Document:

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                                                                     EXHIBIT 4.4

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                        AMENDED AND RESTATED DECLARATION
                                    OF TRUST

                                  BY AND AMONG

                         U.S. BANK NATIONAL ASSOCIATION,
                            AS INSTITUTIONAL TRUSTEE,

                             SAFE AUTO GROUP, INC.,
                                   AS SPONSOR,

                                       AND
                          ARI DESHE, JON P. DIAMOND AND
                                  GREG SUTTON,
                               AS ADMINISTRATORS,

                            DATED AS OF MAY 12, 2004

================================================================================

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                                TABLE OF CONTENTS

<TABLE>
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<S>                                                                                                              <C>
ARTICLE I.           INTERPRETATION AND DEFINITIONS..........................................................      1
         Section 1.1.      Definitions.......................................................................      1

ARTICLE II.          ORGANIZATION............................................................................      8
         Section 2.1.      Name..............................................................................      8
         Section 2.2.      Office............................................................................      8
         Section 2.3.      Purpose...........................................................................      8
         Section 2.4.      Authority.........................................................................      9
         Section 2.5.      Title to Property of the Trust....................................................      9
         Section 2.6.      Powers and Duties of the Institutional Trustee and the Administrators.............      9
         Section 2.7.      Prohibition of Actions by the Trust and the Institutional Trustee.................     13
         Section 2.8.      Powers and Duties of the Institutional Trustee....................................     14
         Section 2.9.      Certain Duties and Responsibilities of the Institutional Trustee and
                           Administrators....................................................................     16
         Section 2.10.     Certain Rights of Institutional Trustee...........................................     17
         Section 2.11.     Execution of Documents............................................................     19
         Section 2.12.     Not Responsible for Recitals or Issuance of Securities............................     20
         Section 2.13.     Duration of Trust.................................................................     20
         Section 2.14.     Mergers...........................................................................     20

ARTICLE III.         SPONSOR.................................................................................     21
         Section 3.1.      Sponsor's Purchase of Common Securities...........................................     21
         Section 3.2.      Responsibilities of the Sponsor...................................................     22
         Section 3.3.      Expenses..........................................................................     22
         Section 3.4.      Right to Proceed..................................................................     23

ARTICLE IV.          INSTITUTIONAL TRUSTEE AND ADMINISTRATORS................................................     23
         Section 4.1.      Institutional Trustee; Eligibility................................................     23
         Section 4.2.      Administrators....................................................................     23
         Section 4.3.      Appointment, Removal and Resignation of Institutional Trustee and
                           Administrators....................................................................     24
         Section 4.4.      Institutional Trustee Vacancies...................................................     25
         Section 4.5.      Effect of Vacancies...............................................................     25
         Section 4.6.      Meetings of the Institutional Trustee and the Administrators......................     25
         Section 4.7.      Delegation of Power...............................................................     26
         Section 4.8.      Conversion, Consolidation or Succession to Business...............................     26

ARTICLE V.           DISTRIBUTIONS...........................................................................     26
         Section 5.1.      Distributions.....................................................................     26

ARTICLE VI.          ISSUANCE OF SECURITIES..................................................................     27
         Section 6.1.      General Provisions Regarding Securities...........................................     27
</TABLE>

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<TABLE>
<S>                                                                                                              <C>
         Section 6.2.      Paying Agent, Transfer Agent and Registrar........................................     28
         Section 6.3.      Form and Dating...................................................................     28
         Section 6.4.      Mutilated, Destroyed, Lost or Stolen Certificates.................................     29
         Section 6.5.      Temporary Securities..............................................................     29
         Section 6.6.      Cancellation......................................................................     29
         Section 6.7.      Rights of Holders; Waivers of Past Defaults.......................................     29

ARTICLE VII.         DISSOLUTION AND TERMINATION OF TRUST....................................................     31
         Section 7.1.      Dissolution and Termination of Trust..............................................     31

ARTICLE VIII.        TRANSFER OF INTERESTS...................................................................     32
         Section 8.1.      General...........................................................................     32
         Section 8.2.      Transfer Procedures and Restrictions..............................................     33
         Section 8.3.      Deemed Security Holders...........................................................     36

ARTICLE IX.          LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS.......     36
         Section 9.1.      Liability.........................................................................     36
         Section 9.2.      Exculpation.......................................................................     36
         Section 9.3.      Fiduciary Duty....................................................................     37
         Section 9.4.      Indemnification...................................................................     37
         Section 9.5.      Outside Businesses................................................................     40
         Section 9.6.      Compensation; Fee.................................................................     40

ARTICLE X.           TAX AND ACCOUNTING......................................................................     40
         Section 10.1.     Fiscal Year.......................................................................     40
         Section 10.2.     Certain Accounting Matters........................................................     41
         Section 10.3.     Banking...........................................................................     41
         Section 10.4.     Withholding.......................................................................     41
         Section 10.5.     Intention of the Parties..........................................................     42

ARTICLE XI.          AMENDMENTS AND MEETINGS.................................................................     42
         Section 11.1.     Amendments........................................................................     42
         Section 11.2.     Meetings of the Holders of the Securities; Action by Written Consent..............     43

ARTICLE XII.         REPRESENTATIONS OF INSTITUTIONAL TRUSTEE................................................     45
         Section 12.1.     Representations and Warranties of Institutional Trustee...........................     45

ARTICLE XIII.        MISCELLANEOUS...........................................................................     45
         Section 13.1.     Notices...........................................................................     45
         Section 13.2.     Governing Law.....................................................................     47
         Section 13.3.     Intention of the Parties..........................................................     47
         Section 13.4.     Headings..........................................................................     47
         Section 13.5.     Successors and Assigns............................................................     47
         Section 13.6.     Partial Enforceability............................................................     47
         Section 13.7.     Counterparts......................................................................     47
</TABLE>

                                       ii
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<TABLE>
<S>                             <C>
Annex I....................     Terms of Securities
Exhibit A-1................     Form of Capital Security Certificate
Exhibit A-2................     Form of Common Security Certificate
Exhibit B..................     Specimen of Initial Debenture
Exhibit C..................     Placement Agreement
</TABLE>

                                      iii
<PAGE>

                              AMENDED AND RESTATED

                              DECLARATION OF TRUST

                                       OF

                              SAG STATUTORY TRUST I

                                  MAY 12, 2004

      AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") dated and
effective as of May 12, 2004, by the Institutional Trustee (as defined herein),
the Administrators (as defined herein), the Sponsor (as defined herein) and the
holders, from time to time, of undivided beneficial interests in the Trust (as
defined herein) to be issued pursuant to this Declaration;

      WHEREAS, the Institutional Trustee, the Administrators and the Sponsor
established SAG Statutory Trust I (the "Trust"), a statutory trust under the
Statutory Trust Act (as defined herein) pursuant to a Declaration of Trust dated
as of April 22, 2004 (the "Original Declaration"), and a Certificate of Trust
filed with the Secretary of the State of the State of Connecticut on April 22,
2004 (the "Certificate of Trust"), for the sole purpose of issuing and selling
the Securities (as defined herein) representing undivided beneficial interests
in the assets of the Trust, investing the proceeds thereof in the Debentures (as
defined herein) of the Debenture Issuer (as defined herein) and engaging in
those activities necessary, advisable or incidental thereto;

      WHEREAS, as of the date hereof, no interests in the Trust have been
issued; and

      WHEREAS, the Institutional Trustee, the Administrators and the Sponsor, by
this Declaration, amend and restate each and every term and provision of the
Original Declaration;

      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 constitutes the governing instrument of such statutory trust, the
Institutional Trustee declares 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, subject to the provisions of this Declaration, and, in consideration
of the mutual covenants contained herein and other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties,
intending to be legally bound hereby, amend and restate in its entirety the
Original Declaration and agree as follows:

                                   ARTICLE I

                         INTERPRETATION AND DEFINITIONS

      SECTION 1.1 DEFINITIONS. Unless the context otherwise requires:
<PAGE>

      (a) capitalized terms used in this Declaration but not defined in the
preamble above have the respective meanings assigned to them in this Section
1.1;

      (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 and each Annex and Exhibit hereto, as modified, supplemented or
amended from time to time;

      (d) all references in this Declaration to Articles and Sections and
Annexes and Exhibits are to Articles and Sections of and Annexes and Exhibits to
this Declaration unless otherwise specified; and

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

      "Additional Interest" has the meaning set forth in the Indenture.

      "Additional Sums" has the meaning set forth in the Indenture.

      "Administrative Action" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Administrators" means each of Ari Deshe, Jon P. Diamond and Greg Sutton,
solely in such Person's capacity as Administrator of the Trust created and
continued hereunder and not in such Person's individual capacity, or such
Administrator's successor in interest in such capacity, or any successor
appointed as herein provided.

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

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

      "Bankruptcy Event" means, with respect to any Person:

      (a) a court having jurisdiction in the premises shall enter a decree or
order for relief in respect of such Person in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee or
sequestrator (or similar official) of such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of its affairs and such
decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or

      (b) such Person shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, shall
consent to the entry of an order for relief in an involuntary case under any
such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian or sequestrator (or other
similar official) of such Person of any substantial part of its property, or
shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due.

                                       2
<PAGE>

      "Business Day" means any day other than Saturday, Sunday or any other day
on which banking institutions in New York City or Hartford, Connecticut are
permitted or required by any applicable law to close.

      "Capital Securities" has the meaning set forth in paragraph 1(a) of
 Annex I.

      "Capital Security Certificate" means a definitive Certificate in fully
registered form representing a Capital Security substantially in the form of
Exhibit A-1.

      "Certificate" means any certificate evidencing Securities.

      "Closing Date" has the meaning set forth in the Placement Agreement.

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

      "Common Securities" has the meaning set forth in paragraph 1(b) of
Annex I.

      "Common Security Certificate" means a definitive Certificate in fully
registered form representing a Common Security substantially in the form of
Exhibit A-2.

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

      "Corporate Trust Office" means the office of the Institutional Trustee at
which the corporate trust business of the Institutional Trustee shall, at any
particular time, be principally administered, which office at the date of
execution of this Declaration is located at 225 Asylum Street, Goodwin Square,
Hartford, Connecticut 06103.

      "Coupon Rate" has the meaning set forth in paragraph 2(a) of Annex I.

      "Covered Person" means: (a) any Administrator, officer, director,
shareholder, partner, member, representative, employee or agent of (i) the Trust
or (ii) any of the Trust's Affiliates; and (b) any Holder of Securities.

      "Creditor" has the meaning set forth in Section 3.3.

      "Debenture Issuer" means Safe Auto Group, Inc., an Ohio corporation, in
its capacity as issuer of the Debentures under the Indenture.

      "Debenture Trustee" means U.S. Bank National Association, as trustee under
the Indenture until a successor is appointed thereunder, and thereafter means
such successor trustee.

      "Debentures" means the Floating Rate Junior Subordinated Deferrable
Interest Debentures due 2034 to be issued by the Debenture Issuer under the
Indenture.

      "Defaulted Interest" has the meaning set forth in the Indenture.

                                       3
<PAGE>

      "Determination Date" has the meaning set forth in paragraph 2(a) of
Annex I.

      "Direct Action" has the meaning set forth in Section 2.8(d).

      "Distribution" means a distribution payable to Holders of Securities in
accordance with Section 5.1.

      "Distribution Payment Date" has the meaning set forth in paragraph 2(b) of
Annex I.

      "Distribution Period" means (i) with respect to the first Distribution
Payment Date, the period beginning on (and including) the date of original
issuance and ending on (but excluding) the Distribution Payment Date in
September 2004 and (ii) thereafter, with respect to each Distribution Payment
Date, the period beginning on (and including) the preceding Distribution Payment
Date and ending on (but excluding) such current Distribution Payment Date.

      "Distribution Rate" means, for the period beginning on (and including) the
date of original issuance and ending on (but excluding) the Distribution Payment
Date in September 2004, the rate per annum of 4.880%, and for the period
beginning on (and including) the Distribution Payment Date in September 2004,
and thereafter, the Coupon Rate.

      "Event of Default" means any one of the following events (whatever the
reason for such event and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

      (a) the occurrence of an Indenture Event of Default; or

      (b) default by the Trust in the payment of any Optional Redemption Price
of any Security when it becomes due and payable; or

      (c) default in the performance, or breach, in any material respect, of any
covenant or warranty of the Institutional Trustee in this Declaration (other
than those specified in clause (a) or (b) above) and continuation of such
default or breach for a period of 60 days after there has been given, by
registered or certified mail to the Institutional Trustee and to the Sponsor by
the Holders of at least 25% in aggregate liquidation amount of the outstanding
Capital Securities, a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a "Notice of
Default" hereunder; or

      (d) the occurrence of a Bankruptcy Event with respect to the Institutional
Trustee if a successor Institutional Trustee has not been appointed within 90
days thereof.

      "Extension Period" has the meaning set forth in paragraph 2(b) of Annex I.

      "Fiduciary Indemnified Person" shall mean the Institutional Trustee, any
Affiliate of the Institutional Trustee and any officers, directors,
shareholders, members, partners, employees, representatives, custodians,
nominees or agents of the Institutional Trustee.

      "Fiscal Year" has the meaning set forth in Section 10.1.

                                       4
<PAGE>

      "Guarantee" means the guarantee agreement, dated as of May 12, 2004, of
the Sponsor in respect of the Capital Securities.

      "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.

      "Indemnified Person" means a Company Indemnified Person or a Fiduciary
Indemnified Person.

      "Indenture" means the Indenture dated as of May 12, 2004, between the
Debenture Issuer and the Debenture Trustee, and any indenture supplemental
thereto pursuant to which the Debentures are to be issued, as such Indenture and
any supplemental indenture may be amended, supplemented or otherwise modified
from time to time.

      "Indenture Event of Default" means an "Event of Default" as defined in the
Indenture.

      "Institutional Trustee" means the Trustee meeting the eligibility
requirements set forth in Section 4.1.

      "Interest" means any interest due on the Debentures including any
Additional Interest and Defaulted Interest.

      "Interest Rate" has the meaning set forth in paragraph 2(a) of Annex I.

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

      "Investment Company Act" means the Investment Company Act of 1940, as
amended from time to time, or any successor legislation.

      "Investment Company Event" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Liquidation" has the meaning set forth in paragraph 3 of Annex I.

      "Liquidation Distribution" has the meaning set forth in paragraph 3 of
Annex I.

      "Majority in liquidation amount of the Securities" means Holder(s) of
outstanding Securities voting together as a single class or, as the context may
require, Holders of outstanding Capital 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 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 outstanding Securities of the relevant class.

      "Maturity Date" has the meaning set forth in paragraph 2(a) of Annex I.

      "Officers' Certificates" means, with respect to any Person, a certificate
signed by two Authorized Officers of such Person, and, with respect to the
Administrators, a certificate signed

                                       5
<PAGE>

by at least two Administrators. Any Officers' Certificate delivered with respect
to compliance with a condition or covenant providing for it in this Declaration
shall include:

      (a) a statement that each individual signing the Officers' Certificate has
read the covenant or condition and the definitions relating thereto;

      (b) a brief statement of the nature and scope of the examination or
investigation undertaken by each individual in rendering the Officers'
Certificate;

      (c) a statement that each such individual signing the Officers'
Certificate has made such examination or investigation as, in such individual's
opinion, is necessary to enable such individual 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.

      "Optional Redemption Date" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Optional Redemption Price" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Paying Agent" has the meaning set forth in Section 6.2.

      "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.

      "Placement Agreement" means the Placement Agreement relating to the
offering and sale of Capital Securities in the form of Exhibit C.

      "Property Account" has the meaning set forth in Section 2.8(c).

      "Pro Rata" has the meaning set forth in paragraph 8 of Annex I.

      "Quorum" means a majority of the Administrators or, if there are only two
Administrators, both of them.

      "Redemption/Distribution Notice" has the meaning set forth in paragraph
4(e) of Annex I.

      "Registrar" has the meaning set forth in Section 6.2.

      "Responsible Officer" means, with respect to the Institutional Trustee,
any officer within the Corporate Trust Office of the Institutional Trustee,
including any vice-president, any assistant vice-president, any assistant
secretary, any secretary, the treasurer, any assistant treasurer, any trust
officer or other officer of the Corporate Trust Office of the Institutional
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also

                                       6
<PAGE>

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.

      "Restricted Securities Legend" has the meaning set forth in Section
8.2(b).

      "Rule 3a-5" means Rule 3a-5 under the Investment Company Act.

      "Rule 3a-7" means Rule 3a-7 under the Investment Company Act.

      "Securities" means the Common Securities and the Capital Securities.

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

      "Special Event" has the meaning set forth in paragraph 4(a) of Annex I.

      "Special Redemption Date" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Special Redemption Price" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Sponsor" means Safe Auto Group, Inc., an Ohio corporation, or any
successor entity in a merger, consolidation or amalgamation, in its capacity as
sponsor of the Trust.

      "Statutory Trust Act" means Chapter 615 of Title 34 of the Connecticut
General Statutes, Sections 500, et seq. as may be amended from time to time.

      "Subsidiary" means with respect to any Person, (a) any corporation at
least a majority of the outstanding voting stock of which is owned, directly or
indirectly, by such Person or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries, (b) any general partnership, joint
venture or similar entity, at least a majority of the outstanding partnership or
similar interests of which shall at the time be owned by such Person, or by one
or more of its Subsidiaries, or by such Person and one or more of its
Subsidiaries, and (c) any limited partnership of which such Person or any of its
Subsidiaries is a general partner. For the purposes of this definition, "voting
stock" means shares, interests, participations or other equivalents in the
equity interest (however designated) in such Person having ordinary voting power
for the election of a majority of the directors (or the equivalent) of such
Person, other than shares, interests, participations or other equivalents having
such power only by reason of the occurrence of a contingency.

      "Successor Entity" has the meaning set forth in Section 2.14(b).

      "Successor Institutional Trustee" has the meaning set forth in Section
4.3(a).

      "Successor Securities" has the meaning set forth in Section 2.14(b).

      "Super Majority" has the meaning set forth in paragraph 5(b) of Annex I.

      "Tax Event" has the meaning set forth in paragraph 4(a) of Annex I.

                                       7
<PAGE>

      "10% in liquidation amount of the Securities" means Holder(s) of
outstanding Securities voting together as a single class or, as the context may
require, Holders of outstanding Capital Securities or Holders of outstanding
Common Securities voting separately as a class, who are the record owners of 10%
or more of the aggregate 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 outstanding Securities of the relevant class.

      "3-Month LIBOR" has the meaning set forth in paragraph 2(a) of Annex I.

      "Transfer Agent" has the meaning set forth in Section 6.2.

      "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).

      "Trust Property" means (a) the Debentures, (b) any cash on deposit in, or
owing to, the Property Account, and (c) all proceeds and rights in respect of
the foregoing and any other property and assets for the time being held or
deemed to be held by the Institutional Trustee pursuant to the trusts of this
Declaration.

