Document:

Form of Capital Securities Gaurantee Agreement

 Exhibit 4.11 

Infinity Capital Trust I 

[            ]% Capital Securities 

Dated as of [            , 2010] 

 TABLE OF CONTENTS 

 

					
	 ARTICLE 1.
	  	DEFINITIONS AND INTERPRETATION	  	1
	 Section 1.1
	  	Definitions and Interpretation.	  	1
			
	 ARTICLE 2.
	  	TRUST INDENTURE ACT	  	5
	 Section 2.1
	  	Trust Indenture Act; Application.	  	5
	 Section 2.2
	  	Lists of Holders of Securities.	  	5
	 Section 2.3
	  	Reports by the Capital Securities Guarantee Trustee.	  	5
	 Section 2.4
	  	Periodic Reports to Capital Securities Guarantee Trustee.	  	5
	 Section 2.5
	  	Evidence of Compliance with Conditions Precedent.	  	6
	 Section 2.6
	  	Events of Default; Waiver.	  	6
	 Section 2.7
	  	Event of Default; Notice.	  	6
	 Section 2.8
	  	Conflicting Interests.	  	6
			
	 ARTICLE 3.
	  	POWERS, DUTIES AND RIGHTS OF CAPITAL SECURITIES GUARANTEE TRUSTEE	  	6
	 Section 3.1
	  	Powers and Duties of the Capital Securities Guarantee Trustee.	  	6
	 Section 3.2
	  	Certain Rights of Capital Securities Guarantee Trustee.	  	8
	 Section 3.3
	  	Not Responsible for Recitals or Issuance of Capital Securities Guarantee.	  	10
			
	 ARTICLE 4.
	  	CAPITAL SECURITIES GUARANTEE TRUSTEE	  	11
	 Section 4.1
	  	Capital Securities Guarantee Trustee; Eligibility.	  	11
	 Section 4.2
	  	Appointment, Removal and Resignation of Capital Securities Guarantee Trustee.	  	11
			
	 ARTICLE 5.
	  	GUARANTEE	  	12
	 Section 5.1
	  	Guarantee.	  	12
	 Section 5.2
	  	Waiver of Notice and Demand.	  	12
	 Section 5.3
	  	Obligations Not Affected.	  	12
	 Section 5.4
	  	Rights of Holders.	  	13
	 Section 5.5
	  	Guarantee of Payment.	  	14
	 Section 5.6
	  	Subrogation.	  	14
	 Section 5.7
	  	Independent Obligations.	  	14
			
	 ARTICLE 6.
	  	LIMITATION OF TRANSACTIONS; SUBORDINATION	  	14
	 Section 6.1
	  	Limitation of Transactions.	  	14
	 Section 6.2
	  	Ranking.	  	15
			
	 ARTICLE 7.
	  	TERMINATION	  	15
	 Section 7.1
	  	Termination.	  	15
			
	 ARTICLE 8.
	  	INDEMNIFICATION	  	15
	 Section 8.1
	  	Exculpation.	  	15
	 Section 8.2
	  	Indemnification.	  	16
			
	 ARTICLE 9.
	  	MISCELLANEOUS	  	16
	 Section 9.1
	  	Successors and Assigns.	  	16

					
	 Section 9.2
	  	Amendments.	  	16
	 Section 9.3
	  	Notices.	  	16
	 Section 9.4
	  	Benefit.	  	17
	 Section 9.5
	  	Governing Law.	  	17

 CROSS-REFERENCE TABLE* 

 

			
	 Section of Trust Indenture Act of 1939, as amended
	  	Section of Declaration
	 310(a)
	  	4.1(a)
	 310(c)
	  	Inapplicable
	 311(c)
	  	Inapplicable
	 312(a)
	  	2.2(a)
	 312(b)
	  	2.2(b)
	 313
	  	2.3
	 314(a)
	  	2.4
	 314(b)
	  	Inapplicable
	 314(c)
	  	2.5
	 314(d)
	  	Inapplicable
	 314(f)
	  	Inapplicable
	 315(a)
	  	3.1(d)
	 315(c)
	  	3.1(c)
	 315(d)
	  	3.1(d)

  

	*	This Cross-Reference Table does not constitute part of the Capital Securities Guarantee and shall not affect the interpretation of any of its terms or provisions.

