the Holders of the Securities. 
  

	3.	Liquidation Distribution Upon Dissolution. 


In the event of any voluntary or involuntary dissolution, winding-up or termination of the Trust, the Holders of the Securities on the
date of the dissolution, winding-up or termination, as the case may be, will be entitled to receive out of the assets of the Trust available for distribution to Holders of Securities after satisfaction of liabilities of creditors of the Trust an
amount equal to the aggregate of the stated liquidation preference of $[        ] per Security plus accrued and unpaid Distributions thereon to the date of payment (such amount being the “Liquidation
Distribution”), unless, in connection with such dissolution, winding-up or termination, Debentures in an aggregate principal amount equal to the aggregate stated liquidation preference of such Securities, with an interest rate equal to the
Coupon Rate, and bearing accrued and unpaid interest in an amount equal to the accrued and unpaid Distributions on, such Securities outstanding at such time, have been distributed on a Pro Rata basis to the Holders of the Securities in exchange for
such Securities. 
 If, upon any such dissolution, the Liquidation Distribution can be paid only in part because the Trust has
insufficient assets available to pay in full the aggregate Liquidation Distribution, then the amounts payable directly by the Trust on the Securities shall be paid on a Pro Rata basis in accordance with paragraph 9 hereof. 

 

	4.	Redemption and Distribution. 


(a) Upon the repayment of the Debentures in whole or in part, whether at maturity or upon redemption or otherwise, the proceeds from such
repayment or redemption shall be simultaneously applied to redeem Securities having an aggregate liquidation preference equal to the aggregate principal amount of the Debentures so repaid or redeemed at a redemption price of
$[        ] per Security together with accrued and unpaid Distributions thereon through the date of the redemption, payable in cash (the “Redemption Price”). Holders will be given not less than 30
nor more than 60 days’ notice of such redemption. Upon the repayment of the Debentures at maturity or upon any acceleration, earlier redemption or otherwise, the proceeds from such repayment will be applied to redeem the Securities, in whole,
upon not less than 30 nor more than 60 days’ notice. 
  

 I-3 








 (b) If fewer than all the outstanding Securities are to be so redeemed, the Common
Securities and the Preferred Securities will be redeemed Pro Rata and the Preferred Securities to be redeemed will be as described in Paragraph 4(f)(ii) below. 

(c) If, at any time, a Tax Event shall occur and be continuing the Sponsor shall cause the Administrative Trustees to liquidate the Trust
and, after satisfaction of creditors of the Trust, cause Debentures to be distributed to the Holders of the Securities in liquidation of the Trust within 90 days following the occurrence of such Tax Event (the “90 Day Period”); provided,
however, that such liquidation and distribution shall be conditioned on (i) the Administrative Trustees’ receipt of an opinion of tax counsel (reasonably acceptable to the Administrative Trustees) experienced in such matters (a “No
Recognition Opinion”), which opinion may rely on published revenue rulings of the Internal Revenue Service, to the effect that the Holders of the Securities will not recognize any income, gain or loss for United States Federal income tax
purposes as a result of such liquidation and distribution of Debentures, and (ii) the Sponsor being unable to avoid such Tax Event within such 90 Day Period by taking some ministerial action or pursuing some other reasonable measure that, in
the sole judgment of the Sponsor, will have no adverse effect on the Trust, the Sponsor or the Holders of the Securities and will involve no material cost (“Ministerial Action”). 

If the Administrative Trustees shall have been informed by tax counsel experienced in such matters that it cannot deliver a No
Recognition Opinion, the Debenture Issuer shall have the right, upon not less than 30 nor more than 60 days’ notice, and within 90 days following the occurrence of such Tax Event, to redeem the Debentures in whole (but not in part) for cash, at
the Tax Event Prepayment Price plus accrued and unpaid interest and, following such redemption, all the Securities will be redeemed by the Trust at the Tax Event Redemption Price plus accrued and unpaid distributions; provided, however, that, if at
the time there is available to the Debenture Issuer or the Trust the opportunity to eliminate, within such 90 Day Period, the Tax Event by taking some Ministerial Action, the Trust or the Debenture Issuer will pursue such Ministerial Action in lieu
of redemption. 
 “Adjusted Treasury Rate” means, with respect to any prepayment date, the rate per annum equal to the
[semi-annual] equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such prepayment date.