      "Trust Securities" has the meaning set forth in the Indenture.

      "U.S. Person" means a United States Person as defined in Section
7701(a)(30) of the Code.

                                   ARTICLE II

                                  ORGANIZATION

      SECTION 2.1 NAME. The Trust is named "SAG Statutory Trust I," as such name
may be modified from time to time by the Administrators following written notice
to the Institutional Trustee and the Holders of the Securities. The Trust's
activities may be conducted under the name of the Trust or any other name deemed
advisable by the Administrators.

      SECTION 2.2 OFFICE. The address of the principal office of the Trust is
c/o U.S. Bank National Association, 225 Asylum Street, Goodwin Square, Hartford,
Connecticut 06103. On at least 10 Business Days written notice to the
Institutional Trustee and the Holders of the Securities, the Administrators may
designate another principal office, which shall be in a state of the United
States or in the District of Columbia.

      SECTION 2.3 PURPOSE. The exclusive purposes and functions of the Trust are
(a) to issue and sell the Securities representing undivided beneficial interests
in the assets of the Trust, (b) to invest the gross proceeds from such sale to
acquire the Debentures, (c) to facilitate direct investment in the assets of the
Trust through issuance of the Common Securities and the Capital Securities, and
(d) except as otherwise limited herein, to engage in only those other activities
necessary, advisable or incidental thereto. The Trust shall not borrow money,
issue debt or

                                       8
<PAGE>

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 2.4 AUTHORITY. Except as specifically provided in this
Declaration, the Institutional Trustee shall have exclusive and complete
authority to carry out the purposes of the Trust. An action taken by the
Institutional Trustee in accordance with its powers shall constitute the act of
and serve to bind the Trust. In dealing with the Institutional Trustee acting on
behalf of the Trust, no Person shall be required to inquire into the authority
of the Institutional Trustee to bind the Trust. Persons dealing with the Trust
are entitled to rely conclusively on the power and authority of the
Institutional Trustee as set forth in this Declaration. The Administrators shall
have only those ministerial duties set forth herein with respect to
accomplishing the purposes of the Trust and are not intended to be trustees or
fiduciaries with respect to the Trust or the Holders. The Institutional Trustee
shall have the right, but shall not be obligated except as provided in Section
2.6, to perform those duties assigned to the Administrators.

      SECTION 2.5 TITLE TO PROPERTY OF THE TRUST. Except as provided in Section
2.8 with respect to the Debentures and the Property 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 2.6 POWERS AND DUTIES OF THE INSTITUTIONAL TRUSTEE AND THE
ADMINISTRATORS.

      (a) The Institutional Trustee and the Administrators shall conduct the
affairs of the Trust in accordance with the terms of this Declaration. Subject
to the limitations set forth in paragraph (b) of this Section, and in accordance
with the following provisions (i) and (ii), the Institutional Trustee and the
Administrators shall have the authority to enter into all transactions and
agreements determined by the Institutional Trustee to be appropriate in
exercising the authority, express or implied, otherwise granted to the
Institutional Trustee or the Administrators, as the case may be, under this
Declaration, and to perform all acts in furtherance thereof, including without
limitation, the following:

            (i) Each Administrator shall have the power, duty and authority to
      act on behalf of the Trust with respect to the following matters:

                  (A) the issuance and sale of the Securities;

                  (B) to cause the Trust to enter into, and to execute, deliver
            and perform on behalf of the Trust, such agreements as may be
            necessary, advisable or incidental thereto in connection with the
            purposes and function of the Trust, including agreements with the
            Paying Agent;

                  (C) ensuring compliance with the Securities Act and applicable
            securities or blue sky laws of states and other jurisdictions;

                                       9
<PAGE>

                  (D) the sending of notices (other than notices of default),
            and other information regarding the Securities and the Debentures to
            the Holders in accordance with this Declaration including notice of
            any notice received from the Debenture Issuer of its election to
            defer payments of interest on the Debentures by extending the
            interest payment period under the Indenture;

                  (E) the consent to the appointment of a Paying Agent, Transfer
            Agent and Registrar in accordance with this Declaration, which
            consent shall not be unreasonably withheld or delayed;

                  (F) execution and delivery of the Securities in accordance
            with this Declaration;

                  (G) execution and delivery of closing certificates pursuant to
            the Placement Agreement and the application for a taxpayer
            identification number;

                  (H) unless otherwise determined by the Holders of a Majority
            in liquidation amount of the Securities or as otherwise required by
            the Statutory Trust Act, to execute on behalf of the Trust (either
            acting alone or together with any or all of the Administrators) any
            documents that the Administrators have the power to execute pursuant
            to this Declaration;

                  (I) the taking of any action as the Sponsor or an
            Administrator may from time to time determine is necessary,
            advisable or incidental to the foregoing to give effect to the terms
            of this Declaration for the benefit of the Holders (without
            consideration of the effect of any such action on any particular
            Holder);

                  (J) to establish a record date with respect to all actions to
            be taken hereunder that require a record date be established,
            including Distributions, voting rights, redemptions and exchanges,
            and to issue relevant notices to the Holders of Capital Securities
            and Holders of Common Securities as to such actions and applicable
            record dates;

                  (K) to duly prepare and file all applicable tax returns and
            tax information reports that are required to be filed with respect
            to the Trust on behalf of the Trust;

                  (L) to negotiate the terms of, and the execution and delivery
            of, the Placement Agreement providing for the sale of the Capital
            Securities;

                  (M) to employ or otherwise engage employees, agents (who may
            be designated as officers with titles), managers, contractors,
            advisors, attorneys and consultants and pay reasonable compensation
            for such services;

                  (N) to incur expenses that are necessary, advisable or
            incidental to carry out any of the purposes of the Trust; and

                                       10
<PAGE>

                  (O) 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 each jurisdiction (other than the State of
            Connecticut) in which such existence is necessary to protect the
            limited liability of the Holders of the Capital Securities or to
            enable the Trust to effect the purposes for which the Trust was
            created.

            (ii) As among the Institutional Trustee and the Administrators, the
      Institutional Trustee shall have the power, duty and authority, and is
      hereby authorized, to act on behalf of the Trust with respect to the
      following matters:

                  (A) the establishment of the Property Account;

                  (B) the receipt of the Debentures;

                  (C) the collection of interest, principal and any other
            payments made in respect of the Debentures in the Property Account;

                  (D) the distribution through the Paying Agent of amounts owed
            to the Holders in respect of the Securities;

                  (E) the exercise of all of the rights, powers and privileges
            of a holder of the Debentures;

                  (F) the sending of notices of default and other information
            regarding the Securities and the Debentures to the Holders in
            accordance with this Declaration;

                  (G) the distribution of the Trust Property in accordance with
            the terms of this Declaration;

                  (H) to the extent provided in this Declaration, the winding up
            of the affairs of and liquidation of the Trust and the preparation,
            execution and filing of the certificate of cancellation with the
            Secretary of the State of the State of Connecticut;

                  (I) after any Event of Default (provided that such Event of
            Default is not by or with respect to the Institutional Trustee) the
            taking of any action incidental to the foregoing as the
            Institutional Trustee may from time to time determine is necessary,
            advisable or incidental to the foregoing to give effect to the terms
            of this Declaration and protect and conserve the Trust Property for
            the benefit of the Holders (without consideration of the effect of
            any such action on any particular Holder); and

                  (J) to take all action that may be necessary 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 Connecticut and of each other jurisdiction in
            which such existence is necessary to protect the limited

                                       11
<PAGE>

            liability of the Holders of the Capital Securities or to enable the
            Trust to effect the purposes for which the Trust was created.

            (iii) The Institutional Trustee shall have the power and authority
      to act on behalf of the Trust with respect to any of the duties,
      liabilities, powers or the authority of the Administrators set forth in
      Section 2.6(a)(i)(D), (E) and (F) herein but shall not have a duty to do
      any such act unless specifically requested to do so in writing by the
      Sponsor, and shall then be fully protected in acting pursuant to such
      written request; and in the event of a conflict between the action of the
      Administrators and the action of the Institutional Trustee, the action of
      the Institutional Trustee shall prevail.

      (b) So long as this Declaration remains in effect, the Trust (or the
Institutional Trustee or Administrators acting on behalf of the Trust) shall not
undertake any business, activities or transaction except as expressly provided
herein or contemplated hereby. In particular, neither the Institutional Trustee
nor the Administrators may cause the Trust to (i) acquire any investments or
engage in any activities not authorized by this Declaration, (ii) sell, assign,
transfer, exchange, mortgage, pledge, set-off or otherwise dispose of any of the
Trust Property or interests therein, including to Holders, except as expressly
provided herein, (iii) take any action that would reasonably be expected (A) to
cause the Trust to fail or cease to qualify as a "grantor trust" for United
States federal income tax purposes or (B) to require the trust to register as an
Investment Company under the Investment Company Act, (iv) incur any indebtedness
for borrowed money or issue any other debt, or (v) take or consent to any action
that would result in the placement of a lien on any of the Trust Property. The
Institutional Trustee shall, at the sole cost and expense of the Trust, defend
all claims and demands of all Persons at any time claiming any lien on any of
the Trust Property adverse to the interest of the Trust or the Holders in their
capacity as Holders.

      (c) In connection with the issuance and sale of the Capital Securities,
the Sponsor shall have the right and responsibility to assist the Trust with
respect to, or effect on behalf of the Trust, the following (and any actions
taken by the Sponsor in furtherance of the following prior to the date of this
Declaration are hereby ratified and confirmed in all respects):

            (i) the taking of any action necessary to obtain an exemption from
      the Securities Act;

            (ii) the determination of the jurisdictions in which to take
      appropriate action to qualify or register for sale all or part of the
      Capital Securities and the determination of any and all such acts, other
      than actions which must be taken by or on behalf of the Trust, and the
      advice to the Administrators of actions they must take on behalf of the
      Trust, and the preparation for execution and filing of any documents to be
      executed and filed by the Trust or on behalf of the Trust, as the Sponsor
      deems necessary or advisable in order to comply with the applicable laws
      of any such States in connection with the sale of the Capital Securities;

            (iii) the negotiation of the terms of, and the execution and
      delivery of, the Placement Agreement providing for the sale of the Capital
      Securities; and

                                       12
<PAGE>

            (iv) the taking of any other actions necessary or desirable to carry
      out any of the foregoing activities.

      (d) Notwithstanding anything herein to the contrary, the Administrators
and the Holders of a Majority in liquidation amount of the Common Securities are
authorized and directed to conduct the affairs of the Trust and to operate the
Trust so that the Trust will not (i) be deemed to be an Investment Company
required to be registered under the Investment Company Act, and (ii) fail to be
classified as a "grantor trust" for United States federal income tax purposes.
The Administrators and the Holders of a Majority in liquidation amount of the
Common Securities shall not take any action inconsistent with the treatment of
the Debentures as indebtedness of the Debenture Issuer for United States federal
income tax purposes. In this connection, the Administrators and the Holders of a
Majority in liquidation amount of the Common Securities are authorized to take
any action, not inconsistent with applicable laws, the Certificate of Trust or
this Declaration, as amended from time to time, that each of the Administrators
and the Holders of a Majority in liquidation amount of the Common Securities
determines in their discretion to be necessary or desirable for such purposes.

      (e) All reasonable expenses incurred by the Administrators or the
Institutional Trustee pursuant to this Section 2.6 shall be reimbursed by the
Sponsor, and the Institutional Trustee and the Administrators shall have no
obligations with respect to such expenses.

      (f) The assets of the Trust shall consist of the Trust Property.

      (g) Legal title to all Trust Property shall be vested at all times in the
Institutional Trustee (in its capacity as such) and shall be held and
administered by the Institutional Trustee and the Administrators for the benefit
of the Trust in accordance with this Declaration.

      (h) If the Institutional Trustee or any Holder has instituted any
proceeding to enforce any right or remedy under this Declaration and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Institutional Trustee or to such Holder, then and in
every such case the Sponsor, the Institutional Trustee and the Holders shall,
subject to any determination in such proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and
remedies of the Institutional Trustee and the Holders shall continue as though
no such proceeding had been instituted.

      SECTION 2.7. PROHIBITION OF ACTIONS BY THE TRUST AND THE INSTITUTIONAL
TRUSTEE.

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

            (i) invest any proceeds received by the Trust from holding the
      Debentures, but shall distribute all such proceeds to Holders of the
      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;

                                       13
<PAGE>

            (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 other
      than as expressly provided herein;

            (vi) issue any securities or other evidences of beneficial ownership
      of, or beneficial interest in, the Trust other than the Securities;

            (vii) carry on any "trade or business" as that phrase is used in the
      Code; or

            (viii) other than as provided in this Declaration (including Annex
      I), (A) 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 a written
      opinion of counsel to the effect that such modification will not cause the
      Trust to cease to be classified as a "grantor trust" for United States
      federal income tax purposes.

      SECTION 2.8. 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 Trust
and 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 4.3 and shall cease as to such predecessor Institutional Trustee. 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 Administrators.

      (c) The Institutional Trustee shall:

            (i) establish and maintain a segregated non-interest bearing trust
      account (the "Property Account") in the name of and under the exclusive
      control of the Institutional Trustee, maintained in the Institutional
      Trustee's trust department, 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
      Property Account and make payments, or cause the Paying Agent to make
      payments, to the Holders of the Capital Securities and Holders of the
      Common Securities from the Property Account in accordance with Section
      5.1. Funds in the Property Account shall be held uninvested until
      disbursed in accordance with this Declaration;

                                       14
<PAGE>

            (ii) engage in such ministerial activities as shall be necessary or
      appropriate to effect the redemption of the Capital Securities and the
      Common Securities to the extent the Debentures are redeemed or mature; and

            (iii) upon written notice of distribution issued by the
      Administrators 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 circumstances pursuant to the terms of the
      Securities.

      (d) The Institutional Trustee may bring or defend, pay, collect,
compromise, arbitrate, resort to legal action with respect to, or otherwise
adjust claims or demands of or against, the Trust that arise out of or in
connection with an Event of Default of which a Responsible Officer of the
Institutional Trustee has actual knowledge or arises out of the Institutional
Trustee's duties and obligations under this Declaration; provided, however, that
if an Event of Default has occurred and is continuing and such event is
attributable to the failure of the Debenture Issuer to pay interest or premium,
if any, on or principal of the Debentures on the date such interest, premium, if
any, or principal is otherwise payable (or in the case of redemption, on the
redemption date), then a Holder of the Capital Securities may directly institute
a proceeding for enforcement of payment to such Holder of the principal of or
premium, if any, or interest on the Debentures having a principal amount equal
to the aggregate liquidation amount of the Capital Securities of such Holder (a
"Direct Action") on or after the respective due date specified in the
Debentures. In connection with such Direct Action, the rights of the Holders of
the Common Securities will be subrogated to the rights of such Holder of the
Capital Securities to the extent of any payment made by the Debenture Issuer to
such Holder of the Capital Securities in such Direct Action; provided, however,
that no Holder of the Common Securities may exercise such right of subrogation
so long as an Event of Default with respect to the Capital Securities has
occurred and is continuing.

      (e) The Institutional Trustee shall continue to serve as a Trustee until
either:

            (i) the Trust has been completely liquidated and the proceeds of the
      liquidation distributed to the Holders of the Securities pursuant to the
      terms of the Securities and this Declaration; or

            (ii) a Successor Institutional Trustee has been appointed and has
      accepted that appointment in accordance with Section 4.3.

      (f) The Institutional Trustee shall have the legal power to exercise all
of the rights, powers and privileges of a Holder of the Debentures under the
Indenture and, if an Event of Default occurs and is continuing, the
Institutional Trustee may, 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 this Declaration (including Annex I) and the terms of the
Securities.

      The Institutional Trustee must exercise the powers set forth in this
Section 2.8 in a manner that is consistent with the purposes and functions of
the Trust set out in Section 2.3, and

                                       15
<PAGE>

the Institutional Trustee shall not take any action that is inconsistent with
the purposes and functions of the Trust set out in Section 2.3.

      SECTION 2.9. CERTAIN DUTIES AND RESPONSIBILITIES OF THE INSTITUTIONAL
TRUSTEE AND ADMINISTRATORS.

      (a) The Institutional Trustee, before the occurrence of any Event of
Default and after the curing or waiving of all such 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 this
Declaration against the Institutional Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 6.7), 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) The duties and responsibilities of the Institutional Trustee and the
Administrators shall be as provided by this Declaration. Notwithstanding the
foregoing, no provision of this Declaration shall require the Institutional
Trustee or Administrators to expend or risk their own funds or otherwise incur
any financial liability in the performance of any of their duties hereunder, or
in the exercise of any of their rights or powers if the Institutional Trustee or
such Administrator shall have reasonable grounds to believe that repayment of
such funds or adequate protection against such risk of liability is not
reasonably assured to the Institutional Trustee or such Administrator. Whether
or not therein expressly so provided, every provision of this Declaration
relating to the conduct or affecting the liability of or affording protection to
the Institutional Trustee or Administrators shall be subject to the provisions
of this Article. Nothing in this Declaration shall be construed to relieve an
Administrator or the Institutional Trustee from liability for the Institutional
Trustee's or such Administrator's own negligent act, the Institutional Trustee's
or such Administrator's own negligent failure to act, or the Institutional
Trustee's or such Administrator's own willful misconduct. To the extent that, at
law or in equity, the Institutional Trustee or an Administrator has duties and
liabilities relating to the Trust or to the Holders, the Institutional Trustee
or such Administrator shall not be liable to the Trust or to any Holder for the
Institutional Trustee's or such Administrator's 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 the Administrators or
the Institutional Trustee otherwise existing at law or in equity, are agreed by
the Sponsor and the Holders to replace such other duties and liabilities of the
Administrators or the Institutional Trustee.

      (c) All payments made by the Institutional Trustee or a Paying Agent in
respect of the Securities shall be made only from the revenue and proceeds from
the Trust Property and only to the extent that there shall be sufficient revenue
or proceeds from the Trust Property to enable the Institutional Trustee or a
Paying Agent to make payments in accordance with the terms hereof. Each Holder,
by its acceptance of a Security, agrees that it will look solely to the revenue
and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Institutional Trustee and the
Administrators are not personally liable to it for any amount distributable in
respect of any Security or for any other liability in respect of any Security.
This Section 2.9(c) does not limit the liability of the Institutional Trustee
expressly set forth elsewhere in this Declaration.