 CAPITAL SECURITIES GUARANTEE AGREEMENT 

This GUARANTEE AGREEMENT (the “Capital Securities Guarantee”), dated as of
[            , 2010], is executed and delivered by INFINITY PROPERTY AND CASUALTY CORPORATION, an Ohio corporation (the “Guarantor”), and U.S. BANK NATIONAL ASSOCIATION, as
trustee (the “Capital Securities Guarantee Trustee”), for the benefit of the Holders (as defined herein) from time to time of the Capital Securities (as defined herein) of Infinity Capital Trust I, a Delaware statutory trust (the
“Issuer”). 
 WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”), dated
as of [            , 2010], among the trustees of the Issuer named therein, the Guarantor, as sponsor, and the holders from time to time of undivided beneficial interests in the
assets of the Issuer, the Issuer is issuing on the date hereof [                    ] Capital Securities representing undivided
preferred beneficial interests in the assets of the Issuer, designated the Infinity Capital Trust I [    ]% Capital Securities (the “Capital Securities”), initially in the aggregate liquidation amount of
$[            ]; and 
 [WHEREAS, pursuant to the
terms of an Underwriting Agreement dated as of [                    ], by and among the Guarantor, as sponsor, the Issuer and the Underwriters
named therein (the “Underwriting Agreement”), the Issuer has agreed to issue up to an additional [                    ]
Capital Securities with an aggregate liquidation amount of up to $[            ] upon exercise of an option granted in the Underwriting Agreement to the Underwriters (the
“Option”); and] 
 WHEREAS, as incentive for the Holders to purchase the Capital Securities, the Guarantor desires
irrevocably and unconditionally to agree, to the extent set forth in this Capital Securities Guarantee, to pay to the Holders of the Capital Securities the Guarantee Payments (as defined herein) and to make certain other payments on the terms and
conditions set forth herein; and 
 WHEREAS, the Guarantor also is executing and delivering a guarantee agreement (the
“Common Securities Guarantee”) for the benefit of the holders of the Common Securities (as defined herein). 
 NOW,
THEREFORE, in consideration of the purchase by each Holder of Capital Securities, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this Capital Securities Guarantee for the benefit of the
Holders. 
 ARTICLE 1. 

DEFINITIONS AND INTERPRETATION 

Section 1.1 Definitions and Interpretation. 

In this Capital Securities Guarantee, unless the context otherwise requires: 

(a) Capitalized terms used in this Capital Securities Guarantee but not defined in the preamble above have the respective
meanings assigned to them in this Section 1.1; 
  

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 (b) terms defined in the Declaration as at the date of execution of this
Capital Securities Guarantee have the same meaning when used in this Capital Securities Guarantee; 
 (c) a term
defined anywhere in this Capital Securities Guarantee has the same meaning throughout; 
 (d) all references to
“the Capital Securities Guarantee” or “this Capital Securities Guarantee” are to this Capital Securities Guarantee as modified, supplemented or amended from time to time; 

(e) all references in this Capital Securities Guarantee to Articles and Sections are to Articles and Sections of this
Capital Securities Guarantee, unless otherwise specified; 
 (f) a term defined in the Trust Indenture Act has
the same meaning when used in this Capital Securities Guarantee, unless otherwise defined in this Capital Securities Guarantee or unless the context otherwise requires; and 

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

“Affiliate” has the same meaning as given to that term in Rule 405 of the Securities Act of 1933, as amended, or any
successor rule thereunder. 
 “Authorized Officer” means the president or chief executive officer or any vice
president (whether or not designated by a number or a word or words added behind or after the title “vice president”), the chief financial officer, the treasurer or any assistant treasurer or the secretary or any assistant secretary or
other Person authorized to bind a Person. 
 “Business Day” means any day other than a day on which federal or
state banking institutions in New York, New York or Cincinnati, Ohio are authorized or obligated by law, executive order or regulation to close. 

“Capital Securities Guarantee Trustee” means U.S. Bank National Association, until a Successor Capital Securities
Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Capital Securities Guarantee and thereafter means each such Successor Capital Securities Guarantee Trustee. 

“Capital Securities” means the total number of Infinity Capital Trust I [    ]% Capital
Securities (liquidation amount $[            ] per Capital Security) issued pursuant to the Declaration representing undivided preferred beneficial interests in the assets of
the Issuer, [including any Capital Securities issued upon exercise of the Option.] 
 “Common Securities” means
the securities representing undivided common beneficial interests in the assets of the Issuer[, including any additional Common Securities issued in connection with the exercise of the Option]. 

“Corporate Trust Office” means the office of the Capital Securities Guarantee Trustee at

  

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which the corporate trust business of the Capital Securities Guarantee Trustee shall, at any particular time, be principally administered, which office at the date of execution of this Agreement
is located at 425 Walnut Street, 6th Floor, Cincinnati,
Ohio 45202. 
 “Covered Person” means any Holder or beneficial owner of Capital Securities. 