 “Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a
maturity comparable to the remaining term of the Debentures to be prepaid that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity
to the remaining term of the Debentures. 
 “Comparable Treasury Price” means, with respect to any prepayment date,
(i) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third Business Day preceding such prepayment date, as set forth in the daily statistical
release (or any successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if such release (or any successor release) is not published or
does 
  

 I-4 








 
not contain such prices on such Business Day, (A) the average of the Reference Treasury Dealer Quotations for such prepayment date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or (B) if the Debenture Trustee obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such Quotations. 

“Quotation Agent” means the Reference Treasury Dealer appointed by the Debenture Issuer. 

“Reference Treasury Dealer” means a nationally recognized U.S. Government securities dealer in New York City selected by the
Debenture Issuer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and
any prepayment date, the average, as determined by the Debenture Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Debenture Trustee by
such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such repayment date. 

“Tax Event” means that the Sponsor shall have received an opinion of tax counsel (reasonably acceptable to the Administrative
Trustees) experienced in such matters (a “Dissolution Tax Opinion”) to the effect that as a result of (a) any amendment to, or change (including any announced prospective change) in, the laws (or any regulations thereunder) of the
United States or any political subdivision or taxing authority therefor or therein, or (b) any amendment to, or change in, an interpretation or application of any such laws or regulations by any legislative body, court, governmental agency or
regulatory authority (including the enactment of any legislation and the publication of any judicial decision or regulatory determination on or after the date of the Prospectus Supplement), in either case after the date of the Prospectus Supplement,
there is more than an insubstantial risk that (i) the Trust is or will be subject to United States Federal income tax with respect to interest received on the Debentures or (ii) the Trust is, or will be within 90 days of the date thereof,
subject to more than a de minimis amount of taxes, duties, assessments or other governmental charges. 
 “Tax Event
Prepayment Price” means a prepayment price equal to the greater of (1) 100% of the principal amount thereof or (2) the sum, as determined by a Quotation Agent, of the present values of the remaining scheduled payments of principal and
interest (after giving effect to payment of accrued interest to the date of prepayment on the Debentures after the prepayment date), discounted to the prepayment date on a [semi-annual] basis at the Adjusted Treasury Rate plus basis points if
prepaid on or prior to, and basis points if prepaid thereafter, plus, in any case, accrued and unpaid interest to the prepayment date. 

“Tax Event Redemption Price” means the redemption price equal to the Tax Event Prepayment Price upon an optional prepayment by
the Debenture Issuer of the Debentures upon the occurrence and continuation of a Tax Event. 
 If an Investment Company Event
(as hereinafter defined) shall occur and be continuing, the Sponsor shall cause the Administrative Trustees to liquidate the Trust and cause the Debentures to be distributed to the Holders of the Securities in liquidation of the Trust within 90 days
following the occurrence of such Investment Company Event. 
  

 I-5 








 “Investment Company Event” means the occurrence of a change in law or regulation
or a written change in interpretation or application of law or regulation by any legislative body, court, governmental agency or regulatory authority (a “Change in 1940 Act Law”), to the effect that the Trust is or will be considered an
“investment company” which is required to be registered under the United States Investment Company Act, as amended, which Change in 1940 Act Law becomes effective on or after the date of the Prospectus Supplement. 

On and after the date fixed for any distribution of Debentures: (i) the Securities will no longer be deemed to be outstanding,
(ii) the Depositary or its nominee (or any successor Clearing Agency or its nominee), as record Holder of Preferred Securities represented by global certificates, will receive a registered global certificate or certificates representing the
Debentures to be delivered upon such distribution and (iii) any certificates representing Securities, except for certificates representing Preferred Securities held by the Depositary or its nominee (or any successor Clearing Agency or its
nominee), will be deemed to represent beneficial interests in the Debentures having an aggregate principal amount equal to the aggregate stated liquidation preference of such Securities, with accrued and unpaid interest equal to accrued and unpaid
Distributions on such Securities until such certificates are presented to the Debenture Issuer or its agent for transfer or reissuance. 