                                       16
<PAGE>

      (d) The Institutional Trustee shall not be liable for its own acts or
omissions hereunder except as a result of its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

            (i) the Institutional Trustee shall not be liable for any error of
      judgment made in good faith by an Authorized Officer of the Institutional
      Trustee, unless it shall be proved that the Institutional Trustee was
      negligent in ascertaining the pertinent facts;

            (ii) 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 amount of the Capital Securities or the Common Securities, as
      applicable, 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;

            (iii) the Institutional Trustee's sole duty with respect to the
      custody, safekeeping and physical preservation of the Debentures and the
      Property Account shall be to deal with such property in a similar manner
      as the Institutional Trustee deals with similar property for its fiduciary
      accounts generally, subject to the protections and limitations on
      liability afforded to the Institutional Trustee under this Declaration;

            (iv) the Institutional Trustee shall not be liable for any interest
      on any money received by it except as it may otherwise agree in writing
      with the Sponsor; and money held by the Institutional Trustee need not be
      segregated from other funds held by it except in relation to the Property
      Account maintained by the Institutional Trustee pursuant to Section
      2.8(c)(i) and except to the extent otherwise required by law; and

            (v) the Institutional Trustee shall not be responsible for
      monitoring the compliance by the Administrators or the Sponsor with their
      respective duties under this Declaration, nor shall the Institutional
      Trustee be liable for any default or misconduct of the Administrators or
      the Sponsor.

      SECTION 2.10. CERTAIN RIGHTS OF INSTITUTIONAL TRUSTEE. Subject to the
provisions of Section 2.9:

      (a) the Institutional Trustee may conclusively rely and shall fully be
protected in acting, or refraining from acting, in good faith upon any
resolution, opinion of counsel, certificate, written representation of a Holder
or transferee, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
appraisal, 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;

      (b) if (i) in performing its duties under this Declaration, the
Institutional Trustee is required to decide between alternative courses of
action, (ii) in construing any of the provisions of this Declaration, the
Institutional Trustee finds the same ambiguous or inconsistent with any

                                       17
<PAGE>

other provisions contained herein, or (iii) the Institutional Trustee is unsure
of the application of any provision of this Declaration, then, except as to any
matter as to which the Holders of Capital Securities are entitled to vote under
the terms of this Declaration, the Institutional Trustee may deliver a notice to
the Sponsor requesting the Sponsor's written instructions as to the course of
action to be taken and the Institutional Trustee shall take such action, or
refrain from taking such action, as the Institutional Trustee shall be
instructed in writing, in which event the Institutional Trustee shall have no
liability except for its own negligence or willful misconduct;

      (c) any direction or act of the Sponsor or the Administrators contemplated
by this Declaration shall be sufficiently evidenced by an Officers' Certificate;

      (d) whenever in the administration of this Declaration, the Institutional
Trustee shall deem it desirable that a matter be proved or established before
undertaking, suffering or omitting any action hereunder, the Institutional
Trustee (unless other evidence is herein specifically prescribed) may request
and conclusively rely upon an Officers' Certificate as to factual matters which,
upon receipt of such request, shall be promptly delivered by the Sponsor or the
Administrators;

      (e) 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 reregistration thereof;

      (f) the Institutional Trustee may consult with counsel of its selection
(which counsel may be counsel to the Sponsor or any of its Affiliates) and the
advice of such counsel 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 reliance thereon and in accordance with such advice; 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;

      (g) 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 of the Holders pursuant to this Declaration, unless such
Holders shall have offered to the Institutional Trustee security or indemnity
reasonably satisfactory to it against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction; provided,
that nothing contained in this Section 2.10(g) shall be taken to relieve the
Institutional Trustee, subject to Section 2.9(b), upon the occurrence of an
Event of Default (that has not been cured or waived pursuant to Section 6.7), of
the power to 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;

      (h) 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, consent, order, approval, bond,
debenture, note or other evidence of indebtedness or other paper or document,
unless requested in writing to do so by one or more Holders, but the
Institutional Trustee may make such further inquiry or investigation into such
facts or matters as it may see fit;

                                       18
<PAGE>

      (i) the Institutional Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through its
agents or attorneys and the Institutional Trustee shall not be responsible for
any misconduct or negligence on the part of or for the supervision of, any such
agent or attorney appointed with due care by it hereunder;

      (j) 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
Capital Securities which instructions may only be given by the Holders of the
same proportion in liquidation amount of the Capital Securities as would be
entitled to direct the Institutional Trustee under the terms of the Capital
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 fully protected in acting in
accordance with such instructions;

      (k) except as otherwise expressly provided in this Declaration, the
Institutional Trustee shall not be under any obligation to take any action that
is discretionary under the provisions of this Declaration;

      (l) when the Institutional Trustee incurs expenses or renders services in
connection with a Bankruptcy Event, such expenses (including the fees and
expenses of its counsel) and the compensation for such services are intended to
constitute expenses of administration under any bankruptcy law or law relating
to creditors rights generally;

      (m) the Institutional Trustee shall not be charged with knowledge of an
Event of Default unless a Responsible Officer of the Institutional Trustee
obtains actual knowledge of such event or the Institutional Trustee receives
written notice of such event from any Holder, the Sponsor or the Debenture
Trustee;

      (n) 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; and

      (o) 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 2.11. EXECUTION OF DOCUMENTS. Unless otherwise determined in
writing by the Institutional Trustee, and except as otherwise required by the
Statutory Trust Act, the Institutional Trustee, or any one or more of the
Administrators, as the case may be, is authorized

                                       19
<PAGE>

to execute and deliver on behalf of the Trust any documents, agreements,
instruments or certificates that the Institutional Trustee or the
Administrators, as the case may be, have the power and authority to execute
pursuant to Section 2.6.

      SECTION 2.12. 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 Institutional Trustee does not assume any
responsibility for their correctness. The Institutional Trustee makes no
representations as to the value or condition of the property of the Trust or any
part thereof. The Institutional Trustee makes no representations as to the
validity or sufficiency of this Declaration, the Debentures or the Securities.

      SECTION 2.13. DURATION OF TRUST. The Trust, unless earlier dissolved
pursuant to the provisions of Article VII hereof, shall be in existence for 35
years from the Closing Date.

      SECTION 2.14. MERGERS.

      (a) 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 body, except as
described in Sections 2.14(b) and (c) and except in connection with the
liquidation of the Trust and the distribution of the Debentures to Holders of
Securities pursuant to Section 7.1(a)(iv) of the Declaration or Section 4 of
Annex I.

      (b) The Trust may, with the consent of the Institutional Trustee and
without the consent of the Holders of the Capital Securities, consolidate,
amalgamate, merge with or into, or be replaced by a trust organized as such
under the laws of any state; provided that:

            (i) if the Trust is not the surviving entity, such 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 Securities (the "Successor
            Securities") so that the Successor Securities rank the same as the
            Securities rank with respect to Distributions and payments upon
            Liquidation, redemption and otherwise;

            (ii) the Sponsor expressly appoints a trustee of the Successor
      Entity that possesses substantially the same powers and duties as the
      Institutional Trustee as the Holder of the Debentures;

            (iii) such merger, consolidation, amalgamation or replacement does
      not adversely affect the rights, preferences and privileges of the Holders
      of the Securities (including any Successor Securities) in any material
      respect;

            (iv) the Institutional Trustee receives written confirmation from a
      nationally recognized statistical rating organization that rates
      securities issued by the

                                       20
<PAGE>
      initial purchaser of the Capital Securities that it will not reduce or
      withdraw the rating of any such securities because of such merger,
      consolidation, amalgamation or replacement;

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

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

                  (A) such merger, consolidation, amalgamation or replacement
            does not adversely affect the rights, preferences and privileges of
            the Holders of the Securities (including any Successor Securities)
            in any material respect;

                  (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) following such merger, consolidation, amalgamation or
            replacement, the Trust (or the Successor Entity) will continue to be
            classified as a "grantor trust" for United States federal income tax
            purposes;

            (vii) the Sponsor guarantees the obligations of such Successor
      Entity under the Successor Securities at least to the extent provided by
      the Guarantee;

            (viii) the Sponsor owns 100% of the common securities of any
      Successor Entity; and

            (ix) prior to such merger, consolidation, amalgamation or
      replacement, the Institutional Trustee shall have received an Officers'
      Certificate of the Administrators and an opinion of counsel, each to the
      effect that all conditions precedent under this Section 2.14(b) to such
      transaction have been satisfied.

      (c) Notwithstanding Section 2.14(b), the Trust shall not, except with the
consent of Holders of 100% in aggregate liquidation amount of the 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 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.

                                  ARTICLE III.

                                     SPONSOR

      SECTION 3.1. SPONSOR'S PURCHASE OF COMMON SECURITIES. On the Closing Date,
the Sponsor will purchase all of the Common Securities issued by the Trust in an
amount at least equal to 3% of the capital of the Trust, at the same time as the
Capital Securities are sold.

                                       21
<PAGE>

      SECTION 3.2. RESPONSIBILITIES OF THE SPONSOR. In connection with the issue
and sale of the Capital Securities, the Sponsor shall have the exclusive right
and responsibility to engage in, or direct the Administrators to engage in, the
following activities:

      (a) to determine the jurisdictions in which to take appropriate action to
qualify or register for sale all or part of the Capital 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, advisable or incidental thereto in order to comply with the
applicable laws of any such jurisdictions; and

      (b) to negotiate the terms of and/or execute and deliver on behalf of the
Trust, the Placement Agreement and other related agreements providing for the
sale of the Capital Securities.

      SECTION 3.3. EXPENSES. In connection with the offering, sale and issuance
of the Debentures to the Trust and in connection with the sale of the Securities
by the Trust, the Sponsor, in its capacity as Debenture Issuer, shall:

      (a) pay all reasonable costs and expenses relating to the offering, sale
and issuance of the Debentures, including compensation of the Debenture Trustee
under the Indenture in accordance with the provisions of the Indenture;

      (b) be responsible for and shall pay all debts and obligations (other than
with respect to the Securities) and all costs and expenses of the Trust
(including, but not limited to, costs and expenses relating to the organization,
maintenance and dissolution of the Trust), the offering, sale and issuance of
the Securities (including fees to the placement agents in connection therewith),
the reasonable fees and expenses (including reasonable counsel fees and
expenses) of the Institutional Trustee and the Administrators, the costs and
expenses relating to the operation of the Trust, including, without limitation,
costs and expenses of accountants, attorneys, statistical or bookkeeping
services, expenses for printing and engraving and computing or accounting
equipment, Paying Agents, Registrars, Transfer Agents, duplicating, travel and
telephone and other telecommunications expenses and costs and expenses incurred
in connection with the acquisition, financing, and disposition of Trust assets
and the enforcement by the Institutional Trustee of the rights of the Holders;
and

      (c) pay any and all taxes (other than United States withholding taxes
attributable to the Trust or its assets) and all liabilities, costs and expenses
with respect to such taxes of the Trust.

      The Sponsor's obligations under this Section 3.3 shall be for the benefit
of, and shall be enforceable by, any Person to whom such debts, obligations,
costs, expenses and taxes are owed (a "Creditor") whether or not such Creditor
has received notice hereof. Any such Creditor may enforce the Sponsor's
obligations under this Section 3.3 directly against the Sponsor and the Sponsor
irrevocably waives any right or remedy to require that any such Creditor take
any action against the Trust or any other Person before proceeding against the
Sponsor. The Sponsor agrees

                                       22
<PAGE>

to execute such additional agreements as may be necessary or desirable in order
to give full effect to the provisions of this Section 3.3.

      SECTION 3.4. RIGHT TO PROCEED. The Sponsor acknowledges the rights of
Holders to institute a Direct Action as set forth in Section 2.8(d) hereto.

                                  ARTICLE IV.

                    INSTITUTIONAL TRUSTEE AND ADMINISTRATORS

      SECTION 4.1. INSTITUTIONAL TRUSTEE; ELIGIBILITY.

      (a) There shall at all times be one Institutional Trustee which shall:

            (i) not be an Affiliate of the Sponsor;

            (ii) not offer or provide credit or credit enhancement to the Trust;
      and

            (iii) be a banking corporation or national association organized and
      doing business under the laws of the United States of America or any state
      thereof or the District of Columbia and authorized under such laws to
      exercise corporate trust powers, having a combined capital and surplus of
      at least fifty million U.S. dollars ($50,000,000.00), and subject to
      supervision or examination by Federal, state, or District of Columbia
      authority. If such corporation or national association 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)(iii), the combined capital and surplus of
      such corporation or national association 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 Institutional Trustee shall cease to be eligible to
so act under Section 4.1(a), the Institutional Trustee shall immediately resign
in the manner and with the effect set forth in Section 4.3(a).

      (c) If the Institutional Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act of
1939, as amended, the Institutional Trustee shall either eliminate such interest
or resign, to the extent and in the manner provided by, and subject to this
Declaration.

      (d) The initial Institutional Trustee shall be U.S. Bank National
Association.

      SECTION 4.2. ADMINISTRATORS. Each Administrator shall be a U.S. Person, 21
years of age or older and authorized to bind the Sponsor. The initial
Administrators shall be Ari Deshe, Jon P. Diamond and Greg Sutton. There shall
at all times be at least one Administrator. Except where a requirement for
action by a specific number of Administrators is expressly set forth in this
Declaration and except with respect to any action the taking of which is the
subject of a meeting of the Administrators, any action required or permitted to
be taken by the

                                       23
<PAGE>

Administrators may be taken by, and any power of the Administrators may be
exercised by, or with the consent of, any one such Administrator.

      SECTION 4.3. APPOINTMENT, REMOVAL AND RESIGNATION OF INSTITUTIONAL TRUSTEE
AND ADMINISTRATORS.

      (a) Notwithstanding anything to the contrary in this Declaration, no
resignation or removal of the Institutional Trustee and no appointment of a
Successor Institutional Trustee pursuant to this Article shall become effective
until the acceptance of appointment by the Successor Institutional Trustee in
accordance with the applicable requirements of this Section 4.3.

      Subject to the immediately preceding paragraph, the Institutional Trustee
may resign at any time by giving written notice thereof to the Holders of the
Securities and by appointing a Successor Institutional Trustee. Upon the
resignation of the Institutional Trustee, the Institutional Trustee shall
appoint a successor by requesting from at least three Persons meeting the
eligibility requirements its expenses and charges to serve as the successor
Institutional Trustee on a form provided by the Administrators, and selecting
the Person who agrees to the lowest expense and charges (the "Successor
Institutional Trustee"). If the instrument of acceptance by the Successor
Institutional Trustee required by this Section 4.3 shall not have been delivered
to the Institutional Trustee within 60 days after the giving of such notice of
resignation or delivery of the instrument of removal, the Institutional Trustee
may petition, at the expense of the Trust, any Federal, state or District of
Columbia court of competent jurisdiction for the appointment of a Successor
Institutional Trustee. Such court may thereupon, after prescribing such notice,
if any, as it may deem proper, appoint a Successor Institutional Trustee. The
Institutional Trustee shall have no liability for the selection of such
successor pursuant to this Section 4.3.

      Unless an Event of Default shall have occurred and be continuing, the
Institutional Trustee may be removed at any time by an act of the Holders of a
Majority in liquidation amount of the Common Securities. If the Institutional
Trustee shall be so removed, the Holders of the Common Securities, by act of the
Holders of a Majority in liquidation amount of the Common Securities delivered
to the Institutional Trustee, shall promptly appoint a Successor Institutional
Trustee, and such Successor Institutional Trustee shall comply with the
applicable requirements of this Section 4.3. If an Event of Default shall have
occurred and be continuing, the Institutional Trustee may be removed by the act
of the Holders of a Majority in liquidation amount of the Capital Securities,
delivered to the Institutional Trustee (in its individual capacity and on behalf
of the Trust). If the Institutional Trustee shall be so removed, the Holders of
Capital Securities, by act of the Holders of a Majority in liquidation amount of
the Capital Securities then outstanding delivered to the Institutional Trustee,
shall promptly appoint a Successor Institutional Trustee, and such Successor
Institutional Trustee shall comply with the applicable requirements of this
Section 4.3. If no Successor Institutional Trustee shall have been so appointed
by the Holders of a Majority in liquidation amount of the Capital Securities and
accepted appointment in the manner required by this Section 4.3, within 30 days
after delivery of an instrument of removal, any Holder who has been a Holder of
the Securities for at least 6 months may, on behalf of himself and all others
similarly situated, petition any Federal, state or District of Columbia court of
competent jurisdiction for the appointment of the Successor

                                       24
<PAGE>

Institutional Trustee. Such court may thereupon, after prescribing such notice,
if any, as it may deem proper, appoint a Successor Institutional Trustee.

      The Institutional Trustee shall give notice of its resignation and removal
and each appointment of a Successor Institutional Trustee to all Holders in the
manner provided in Section 13.1(d) and shall give notice to the Sponsor. Each
notice shall include the name of the Successor Institutional Trustee and the
address of its Corporate Trust Office.

      (b) In case of the appointment hereunder of a Successor Institutional
Trustee, the retiring Institutional Trustee and the Successor Institutional
Trustee shall execute and deliver an amendment hereto wherein the Successor
Institutional Trustee shall accept such appointment and which (i) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to,
and to vest in, the Successor Institutional Trustee all the rights, powers,
trusts and duties of the retiring Institutional Trustee with respect to the
Securities and the Trust and (ii) shall add to or change any of the provisions
of this Declaration as shall be necessary to provide for or facilitate the
administration of the Trust by more than one Institutional Trustee, it being
understood that nothing herein or in such amendment shall constitute such
Institutional Trustees co-trustees and upon the execution and delivery of such
amendment the resignation or removal of the retiring Institutional Trustee shall
become effective to the extent provided therein and each Successor Institutional
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Institutional Trustee;
but, on request of the Trust or any Successor Institutional Trustee such
retiring Institutional Trustee shall duly assign, transfer and deliver to such
Successor Institutional Trustee all Trust Property, all proceeds thereof and
money held by such retiring Institutional Trustee hereunder with respect to the
Securities and the Trust.

      (c) No Institutional Trustee shall be liable for the acts or omissions to
act of any Successor Institutional Trustee.

      (d) The Holders of the Capital Securities will have no right to vote to
appoint, remove or replace the Administrators, which voting rights are vested
exclusively in the Holder of the Common Securities.

      SECTION 4.4. INSTITUTIONAL TRUSTEE VACANCIES. If the Institutional Trustee
ceases to hold office for any reason a vacancy shall occur. A resolution
certifying the existence of such vacancy by the Institutional Trustee shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a trustee appointed in accordance with Section 4.3.

      SECTION 4.5. EFFECT OF VACANCIES. The death, resignation, retirement,
removal, bankruptcy, dissolution, liquidation, incompetence or incapacity to
perform the duties of the Institutional Trustee or Administrators, as
applicable, shall not operate to dissolve, terminate or annul the Trust or
terminate this Declaration.