“Event of Default” means a default by the Guarantor on any of its payments or other obligations under this Capital
Securities Guarantee. 
 “Guarantee Payments” means the following payments or distributions, without
duplication, with respect to the Capital Securities, to the extent not paid or made by the Issuer: (i) any accrued and unpaid Distributions (as defined in the Declaration) that are required to be paid on such Capital Securities to the extent
the Issuer shall have funds available therefor, (ii) the applicable Redemption Price to the extent the Issuer has funds available therefor, with respect to any Capital Securities called for redemption by the Issuer, and (iii) upon a
voluntary or involuntary dissolution, winding-up or termination of the Issuer (other than in connection with the distribution of Notes to the Holders in exchange for Capital Securities as provided in the Declaration), the lesser of (a) the
aggregate of the liquidation amount and all accrued and unpaid Distributions on the Capital Securities to the date of payment, to the extent the Issuer shall have funds available therefor, and (b) the amount of assets of the Issuer remaining
available for distribution to Holders in liquidation of the Issuer (in either case, the “Liquidation Distribution”). If an Event of Default under, and as defined in, the Indenture has occurred and is continuing, the rights of holders of
the Common Securities to receive payments under the Common Securities Guarantee are subordinated to the rights of Holders of Capital Securities to receive Guarantee Payments under the Capital Securities Guarantee. 

“Holder” shall mean any holder, as registered on the books and records of the Issuer, of any Capital Securities;
provided, however, that in determining whether the holders of the requisite percentage of Capital Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include the Guarantor or any Affiliate
of the Guarantor. 
 “Indemnified Person” means the Capital Securities Guarantee Trustee, any Affiliate of the
Capital Securities Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees, representatives, nominees, custodians or agents of the Capital Securities Guarantee Trustee. 

“Indenture” means the Indenture dated as of August     , 2010 between the Guarantor (the
“Note Issuer”) and U.S. Bank National Association, as trustee, together with any Board Resolution (as defined in the Indenture) or any indenture supplemental thereto, pursuant to which certain subordinated debt securities of the Note
Issuer are to be issued to the Property Trustee (as defined in the Declaration) of the Issuer. 
 “Majority in
liquidation amount of the Securities” means, except as provided by the Trust Indenture Act, a vote by Holder(s) of Capital Securities, voting separately as a class, of more than 50% of the liquidation amount (including the stated amount
that would be paid on redemption, liquidation, dissolution or otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages are determined) of all Capital Securities. 

 

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 “Notes” means the series of junior subordinated debt securities of the
Guarantor designated the [    ]% Junior Subordinated Notes, due [                    ], held by the
Property Trustee of the Issuer on behalf of the Trust. 
 “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 Capital Securities Guarantee shall include: 

(a) a statement that each officer signing the Officers’ Certificate has read the covenant or condition and the
definition relating thereto; 
 (b) a brief statement of the nature and scope of the examination or investigation
undertaken by each officer in rendering the Officers’ 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.

 “Person” means a legal person, including any individual, corporation, estate, partnership, joint venture,
association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 

“Responsible Officer” means, with respect to the Capital Securities Guarantee Trustee, any officer within the Corporate
Trust Office of the Capital Securities Guarantee Trustee, including any vice president, any assistant vice president, any assistant treasurer or other officer of the Corporate Trust Office of the Capital Securities 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. 
 “Successor Capital Securities Guarantee Trustee” means a
successor Capital Securities Guarantee Trustee possessing the qualifications to act as Capital Securities Guarantee Trustee under Section 4.1. 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended. 

“Trust Securities” means the Common Securities and the Capital Securities. 

 

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 ARTICLE 2. 

TRUST INDENTURE ACT 

Section 2.1 Trust Indenture Act; Application. 

(a) This Capital Securities Guarantee is subject to the provisions of the Trust Indenture Act that are required to be part
of this Capital Securities Guarantee and shall, to the extent applicable, be governed by such provisions; and 

(b) If and to the extent that any provision of this Capital Securities Guarantee limits, qualifies or conflicts with the
duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control. 
 Section 2.2 Lists of
Holders of Securities. 
 (a) The Guarantor shall provide the Capital Securities Guarantee Trustee with a
list, in such form as the Capital Securities Guarantee Trustee may reasonably require, of the names and addresses of the Holders of the Capital Securities (“List of Holders”) as of such date, (i) within 10 days after each record date,
and (ii) at any other time within 30 days of receipt by the Guarantor of a written request for a List of Holders as of a date no more than 10 days before such List of Holders is given to the Capital Securities Guarantee Trustee; provided
that the Guarantor shall not 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 Capital Securities Guarantee Trustee by the Guarantor. The Capital Securities
Guarantee Trustee may destroy any List of Holders previously given to it on receipt of a new List of Holders. 