(d) The Securities will not be redeemed unless all accrued and unpaid Distributions have been paid on all Securities for all
[semi-annual] [quarterly] Distribution periods terminating on or before the date of redemption. 
 (e) If the Debentures are
distributed to the Holders of the Securities, pursuant to the terms of the Indenture, the Debenture Issuer will use its reasonable best efforts to cause the Debentures to be listed on the
[            ] or on such other exchange as the Preferred Securities were listed immediately prior to the distribution of the Debentures. 

(f) “Redemption or Distribution Procedures.” 

(i) Notice of any redemption of, or notice of distribution of Debentures in exchange for the Securities (a
“Redemption/Distribution Notice”) will be given by the Trust by mail to each Holder of Securities to be redeemed or exchanged not fewer than 30 nor more than 60 days before the date fixed for redemption or exchange thereof which, in the
case of a redemption, will be the date fixed for redemption of the Debentures. For purposes of the calculation of the date of redemption or exchange and the dates on which notices are given pursuant to this paragraph 4(f)(i), a
Redemption/Distribution Notice shall be deemed to be given on the day such notice is first mailed by first-class mail, postage prepaid, to Holders of Securities. Each Redemption/Distribution Notice shall be addressed to the Holders of Securities at
the address of each such Holder appearing in the books and records of the Trust. No defect in the Redemption/Distribution Notice or in the mailing of either thereof with respect to any Holder shall affect the validity of the redemption or exchange
proceedings with respect to any other Holder. 
  

 I-6 








 (ii) In the event that fewer than all the outstanding Securities are to be
redeemed, the Securities to be redeemed shall be redeemed Pro Rata from each Holder of Preferred Securities, it being understood that, in respect of Preferred Securities registered in the name of and held of record by the Depositary (or any
successor Clearing Agency) or any nominee, the distribution of the proceeds of such redemption will be made to each Clearing Agency Participant (or Person on whose behalf such nominee holds such securities) in accordance with the procedures applied
by such agency or nominee. 
 (iii) If Securities are to be redeemed and the Trust gives a
Redemption/Distribution Notice, which notice may only be issued if the Debentures are redeemed as set out in this paragraph 4 (which notice will be irrevocable), then (A) with respect to Preferred Securities held in book-entry form, by 12:00
noon, New York City time, on the redemption date, provided that the Debenture Issuer has paid the Institutional Trustee a sufficient amount of cash in connection with the related redemption or maturity of the Debentures, the Institutional Trustee
will deposit irrevocably with the Depositary (or successor clearing agency) funds sufficient to pay the amount payable on redemption with respect to such Preferred Securities and will give the Depositary irrevocable instructions and authority to pay
the amount payable on redemption to the Holders of such Preferred Securities, and (B) with respect to Preferred Securities issued in certificated form and Common Securities, provided that the Debenture Issuer has paid the Institutional Trustee
a sufficient amount of cash in connection with the related redemption or maturity of the Debentures, the Institutional Trustee will irrevocably deposit with the Paying Agent funds sufficient to pay the amount payable on redemption to the Holders of
such Securities upon surrender of their certificates. If a Redemption/Distribution Notice shall have been given and funds deposited as required, then on the date of such deposit, all rights of Holders of such Securities so called for redemption will
cease, except the right of the Holders of such Securities to receive the redemption price, but without interest on such redemption price. Neither the Administrative Trustees nor the Trust shall be required to register or cause to be registered the
transfer of any Securities that have been so called for redemption. If any date fixed for redemption of Securities is not a Business Day, then payment of the amount payable on such date will be made on the next succeeding day that is a Business Day
(without any interest or other payment in respect of any such delay) except that, if such Business Day falls in the next calendar year, such payment will be made on the immediately preceding Business Day, in each case with the same force and effect
as if made on such date fixed for redemption. If payment of the redemption price in respect of any Securities is improperly withheld or refused and not paid either by the Trust or by the Sponsor as guarantor pursuant to the relevant Securities
Guarantee, Distributions on such Securities will continue to accrue at the then applicable rate, from the original redemption date to the date of payment, in which case the actual payment date will be considered the date fixed for redemption for
purposes of calculating the amount payable upon redemption (other than for purposes of calculating any premium). 
  