      SECTION 4.6. MEETINGS OF THE INSTITUTIONAL TRUSTEE AND THE ADMINISTRATORS.
Meetings of the Administrators shall be held from time to time upon the call of
an Administrator. Regular meetings of the Administrators may be held in person
in the United States or by telephone, at a place (if applicable) and time fixed
by resolution of the Administrators. Notice of

                                       25
<PAGE>

any in-person meetings of the Institutional Trustee with the Administrators or
meetings of the Administrators 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
Institutional Trustee with the Administrators or meetings of the Administrators
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 the Institutional Trustee or an Administrator, as the
case may be, at a meeting shall constitute a waiver of notice of such meeting
except where the Institutional Trustee or an Administrator, as the case may be,
attends a meeting for the express purpose of objecting to the transaction of any
activity on the grounds that the meeting has not been lawfully called or
convened. Unless provided otherwise in this Declaration, any action of the
Institutional Trustee or the Administrators, as the case may be, may be taken at
a meeting by vote of the Institutional Trustee or a majority vote of the
Administrators 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 Institutional Trustee or the
Administrators. Meetings of the Institutional Trustee and the Administrators
together shall be held from time to time upon the call of the Institutional
Trustee or an Administrator.

      SECTION 4.7. DELEGATION OF POWER.

      (a) Any Administrator may, by power of attorney consistent with applicable
law, delegate to any other natural person over the age of 21 that is a U.S.
Person his or her power for the purpose of executing any documents contemplated
in Section 2.6; and

      (b) the Administrators shall have power to delegate from time to time to
such of their number the doing of such things and the execution of such
instruments either in the name of the Trust or the names of the Administrators
or otherwise as the Administrators 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 4.8. CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS. Any
Person into which the Institutional Trustee may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Institutional Trustee shall be a party,
or any Person succeeding to all or substantially all the corporate trust
business of the Institutional Trustee shall be the successor of the
Institutional Trustee hereunder, provided such Person 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 V.

                                  DISTRIBUTIONS

      SECTION 5.1. DISTRIBUTIONS. Holders shall receive Distributions in
accordance with the applicable terms of the relevant Holder's Securities.
Distributions shall be made on the Capital

                                       26
<PAGE>

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 or any principal on the Debentures held by the
Institutional Trustee, the Institutional Trustee shall and is directed to, to
the extent funds are available for that purpose, make a distribution (a
"Distribution") of such amounts to Holders.

                                  ARTICLE VI.

                             ISSUANCE OF SECURITIES

      SECTION 6.1. GENERAL PROVISIONS REGARDING SECURITIES.

      (a) The Administrators shall, on behalf of the Trust, issue one series of
capital securities, evidenced by a certificate substantially in the form of
Exhibit A-1, representing undivided beneficial interests in the assets of the
Trust and having such terms as are set forth in Annex I and one series of common
securities, evidenced by a certificate substantially in the form of Exhibit A-2,
representing undivided beneficial interests in the assets of the Trust and
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 Capital
Securities and the Common Securities. The Capital Securities rank pari passu to,
and payment thereon shall be made Pro Rata with, the Common Securities except
that, where an Event of Default has occurred and is continuing, 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 Capital Securities as set forth in Annex
I.

      (b) The Certificates shall be signed on behalf of the Trust by one or more
Administrators. Such signature shall be the facsimile or manual signature of any
Administrator. In case any Administrator of the Trust who shall have signed any
of the Securities shall cease to be such Administrator before the Certificates
so signed shall be delivered by the Trust, such Certificates nevertheless may be
delivered as though the person who signed such Certificates had not ceased to be
such Administrator, and any Certificate may be signed on behalf of the Trust by
such persons who, at the actual date of execution of such Security, shall be an
Administrator of the Trust, although at the date of the execution and delivery
of the Declaration any such person was not such an Administrator. A Capital
Security shall not be valid until authenticated by the facsimile or manual
signature of an Authorized Officer of the Institutional Trustee. Such signature
shall be conclusive evidence that the Capital Security has been authenticated
under this Declaration. Upon written order of the Trust signed by one
Administrator, the Institutional Trustee shall authenticate the Capital
Securities for original issue. The Institutional Trustee may appoint an
authenticating agent that is a U.S. Person acceptable to the Trust to
authenticate the Capital Securities. A Common Security need not be so
authenticated and shall be valid upon execution by one or more Administrators.

      (c) 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.

                                       27
<PAGE>

      (d) Upon issuance of the Securities as provided in this Declaration, the
Securities so issued shall be deemed to be validly issued, fully paid and,
except as provided in Section 9.1(b) with respect to the Common Securities,
non-assessable.

      (e) Every Person, by virtue of having become a Holder 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 and the
Guarantee.

      SECTION 6.2. PAYING AGENT, TRANSFER AGENT AND REGISTRAR. The Trust shall
maintain in Hartford, Connecticut, an office or agency where the Capital
Securities may be presented for payment ("Paying Agent"), and an office or
agency where Securities may be presented for registration of transfer or
exchange (the "Transfer Agent"). The Trust shall keep or cause to be kept at
such office or agency a register for the purpose of registering Securities,
transfers and exchanges of Securities, such register to be held by a registrar
(the "Registrar"). The Administrators may appoint the Paying Agent, the
Registrar and the Transfer Agent and may appoint one or more additional Paying
Agents or one or more co-Registrars, or one or more co-Transfer Agents in such
other locations as they shall determine. The term "Paying Agent" includes any
additional paying agent, the term "Registrar" includes any additional registrar
or co-Registrar and the term "Transfer Agent" includes any additional transfer
agent. The Administrators may change any Paying Agent, Transfer Agent or
Registrar at any time without prior notice to any Holder. The Administrators
shall notify the Institutional Trustee of the name and address of any Paying
Agent, Transfer Agent and Registrar not a party to this Declaration. The
Administrators hereby initially appoint the Institutional Trustee to act as
Paying Agent, Transfer Agent and Registrar for the Capital Securities and the
Common Securities. The Institutional Trustee or any of its Affiliates in the
United States may act as Paying Agent, Transfer Agent or Registrar.

      SECTION 6.3. FORM AND DATING. The Capital Securities and the Institutional
Trustee's certificate of authentication thereon shall be substantially in the
form of Exhibit A-1, and the Common Securities shall be substantially in the
form of Exhibit A-2, each of which is hereby incorporated in and expressly made
a part of this Declaration. Certificates may be typed, printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to
the Administrators, as conclusively evidenced by their execution thereof. The
Securities may have letters, numbers, notations or other marks of identification
or designation and such legends or endorsements required by law, stock exchange
rule, agreements to which the Trust is subject if any, or usage (provided that
any such notation, legend or endorsement is in a form acceptable to the
Sponsor). The Trust at the direction of the Sponsor shall furnish any such
legend not contained in Exhibit A-1 to the Institutional Trustee in writing.
Each Capital Security shall be dated on or before the date of its
authentication. The terms and provisions of the Securities set forth in Annex I
and the forms of Securities set forth in Exhibits A-1 and A-2 are part of the
terms of this Declaration and to the extent applicable, the Institutional
Trustee, the Administrators and the Sponsor, by their execution and delivery of
this Declaration, expressly agree to such terms and provisions and to be bound
thereby. Capital Securities will be issued only in blocks having an aggregate
liquidation amount of not less than $100,000.00 and any multiple of $1,000.00 in
excess thereof.

                                       28
<PAGE>

      The Capital Securities are being offered and sold by the Trust pursuant to
the Placement Agreement in definitive, registered form without coupons and with
the Restricted Securities Legend.

      SECTION 6.4. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

      If:

      (a) any mutilated Certificates should be surrendered to the Registrar, or
if the Registrar shall receive evidence to its satisfaction of the destruction,
loss or theft of any Certificate; and

      (b) there shall be delivered to the Registrar, the Administrators and the
Institutional Trustee such security or indemnity as may be required by them to
keep each of them harmless;

then, in the absence of notice that such Certificate shall have been acquired by
a protected purchaser, an Administrator on behalf of the Trust shall execute
(and in the case of a Capital Security Certificate, the Institutional Trustee
shall authenticate) 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 this
Section 6.4, the Registrar or the Administrators 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 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.

      SECTION 6.5. TEMPORARY SECURITIES. Until definitive Securities are ready
for delivery, the Administrators may prepare and, in the case of the Capital
Securities, the Institutional Trustee shall authenticate, temporary Securities.
Temporary Securities shall be substantially in the form of definitive Securities
but may have variations that the Administrators consider appropriate for
temporary Securities. Without unreasonable delay, the Administrators shall
prepare and, in the case of the Capital Securities, the Institutional Trustee
shall authenticate, definitive Securities in exchange for temporary Securities.

      SECTION 6.6. CANCELLATION. The Administrators at any time may deliver
Securities to the Institutional Trustee for cancellation. The Registrar shall
forward to the Institutional Trustee any Securities surrendered to it for
registration of transfer, redemption or payment. The Institutional Trustee shall
promptly cancel all Securities surrendered for registration of transfer,
payment, replacement or cancellation and shall dispose of such canceled
Securities as the Administrators direct. The Administrators may not issue new
Securities to replace Securities that have been paid or that have been delivered
to the Institutional Trustee for cancellation.

      SECTION 6.7. RIGHTS OF HOLDERS; WAIVERS OF PAST DEFAULTS.

      (a) The legal title to the Trust Property is vested exclusively in the
Institutional Trustee (in its capacity as such) in accordance with Section 2.5,
and the Holders shall not have any right or title therein other than the
undivided beneficial interest in the assets of the Trust conferred by their
Securities and they shall have no right to call for any partition or division of

                                       29
<PAGE>

property, profits or rights of the Trust except as described below. The
Securities shall be personal property giving only the rights specifically set
forth therein and in this Declaration. The Securities shall have no preemptive
or similar rights.

      (b) For so long as any Capital Securities remain outstanding, if upon an
Indenture Event of Default, the Debenture Trustee fails or the holders of not
less than 25% in principal amount of the outstanding Debentures fail to declare
the principal of all of the Debentures to be immediately due and payable, the
Holders of a Majority in liquidation amount of the Capital Securities then
outstanding shall have the right to make such declaration by a notice in writing
to the Institutional Trustee, the Sponsor and the Debenture Trustee.

      At any time after a declaration of acceleration with respect to the
Debentures has been made and before a judgment or decree for payment of the
money due has been obtained by the Debenture Trustee as provided in the
Indenture, if the Institutional Trustee, subject to the provisions hereof, fails
to annul any such declaration and waive such default, the Holders of a Majority
in liquidation amount of the Capital Securities, by written notice to the
Institutional Trustee, the Sponsor and the Debenture Trustee, may rescind and
annul such declaration and its consequences if:

            (i) the Debenture Issuer has paid or deposited with the Debenture
      Trustee a sum sufficient to pay

                  (A) all overdue installments of interest on all of the
            Debentures,

                  (B) any accrued Additional Interest on all of the Debentures,

                  (C) the principal of (and premium, if any, on) any Debentures
            that have become due otherwise than by such declaration of
            acceleration and interest and Additional Interest thereon at the
            rate borne by the Debentures, and

                  (D) all sums paid or advanced by the Debenture Trustee under
            the Indenture and the reasonable compensation, expenses,
            disbursements and advances of the Debenture Trustee and the
            Institutional Trustee, their agents and counsel; and

            (ii) all Events of Default with respect to the Debentures, other
      than the non-payment of the principal of the Debentures that has become
      due solely by such acceleration, have been cured or waived as provided in
      Section 5.7 of the Indenture.

      The Holders of at least a Majority in liquidation amount of the Capital
Securities may, on behalf of the Holders of all the Capital Securities, waive
any past default under the Indenture or any Indenture Event of Default, except a
default or Indenture Event of Default in the payment of principal or interest
(unless such default or Indenture Event of Default has been cured and a sum
sufficient to pay all matured installments of interest and principal due
otherwise than by acceleration has been deposited with the Debenture Trustee) or
a default under the Indenture or an Indenture Event of Default in respect of a
covenant or provision that under the Indenture cannot be modified or amended
without the consent of the holder of each outstanding Debenture. No such waiver
shall affect any subsequent default or impair any right consequent thereon.

                                       30
<PAGE>

      Upon receipt by the Institutional Trustee of written notice declaring such
an acceleration, or rescission and annulment thereof, by Holders of any part of
the Capital Securities, a record date shall be established for determining
Holders of outstanding Capital Securities entitled to join in such notice, which
record date shall be at the close of business on the day the Institutional
Trustee receives such notice. The Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to join in such
notice, whether or not such Holders remain Holders after such record date;
provided, that unless such declaration of acceleration, or rescission and
annulment, as the case may be, shall have become effective by virtue of the
requisite percentage having joined in such notice prior to the day that is 90
days after such record date, such notice of declaration of acceleration, or
rescission and annulment, as the case may be, shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such 90-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is
identical to a written notice that has been canceled pursuant to the proviso to
the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 6.7.

      (c) Except as otherwise provided in paragraphs (a) and (b) of this Section
6.7, the Holders of at least a Majority in liquidation amount of the Capital
Securities may, on behalf of the Holders of all the Capital Securities, waive
any past default or Event of Default and its consequences. Upon such waiver, any
such default or Event of Default shall cease to exist, and any default or Event
of Default 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 or impair any right consequent thereon.

                                  ARTICLE VII.

                      DISSOLUTION AND TERMINATION OF TRUST

      SECTION 7.1. DISSOLUTION AND TERMINATION OF TRUST.

      (a) The Trust shall dissolve on the first to occur of:

            (i) unless earlier dissolved, on June 17, 2039, the expiration of
      the term of the Trust;

            (ii) upon a Bankruptcy Event with respect to the Sponsor, the Trust
      or the Debenture Issuer;

            (iii) (other than in connection with a merger, consolidation or
      similar transaction not prohibited by the Indenture, this Declaration or
      the Guarantee, as the case may be) upon (A) the filing of a certificate of
      dissolution or its equivalent with respect to the Sponsor, and (B)(I) upon
      the consent of Holders of a Majority in liquidation amount of the
      Securities voting together as a single class to file a certificate of
      cancellation with respect to the Trust or (II) upon the revocation of the
      charter of the Sponsor and the expiration of 90 days after the date of
      revocation without a reinstatement thereof;

                                       31
<PAGE>

            (iv) upon the distribution of the Debentures to the Holders of the
      Securities following the exercise of the right of the Holder of all of the
      outstanding Common Securities to dissolve the Trust as provided in Section
      3 of Annex I hereto;

            (v) upon the entry of a decree of judicial dissolution of the Holder
      of the Common Securities, the Sponsor, the Trust or the Debenture Issuer;

            (vi) when 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;
      or

            (vii) before the issuance of any Securities, with the consent of the
      Institutional Trustee and the Sponsor.

      (b) As soon as is practicable after the occurrence of an event referred to
in Section 7.1(a), and after satisfaction of liabilities to creditors of the
Trust as required by applicable law, including of the Statutory Trust Act, and
subject to the terms set forth in Annex I, the Institutional Trustee shall
terminate the Trust by filing a certificate of cancellation with the Secretary
of the State of the State of Connecticut.

      (c) The provisions of Section 2.9 and Article IX shall survive the
termination of the Trust.

                                 ARTICLE VIII.

                              TRANSFER OF INTERESTS

      SECTION 8.1. GENERAL.

      (a) Subject to Section 8.1(c), where Capital Securities are presented to
the Registrar or a co-registrar with a request to register a transfer or to
exchange them for an equal aggregate liquidation amount of Capital 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 transfer and exchanges, the Trust shall issue and the
Institutional Trustee shall authenticate Capital Securities at the Registrar's
request.

      (b) Upon issuance of the Common Securities, the Sponsor shall acquire and
retain beneficial and record ownership of the Common Securities and for so long
as the Securities remain outstanding, the Sponsor shall maintain 100% ownership
of the Common Securities; provided, however, that any permitted successor of the
Sponsor, in its capacity as Debenture Issuer, under the Indenture that is a U.S.
Person may succeed to the Sponsor's ownership of the Common Securities.

      (c) Capital 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 Capital Securities. To the fullest extent permitted by
applicable law, any transfer or purported transfer of any Security not made in
accordance with this Declaration shall be null and void and will be deemed to be
of no legal effect whatsoever and any such transferee shall be deemed not to be
the Holder

                                       32
<PAGE>

of such Capital Securities for any purpose, including but not limited to the
receipt of Distributions on such Capital Securities, and such transferee shall
be deemed to have no interest whatsoever in such Capital Securities.

      (d) The Registrar shall provide for the registration of Securities and of
transfers of Securities, which will be effected without charge but only upon
payment (with such indemnity as the Registrar may require) 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 Registrar shall
cause one or more new Securities of the same tenor to be issued in the name of
the designated transferee or transferees. Any Security issued upon any
registration of transfer or exchange pursuant to the terms of this Declaration
shall evidence the same Security and shall be entitled to the same benefits
under this Declaration as the Security surrendered upon such registration of
transfer or exchange. Every Security surrendered for registration of transfer
shall be accompanied by a written instrument of transfer in form satisfactory to
the Registrar 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 Institutional Trustee pursuant to Section 6.6. 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.

      (e) The Trust shall not be required (i) to issue, register the transfer
of, or exchange any Securities during a period beginning at the opening of
business 15 days before the day of any selection of Securities for redemption
and ending at the close of business on the earliest date on which the relevant
notice of redemption is deemed to have been given to all Holders of the
Securities to be redeemed, or (ii) to register the transfer or exchange of any
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Security being redeemed in part.

      SECTION 8.2. TRANSFER PROCEDURES AND RESTRICTIONS.

      (a) The Capital Securities shall bear the Restricted Securities Legend,
which shall not be removed unless there is delivered to the Trust such
satisfactory evidence, which may include an opinion of counsel satisfactory to
the Institutional Trustee, as may be reasonably required by the Trust, that
neither the legend nor the restrictions on transfer set forth therein are
required to ensure that transfers thereof comply with the provisions of the
Securities Act. Upon provision of such satisfactory evidence, the Institutional
Trustee, at the written direction of the Trust, shall authenticate and deliver
Capital Securities that do not bear the legend.

      (b) Except as permitted by Section 8.2(a), each Capital Security shall
bear a legend (the "Restricted Securities Legend") in substantially the
following form and a Capital Security shall not be transferred except in
compliance with such legend, unless otherwise determined by the Sponsor, upon
the advice of counsel expert in securities law, in accordance with applicable
law:

            THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE "SECURITIES ACT"),

                                       33
<PAGE>

      ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER
      THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
      SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF
      IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
      FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
      ACT AND ANY APPLICABLE STATE OR OTHER SECURITIES LAWS. THE HOLDER OF THIS
      SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
      TRANSFER THIS SECURITY ONLY (A) TO THE SPONSOR OR THE TRUST, (B) PURSUANT
      TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
      SECURITIES ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
      QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE
      144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE
      TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF
      REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED
      INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE
      SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL SECURITY FOR ITS OWN
      ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR,
      FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
      CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR
      (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE SPONSOR'S AND THE
      TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE
      DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
      SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE DECLARATION (DEFINED
      HEREIN), A COPY OF WHICH MAY BE OBTAINED FROM THE SPONSOR OR THE TRUST.
      HEDGING TRANSACTIONS INVOLVING THIS SECURITY MAY NOT BE CONDUCTED UNLESS
      IN COMPLIANCE WITH THE SECURITIES ACT.

            THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
      REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
      RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
      EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
      SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE")
      (EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN
      ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO

                                       34
<PAGE>

      PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS
      SECURITY OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS
      ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR
      PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14
      OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS
      SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE
      CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF
      THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED
      BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE
      BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
      WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
      ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON
      OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE
      SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED
      TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR
      WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

            THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
      HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000.00 (100 SECURITIES)
      AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF
      SECURITIES IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000.00
      SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.

            THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE
      FOREGOING RESTRICTIONS.

            THIS SECURITY IS IN REGISTERED FORM WITHIN THE MEANING OF TREASURY
      REGULATIONS SECTION 1.871-14(c)(1)(i) FOR U.S. FEDERAL INCOME AND
      WITHHOLDING TAX PURPOSES.

            IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
      REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS
      MAY BE REQUIRED BY THE DECLARATION TO CONFIRM THAT THE TRANSFER COMPLIES
      WITH THE FOREGOING RESTRICTIONS.

      (c) To permit registrations of transfers and exchanges, the Trust shall
execute and the Institutional Trustee shall authenticate Capital Securities at
the Registrar's request.

                                       35
<PAGE>

      (d) Registrations of transfers or exchanges will be effected without
charge, but only upon payment (with such indemnity as the Registrar or the
Sponsor may require) in respect of any tax or other governmental charge that may
be imposed in relation to it.

      (e) All Capital Securities issued upon any registration of transfer or
exchange pursuant to the terms of this Declaration shall evidence the same
security and shall be entitled to the same benefits under this Declaration as
the Capital Securities surrendered upon such registration of transfer or
exchange.

      SECTION 8.3. DEEMED SECURITY HOLDERS. The Trust, the Administrators, the
Institutional Trustee, the Paying Agent, the Transfer Agent or the Registrar 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
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 Administrators, the Institutional
Trustee, the Paying Agent, the Transfer Agent or the Registrar shall have actual
or other notice thereof.

                                  ARTICLE IX.

                           LIMITATION OF LIABILITY OF
             HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS

      SECTION 9.1. LIABILITY.

      (a) Except as expressly set forth in this Declaration, the 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; or

            (ii) required to pay to the Trust or to any Holder of the 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 the Statutory Trust Act, the Holders of the Capital
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 Connecticut.

      SECTION 9.2. 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

                                       36
<PAGE>

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 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, if selected by such Indemnified Person, has been selected by
such Indemnified Person 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.

      SECTION 9.3. 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, are agreed by the
parties hereto to replace such other duties and liabilities of the Indemnified
Person.

      (b) 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 9.4. INDEMNIFICATION.

      (a) The Sponsor shall indemnify, to the full extent permitted by law, any
Indemnified Person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by or in the
right of the Trust) arising out of or in connection with the acceptance or
administration of this Declaration by reason of the fact that he is or was an
Indemnified Person against expenses (including reasonable attorneys' fees and
expenses), judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit or proceeding if
he acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Trust, and, with respect to

                                       37
<PAGE>
any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that the Indemnified
Person did not act in good faith and in a manner which he reasonably believed to
be in or not opposed to the best interests of the Trust, and, with respect to
any criminal action or proceeding, had reasonable cause to believe that his
conduct was unlawful.

      (b) The Sponsor shall indemnify, to the full extent permitted by law, any
Indemnified Person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action or suit by or in the right of the
Trust to procure a judgment in its favor arising out of or in connection with
the acceptance or administration of this Declaration by reason of the fact that
he is or was an Indemnified Person against expenses (including reasonable
attorneys' fees and expenses) actually and reasonably incurred by him in
connection with the defense or settlement of such action or suit if he acted in
good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Trust; provided, however, that no such indemnification
shall be made in respect of any claim, issue or matter as to which such
Indemnified Person shall have been adjudged to be liable to the Trust unless and
only to the extent that the court in which such action or suit was brought shall
determine upon application that, despite the adjudication of liability but in
view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which such court shall deem proper.

      (c) To the extent that an Indemnified Person shall be successful on the
merits or otherwise (including dismissal of an action without prejudice or the
settlement of an action without admission of liability) in defense of any
action, suit or proceeding referred to in paragraphs (a) and (b) of this Section
9.4, or in defense of any claim, issue or matter therein, he shall be
indemnified, to the full extent permitted by law, against expenses (including
attorneys' fees and expenses) actually and reasonably incurred by him in
connection therewith.

      (d) Any indemnification of an Administrator under paragraphs (a) and (b)
of this Section 9.4 (unless ordered by a court) shall be made by the Sponsor
only as authorized in the specific case upon a determination that
indemnification of the Indemnified Person is proper in the circumstances because
he has met the applicable standard of conduct set forth in paragraphs (a) and
(b). Such determination shall be made (i) by the Administrators by a majority
vote of a Quorum consisting of such Administrators who were not parties to such
action, suit or proceeding, (ii) if such a Quorum is not obtainable, or, even if
obtainable, if a Quorum of disinterested Administrators so directs, by
independent legal counsel in a written opinion, or (iii) by the Common Security
Holder of the Trust.

      (e) To the fullest extent permitted by law, expenses (including reasonable
attorneys' fees and expenses) incurred by an Indemnified Person in defending a
civil, criminal, administrative or investigative action, suit or proceeding
referred to in paragraphs (a) and (b) of this Section 9.4 shall be paid by the
Sponsor in advance of the final disposition of such action, suit or proceeding
upon receipt of an undertaking by or on behalf of such Indemnified Person to
repay such amount if it shall ultimately be determined that he is not entitled
to be indemnified by the Sponsor as authorized in this Section 9.4.
Notwithstanding the foregoing, no advance shall be made by the Sponsor if a
determination is reasonably and promptly made (i) by the

                                       38
<PAGE>

Administrators by a majority vote of a Quorum of disinterested Administrators,
(ii) if such a Quorum is not obtainable, or, even if obtainable, if a Quorum of
disinterested Administrators so directs, by independent legal counsel in a
written opinion, or (iii) by the Common Security Holder of the Trust, that,
based upon the facts known to the Administrators, counsel or the Common Security
Holder at the time such determination is made, such Indemnified Person acted in
bad faith or in a manner that such Indemnified Person did not believe to be in
the best interests of the Trust, or, with respect to any criminal proceeding,
that such Indemnified Person believed or had reasonable cause to believe his
conduct was unlawful. In no event shall any advance be made in instances where
the Administrators, independent legal counsel or the Common Security Holder
reasonably determine that such Indemnified Person deliberately breached his duty
to the Trust or its Common or Capital Security Holders.

      (f) The Institutional Trustee, at the sole cost and expense of the
Sponsor, retains the right to representation by counsel of its own choosing in
any action, suit or any other proceeding for which it is indemnified under
paragraphs (a) and (b) of this Section 9.4, without affecting its right to
indemnification hereunder or waiving any rights afforded to it under this
Declaration or applicable law.

      (g) The indemnification and advancement of expenses provided by, or
granted pursuant to, the other paragraphs of this Section 9.4 shall not be
deemed exclusive of any other rights to which those seeking indemnification and
advancement of expenses may be entitled under any agreement, vote of
stockholders or disinterested directors of the Sponsor or Capital Security
Holders of the Trust or otherwise, both as to action in his official capacity
and as to action in another capacity while holding such office. All rights to
indemnification under this Section 9.4 shall be deemed to be provided by a
contract between the Sponsor and each Indemnified Person who serves in such
capacity at any time while this Section 9.4 is in effect. Any repeal or
modification of this Section 9.4 shall not affect any rights or obligations then
existing.

      (h) The Sponsor or the Trust may purchase and maintain insurance on behalf
of any Person who is or was an Indemnified Person against any liability asserted
against him and incurred by him in any such capacity, or arising out of his
status as such, whether or not the Sponsor would have the power to indemnify him
against such liability under the provisions of this Section 9.4.

      (i) For purposes of this Section 9.4, references to "the Trust" shall
include, in addition to the resulting or surviving entity, any constituent
entity (including any constituent of a constituent) absorbed in a consolidation
or merger, so that any Person who is or was a director, trustee, officer or
employee of such constituent entity, or is or was serving at the request of such
constituent entity as a director, trustee, officer, employee or agent of another
entity, shall stand in the same position under the provisions of this Section
9.4 with respect to the resulting or surviving entity as he would have with
respect to such constituent entity if its separate existence had continued.

      (j) The indemnification and advancement of expenses provided by, or
granted pursuant to, this Section 9.4 shall, unless otherwise provided when
authorized or ratified, (i) continue as to a Person who has ceased to be an
Indemnified Person and shall inure to the

                                       39
<PAGE>

benefit of the heirs, executors and administrators of such a Person, and (ii)
survive the termination or expiration of this Declaration or the earlier removal
or resignation of an Indemnified Person.

      SECTION 9.5. OUTSIDE BUSINESSES. Any Covered Person, the Sponsor 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. None of any Covered Person, the Sponsor 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 taken by the Trust, and any
Covered Person, the Sponsor 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 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.

      SECTION 9.6. COMPENSATION; FEE. The Sponsor agrees:

      (a) to pay to the Institutional Trustee from time to time such
compensation for all services rendered by it hereunder as the parties shall
agree from time to time (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust); and

      (b) except as otherwise expressly provided herein, to reimburse the
Institutional Trustee upon request for all reasonable expenses, disbursements
and advances incurred or made by the Institutional Trustee in accordance with
any provision of this Declaration (including the reasonable compensation and the
reasonable expenses and disbursements of their respective agents and counsel),
except any such expense, disbursement or advance as may be attributable to its
negligence, bad faith or willful misconduct.

      The provisions of this Section 9.6 shall survive the dissolution of the
Trust and the termination of this Declaration and the removal or resignation of
the Institutional Trustee.

      No Trustee may claim any lien or charge on any property of the Trust as a
result of any amount due pursuant to this Section 9.6.

                                   ARTICLE X.

                               TAX AND ACCOUNTING

      SECTION 10.1. FISCAL YEAR. The fiscal year (the "Fiscal Year") of the
Trust shall be the calendar year, or such other year as is required by the Code.

                                       40
<PAGE>

      SECTION 10.2. CERTAIN ACCOUNTING MATTERS.

      (a) At all times during the existence of the Trust, the Administrators
shall keep, or cause to be kept at the principal office of the Trust in the
United States, as defined for purposes of Treasury Regulations Section
301.7701-7, 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, at the Sponsor's expense, in accordance with generally
accepted accounting principles, consistently applied. The books of account and
the records of the Trust shall be examined by and reported upon (either
separately or as part of the Sponsor's regularly prepared consolidated financial
report) as of the end of each Fiscal Year of the Trust by a firm of independent
certified public accountants selected by the Administrators.

      (b) The Administrators shall cause to be duly prepared and delivered to
each of the Holders of Securities all annual United States federal income tax
information statements required by the Code, if any, 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 Administrators shall endeavor to deliver
all such statements within 30 days after the end of each Fiscal Year of the
Trust.

      (c) The Administrators, at the Sponsor's expense, shall cause to be duly
prepared at the principal office of the Sponsor in the United States, as 'United
States' is defined in Section 7701(a)(9) of the Code (or at the principal office
of the Trust if the Sponsor has no such principal office in the United States),
and filed an annual United States federal income tax return on a Form 1041 or
such other form required by United States federal income tax law, if any, and
any other annual income tax returns required to be filed by the Administrators
on behalf of the Trust with any state or local taxing authority.

      SECTION 10.3. BANKING. The Trust shall maintain in the United States, as
defined for purposes of Treasury Regulations Section 301.7701-7, 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 Property Account and no
other funds of the Trust shall be deposited in the Property Account. The sole
signatories for such accounts (including the Property Account) shall be
designated by the Institutional Trustee.

      SECTION 10.4. WITHHOLDING. The Institutional Trustee or any Paying Agent
and the Administrators shall comply with all withholding requirements under
United States federal, state and local law. The Institutional Trustee or any
Paying Agent shall request, and each Holder shall provide to the Institutional
Trustee or any Paying Agent, such forms or certificates as are necessary to
establish an exemption from withholding with respect to the Holder, and any
representations and forms as shall reasonably be requested by the Institutional
Trustee or any Paying Agent to assist it in determining the extent of, and in
fulfilling, its withholding obligations. The Administrators 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 Institutional
Trustee or any Paying Agent 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

                                       41
<PAGE>

be deemed to be a Distribution in the amount of the withholding to the Holder.
In the event of any claimed overwithholding, 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, the Institutional
Trustee or any Paying Agent may reduce subsequent Distributions by the amount of
such withholding.

      SECTION 10.5. 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.

                                  ARTICLE XI.

                             AMENDMENTS AND MEETINGS

      SECTION 11.1. 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 the Institutional Trustee.

      (b) Notwithstanding any other provision of this Article XI, an amendment
may be made, and any such purported amendment shall be valid and effective only
if:

            (i) 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 all conditions precedent to the execution and
            delivery of such amendment have been satisfied; and

            (ii) the result of such amendment would not be to

                  (A) cause the Trust to cease to be classified for purposes of
            United States federal income taxation as a grantor trust; or

                  (B) cause the Trust to be deemed to be an Investment Company
            required to be registered under the Investment Company Act.

      (c) Except as provided in Section 11.1(d), (e) or (h), no amendment shall
be made, and any such purported amendment shall be void and ineffective unless
the Holders of a Majority in liquidation amount of the Capital Securities shall
have consented to such amendment.

                                       42
<PAGE>

      (d) In addition to and notwithstanding any other provision in this
Declaration, without the consent of each affected Holder, this Declaration may
not be amended to (i) change the amount or timing of any Distribution on the
Securities or any redemption or liquidation provisions applicable to the
Securities or otherwise adversely affect the amount of any Distribution required
to be made in respect of the Securities as of a specified date, or (ii) restrict
the right of a Holder to institute suit for the enforcement of any such payment
on or after such date.

      (e) Sections 9.1(b) and 9.1(c) and this Section 11.1 shall not be amended
without the consent of all of the Holders of the Securities.

      (f) Article III shall not be amended without the consent of the Holders of
a Majority in liquidation amount of the Common Securities.

      (g) The rights of the Holders of the Capital Securities or Common
Securities, as applicable, under Article IV to appoint and remove the
Institutional Trustee shall not be amended without the consent of the Holders of
a Majority in liquidation amount of the Capital Securities or Common Securities,
as applicable.

      (h) This Declaration may be amended by the Institutional Trustee and the
Holders of a Majority in liquidation amount of the Common Securities without the
consent of the Holders of the Capital 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; or

                  (iv) modify, eliminate or add to any provision of this
      Declaration to such extent as may be necessary to ensure that the Trust
      will be classified for United States federal income tax purposes at all
      times as a grantor trust and will not be required to register as an
      "investment company" under the Investment Company Act (including without
      limitation to conform to any change in Rule 3a-5, Rule 3a-7 or any other
      applicable rule under the Investment Company Act or written change in
      interpretation or application thereof 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 of Securities;

      provided, however, that no such modification, elimination or addition
referred to in clauses (i), (ii), (iii) or (iv) shall adversely affect in any
material respect the powers, preferences or special rights of Holders of Capital
Securities.

      SECTION 11.2. MEETINGS OF THE HOLDERS OF THE SECURITIES; ACTION BY WRITTEN
CONSENT.

      (a) Meetings of the Holders of the Capital Securities or the Common
Securities may be called at any time by the Administrators (or as provided in
the terms of the Securities) to

                                       43
<PAGE>

consider and act on any matter on which Holders of such Securities are entitled
to act under the terms of this Declaration or the terms of the Securities. The
Administrators shall call a meeting of the Holders of such class if directed to
do so by the Holders of at least 10% in liquidation amount of such Securities.
Such direction shall be given by delivering to the Administrators one or more
notices in a writing stating that the signing Holders of such Securities wish to
call a meeting and indicating the general or specific purpose for which the
meeting is to be called. Any Holders of the Securities calling a meeting shall
specify in writing the Certificates held by the Holders of the Securities
exercising the right to call a meeting and only those Securities represented by
such Certificates shall be counted for purposes of determining whether the
required percentage set forth in the second sentence of this paragraph has been
met.

      (b) Except to the extent otherwise provided in the terms of the
Securities, the following provisions shall apply to meetings of Holders of the
Securities:

            (i) notice of any such meeting shall be given to all the Holders of
      the 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 the Securities is permitted or required under
      this Declaration, such vote, consent or approval may be given at a meeting
      of the Holders of the Securities. Any action that may be taken at a
      meeting of the Holders of the Securities may be taken without a meeting if
      a consent in writing setting forth the action so taken is signed by the
      Holders of the Securities owning not less than the minimum liquidation
      amount of Securities in liquidation amount that would be necessary to
      authorize or take such action at a meeting at which all Holders of the
      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 the Securities entitled to vote who have not consented in
      writing. The Administrators may specify that any written ballot submitted
      to the Holders of the Securities for the purpose of taking any action
      without a meeting shall be returned to the Trust within the time specified
      by the Administrators;

            (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 the
      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 Connecticut relating to
      proxies, and judicial interpretations thereunder, as if the Trust were a
      Connecticut corporation and the Holders of the Securities were
      stockholders of a Connecticut corporation; each meeting of the Holders of
      the Securities shall be conducted by the Administrators or by such other
      Person that the Administrators may designate; and

            (iii) unless the Statutory Trust Act, this Declaration, or the terms
      of the Securities otherwise provides, the Administrators, 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

                                       44
<PAGE>

      Holders of the 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; provided, however, that
      each meeting shall be conducted in the United States (as that term is
      defined in Treasury Regulations section 301.7701-7).

                                  ARTICLE XII.

                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE

      SECTION 12.1. REPRESENTATIONS AND WARRANTIES OF INSTITUTIONAL TRUSTEE. The
initial Institutional Trustee represents and warrants to the Trust and to the
Sponsor at the date of this Declaration, 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 banking corporation or national
association with trust powers, duly organized and validly existing under the
laws of the United States of America with trust power and authority to execute
and deliver, and to carry out and perform its obligations under the terms of,
this Declaration;

      (b) the Institutional Trustee has a combined capital and surplus of at
least fifty million U.S. dollars ($50,000,000);

      (c) the execution, delivery and performance by the Institutional Trustee
of this Declaration has been duly authorized by all necessary corporate action
on the part of the Institutional Trustee. This Declaration has been duly
executed and delivered by the Institutional Trustee, and it 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 (regardless of
whether considered in a proceeding in equity or at law);

      (d) the execution, delivery and performance of this Declaration by the
Institutional Trustee does not conflict with or constitute a breach of the
charter or by-laws of the Institutional Trustee; and

      (e) 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 this Declaration.

                                 ARTICLE XIII.