(b) The Capital Securities Guarantee Trustee shall comply with its obligations under Sections 311(a), 311(b) and
Section 312(b) of the Trust Indenture Act. 
 Section 2.3 Reports by the Capital Securities Guarantee Trustee. 

Within 60 days after March 31 of each year, the Capital Securities Guarantee Trustee shall provide to the Holders of the Capital
Securities such reports as are required by Section 313 of the Trust Indenture Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The Capital Securities Guarantee Trustee also shall comply with
the requirements of Section 313(d) of the Trust Indenture Act. 
 Section 2.4 Periodic Reports to Capital Securities Guarantee
Trustee. 
 The Guarantor shall provide to the Capital Securities Guarantee Trustee such documents, reports and information,
if any, as required by Section 314 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. 

 

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 Section 2.5 Evidence of Compliance with Conditions Precedent. 

The Guarantor shall provide to the Capital Securities Guarantee Trustee such evidence of compliance with any conditions precedent, if any,
provided for in this Capital Securities Guarantee 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) may be
given in the form of an Officers’ Certificate. 
 Section 2.6 Events of Default; Waiver. 

The Holders of a Majority in liquidation amount of the Securities may, by vote, on behalf of the Holders of all of the Capital Securities,
waive any past Event of Default and its consequences. Upon such waiver, any such Event of Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Capital Securities
Guarantee, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 

Section 2.7 Event of Default; Notice. 

(a) The Capital Securities Guarantee 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 Capital Securities, notices of all Events of Default actually known to a Responsible Officer of the Capital Securities Guarantee Trustee, unless such defaults have been cured before the
giving of such notice, provided that the Capital Securities Guarantee Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the Capital Securities Guarantee Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders. 
 (b) The Capital Securities Guarantee Trustee
shall not be deemed to have knowledge of any Event of Default unless a Responsible Officer of the Capital Securities Guarantee Trustee shall have received written notice thereof, or unless a Responsible Officer of the Capital Securities Guarantee
Trustee charged with the administration of the Declaration shall have obtained actual knowledge thereof. 
 Section 2.8 Conflicting
Interests. 
 The Declaration and the Indenture shall be deemed to be specifically described in this Capital Securities
Guarantee for the purposes of clause (i) of the first proviso contained in Section 310(b) of the Trust Indenture Act. 

ARTICLE 3. 

POWERS, DUTIES AND RIGHTS OF 

CAPITAL SECURITIES GUARANTEE TRUSTEE 

Section 3.1 Powers and Duties of the Capital Securities Guarantee Trustee. 

(a) This Capital Securities Guarantee shall be held by the Capital Securities Guarantee Trustee for the benefit of the
Holders, and the Capital Securities Guarantee 
  

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Trustee shall not transfer this Capital Securities Guarantee to any Person except a Holder of Capital Securities exercising his or her rights pursuant to Section 5.4(b) or to a Successor
Capital Securities Guarantee Trustee on acceptance by such Successor Capital Securities Guarantee Trustee of its appointment to act as Successor Capital Securities Guarantee Trustee. The right, title and interest of the Capital Securities Guarantee
Trustee shall automatically vest in any Successor Capital Securities Guarantee Trustee, and such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of
such Successor Capital Securities Guarantee Trustee. 
 (b) If an Event of Default actually known to a
Responsible Officer of the Capital Securities Guarantee Trustee has occurred and is continuing, the Capital Securities Guarantee Trustee shall enforce this Capital Securities Guarantee for the benefit of the Holders in accordance with and subject to
the terms of this Capital Securities Guarantee. 
 (c) The Capital Securities Guarantee 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 Capital Securities Guarantee, and no implied covenants shall
be read into this Capital Securities Guarantee against the Capital Securities Guarantee Trustee. In case an Event of Default has occurred (that has not been cured or waived pursuant to Section 2.6) and is actually known to a Responsible Officer
of the Capital Securities Guarantee Trustee, the Capital Securities Guarantee Trustee shall exercise such of the rights and powers vested in it by this Capital Securities Guarantee, and use the same degree of care and skill in its exercise thereof,
as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 

(d) No provision of this Capital Securities Guarantee shall be construed to relieve the Capital Securities Guarantee
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 any 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 Capital Securities Guarantee Trustee shall be determined
solely by the express provisions of this Capital Securities Guarantee, and the Capital Securities Guarantee Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Capital
Securities Guarantee, and no implied covenants or obligations shall be read into this Capital Securities Guarantee against the Capital Securities Guarantee Trustee; and 