 I-7 








 (iv) Redemption/Distribution Notices shall be sent by the Administrative
Trustees on behalf of the Trust to (A) in the case of Preferred Securities held in book-entry form, the Depositary and, in the case of Securities held in certificated form, the Holders of such certificates and (B) in respect of the Common
Securities, the Holder thereof. 
 (v) Subject to the foregoing and applicable law (including, without
limitation, United States Federal securities laws), the Sponsor or any of its subsidiaries may at any time and from time to time purchase outstanding Preferred Securities by tender, in the open market or by private agreement. 

 

	5.	[RESERVED]. 

  

	6.	Voting Rights—Preferred Securities. 


(a) Except as provided under paragraph 7, in the Statutory Trust Act and as otherwise required by law and the Declaration, the Holders of
the Preferred Securities will have no voting rights. Subject to the requirements set forth in this paragraph, the Holders of a majority in liquidation preference of the Preferred Securities, voting separately as a class may direct the time, method,
and place of conducting any proceeding for any remedy available to the Institutional Trustee, or direct the exercise of any trust or power conferred upon the Institutional Trustee under the Declaration, including the right to direct the
Institutional Trustee, as holder of the Debentures, to (i) exercise the remedies available under the Indenture with respect to the Debentures, (ii) waive any past Event of Default and its consequences that is waivable under
Section 6.1 of the Indenture, (iii) exercise any right to rescind or annul a declaration that the principal of all the Debentures shall be due and payable, or (iv) consent to any amendment, modification or termination of the Indenture
or the Debentures where such consent shall be required; provided, however, that, where a consent or action under the Indenture would require the consent or act of the Holders of greater than a majority of the Holders in principal amount of
Debentures affected thereby (a “Super Majority”), the Institutional Trustee may only give such consent or take such action at the written direction of the Holders of at least the proportion in liquidation preference of the Preferred
Securities that the relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. The Institutional Trustee shall not revoke any action previously authorized or approved by a vote of the Holders of the Preferred
Securities. Other than with respect to directing the time, method and place of conducting any remedy available to the Institutional Trustee or the Debenture Trustee as set forth above, the Institutional Trustee shall not take any action in
accordance with the directions of the Holders of the Preferred Securities under this paragraph unless the Institutional Trustee has received an opinion of tax counsel to the effect that, as a result of such action, the Trust will not fail to be
classified as a grantor trust for United States Federal income tax purposes. If the Institutional Trustee fails to enforce its rights, as holder of the Debentures, under the Indenture, any Holder of Preferred Securities may, after a period of 30
days has elapsed from such Holder’s written request to the Institutional Trustee to enforce such rights, institute a legal proceeding directly against the Debenture Issuer, to enforce the rights of the Institutional Trustee, as holder of the
Debentures, under the Indenture, without first instituting any legal proceeding against the Institutional Trustee or any other Person. 
  

 I-8 








 Notwithstanding the foregoing, in the event the Debenture Issuer shall fail to make any
payment on the Debentures when due, holders of the Preferred Securities shall have the right to institute a direct action against the Debenture Issuer for payment of such amounts. Any required approval or direction of Holders of Preferred Securities
may be given at a separate meeting of Holders of Preferred Securities convened for such purpose, at a meeting of all of the Holders of Securities in the Trust or pursuant to written consent. The Administrative Trustees will cause a notice of any
meeting at which Holders of Preferred Securities are entitled to vote, or of any matter upon which action by written consent of such Holders is to be taken, to be mailed to each Holder of record of Preferred Securities. Each such notice will include
a statement setting forth the following information: (i) the date of such meeting or the date by which such action is to be taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are
entitled to vote or of such matter upon which written consent is sought and (iii) instructions for the delivery of proxies or consents. 