                                 MISCELLANEOUS

      SECTION 13.1. 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 (which telecopy

                                       45
<PAGE>

shall be followed by notice delivered or mailed by first class mail) or mailed
by first class mail, as follows:

      (a) if given to the Trust in care of the Administrators 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):

                  SAG Statutory Trust I
                  c/o Safe Auto Group, Inc.
                  3883 East Broad Street
                  Columbus, Ohio  43213
                  Attention:  Greg Sutton
                  Telecopy:  (614) 559-5680

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

                  U.S. Bank National Association
                  225 Asylum Street, Goodwin Square
                  Hartford, Connecticut  06103
                  Attention:  Vice President, Corporate Trust Services
                  Telecopy:   860-244-1889

                  With a copy to:

                  U.S. Bank National Association
                  1 Federal Street
                  Boston, Massachusetts  02110
                  Attention:  Paul D. Allen, Corporate Trust Services
                  Telecopy:  617-603-6665

      (b) 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 of to the Trust):

                  Safe Auto Group, Inc.
                  3883 East Broad Street
                  Columbus, Ohio  43213
                  Attention:  Greg Sutton
                  Telecopy:  (614) 559-5680

      (c) if given to any other Holder, at the address set forth on the books
and records of the Trust.

      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

                                       46
<PAGE>

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 13.2. GOVERNING LAW. This Declaration and the rights and
obligations of the parties hereunder shall be governed by and interpreted in
accordance with the law of the State of Connecticut and all rights and remedies
shall be governed by such laws without regard to the principles of conflict of
laws of the State of Connecticut or any other jurisdiction that would call for
the application of the law of any jurisdiction other than the State of
Connecticut; provided, however, that there shall not be applicable to the Trust,
the Institutional Trustee or this Declaration any provision of the laws
(statutory or common) of the State of Connecticut pertaining to trusts that
relate to or regulate, in a manner inconsistent with the terms hereof (a) the
filing with any court or governmental body or agency of trustee accounts or
schedules of trustee fees and charges, (b) affirmative requirements to post
bonds for trustees, officers, agents or employees of a trust, (c) the necessity
for obtaining court or other governmental approval concerning the acquisition,
holding or disposition of real or personal property, (d) fees or other sums
payable to trustees, officers, agents or employees of a trust, (e) the
allocation of receipts and expenditures to income or principal, or (f)
restrictions or limitations on the permissible nature, amount or concentration
of trust investments or requirements relating to the titling, storage or other
manner of holding or investing trust assets.

      SECTION 13.3. 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 13.4. 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 13.5. 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 Institutional Trustee shall bind and inure to
the benefit of their respective successors and assigns, whether or not so
expressed.

      SECTION 13.6. 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 13.7. 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 Institutional Trustee and
Administrators to any 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.

                    SIGNATURES APPEAR ON THE FOLLOWING PAGE

                                       47
<PAGE>

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

                                          U.S. BANK NATIONAL ASSOCIATION,
                                          as Institutional Trustee

                                          By: /s/ Paul D. Allen
                                             -----------------------------------
                                                   Name: Paul D. Allen
                                                   Title: Vice President

                                          SAFE AUTO GROUP, INC., as Sponsor

                                          By: /s/  Ari Deshe
                                             -----------------------------------
                                                   Name: Ari Deshe
                                                   Title: Chairman & CEO

                                          SAG STATUTORY TRUST I

                                          By: /s/ Ari Deshe
                                             -----------------------------------
                                                   Ari Deshe, Administrator

                                          By: /s/ Greg Sutton
                                             -----------------------------------
                                                   Greg Sutton, Administrator

                                          By: /s/ Jon Diamond
                                             -----------------------------------
                                                   Jon Diamond, Administrator

Signature page to AMENDED AND RESTATED DECLARATION OF TRUST by and among U.S.
BANK NATIONAL ASSOCIATION, as Institutional Trustee, SAFE AUTO GROUP, INC.,  as
Sponsor, and ARI DESHE, JON P. DIAMOND and GREG SUTTON, as Administrators, Dated
as of May 12, 2004.
<PAGE>

                                     ANNEX I

                               TERMS OF SECURITIES

            Pursuant to Section 6.1 of the Amended and Restated Declaration of
Trust, dated as of May 12, 2004 (as amended from time to time, the
"Declaration"), the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital 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):

      1. Designation and Number.

            (a) 13,000 Floating Rate Capital Securities of SAG Statutory Trust I
(the "Trust"), with an aggregate stated liquidation amount with respect to the
assets of the Trust of thirteen million dollars ($13,000,000) and a stated
liquidation amount with respect to the assets of the Trust of $1,000.00 per
Capital Security, are hereby designated for the purposes of identification only
as the "Capital Securities". The Capital Security Certificates evidencing the
Capital Securities shall be substantially in the form of 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.

            (b) 403 Floating Rate Common Securities of the Trust (the "Common
Securities") will be evidenced by Common Security Certificates substantially in
the form of 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 will be payable on each Security for the period
beginning on (and including) the date of original issuance and ending on (but
excluding) the Distribution Payment Date in September 2004 at a rate per annum
of 4.880% and shall bear interest for each successive period beginning on (and
including) the Distribution Payment Date in September 2004, and each succeeding
Distribution Payment Date, and ending on (but excluding) the next succeeding
Distribution Payment Date (each, a "Distribution Period") at a rate per annum
equal to the 3-Month LIBOR, determined as described below, plus 3.70% (the
"Coupon Rate"), applied to the stated liquidation amount thereof, such rate
being the rate of interest payable on the Debentures to be held by the
Institutional Trustee. Distributions in arrears will bear interest thereon
compounded quarterly at the applicable Distribution Rate (to the extent
permitted by law). Distributions, as used herein, include cash distributions,
any such compounded distributions and any Additional Sums payable on the
Debentures unless otherwise noted. 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 the Distribution payable for any Distribution Period
will be calculated by applying the Distribution Rate to the stated liquidation
amount outstanding at the commencement of the Distribution Period and
multiplying each such amount by the actual number of days in the Distribution
Period concerned divided by 360. All percentages resulting from any calculations
on the Capital Securities will be rounded, if necessary, to the nearest one

                                      I-1
<PAGE>

hundred-thousandth of a percentage point, with five one-millionths of a
percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to
9.87655% (or .0987655), and all dollar amounts used in or resulting from such
calculation will be rounded to the nearest cent (with one-half cent being
rounded upward)).

      "3-Month LIBOR" means the London interbank offered interest rate for
three-month, U.S. dollar deposits determined by the Debenture Trustee in the
following order of priority:

            (1) the rate (expressed as a percentage per annum) for U.S. dollar
      deposits having a three-month maturity that appears on Telerate Page 3750
      as of 11:00 a.m. (London time) on the related Determination Date (as
      defined below). "Telerate Page 3750" means the display designated as "Page
      3750" on the Dow Jones Telerate Service or such other page as may replace
      Page 3750 on that service or such other service or services as may be
      nominated by the British Bankers' Association as the information vendor
      for the purpose of displaying London interbank offered rates for U.S.
      dollar deposits;

            (2) if such rate cannot be identified on the related Determination
      Date, the Debenture Trustee will request the principal London offices of
      four leading banks in the London interbank market to provide such banks'
      offered quotations (expressed as percentages per annum) to prime banks in
      the London interbank market for U.S. dollar deposits having a three-month
      maturity as of 11:00 a.m. (London time) on such Determination Date. If at
      least two quotations are provided, 3-Month LIBOR will be the arithmetic
      mean of such quotations;

            (3) if fewer than two such quotations are provided as requested in
      clause (2) above, the Debenture Trustee will request four major New York
      City banks to provide such banks' offered quotations (expressed as
      percentages per annum) to leading European banks for loans in U.S. dollars
      as of 11:00 a.m. (London time) on such Determination Date. If at least two
      such quotations are provided, 3-Month LIBOR will be the arithmetic mean of
      such quotations; and

            (4) if fewer than two such quotations are provided as requested in
      clause (3) above, 3-Month LIBOR will be a 3-Month LIBOR determined with
      respect to the Distribution Period immediately preceding such current
      Distribution Period.

      If the rate for U.S. dollar deposits having a three-month maturity that
initially appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the
related Determination Date is superseded on the Telerate Page 3750 by a
corrected rate by 12:00 noon (London time) on such Determination Date, then the
corrected rate as so substituted on the applicable page will be the applicable
3-Month LIBOR for such Determination Date.

      The Interest Rate for any Distribution Period will at no time be higher
than the maximum rate then permitted by New York law as the same may be modified
by United States law.

      "Determination Date" means the date that is two London Banking Days (i.e.,
a business day in which dealings in deposits in U.S. dollars are transacted in
the London interbank market) preceding the particular Distribution Period for
which a Coupon Rate is being determined.

                                      I-2
<PAGE>

      "Interest Rate" means for the period beginning on (and including) the date
of original issuance and ending on (but excluding) the Distribution Payment Date
in September 2004 the rate per annum of 4.880% and for each Distribution Period
thereafter, the Coupon Rate.

      "Maturity Date" means June 17, 2034.

            (b) Distributions on the Securities will be cumulative, will accrue
from the date of original issuance, and will be payable, subject to extension of
distribution payment periods as described herein, quarterly in arrears on March
17, June 17, September 17 and December 17 of each year or if such day is not a
Business Day, then the next succeeding Business Day (each a "Distribution
Payment Date"), commencing on the Distribution Payment Date in September 2004
when, as and if available for payment. The Debenture Issuer has the right under
the Indenture to defer payments of interest on the Debentures, so long as no
Indenture Event of Default has occurred and is continuing, by deferring the
payment of interest on the Debentures for up to 20 consecutive quarterly periods
(each an "Extension Period") at any time and from time to time, subject to the
conditions described below, during which Extension Period no interest shall be
due and payable. During any Extension Period, interest will continue to accrue
on the Debentures, and interest on such accrued interest will accrue at an
annual rate equal to the Distribution Rate in effect for each such Extension
Period, compounded quarterly (from the date such interest would have been
payable were it not for the Extension Period, to the extent permitted by law
(such interest referred to herein as "Additional Interest") during any Extension
Period. No Extension Period may end on a date other than a Distribution Payment
Date. At the end of any such Extension Period the Debenture Issuer shall pay all
interest then accrued and unpaid on the Debentures (together with Additional
Interest thereon); provided, however, that no Extension Period may extend beyond
the Maturity Date and provided further, however, that during any such Extension
Period, the Debenture Issuer shall not, and shall not permit any Affiliate of
the Debenture Issuer controlled by the Debenture Issuer to, (i) declare or pay
any dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Debenture Issuer's or such
Affiliates' capital stock (other than payments of dividends or distributions to
the Debenture Issuer or a Subsidiary of the Debenture Issuer) or make any
guarantee payments with respect to the foregoing, or (ii) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Debenture Issuer or any Affiliate of the Debenture
Issuer controlled by the Debenture Issuer that rank pari passu in all respects
with or junior in interest to the Debentures (other than, with respect to
clauses (i) and (ii) above, (a) repurchases, redemptions or other acquisitions
of shares of capital stock of the Debenture Issuer or any Subsidiary of the
Debenture Issuer in connection with any employment contract, benefit plan or
other similar arrangement with or for the benefit of one or more employees,
officers, directors or consultants, in connection with a dividend reinvestment
or stockholder stock purchase plan or in connection with the issuance of capital
stock of the Debenture Issuer or of such Subsidiary (or securities convertible
into or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a
result of any reclassification, exchange or conversion of any class or series of
the Debenture Issuer's capital stock (or any capital stock of a Subsidiary of
the Debenture Issuer) for any class or series of the Debenture Issuer's capital
stock (or in the case of a Subsidiary of the Debenture Issuer, any class or
series of such Subsidiary's capital stock) or of any class or series of the
Debenture Issuer's indebtedness for any class or series of the Debenture
Issuer's capital stock (or in the case of indebtedness of a Subsidiary of the

                                      I-3
<PAGE>

Debenture Issuer, of any class or series of such Subsidiary's indebtedness for
any class or series of such Subsidiary's capital stock), (c) the purchase of
fractional interests in shares of the Debenture Issuer's capital stock (or the
capital stock of a Subsidiary of the Debenture Issuer) pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged or pursuant to a merger, consolidation or other business
combination, (d) any declaration of a dividend in connection with any
stockholders' rights plan, or the issuance of rights, stock or other property
under any stockholders' rights plan, or the redemption or repurchase of rights
pursuant thereto, (e) any dividend in the form of stock, warrants, options or
other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock and any
cash payments in lieu of fractional shares issued in connection therewith, or
(f) payments under the Capital Securities Guarantee). Prior to the termination
of any Extension Period, the Debenture Issuer may further extend such period,
provided that such period together with all such previous and further
consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods, or extend beyond the Maturity Date. Upon the termination of any
Extension Period and upon the payment of all accrued and unpaid interest and
Additional Interest, the Debenture Issuer may commence a new Extension Period,
subject to the foregoing requirements. No interest or Additional Interest shall
be due and payable during an Extension Period, except at the end thereof, but
each installment of interest that would otherwise have been due and payable
during such Extension Period shall bear Additional Interest. During any
Extension Period, Distributions on the Securities shall be deferred for a period
equal to the Extension Period. If Distributions are deferred, the Distributions
due shall be paid on the date that the related Extension Period terminates, to
Holders of the Securities as they appear on the books and records of the Trust
on the record date immediately preceding such date. Distributions on the
Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds available for the
payment of such distributions in the Property Account of the Trust. The Trust's
funds available for Distribution to the Holders of the Securities will be
limited to payments received from the Debenture Issuer. The payment of
Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

            (c) Distributions on the Securities will be payable to the Holders
thereof as they appear on the books and records of the Trust on the relevant
record dates. The relevant record dates shall be 15 days before the relevant
Distribution Payment Date. 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, as the case may be,
when due (taking into account any Extension Period), 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 or other
specified date determined in accordance with the Indenture.

            (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.

                                      I-4
<PAGE>

      3. Liquidation Distribution Upon Dissolution. In the event of the
voluntary or involuntary liquidation, dissolution, winding-up or termination of
the Trust (each a "Liquidation") other than in connection with a redemption of
the Debentures, the Holders of the Securities will be entitled to receive out of
the assets of the Trust available for distribution to Holders of the Securities,
after satisfaction of liabilities to creditors of the Trust (to the extent not
satisfied by the Debenture Issuer), distributions equal to the lesser of (i) the
aggregate of the stated liquidation amount of $1,000.00 per Security plus
accrued and unpaid Distributions thereon to the date of payment, to the extent
the Trust shall have funds available therefor, and (ii) the amount of assets of
the Trust remaining available for distribution to Holders in liquidation of the
Trust (such amount being, the "Liquidation Distribution"), unless in connection
with such Liquidation, the Debentures in an aggregate stated principal amount
equal to the aggregate stated liquidation amount of such Securities, with an
interest rate equal to the Distribution Rate of, and bearing accrued and unpaid
interest in an amount equal to the accrued and unpaid Distributions on, and
having the same record date as, such Securities, after paying or making
reasonable provision to pay all claims and obligations of the Trust in
accordance with the Statutory Trust Act, shall be distributed on a Pro Rata
basis to the Holders of the Securities in exchange for such Securities.

      The Sponsor, as the Holder of all of the Common Securities, has the right
at any time to dissolve the Trust (including, without limitation, upon the
occurrence of a Special Event) and, after satisfaction of liabilities to
creditors of the Trust, cause the Debentures to be distributed to the Holders of
the Securities on a Pro Rata basis in accordance with the aggregate stated
liquidation amount thereof.

      If a Liquidation of the Trust occurs as described in clause (i), (ii),
(iii) or (v) in Section 7.1(a) of the Declaration, the Trust shall be liquidated
by the Institutional Trustee as expeditiously as it determines to be possible by
distributing, after satisfaction of liabilities to creditors of the Trust, to
the Holders of the Securities, the Debentures on a Pro Rata basis to the extent
not satisfied by the Debenture Issuer, unless such distribution is determined by
the Institutional Trustee not to be practical, in which event such Holders will
be entitled to receive out of the assets of the Trust available for distribution
to the Holders, after satisfaction of liabilities of creditors of the Trust to
the extent not satisfied by the Debenture Issuer, an amount equal to the
Liquidation Distribution. An early Liquidation of the Trust pursuant to clause
(iv) of Section 7.1(a) of the Declaration shall occur if the Institutional
Trustee determines that such Liquidation is possible by distributing, after
satisfaction of liabilities to creditors of the Trust, to the Holders of the
Securities on a Pro Rata basis, the Debentures, and such distribution occurs.

      If, upon any such Liquidation 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 such Capital Securities shall be paid to the Holders of the Securities
on a Pro Rata basis, except that if an Event of Default has occurred and is
continuing, the Capital Securities shall have a preference over the Common
Securities with regard to such distributions.

      After the date for any distribution of the Debentures upon dissolution of
the Trust (i) the Securities of the Trust will be deemed to be no longer
outstanding, (ii) upon surrender of a Holder's Securities certificate, such
Holder of the Securities will receive a certificate representing

                                      I-5
<PAGE>

the Debentures to be delivered upon such distribution, (iii) any certificates
representing the Securities still outstanding will be deemed to represent
undivided beneficial interests in such of the Debentures as have an aggregate
principal amount equal to the aggregate stated liquidation amount with an
interest rate identical to the Distribution Rate of, and bearing accrued and
unpaid interest equal to accrued and unpaid distributions on, the Securities
until such certificates are presented to the Debenture Issuer or its agent for
transfer or reissuance (and until such certificates are so surrendered, no
payments of interest or principal shall be made to Holders of Securities in
respect of any payments due and payable under the Debentures; provided, however
that such failure to pay shall not be deemed to be an Event of Default and shall
not entitle the Holder to the benefits of the Guarantee), and (iv) all rights of
Holders of Securities under the Declaration shall cease, except the right of
such Holders to receive Debentures upon surrender of certificates representing
such Securities.

      4. Redemption and Distribution.

      (a) The Debentures will mature on June 17, 2034. The Debentures may be
redeemed by the Debenture Issuer, in whole or in part on any Distribution
Payment Date on or after the Distribution Payment Date in June 2009, at the
Optional Redemption Price. In addition, the Debentures may be redeemed by the
Debenture Issuer at the Special Redemption Price, in whole but not in part, at
any Distribution Payment Date, upon the occurrence and continuation of a Special
Event within 120 days following the occurrence of such Special Event at the
Special Redemption Price, upon not less than 30 nor more than 60 days' notice to
holders of such Debentures so long as such Special Event is continuing.

      "Investment Company Event" means the receipt by the Debenture Issuer and
the Trust of an opinion of counsel experienced in such matters to the effect
that, as a result of the occurrence of a change in law or regulation or written
change (including any announced prospective change) in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than an insubstantial risk that
the Trust is or, within 90 days of the date of such opinion, will be considered
an Investment Company that is required to be registered under the Investment
Company Act which change or prospective change becomes effective or would become
effective, as the case may be, on or after the date of the issuance of the
Debentures.