B. in the absence of bad faith on the part of the Capital Securities Guarantee Trustee, the Capital Securities Guarantee
Trustee may conclusively rely, as to the truth of the statements and the correctness 
  

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of the opinions expressed therein, upon any certificates or opinions furnished to the Capital Securities Guarantee Trustee and conforming to the requirements of this Capital Securities Guarantee;
but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Capital Securities Guarantee Trustee, the Capital Securities Guarantee Trustee shall be under a duty to examine the
same to determine whether or not they conform to the requirements of this Capital Securities Guarantee; 
 (ii)
the Capital Securities Guarantee Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Capital Securities Guarantee Trustee, unless it shall be proved that the Capital Securities Guarantee Trustee
was negligent in ascertaining the pertinent facts upon which such judgment was made; 
 (iii) the Capital
Securities Guarantee 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 amount of the Securities relating
to the time, method and place of conducting any proceeding for any remedy available to the Capital Securities Guarantee Trustee, or exercising any trust or power conferred upon the Capital Securities Guarantee Trustee under this Capital Securities
Guarantee; and 
 (iv) no provision of this Capital Securities Guarantee shall require the Capital Securities
Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if the Capital Securities Guarantee Trustee 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 Capital Securities Guarantee or indemnity, reasonably satisfactory to the Capital Securities Guarantee Trustee,
against such risk or liability is not reasonably assured to it. 
 Section 3.2 Certain Rights of Capital Securities Guarantee
Trustee. 
 (a) Subject to the provisions of Section 3.1: 

(i) The Capital Securities Guarantee Trustee may rely conclusively, 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 Guarantor
contemplated by this Capital Securities Guarantee shall be sufficiently evidenced by an Officers’ Certificate. 

(iii) Whenever, in the administration of this Capital Securities Guarantee, the Capital Securities Guarantee Trustee shall
deem it desirable that a 
  

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matter be proved or established before taking, suffering or omitting any action hereunder, the Capital Securities Guarantee 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 Guarantor. 

(iv) The Capital Securities Guarantee Trustee shall have no duty to see to any recording, filing or registration of any
instrument (or any rerecording, refiling or re-registration thereof). 
 (v) The Capital Securities Guarantee
Trustee may consult with counsel of its selection, and the advice or opinion of such counsel with respect to legal matters 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 Guarantor or any of its Affiliates and may include any of its employees. The Capital Securities Guarantee Trustee shall have the right at any time to seek
instructions concerning the administration of this Capital Securities Guarantee from any court of competent jurisdiction. 

(vi) The Capital Securities Guarantee Trustee shall be under no obligation to exercise any of the rights or powers vested
in it by this Capital Securities Guarantee at the request or direction of any Holder, unless such Holder shall have provided to the Capital Securities Guarantee Trustee such security and indemnity, reasonably satisfactory to the Capital Securities
Guarantee Trustee, against the costs, expenses (including attorneys’ fees and expenses and the expenses of the Capital Securities Guarantee Trustee’s agents, nominees or custodians) 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 Capital Securities Guarantee Trustee; provided that, nothing contained in this Section 3.2(a)(iv) shall be taken to relieve the Capital Securities
Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in it by this Capital Securities Guarantee as provided in Section 3.1(c). 

(vii) The Capital Securities Guarantee 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, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Capital Securities Guarantee
Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit. 

(viii) The Capital Securities Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, nominees, custodians or attorneys, and the Capital Securities Guarantee 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. 
  

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 (ix) Any action taken by the Capital Securities Guarantee Trustee or its
agents hereunder shall bind the Holders of the Capital Securities, and the signature of the Capital Securities Guarantee Trustee or its agents alone shall be sufficient and effective to perform any such action. No third party shall be required to
inquire as to the authority of the Capital Securities Guarantee Trustee to so act or as to its compliance with any of the terms and provisions of this Capital Securities Guarantee, both of which shall be conclusively evidenced by the Capital
Securities Guarantee Trustee’s or its agent’s taking such action. 
 (x) Whenever in the administration
of this Capital Securities Guarantee the Capital Securities Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Capital Securities Guarantee
Trustee (i) may request instructions from the Holders of a Majority in liquidation amount of the Securities, (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 conclusively relying on or acting in accordance with such instructions. 
 (xi)
The Capital Securities Guarantee Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by
this Capital Securities Guarantee. 
 (b) No provision of this Capital Securities Guarantee shall be deemed to
impose any duty or obligation on the Capital Securities Guarantee 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
Capital Securities Guarantee 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
Capital Securities Guarantee Trustee shall be construed to be a duty. 
 Section 3.3 Not Responsible for Recitals or Issuance of Capital
Securities Guarantee. 
 The recitals contained in this Capital Securities Guarantee shall be taken as the statements of the
Guarantor, and the Capital Securities Guarantee Trustee does not assume any responsibility for their correctness. The Capital Securities Guarantee Trustee makes no representation as to the validity or sufficiency of this Capital Securities
Guarantee. 
  