No vote or consent of the Holders of the Preferred Securities will be required for the Trust to redeem and cancel Preferred Securities or
to distribute the Debentures in accordance with the Declaration and the terms of the Securities. 
 Notwithstanding that Holders
of Preferred Securities are entitled to vote or consent under any of the circumstances described above, any of the Preferred Securities that are owned by the Sponsor or any Affiliate of the Sponsor shall not be entitled to vote or consent and shall,
for purposes of such vote or consent, be treated as if they were not outstanding. 
  

	7.	Voting Rights—Common Securities. 


(a) The Holders of the Common Securities will only have such voting rights as provided under paragraphs 7(b), (c) and 8 herein, in
the Statutory Trust Act and as otherwise required by law and the Declaration, the Holders of the Common Securities will have no voting rights. 

(b) The Holders of the Common Securities are entitled, in accordance with Article 5 of the Declaration, to vote to appoint, remove or
replace any Trustee. 
 (c) Subject to Section 2.06 of the Declaration and only after the Event of Default with respect to
the Preferred Securities has been cured, waived, or otherwise eliminated and subject to the requirements of the fourth to last sentence of this paragraph, the Holders of a Majority in liquidation preference of the Common Securities, voting
separately as a class, may direct the time, method, and place of conducting any proceeding for any remedy available to the Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee under the Declaration,
including (i) directing the time, method, place of conducting any proceeding for any remedy available to the Debenture Trustee, or exercising any trust or power conferred on the Debenture Trustee with respect to the Debentures, (ii) waive
any past default and its consequences that is waivable under Section 6.1 of the Indenture, or (iii) exercise any right to rescind or annul a declaration that the principal of all the Debentures shall be due and payable, provided that,
where a consent or action under the Indenture would require the consent or act of the Holders of greater than a majority in principal amount of Debentures affected thereby (a “Super Majority”), the Institutional Trustee may only give such
consent or take such 
  

 I-9 








 
action at the written direction of the Holders of at least the proportion in liquidation preference of the Common Securities which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding. Pursuant to this paragraph 7(c), the Institutional Trustee shall not revoke any action previously authorized or approved by a vote of the Holders of the Preferred Securities. Other than with respect to
directing the time, method and place of conducting any proceeding for any remedy available to the Institutional Trustee or the Debenture Trustee as set forth above, the Institutional Trustee shall not take any action in accordance with the
directions of the Holders of the Common Securities under this paragraph unless the Institutional Trustee has received an opinion of tax counsel to the effect that, as a result of such action the Trust will not fail to be classified as a grantor
trust for United States Federal income tax purposes. If the Institutional Trustee fails to enforce its rights, as holder of the Debentures, under the Indenture, any Holder of Common Securities may, after a period of 30 days has elapsed from such
Holder’s written request to the Institutional Trustee to enforce such rights, institute a legal proceeding directly against the Debenture Issuer, to enforce the Institutional Trustee’s rights, as holder of the Debentures, under the
Indenture, without first instituting any legal proceeding against the Institutional Trustee or any other Person. Notwithstanding the foregoing, in the event the Debenture Issuer shall fail to make any payment on the Debentures when due, Holders of
the Common Securities shall have the right to institute a direct action against the Debenture Issuer for payment of such amounts. Any required approval or direction of Holders of Common Securities may be given at a separate meeting of Holders of
Common Securities convened for such purpose, at a meeting of all of the Holders of Securities in the Trust or pursuant to written consent. The Administrative Trustees will cause a notice of any meeting at which Holders of Common Securities are
entitled to vote, or of any matter upon which action by written consent of such Holders is to be taken, to be mailed to each Holder of record of Common Securities. Each such notice will include a statement setting forth the following information:
(i) the date of such meeting or the date by which such action is to be taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or of such matter upon which written
consent is sought and (iii) instructions for the delivery of proxies or consents. No vote or consent of the Holders of the Common Securities will be required for the Trust to redeem and cancel Common Securities or to distribute the Debentures
in accordance with the Declaration and the terms of the Securities. 
  