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 ARTICLE 4. 

CAPITAL SECURITIES GUARANTEE TRUSTEE 

Section 4.1 Capital Securities Guarantee Trustee; Eligibility. 

(a) There shall at all times be a Capital Securities Guarantee Trustee which shall: 

(i) not be an Affiliate of the Guarantor; and 

(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 Securities and Exchange Commission to act as a trustee under the Trust Indenture Act, authorized under such laws to exercise corporate trust powers, having
a combined capital and surplus of at least $50,000,000, 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 this Section 4.1(a)(ii), 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. 
 (b) If at any time the Capital Securities
Guarantee Trustee shall cease to be eligible to so act under Section 4.1(a), the Capital Securities Guarantee Trustee shall immediately resign in the manner and with the effect set out in Section 4.2(c). 

(c) If the Capital Securities Guarantee Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act, the Capital Securities Guarantee Trustee and Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act. 

Section 4.2 Appointment, Removal and Resignation of Capital Securities Guarantee Trustee. 

(a) Subject to Section 4.2(b), the Capital Securities Guarantee Trustee may be appointed or removed without cause at
any time by the Guarantor except during an Event of Default. 
 (b) The Capital Securities Guarantee Trustee
shall not be removed in accordance with Section 4.2(a) until a Successor Capital Securities Guarantee Trustee has been appointed and has accepted such appointment by written instrument executed by such Successor Capital Securities Guarantee
Trustee and delivered to the Guarantor. 
 (c) The Capital Securities Guarantee Trustee may resign from office
(without need for prior or subsequent accounting) by an instrument in writing executed by the Capital Securities Guarantee Trustee and delivered to the Guarantor, which resignation shall not take effect until a Successor Capital Securities Guarantee
Trustee has been appointed and has accepted such appointment by instrument in writing executed by such Successor Capital Securities Guarantee Trustee and delivered to the Guarantor and the resigning Capital Securities Guarantee Trustee. 

 

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 (d) If no Successor Capital Securities Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60 days after delivery of an instrument of removal or resignation, the Capital Securities Guarantee Trustee resigning or being removed may petition any court of competent
jurisdiction for appointment of a Successor Capital Securities Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Capital Securities Guarantee Trustee. 

(e) No Capital Securities Guarantee Trustee shall be liable for the acts or omissions to act of any Successor Capital
Securities Guarantee Trustee. 
 (f) Upon termination of this Capital Securities Guarantee or removal or
resignation of the Capital Securities Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to the Capital Securities Guarantee Trustee all amounts accrued to the date of such termination, removal or resignation. 

ARTICLE 5. 

GUARANTEE 

Section 5.1 Guarantee. 

The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts
theretofore paid by the Issuer), as and when due, regardless of any defense, right of set-off or counterclaim that the Issuer may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment of the
required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts to the Holders. 
 Section 5.2 Waiver of
Notice and Demand. 
 The Guarantor hereby waives notice of acceptance of this Capital Securities Guarantee and of any
liability to which it applies or may apply, presentment, demand for payment, any right to require a proceeding first against the Issuer or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor,
notice of redemption and all other notices and demands. 
 Section 5.3 Obligations Not Affected. 

The obligations, covenants, agreements and duties of the Guarantor under this Capital Securities Guarantee shall in no way be affected or
impaired by reason of the happening from time to time of any of the following: 
 (a) the release or waiver, by
operation of law or otherwise, of the performance or observance by the Issuer of any express or implied agreement, covenant, term or condition relating to the Capital Securities to be performed or observed by the Issuer; 

 

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 (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any other sums payable under the terms of the Capital Securities or the extension of time for the performance of any other obligation under, arising out of, or in connection
with, the Capital Securities (other than an extension of time for payment of Distributions, Redemption Price, Liquidation Distribution or other sum payable that results from the extension of any interest payment period on the Notes or any extension
of the maturity date of the Notes permitted by the Indenture); 
 (c) any failure, omission, delay or lack of
diligence on the part of the Holders to enforce, assert or exercise any right, privilege, power or remedy conferred on the Holders pursuant to the terms of the Capital Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind; 
 (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer or any of the assets of the Issuer; 

(e) any invalidity of, or defect or deficiency in, the Capital Securities; 

(f) any failure or omission to receive any regulatory approval or consent required in connection with the Common
Securities or Capital Securities, including the failure to receive any approval of the Board of Governors of the Federal Reserve System required in connection with the Capital Securities; 

(g) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or 

(h) any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a
guarantor, it being the intent of this Section 5.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances. 