	8.	Amendments to Declaration and Indenture. 


(a) In addition to any requirements under Section 12.01 of the Declaration, if any proposed amendment to the Declaration provides
for, or the Administrative Trustees otherwise propose to effect, (i) any action that would adversely affect the powers, preferences or special rights of the Securities, whether by way of amendment to the Declaration or otherwise, or
(ii) the dissolution, winding-up or termination of the Trust, other than as described in Section 8.01 of the Declaration, then the Holders of outstanding Securities as a class, will be entitled to vote on such amendment or proposal (but
not on any other amendment or proposal) and such amendment or proposal shall not be effective except with the approval of the Holders of at least 66-2/3% in liquidation preference of the Securities, voting together as a single class; provided,
however, if any amendment or proposal referred to in clause (i) above would adversely affect only the Preferred Securities or only the Common Securities, then only the affected class will be entitled to vote on such amendment or proposal and
such amendment or proposal shall not be effective except with the approval of 66-2/3% in liquidation preference of such class of Securities. 
  

 I-10 








 (b) In the event the consent of the Institutional Trustee as the holder of the Debentures is
required under the Indenture with respect to any amendment, modification or termination on the Indenture or the Debentures, the Institutional Trustee shall request the written direction of the Holders of the Securities with respect to such
amendment, modification or termination and shall vote with respect to such amendment, modification or termination as directed, in writing, by a Majority in liquidation preference of the Securities voting together as a single class; provided,
however, that where a consent under the Indenture would require the consent of the holders of greater than a majority in aggregate principal amount of the Debentures (a “Super Majority”), the Institutional Trustee may only give such
consent at the written direction of the Holders of at least the same proportion in aggregate stated liquidation preference of the Securities; provided, further, that the Institutional Trustee shall not take any action in accordance with the
directions of the Holders of the Securities under this paragraph 8(b) unless the Institutional Trustee has received an opinion of tax counsel to the effect that for the purposes of United States Federal income tax the Trust will not be classified as
other than a grantor trust on account of such action. 
  

	9.	Pro Rata. 

 A reference in
these terms of the Securities to any payment, distribution or treatment as being “Pro Rata” shall mean pro rata to each Holder of Securities according to the aggregate liquidation preference of the Securities held by the relevant Holder in
relation to the aggregate liquidation preference of all Securities outstanding unless, on any distribution date or redemption date an Event of Default under the Declaration has occurred and is continuing, in which case no payment of any distribution
on, or amount payable upon redemption of, any Common Security, and no other payment on account of the redemption, liquidation or other acquisition of Common Securities, shall be made unless payment in full in cash of all accumulated and unpaid
distributions on all outstanding Preferred Securities for all distribution periods terminating on or prior thereto, or in the case of payment of the amount payable upon redemption of the Preferred Securities, the full amount of such amount in
respect of all outstanding Preferred Securities shall have been made or provided for, and all funds available to the Institutional Trustee shall first be applied to the payment in full in cash of all distributions on, or the amount payable upon
redemption of Preferred Securities then due and payable. 
  

	10.	Ranking. 

 The Preferred
Securities rank pari passu and payment thereon shall be made Pro Rata with the Common Securities except that, where an Event of Default occurs and is continuing under the Indenture in respect of the Debentures held by the Institutional Trustee, the
rights of Holders of the Common Securities to payment in respect of Distributions and payments upon liquidation, redemption and otherwise are subordinated to the rights to payment of the Holders of the Preferred Securities. 

 

	11.	Listing. 

 The
Administrative Trustees shall use their best efforts to cause the Preferred Securities to be listed on the
[                                        ].