There shall be no obligation of the Holders to give notice to, or obtain consent of, the Guarantor with respect to the happening of any
of the foregoing. 
 Section 5.4 Rights of Holders. 

(a) The Holders of a Majority in liquidation amount of the Securities have the right to direct the time, method and place
of conducting of any proceeding for any remedy available to the Capital Securities Guarantee Trustee in respect of this Capital Securities Guarantee or exercising any trust or power conferred upon the Capital Securities Guarantee Trustee under this
Capital Securities Guarantee. 
 (b) If the Capital Securities Guarantee Trustee fails to enforce such Capital
Securities Guarantee, any Holder of Capital Securities may institute a legal proceeding directly against the Guarantor to enforce the Capital Securities Guarantee Trustee’s rights 

 

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under this Capital Securities Guarantee, without first instituting a legal proceeding against the Issuer, the Capital Securities Guarantee Trustee or any other person or entity. The Guarantor
waives any right or remedy to require that any action be brought first against the Issuer or any other person or entity before proceeding directly against the Guarantor. 

Section 5.5 Guarantee of Payment. 

This Capital Securities Guarantee creates a guarantee of payment and not of collection. 

Section 5.6 Subrogation. 

The Guarantor shall be subrogated to all (if any) rights of the Holders against the Issuer in respect of any amounts paid to such Holders
by the Guarantor under this Capital Securities Guarantee; provided, however, that the Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any right that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Capital Securities Guarantee, if, at the time of any such payment, any amounts are due and unpaid under this Capital Securities Guarantee.
If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders. 

Section 5.7 Independent Obligations. 

The Guarantor acknowledges that its obligations hereunder are independent of the obligations of the Issuer with respect to the Capital
Securities, and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Capital Securities Guarantee notwithstanding the occurrence of any event referred to in subsections
(a) through (h), inclusive, of Section 5.3 hereof. 
 ARTICLE 6. 

LIMITATION OF TRANSACTIONS; SUBORDINATION 

Section 6.1 Limitation of Transactions. 

So long as any Capital Securities remain outstanding, if there shall have occurred and be continuing an Event of Default under this
Capital Securities Guarantee, an Event of Default or a Nonpayment under the Declaration or during an Extended Interest Payment Period (as defined in the Indenture), then (a) the Guarantor shall not declare or pay any dividend on, make any
distributions with respect to, or redeem, purchase, acquire or make a liquidation payment with respect to, any of its capital stock (other than (i) purchases or acquisitions of shares of its common stock in connection with the satisfaction by
the Guarantor of its obligations under any employee benefit plans, (ii) as a result of a reclassification of the Guarantor’s capital stock or the exchange or conversion of one class or series of the Guarantor’s capital stock for
another class or series of the Guarantor’s capital stock, or (iii) the purchase of fractional interests in shares of the Guarantor’s capital stock pursuant to an acquisition or the conversion or exchange provisions of such capital
stock of the Guarantor or the security being converted or exchanged) or make any guarantee payments with respect to the foregoing or (b) the Guarantor shall not make any 

 

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payment of interest, principal or premium, if any, on or repay, repurchase or redeem any debt securities (including guarantees) issued by the Guarantor which rank pari passu with or junior to the
Notes. 
 Section 6.2 Ranking. 

This Capital Securities Guarantee will constitute an unsecured obligation of the Guarantor and will rank (i) subordinate and junior
in right of payment to all other liabilities, including contingent liabilities, of the Guarantor, (ii) pari passu with the most senior preferred or preference stock now or hereafter issued by the Guarantor and with any guarantee now or
hereafter entered into by the Guarantor in respect of any preferred securities (including trust preferred securities) or preference stock of any Affiliate of the Guarantor, and (iii) senior to the Guarantor’s common stock. 

ARTICLE 7. 

TERMINATION 

Section 7.1 Termination. 

This Capital Securities Guarantee shall terminate upon (i) full payment of the Redemption Price of all Capital Securities,
(ii) upon the distribution of the Notes to the Holders of all of the Capital Securities, or (iii) upon full payment of the amounts payable in accordance with the Declaration upon liquidation or dissolution of the Issuer. Notwithstanding
the foregoing, this Capital Securities Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any Holder must restore payment of any sums paid under the Capital Securities or under this Capital Securities
Guarantee. 
 ARTICLE 8. 

INDEMNIFICATION 

Section 8.1 Exculpation. 

(a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Guarantor 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 in accordance with this Capital Securities Guarantee and in a manner that such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Capital Securities Guarantee 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 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 Guarantor and upon such information, opinions, reports or statements presented to the Guarantor 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 Guarantor, 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 Capital Securities might properly be paid. 

 

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 Section 8.2 Indemnification. 

The Guarantor agrees to indemnify each Indemnified Person for, and to hold each Indemnified Person harmless against, any and all loss,
liability, damage, claim or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses (including reasonable
legal fees and expenses) of defending itself against, or investigating, any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. The obligation to indemnify as set forth in this Section 8.2
shall survive the termination of this Capital Securities Guarantee. 
 ARTICLE 9. 

MISCELLANEOUS 

Section 9.1 Successors and Assigns. 

All guarantees and agreements contained in this Capital Securities Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders of the Capital Securities then outstanding. 
 Section 9.2
Amendments. 
 Except with respect to any changes that do not adversely affect the rights of Holders (in which case no
consent of Holders will be required), this Capital Securities Guarantee may only be amended with the prior approval of the Holders of at least a Majority in liquidation amount (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 the outstanding Capital Securities. The provisions of Section 12.2 of the Declaration with respect to meetings
of holders of the Securities apply to the giving of such approval. 
 Section 9.3 Notices. 

All notices provided for in this Capital Securities Guarantee shall be in writing, duly signed by the party giving such notice, and shall
be delivered, telecopied or mailed by first class mail, as follows: 
 (a) If given to the Capital Securities
Guarantee Trustee, at the Capital Securities Guarantee Trustee’s mailing address set forth below (or such other address as the Capital Securities Guarantee Trustee may give notice of to the Holders): 

U.S. Bank National Association 

425 Walnut Street,
6th Floor 

Cincinnati, Ohio 45202 

Facsimile: (513) 632-5511 

Attention: Corporate Trust Services 
  

 - 16 - 

 (b) If given to the Guarantor, at the Guarantor’s mailing address set
forth below (or such other address as the Guarantor may give notice of to the Holders of the Capital Securities): 
 Infinity
Property and Casualty Corporation 
 3700 Colonnade Parkway 

Birmingham, Alabama 35243 

Facsimile: (205) 803-8585 

Attention: General Counsel 

(c) If given to any Holder of Capital Securities, at the address set forth on the books and records of the Issuer.

 All 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 9.4 Benefit. 

This Capital Securities Guarantee is solely for the benefit of the Holders of the Capital Securities and, subject to Section 3.1(a),
is not separately transferable from the Capital Securities. 
 Section 9.5 Governing Law. 

THIS CAPITAL SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 [Signature page follows.] 

 

 - 17 - 

 THIS CAPITAL SECURITIES GUARANTEE is executed as of the day and year first above written.

  

			
	INFINITY PROPERTY AND CASUALTY CORPORATION, as Guarantor
		
	By:	 	  

	Name:	 	  

	Title:	 	Vice President
	
	U.S. BANK NATIONAL ASSOCIATION, as Capital Securities Guarantee Trustee
		
	By:	 	  

	Name:	 	  

	Title:	 	Agent

  

 - 18 -Certificate of Trust

 Exhibit 4.12 

CERTIFICATE OF TRUST 

OF 

INFINITY CAPITAL TRUST I 

This Certificate of Trust of Infinity Capital Trust I (the “Trust”), dated as of July 30, 2010 is being duly executed and
filed by the undersigned, as the trustees, to form a statutory trust under the Delaware Statutory Trust Act, 12 Del. C. §§ 3801 et seq. (the “Act”). 

1. Name. The name of the statutory trust is Infinity Capital Trust I. 

2. Delaware Trustee. The name and address of the trustee of the Trust having its principal place of business in the State of
Delaware is: 
 U.S. Bank Trust National Association 

300 E. Delaware Avenue 

9th
 Floor 
 Wilmington, DE 19801 

3. Effective Date. This Certificate of Trust shall be effective immediately upon filing with the Office of the Secretary of State
of the State of Delaware. 
 [Signature Page Follows] 

 IN WITNESS WHEREOF, the undersigned have executed this Certificate of Trust in accordance
with the Act as of the day and year first written above. 
  

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity but solely as Delaware Trustee
		
	By:	 	 /s/ Robert T. Jones

	Name:  Robert T. Jones
	Title:    Vice President
	
	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Property Trustee
		
	By:	 	 /s/ Robert T. Jones

	Name:  Robert T. Jones
	Title:    Vice President
	
	 /s/ Samuel J. Simon

	Samuel J. Simon
	As Regular Trustee and not individually
	
	 /s/ James H. Romaker

	James H. Romaker
	As Regular Trustee and not individually

  

 2

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