  

 I-11 









	12.	Acceptance of Securities Guarantee and Indenture. 


Each Holder of Preferred Securities and Common Securities, by the acceptance thereof, agrees to the provisions of the Preferred Securities
Guarantee including the subordination provisions therein and to the provisions of the Indenture. 
  

	13.	No Preemptive Rights. 


The Holders of the Securities shall have no preemptive rights to subscribe for any additional securities. 

 

	14.	Miscellaneous. 

 These
terms constitute a part of the Declaration. 
 The Sponsor will provide a copy of the Declaration or the Preferred Securities
Guarantee and the Indenture to a Holder without charge on written request to the Sponsor at its principal place of business. 
  

 I-12 








 EXHIBIT A-1 

FORM OF PREFERRED SECURITY 

[FORM OF FACE OF SECURITY] 

[Include if Preferred Security is in global form and The Depository Trust Company is the U. S. Depositary—UNLESS THIS PREFERRED
SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (the “DEPOSITARY”), NEW YORK, NEW YORK, TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DEPOSITARY) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

[Include if Preferred Security is in global form—THIS PREFERRED SECURITY IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
DECLARATION REFERRED TO BELOW AND IS REGISTERED IN THE NAME OF THE DEPOSITARY. TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DEPOSITARY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE DECLARATION REFERRED TO BELOW.] 

 

							
	Certificate Number	  		  		  	Number of Preferred Securities
		  		  		  	[CUSIP NO. [        ]


Certificate Evidencing 

Preferred Securities 

of 
 Alterra
Capital Trust I 
 [        ]% Preferred Securities 

(liquidation preference $[        ] per Preferred Security) 

Alterra Capital Trust I, a statutory trust formed under the laws of the State of Delaware (the “Trust”), hereby certifies that
[        ] (the “Holder”) is the registered owner of [        ] preferred securities of the Trust representing undivided beneficial interests in the assets of
the Trust designated the [        ]% Preferred Securities (liquidation preference $[        ] per Preferred Security) (the “Preferred Securities”). The
Preferred Securities are transferable on the books and records of the Trust, in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer. The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Preferred Securities represented 
  

 A1-1 








 
hereby are issued and shall in all respects be subject to the provisions of the Second Amended and Restated Declaration of Trust of the Trust dated as of
[                ] as the same may be amended from time to time (the “Declaration”), including the designation of the terms of the Preferred Securities as set
forth in Annex I to the Declaration. Capitalized terms used herein but not defined shall have the meaning given them in the Declaration. The Holder is entitled to the benefits of the Preferred Securities Guarantee to the extent provided therein. The
Sponsor will provide a copy of the Declaration, the Preferred Securities Guarantee and the Indenture to a Holder without charge upon written request to the Trust at its principal place of business. 

Upon receipt of this certificate, the Holder is bound by the Declaration and is entitled to the benefits thereunder. 

By acceptance, the Holder agrees to treat, for United States Federal income tax purposes, the Debentures as indebtedness and the
Preferred Securities as evidence of indirect beneficial ownership in the Debentures. 
 Unless the Institutional Trustee’s
Certificate of Authentication hereon has been properly executed, these Preferred Securities shall not be entitled to any benefit under the Declaration or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Trust has executed this certificate this day of
[                                        ].

  

			
	ALTERRA CAPITAL TRUST I
		
	By:	 	  

		 	Name:
[                                         
                     ]
		 	Title:
[                                         
                       ]


  

 A1-2 








 INSTITUTIONAL TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Preferred Securities referred to in the within-mentioned Declaration. 

Dated: [                    ] 

 

			
	[                            
        ],
	as Institutional Trustee
		
	By:	 	  

		 	Authorized Signatory


  

 A1-3 








 ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred Security Certificate to: 

 

			
		
	  
	  	
		
	  
	  	
		
	  
	  	
	(Insert assignee’s social security or tax identification number)	  	

  

			
		
	  
	  	
		
	  
	  	
		
	  
	  	
	(Insert address and zip code of assignee)	  	

 and irrevocably appoints 

			
		
	  
	  	
		
	  
	  	
		
	  
	  	

 agent to transfer this Preferred Security Certificate on the books of the Trust. The agent may substitute another to
act for him or her. 
  

							
				
	Date:	  	  
	  		  	
				
	Signature:	  	  
	  		  	

 (Sign exactly as your name appears on the other side of this Preferred Security Certificate) 

					
	Signature	  		  	
	Guarantee:(2)	  	  
	  	

  

	(2)	(Signature must be guaranteed by an “eligible guarantor institution” that is, a bank, stockbroker, savings and loan association or credit union meeting the
requirements of the Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.) 

  

 A1-4 








 EXHIBIT A-2 

FORM OF COMMON SECURITY 

[FORM OF FACE OF SECURITY] 

[THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN EFFECTIVE REGISTRATION STATEMENT.] 
 [OTHER THAN
AS PROVIDED IN THE DECLARATION (AS DEFINED HEREIN), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT TO A RELATED PARTY (AS DEFINED IN THE DECLARATION) OF MAX CAPITAL GROUP LTD.] 

 

			
	Certificate Number [                ]	  	Number of Common Securities


Certificate Evidencing 

Common Securities 

of 
 Alterra
Capital Trust I 
 % Common Securities 

(liquidation preference $[        ] per Common Security) 

Alterra Capital Trust I, a statutory trust formed under the laws of the State of Delaware (the “Trust”), hereby certifies that
[                    ] (the “Holder”) is the registered owner of common securities of the Trust representing undivided beneficial interests
in the assets of the Trust designated the % Common Securities (liquidation preference $[            ] per Common Security) (the “Common Securities”). The Common Securities are
transferable on the books and records of the Trust, in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer and satisfaction of the other conditions set forth in the Declaration
(as defined below), including, without limitation, Article 9 thereof. The designation, rights, privileges, restrictions, preferences and other terms and provisions of the Common Securities represented hereby are issued and shall in all respects be
subject to the provisions of the Second Amended and Restated Declaration of Trust of the Trust dated as of [        ] as the same may be amended from time to time (the “Declaration”), including the
designation of the terms of the Common Securities as set forth in Annex I to the Declaration. Capitalized terms used herein but not defined shall have the meaning given them in the Declaration. The Sponsor will provide a copy of the Declaration and
the Indenture to a Holder without charge upon written request to the Sponsor at its principal place of business. 
 Upon receipt
of this certificate, the Sponsor is bound by the Declaration and is entitled to the benefits thereunder. 
  

 A2-1 








 By acceptance, the Holder agrees to treat for United States Federal income tax purposes the
Debentures as indebtedness and the Common Securities as evidence of indirect beneficial ownership in the Debentures. 
 IN
WITNESS WHEREOF, the Trust has executed this certificate this [    ] day of [                    ]. 

 

			
	ALTERRA CAPITAL TRUST I
		
	By:	 	  

		 	Name: [                            
                                  ]
		 	Title:
[                                         
                       ]


  

 A2-2 








 ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred Security Certificate to: 

 

			
		
	  
	  	
		
	  
	  	
		
	  
	  	
	(Insert assignee’s social security or tax identification number)	  	

  

			
		
	  
	  	
		
	  
	  	
		
	  
	  	
	(Insert address and zip code of assignee)	  	

 and irrevocably appoints 
  

			
		
	  
	  	
		
	  
	  	
		
	  
	  	

 agent to transfer this Preferred Security Certificate on the books of the Trust. The agent may substitute another to
act for him or her. 
  

							
				
	Date:	  	  
	  		  	
				
	Signature:	  	  
	  		  	

 (Sign exactly as your name appears on the other side of this Preferred Security Certificate) Signature Guarantee:(3)


					
	Signature	  		  	
	Guarantee:(3)	  	  
	  	

  

	(3)	(Signature must be guaranteed by an “eligible guarantor institution” that is, a bank, stockbroker, savings and loan association or credit union meeting the
requirements of the Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.) 

  

 A2-3