      "Optional Redemption Date" shall mean the date fixed for the redemption of
Capital Securities, which shall be any Distribution Payment Date on or after the
Distribution Payment Date in June 2009.

      "Optional Redemption Price" means 100% of the principal amount of the
Debentures being redeemed, plus accrued and unpaid interest on such Debentures
to the Optional Redemption Date.

      "Special Event" means a Tax Event or an Investment Company Event.

      "Special Redemption Date" means a date on which a Special Event redemption
occurs, which shall be any Distribution Payment Date.

                                      I-6
<PAGE>

      "Special Redemption Price" means (i) 107.5% of the principal amount of the
Debentures being redeemed on a Special Redemption Date that occurs before the
Distribution Payment Date in June 2009, and (ii) 100% of the principal amount of
the Debentures being redeemed on a Special Redemption Date that occurs on the
Distribution Payment Date in June 2009 or thereafter, plus, in each case,
accrued and unpaid interest on such Debentures to the Special Redemption Date.

      "Tax Event" means the receipt by the Debenture Issuer and the Trust of an
opinion of counsel experienced in such matters to the effect that, as a result
of 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 as a result of any
official administrative pronouncement (including any private letter ruling,
technical advice memorandum, field service advice, regulatory procedure, notice
or announcement including any notice or announcement of intent to adopt such
procedures or regulations (an "Administrative Action")) or judicial decision
interpreting or applying such laws or regulations, regardless of whether such
Administrative Action or judicial decision is issued to or in connection with a
proceeding involving the Debenture Issuer or the Trust and whether or not
subject to review or appeal, which amendment, clarification, change,
Administrative Action or decision is enacted, promulgated or announced, in each
case on or after the date of original issuance of the Debentures, there is more
than an insubstantial risk that: (i) the Trust is, or will be within 90 days of
the date of such opinion, subject to United States federal income tax with
respect to income received or accrued on the Debentures; (ii) interest payable
by the Debenture Issuer on the Debentures is not, or within 90 days of the date
of such opinion, will not be, deductible by the Debenture Issuer, in whole or in
part, for United States federal income tax purposes; or (iii) the Trust is, or
will be within 90 days of the date of such opinion, subject to more than a de
minimis amount of other taxes (excluding withholding taxes), duties or other
governmental charges.

      (b) Upon the repayment in full at maturity or redemption in whole or in
part of the Debentures (other than following the distribution of the Debentures
to the Holders of the Securities), the proceeds from such repayment or payment
shall concurrently be applied to redeem Pro Rata at the applicable Optional
Redemption Price or Special Redemption Price, as applicable, Securities having
an aggregate liquidation amount equal to the aggregate principal amount of the
Debentures so repaid or redeemed; provided, however, that holders of such
Securities shall be given not less than 30 nor more than 60 days' notice of such
redemption (other than at the scheduled maturity of the Debentures).

      (c) If fewer than all the outstanding Securities are to be so redeemed,
the Common Securities and the Capital Securities will be redeemed Pro Rata and
the Capital Securities to be redeemed will be redeemed Pro Rata from each Holder
of Capital Securities.

      (d) The Trust may not redeem fewer than all the outstanding Capital
Securities unless all accrued and unpaid Distributions have been paid on all
Capital Securities for all quarterly Distribution periods terminating on or
before the date of redemption.

      (e) Redemption or Distribution Procedures.

            (i) Notice of any redemption of or notice of distribution of the
      Debentures in exchange for, the Securities (a "Redemption/Distribution
      Notice") will be

                                      I-7
<PAGE>

      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(e)(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
      such Securities. Each Redemption/Distribution Notice shall be addressed to
      the Holders of such Securities at the address of each such Holder
      appearing on the books and records of the Trust. No defect in the
      Redemption/Distribution Notice or in the mailing thereof with respect to
      any Holder shall affect the validity of the redemption or exchange
      proceedings with respect to any other Holder.

            (ii) If the 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, provided that the Institutional Trustee has a
      sufficient amount of cash in connection with the related redemption or
      maturity of the Debentures, the Institutional Trustee will pay the
      relevant Optional Redemption Price or Special Redemption Price, as
      applicable, to the Holders of such Securities by check mailed to the
      address of each such Holder appearing on the books and records of the
      Trust on the Optional Redemption Date or Special Redemption Date. If a
      Redemption/Distribution Notice shall have been given and funds deposited
      as required then immediately prior to the close of business on the date of
      such deposit Distributions will cease to accrue on the Securities so
      called for redemption and 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 applicable Optional Redemption Price or Special
      Redemption Price specified in paragraph 4(a), but without interest on such
      Optional Redemption Price or Special Redemption Price. If any date fixed
      for redemption of Securities is not a Business Day, then payment of any
      such Optional Redemption Price or Special Redemption Price payable on such
      date will be made on the next succeeding day that is a Business Day. If
      payment of the Optional Redemption Price or Special Redemption Price in
      respect of any Securities is improperly withheld or refused and not paid
      either by the Trust or by the Debenture Issuer as guarantor pursuant to
      the Guarantee, Distributions on such Securities will continue to accrue at
      the Distribution Rate from the original Optional Redemption Date or
      Special Redemption Date to the actual date of payment, in which case the
      actual payment date will be considered the date fixed for redemption for
      purposes of calculating the Optional Redemption Price or Special
      Redemption Price. In the event of any redemption of the Capital Securities
      issued by the Trust in part, the Trust shall not be required to (i) issue,
      register the transfer of or exchange any Security during a period
      beginning at the opening of business 15 days before any selection for
      redemption of the Capital Securities and ending at the close of business
      on the earliest date on which the relevant notice of redemption is deemed
      to have been given to all Holders of the Capital Securities to be so
      redeemed, or (ii) register the transfer of or exchange any Capital
      Securities so selected for redemption, in whole or in part, except for the
      unredeemed portion of any Capital Securities being redeemed in part.

                                      I-8
<PAGE>

            (iii) Redemption/Distribution Notices shall be sent by the
      Administrators on behalf of the Trust to (A) in respect of the Capital
      Securities, the Holders thereof and (B) in respect of the Common
      Securities, the Holder thereof.

            (iv) Subject to the foregoing and applicable law (including, without
      limitation, United States federal securities laws), and provided that the
      acquiror is not the Holder of the Common Securities or the obligor under
      the Indenture, the Sponsor or any of its subsidiaries may at any time and
      from time to time purchase outstanding Capital Securities by tender, in
      the open market or by private agreement.

      5. Voting Rights - Capital Securities.

      (a) Except as provided under paragraphs 5(b) and 7 and as otherwise
required by law and the Declaration, the Holders of the Capital Securities will
have no voting rights. The Administrators are required to call a meeting of the
Holders of the Capital Securities if directed to do so by Holders of at least
10% in liquidation amount of the Capital Securities.

      (b) Subject to the requirements of obtaining a tax opinion by the
Institutional Trustee in certain circumstances set forth in the last sentence of
this paragraph, the Holders of a Majority in liquidation amount of the Capital
Securities, voting separately as a class, have the right to 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 the right to direct the
Institutional Trustee, as holder of the Debentures, to (i) exercise the remedies
available under the Indenture as the holder of the Debentures, (ii) waive any
past default that is waivable under 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 on behalf of all the Holders of the Capital
Securities 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 simple majority in aggregate principal amount of
Debentures (a "Super Majority") affected thereby, 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 amount of the Capital
Securities outstanding which the relevant Super Majority represents of the
aggregate principal amount of the Debentures outstanding. If the Institutional
Trustee fails to enforce its rights under the Debentures after the Holders of a
Majority in liquidation amount of such Capital Securities have so directed the
Institutional Trustee, to the fullest extent permitted by law, a Holder of the
Capital Securities may institute a legal proceeding directly against the
Debenture Issuer to enforce the Institutional Trustee's rights under the
Debentures without first instituting any legal proceeding against the
Institutional Trustee or any other person or entity. Notwithstanding the
foregoing, if an Event of Default has occurred and is continuing and such event
is attributable to the failure of the Debenture Issuer to pay interest or
principal on the Debentures on the date the interest or principal is payable (or
in the case of redemption, the Optional Redemption Date or the Special
Redemption Date, as applicable), then a Holder of record of the Capital
Securities may directly institute a proceeding for enforcement of payment on or
after the respective due dates specified in the Debentures, to such Holder
directly of the principal of or interest on the Debentures having an aggregate
principal amount equal to the aggregate liquidation amount of the Capital
Securities of such

                                      I-9
<PAGE>

Holder. The Institutional Trustee shall notify all Holders of the Capital
Securities of any default actually known to the Institutional Trustee with
respect to the Debentures unless (x) such default has been cured prior to the
giving of such notice, or (y) the Institutional Trustee determines in good faith
that the withholding of such notice is in the interest of the Holders of such
Capital Securities, except where the default relates to the payment of principal
of or interest on any of the Debentures. Such notice shall state that such
Indenture Event of Default also constitutes an Event of Default hereunder.
Except with respect to directing the time, method and place of conducting a
proceeding for a remedy, the Institutional Trustee shall not take any of the
actions described in clauses (i), (ii) or (iii) above unless the Institutional
Trustee has obtained an opinion of tax counsel to the effect that, as a result
of such action, the Trust will not be classified as other than a grantor trust
for United States federal income tax purposes.

      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 of the Indenture, the Institutional Trustee shall
request the 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 by a Majority in liquidation
amount of the Securities voting together as a single class; provided, however,
that where a consent under the Indenture would require the consent of a
Super-Majority, the Institutional Trustee may only give such consent at the
direction of the Holders of at least the proportion in liquidation amount of the
Securities outstanding which the relevant Super-Majority represents of the
aggregate principal amount of the Debentures outstanding. The Institutional
Trustee shall not take any such action in accordance with the directions of the
Holders of the Securities unless the Institutional Trustee has obtained an
opinion of tax counsel to the effect that, as a result of such action, the Trust
will not be classified as other than a grantor trust for United States federal
income tax purposes.

      A waiver of an Indenture Event of Default will constitute a waiver of the
corresponding Event of Default hereunder. Any required approval or direction of
Holders of the Capital Securities may be given at a separate meeting of Holders
of the Capital Securities convened for such purpose, at a meeting of all of the
Holders of the Securities in the Trust or pursuant to written consent. The
Institutional Trustee will cause a notice of any meeting at which Holders of the
Capital 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 the Capital 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 Capital Securities will be required for the Trust to redeem and cancel
Capital Securities or to distribute the Debentures in accordance with the
Declaration and the terms of the Securities.

      Notwithstanding that Holders of the Capital Securities are entitled to
vote or consent under any of the circumstances described above, any of the
Capital Securities that are owned by the Sponsor or any Affiliate of the Sponsor
shall not entitle the Holder thereof to vote or consent and shall, for purposes
of such vote or consent, be treated as if such Capital Securities were not
outstanding.

                                      I-10
<PAGE>

      In no event will Holders of the Capital Securities have the right to vote
to appoint, remove or replace the Administrators, which voting rights are vested
exclusively in the Sponsor as the Holder of all of the Common Securities of the
Trust. Under certain circumstances as more fully described in the Declaration,
Holders of Capital Securities have the right to vote to appoint, remove or
replace the Institutional Trustee.

      6. Voting Rights - Common Securities.

            (a) Except as provided under paragraphs 6(b), 6(c) and 7 and as
otherwise required by law and the Declaration, the Common Securities will have
no voting rights.

            (b) The Holders of the Common Securities are entitled, in accordance
with Article IV of the Declaration, to vote to appoint, remove or replace any
Administrators.

            (c) Subject to Section 6.7 of the Declaration and only after each
Event of Default (if any) with respect to the Capital Securities has been cured,
waived, or otherwise eliminated and subject to the requirements of the second to
last sentence of this paragraph, the Holders of a Majority in liquidation amount
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 and 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) waiving any past default and its
consequences that is waivable under the Indenture, or (iii) exercising any right
to rescind or annul a declaration that the principal of all the Debentures shall
be due and payable; provided, however, that, where a consent or action under the
Indenture would require 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 amount of the Common Securities which the
relevant Super Majority represents of the aggregate principal amount of the
Debentures outstanding. Notwithstanding this paragraph 6(c), the Institutional
Trustee shall not revoke any action previously authorized or approved by a vote
or consent of the Holders of the Capital 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 described in (i),
(ii) or (iii) above, unless the Institutional Trustee has obtained 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. If the Institutional Trustee fails to enforce its rights under the
Declaration to the fullest extent permitted by law, any Holder of the Common
Securities may institute a legal proceeding directly against any Person to
enforce the Institutional Trustee's rights under the Declaration, without first
instituting a legal proceeding against the Institutional Trustee or any other
Person.

      Any approval or direction of Holders of the Common Securities may be given
at a separate meeting of Holders of the Common Securities convened for such
purpose, at a meeting of all of the Holders of the Securities in the Trust or
pursuant to written consent. The Administrators will cause a notice of any
meeting at which Holders of the Common Securities are entitled to vote, or of
any matter upon which action by written consent of such Holders is to

                                      I-11
<PAGE>

be taken, to be mailed to each Holder of the Common Securities. Each such notice
will include a statement setting forth (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.

      7. Amendments to Declaration and Indenture.

            (a) In addition to any requirements under Section 11.1 of the
Declaration, if any proposed amendment to the Declaration provides for, or the
Institutional Trustee, Sponsor or Administrators 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 Liquidation of the Trust, other than as described in
Section 7.1 of the Declaration, then the Holders of outstanding Securities,
voting together as a single 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 the Holders of at least a Majority in liquidation amount of the
Securities, affected thereby; provided, however, if any amendment or proposal
referred to in clause (i) above would adversely affect only the Capital
Securities or only the Common Securities, then only the affected Securities will
be entitled to vote on such amendment or proposal and such amendment or proposal
shall not be effective except with the approval of a Majority in liquidation
amount of such class of Securities.

            (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 of 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 by
a Majority in liquidation amount of the Securities voting together as a single
class; provided, however, that where a consent under the Indenture would require
a Super Majority, the Institutional Trustee may only give such consent at the
direction of the Holders of at least the proportion in liquidation amount of the
Securities which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding.

            (c) Notwithstanding the foregoing, no amendment or modification may
be made to the Declaration if such amendment or modification would (i) cause the
Trust to be classified for purposes of United States federal income taxation as
other than a grantor trust, (ii) reduce or otherwise adversely affect the powers
of the Institutional Trustee, or (iii) cause the Trust to be deemed an
Investment Company which is required to be registered under the Investment
Company Act.

            (d) Notwithstanding any provision of the Declaration, the right of
any Holder of the Capital Securities to receive payment of Distributions and
other payments upon redemption, liquidation or otherwise, on or after their
respective due dates, or to institute a suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired

                                      I-12
<PAGE>

or affected without the consent of such Holder. For the protection and
enforcement of the foregoing provision, each and every Holder of the Capital
Securities shall be entitled to such relief as can be given either at law or
equity.

      8. 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 the Securities according to the aggregate liquidation amount of the
Securities held by the relevant Holder in relation to the aggregate liquidation
amount of all Securities then outstanding unless, in relation to a payment, an
Event of Default has occurred and is continuing, in which case any funds
available to make such payment shall be paid first to each Holder of the Capital
Securities Pro Rata according to the aggregate liquidation amount of the Capital
Securities held by the relevant Holder relative to the aggregate liquidation
amount of all Capital Securities outstanding, and only after satisfaction of all
amounts owed to the Holders of the Capital Securities, to each Holder of the
Common Securities Pro Rata according to the aggregate liquidation amount of the
Common Securities held by the relevant Holder relative to the aggregate
liquidation amount of all Common Securities outstanding.

      9. Ranking. The Capital Securities rank pari passu with and payment
thereon shall be made Pro Rata with the Common Securities except that, where an
Event of Default has occurred and is continuing, the rights of Holders of the
Common Securities to receive payment of Distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights of the
Holders of the Capital Securities with the result that no payment of any
Distribution on, or Optional Redemption Price (or Special Redemption Price) of,
any Common Security, and no other payment on account of 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 Capital
Securities for all distribution periods terminating on or prior thereto, or in
the case of payment of the Optional Redemption Price (or Special Redemption
Price) the full amount of such Optional Redemption Price (or Special Redemption
Price) on all outstanding Capital Securities then called for redemption, shall
have been made or provided for, and all funds immediately available to the
Institutional Trustee shall first be applied to the payment in full in cash of
all Distributions on, or the Optional Redemption Price (or Special Redemption
Price) of, the Capital Securities then due and payable.

      10. Acceptance of Guarantee and Indenture. Each Holder of the Capital
Securities and the Common Securities, by the acceptance of such Securities,
agrees to the provisions of the Guarantee and the Indenture, including the
subordination provisions therein.

      11. No Preemptive Rights. The Holders of the Securities shall have no, and
the issuance of the Securities is not subject to, preemptive or similar rights
to subscribe for any additional securities.

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

                                      I-13
<PAGE>

                                   EXHIBIT A-1

                      FORM OF CAPITAL SECURITY CERTIFICATE

                           [FORM OF FACE OF SECURITY]

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE OR OTHER SECURITIES
LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL
OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE SPONSOR OR THE TRUST, (B)
PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN
ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION
IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER
THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE
MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS
ACQUIRING THIS CAPITAL SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE SPONSOR'S AND
THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE DECLARATION (DEFINED
HEREIN), A COPY OF WHICH MAY BE OBTAINED FROM THE SPONSOR OR THE TRUST. HEDGING
TRANSACTIONS INVOLVING THIS SECURITY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
WITH THE SECURITIES ACT.

      THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH
A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON
OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF
ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY INTEREST THEREIN, UNLESS SUCH
PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE

                                     A-1-1
<PAGE>

RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS
EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR
ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY
PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO
HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT
AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN
TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO
APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

      THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000.00 (100 SECURITIES) AND MULTIPLES
OF $1,000.00 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF SECURITIES IN A BLOCK
HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000.00 SHALL BE DEEMED TO BE VOID
AND OF NO LEGAL EFFECT WHATSOEVER.

      THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

      THIS SECURITY IS IN REGISTERED FORM WITHIN THE MEANING OF TREASURY
REGULATIONS SECTION 1.871-14(c)(1)(i) FOR U.S. FEDERAL INCOME AND WITHHOLDING
TAX PURPOSES.

      IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY
THE DECLARATION TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

            Certificate Number P-1           13,000 Capital Securities

                                  May 12, 2004

             Certificate Evidencing Floating Rate Capital Securities

                                       of

                              SAG Statutory Trust I

               (liquidation amount $1,000.00 per Capital Security)

         SAG Statutory Trust I, a statutory trust created under the laws of the
State of Connecticut (the "Trust"), hereby certifies that Hare & Co. (the
"Holder"), as the nominee of The Bank of New York, indenture trustee under the
Indenture dated as of May 12, 2004, among I-Preferred Term Securities IV, Ltd.,
I-Preferred Term Securities IV, Inc. and The Bank of New York, is the

                                     A-1-2
<PAGE>

registered owner of capital securities of the Trust representing undivided
beneficial interests in the assets of the Trust, (liquidation amount $1,000.00
per capital security) (the "Capital Securities"). Subject to the Declaration (as
defined below), the Capital 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 Capital
Securities represented hereby are issued pursuant to, and the designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Capital Securities shall in all respects be subject to, the provisions of
the Amended and Restated Declaration of Trust of the Trust dated as of May 12,
2004, among Ari Deshe, Jon P. Diamond and Greg Sutton, as Administrators, U.S.
Bank National Association, as Institutional Trustee, Safe Auto Group, Inc., as
Sponsor, and the holders from time to time of undivided beneficial interests in
the assets of the Trust, including the designation of the terms of the Capital
Securities as set forth in Annex I to such amended and restated declaration as
the same may be amended from time to time (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 Guarantee and the
Indenture to the extent provided therein. The Sponsor will provide a copy of the
Declaration, the Guarantee, and the Indenture to the Holder without charge upon
written request to the Sponsor at its principal place of business.

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

      By acceptance of this Security, the Holder agrees to treat, for United
States federal income tax purposes, the Debentures as indebtedness and the
Capital Securities as evidence of beneficial ownership in the Debentures.

      This Capital Security is governed by, and shall be construed in accordance
with, the laws of the State of Connecticut, without regard to principles of
conflict of laws.

                       Signatures appear on following page

                                     A-1-3
<PAGE>

      IN WITNESS WHEREOF, the Trust has duly executed this certificate.

                                           SAG STATUTORY TRUST I

                                           By:
                                              ----------------------------------
                                              Name:
                                              Title: Administrator

                          CERTIFICATE OF AUTHENTICATION

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

                                           U.S. BANK NATIONAL ASSOCIATION,
                                           as the Institutional Trustee

                                           By:
                                              ----------------------------------
                                                      Authorized Officer

                                     A-1-4
<PAGE>

                         [FORM OF REVERSE OF SECURITY]

      Distributions payable on each Capital Security will be payable at an
annual rate equal to 4.880% beginning on (and including) the date of original
issuance and ending on (but excluding) the Distribution Payment Date (defined
herein) in September 2004 and at an annual rate for each successive period
beginning on (and including) the Distribution Payment Date in September 2004,
and each succeeding March 17, June 17, September 17 and December 17 of each year
or if such day is not a Business Day, then the next succeeding Business Day
(each a "Distribution Payment Date"), commencing on the Distribution Payment
Date in September 2004, and ending on (but excluding) the next succeeding
Distribution Payment Date (each such period, a "Distribution Period"), equal to
3-Month LIBOR, determined as described below, plus 3.70% (the "Coupon Rate"),
applied to the stated liquidation amount of $1,000.00 per Capital Security, such
rate being the rate of interest payable on the Debentures to be held by the
Institutional Trustee. Distributions in arrears will bear interest thereon
compounded quarterly at the Distribution Rate (to the extent permitted by
applicable law). The term "Distributions" as used herein includes payments of
cash distributions and any such compounded distributions and any Additional Sums
payable on the Debentures unless otherwise noted. 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. As used herein, "Determination Date" means the date that is
two London Banking Days (i.e., a business day in which dealings in deposits in
U.S. dollars are transacted in the London interbank market) preceding the
commencement of the relevant Distribution Period. The amount of the Distribution
payable for any Distribution Period will be calculated by applying the
Distribution Rate to the stated liquidation amount outstanding at the
commencement of the Distribution Period and multiplying each such amount by the
actual number of days in the Distribution Period concerned divided by 360.

      "3-Month LIBOR" as used herein, means the London interbank offered
interest rate for three-month U.S. dollar deposits determined by the Debenture
Trustee in the following order of priority: (i) the rate (expressed as a
percentage per annum) for U.S. dollar deposits having a three-month maturity
that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related
Determination Date ("Telerate Page 3750" means the display designated as "Page
3750" on the Dow Jones Telerate Service or such other page as may replace Page
3750 on that service or such other service or services as may be nominated by
the British Bankers' Association as the information vendor for the purpose of
displaying London interbank offered rates for U.S. dollar deposits); (ii) if
such rate cannot be identified on the related Determination Date, the Debenture
Trustee will request the principal London offices of four leading banks in the
London interbank market to provide such banks' offered quotations (expressed as
percentages per annum) to prime banks in the London interbank market for U.S.
dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on
such Determination Date. If at least two such quotations are provided, 3-Month
LIBOR will be the arithmetic mean of such quotations; (iii) if fewer than two
such quotations are provided as requested in clause (ii) above, the Debenture
Trustee will request four major New York City banks to provide such banks'
offered quotations (expressed as percentages per annum) to leading European
banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such
Determination Date. If at least two such quotations are provided, 3-Month LIBOR
will be the arithmetic mean of such quotations; and (iv) if fewer than two such
quotations are provided as requested in clause (iii) above, 3-Month LIBOR will
be a 3-Month LIBOR determined with respect to the Distribution Period
immediately preceding such current Distribution Period. If the rate for U.S.
dollar deposits having a three-month maturity that

                                     A-1-5
<PAGE>

initially appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the
related Determination Date is superseded on the Telerate Page 3750 by a
corrected rate by 12:00 noon (London time) on such Determination Date, then the
corrected rate as so substituted on the applicable page will be the applicable
3-Month LIBOR for such Determination Date.

      The Coupon Rate for any Distribution Period will at no time be higher than
the maximum rate then permitted by New York law as the same may be modified by
United States law.

      All percentages resulting from any calculations on the Capital Securities
will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded upward
(e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and all
dollar amounts used in or resulting from such calculation will be rounded to the
nearest cent (with one-half cent being rounded upward)).

      Except as otherwise described below, Distributions on the Capital
Securities will be cumulative, will accrue from the date of original issuance
and will be payable quarterly in arrears on each Distribution Payment Date,
commencing on the Distribution Payment Date in September 2004. The Debenture
Issuer has the right under the Indenture to defer payments of interest on the
Debentures, so long as no Indenture Event of Default has occurred and is
continuing, by extending the interest payment period for up to 20 consecutive
quarterly periods (each an "Extension Period") at any time and from time to time
on the Debentures, subject to the conditions described below, during which
Extension Period no interest shall be due and payable. During any Extension
Period, interest will continue to accrue on the Debentures, and interest on such
accrued interest will accrue at an annual rate equal to the Distribution Rate in
effect for each such Extension Period, compounded quarterly from the date such
interest would have been payable were it not for the Extension Period, to the
extent permitted by law (such interest referred to herein as "Additional
Interest"). No Extension Period may end on a date other than a Distribution
Payment Date. At the end of any such Extension Period the Debenture Issuer shall
pay all interest then accrued and unpaid on the Debentures (together with
Additional Interest thereon); provided, however, that no Extension Period may
extend beyond the Maturity Date. Prior to the termination of any Extension
Period, the Debenture Issuer may further extend such period, provided that such
period together with all such previous and further consecutive extensions
thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the
Maturity Date. Upon the termination of any Extension Period and upon the payment
of all accrued and unpaid interest and Additional Interest, the Debenture Issuer
may commence a new Extension Period, subject to the foregoing requirements. No
interest or Additional Interest shall be due and payable during an Extension
Period, except at the end thereof, but each installment of interest that would
otherwise have been due and payable during such Extension Period shall bear
Additional Interest. During any Extension Period, Distributions on the Capital
Securities shall be deferred for a period equal to the Extension Period. If
Distributions are deferred, the Distributions due shall be paid on the date that
the related Extension Period terminates, to Holders of the Securities as they
appear on the books and records of the Trust on the record date immediately
preceding such date. Distributions on the Securities must be paid on the dates
payable (after giving effect to any Extension Period) to the extent that the
Trust has funds available for the payment of such distributions in the Property
Account of the Trust. The Trust's funds available for Distribution to the
Holders of the Securities will be limited to payments received from the
Debenture Issuer. The payment of Distributions out of moneys held by the Trust
is guaranteed by the Guarantor pursuant to the Guarantee.

                                     A-1-6
<PAGE>

      The Capital Securities shall be redeemable as provided in the Declaration.

                                     A-1-7
<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital
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 Capital 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 Capital
Security Certificate)

      Signature Guarantee:1

------------------
1 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 Security 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 Security
registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

                                     A-1-8
<PAGE>

                                  EXHIBIT A-2

                       FORM OF COMMON SECURITY CERTIFICATE

      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.

      THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH SECTION 8.1
OF THE DECLARATION (DEFINED HEREIN).

      THIS COMMON SECURITY IS IN REGISTERED FORM WITHIN THE MEANING OF TREASURY
REGULATIONS SECTION 1.871-14(c)(1)(i) FOR U.S. FEDERAL INCOME AND WITHHOLDING
TAX PURPOSES.

            Certificate Number C-1            403 Common Securities

                                  May 12, 2004

             Certificate Evidencing Floating Rate Common Securities

                                       of

                              SAG Statutory Trust I

      SAG Statutory Trust I, a statutory trust created under the laws of the
State of Connecticut (the "Trust"), hereby certifies that Safe Auto Group, Inc.
(the "Holder") is the registered owner of common securities of the Trust
representing undivided beneficial interests in the assets of the Trust (the
"Common Securities"). Subject to the Declaration (as defined below), 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. The Common Securities represented hereby are
issued pursuant to, and the designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Common Securities shall in all
respects be subject to, the provisions of the Amended and Restated Declaration
of Trust of the Trust dated as of May 12, 2004, among Ari Deshe, Jon P. Diamond
and Greg Sutton, as Administrators, U.S. Bank National Association, as
Institutional Trustee, Safe Auto Group, Inc. as Sponsor, and the holders from
time to time of undivided beneficial interest in the assets of the Trust
including the designation of the terms of the Common Securities as set forth in
Annex I to such amended and restated declaration, as the same may be amended
from time to time (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 Guarantee and the Indenture to the extent
provided therein. The Sponsor will provide a copy of the Declaration, the
Guarantee and the Indenture to the Holder without charge upon written request to
the Sponsor at its principal place of business.

      As set forth in the Declaration, when an Event of Default has occurred and
is continuing, the rights of Holders of Common Securities to payment in respect
of Distributions and payments upon Liquidation, redemption or otherwise are
subordinated to the rights of payment of Holders of the Capital Securities.

                                     A-2-1
<PAGE>

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

      By acceptance of this Certificate, the Holder agrees to treat, for United
States federal income tax purposes, the Floating Rate Junior Subordinated
Deferrable Interest Debentures ("Debentures") as indebtedness and the Common
Securities as evidence of undivided beneficial ownership in the Debentures.

      This Common Security is governed by, and shall be construed in accordance
with, the laws of the State of Connecticut, without regard to principles of
conflict of laws.

      IN WITNESS WHEREOF, the Trust has duly executed this certificate.

                                           SAG STATUTORY TRUST I

                                           By:
                                              ----------------------------------
                                               Name:
                                               Title: Administrator

                                     A-2-2
<PAGE>

                      [FORM OF REVERSE OF COMMON SECURITY]

      Distributions payable on each Common Security will be payable at an annual
rate equal to 4.880% beginning on (and including) the date of original issuance
and ending on (but excluding) the Distribution Payment Date (defined herein) in
September 2004 and at an annual rate for each successive period beginning on
(and including) the Distribution Payment Date in September 2004, and each
succeeding March 17, June 17, September 17 and December 17 of each year or if
such day is not a Business Day, then the next succeeding Business Day (each a
"Distribution Payment Date"), commencing on the Distribution Payment Date in
September 2004, and ending on (but excluding) the next succeeding Distribution
Payment Date (each such period, a "Distribution Period"), equal to 3-Month
LIBOR, determined as described below, plus 3.70% (the "Coupon Rate"), applied to
the stated liquidation amount of $1,000.00 per Common Security, such rate being
the rate of interest payable on the Debentures to be held by the Institutional
Trustee. Distributions in arrears will bear interest thereon compounded
quarterly at the Distribution Rate (to the extent permitted by applicable law).
The term "Distributions" as used herein includes payments of cash distributions
and any such compounded distributions and any Additional Sums payable on the
Debentures unless otherwise noted. 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. As used herein, "Determination Date" means the date that is two London
Banking Days (i.e., a business day in which dealings in deposits in U.S. dollars
are transacted in the London interbank market) preceding the commencement of the
relevant Distribution Period. The amount of the Distribution payable for any
Distribution Period will be calculated by applying the Distribution Rate to the
stated liquidation amount outstanding at the commencement of the Distribution
Period and multiplying each such amount by the actual number of days in the
Distribution Period concerned divided by 360.

      "3-Month LIBOR" as used herein, means the London interbank offered
interest rate for three-month U.S. dollar deposits determined by the Debenture
Trustee in the following order of priority: (i) the rate (expressed as a
percentage per annum) for U.S. dollar deposits having a three-month maturity
that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related
Determination Date ("Telerate Page 3750" means the display designated as "Page
3750" on the Dow Jones Telerate Service or such other page as may replace Page
3750 on that service or such other service or services as may be nominated by
the British Bankers' Association as the information vendor for the purpose of
displaying London interbank offered rates for U.S. dollar deposits); (ii) if
such rate cannot be identified on the related Determination Date, the Debenture
Trustee will request the principal London offices of four leading banks in the
London interbank market to provide such banks' offered quotations (expressed as
percentages per annum) to prime banks in the London interbank market for U.S.
dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on
such Determination Date. If at least two quotations are provided, 3-Month LIBOR
will be the arithmetic mean of such quotations; (iii) if fewer than two such
quotations are provided as requested in clause (ii) above, the Debenture Trustee
will request four major New York City banks to provide such banks' offered
quotations (expressed as percentages per annum) to leading European banks for
loans in U.S. dollars as of 11:00 a.m. (London time) on such Determination Date.
If at least two such quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; and (iv) if fewer than two such quotations
are provided as requested in clause (iii) above, 3-Month LIBOR will be a 3-Month
LIBOR determined with respect to the Distribution Period immediately preceding
such current Distribution Period. If the rate for U.S. dollar deposits having a
three-month maturity that

                                     A-2-3
<PAGE>

initially appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the
related Determination Date is superseded on the Telerate Page 3750 by a
corrected rate by 12:00 noon (London time) on such Determination Date, then the
corrected rate as so substituted on the applicable page will be the applicable
3-Month LIBOR for such Determination Date.

      The Coupon Rate for any Distribution Period will at no time be higher than
the maximum rate then permitted by New York law as the same may be modified by
United States law.

      All percentages resulting from any calculations on the Common Securities
will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded upward
(e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and all
dollar amounts used in or resulting from such calculation will be rounded to the
nearest cent (with one-half cent being rounded upward)).

      Except as otherwise described below, Distributions on the Common
Securities will be cumulative, will accrue from the date of original issuance
and will be payable quarterly in arrears on each Distribution Payment Date,
commencing on the Distribution Payment Date September 2004. The Debenture Issuer
has the right under the Indenture to defer payments of interest on the
Debentures, so long as no Indenture Event of Default has occurred and is
continuing, by extending the interest payment period for up to 20 consecutive
quarterly periods (each an "Extension Period") at any time and from time to time
on the Debentures, subject to the conditions described below, during which
Extension Period no interest shall be due and payable. During any Extension
Period, interest will continue to accrue on the Debentures, and interest on such
accrued interest will accrue at an annual rate equal to the Distribution Rate in
effect for each such Extension Period, compounded quarterly from the date such
interest would have been payable were it not for the Extension Period, to the
extent permitted by law (such interest referred to herein as "Additional
Interest"). No Extension Period may end on a date other than a Distribution
Payment Date. At the end of any such Extension Period the Debenture Issuer shall
pay all interest then accrued and unpaid on the Debentures (together with
Additional Interest thereon); provided, however, that no Extension Period may
extend beyond the Maturity Date. Prior to the termination of any Extension
Period, the Debenture Issuer may further extend such period, provided that such
period together with all such previous and further consecutive extensions
thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the
Maturity Date. Upon the termination of any Extension Period and upon the payment
of all accrued and unpaid interest and Additional Interest, the Debenture Issuer
may commence a new Extension Period, subject to the foregoing requirements. No
interest or Additional Interest shall be due and payable during an Extension
Period, except at the end thereof, but each installment of interest that would
otherwise have been due and payable during such Extension Period shall bear
Additional Interest. During any Extension Period, Distributions on the Common
Securities shall be deferred for a period equal to the Extension Period. If
Distributions are deferred, the Distributions due shall be paid on the date that
the related Extension Period terminates, to Holders of the Common Securities as
they appear on the books and records of the Trust on the record date immediately
preceding such date. Distributions on the Common Securities must be paid on the
dates payable (after giving effect to any Extension Period) to the extent that
the Trust has funds available for the payment of such distributions in the
Property Account of the Trust. The Trust's funds available for Distribution to
the Holders of the Common Securities will be limited to payments received from
the Debenture Issuer.

      The Common Securities shall be redeemable as provided in the Declaration.

                                     A-2-4
<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned assigns and transfers this Common
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 Common 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
                  Common Security Certificate)

                  Signature:
                            -------------------------------------------

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

      Signature Guarantee2

------------------
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 Security 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 Security
registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

                                     A-2-5<PAGE>

                                                                     EXHIBIT 4.5

                STOCK RESTRICTION AND CLOSE CORPORATION AGREEMENT

      THIS STOCK RESTRICTION AND CLOSE CORPORATION AGREEMENT (the "Agreement")
is made effective the 9th day of February, 1998, by and among Safe Auto Group,
Inc., an Ohio corporation (the "Company"), Ari and Ann Deshe (the "Deshe
Family"), Jon P. and Susan Diamond (the "Diamond Family"), Jay and Jeanie
Schottenstein (the "Schottenstein Family"), Safe Auto Insurance Agency, Inc.,
its successors or assigns (the "Agency"), Ari Deshe, individually, and the GAS
Trust.

      Capitalized terms used in this Agreement have the particular meanings
assigned herein.

                             BACKGROUND INFORMATION

      A.    The Shareholders are the record and beneficial owner of the number
of Shares set forth opposite their or its name:

                   Deshe Family                129 Shares
                   Diamond Family              129 Shares
                   Schottenstein Family        27 Shares
                   Agency                      15 Shares
                   Ari Deshe                   30 Shares

      B.    The Shareholders and the Company executed a certain Shareholders'
and Close Corporation Agreement on April 19, 1993, which set forth certain
agreements and imposed certain restrictions upon the transfer of Shareholders'
Shares (the "Previous Agreement").

      C.    The parties desire to amend and restate the Previous Agreement to
incorporate additional agreements.

                                   PROVISIONS

      NOW, THEREFORE, in consideration of the foregoing and the mutual promises
and covenants set forth herein, the parties hereto agree as follows:

1.    Definitions.

      (a)   Ari. "Ari" shall mean Ari Deshe, individually.

      (b)   Book Value. "Book Value" shall mean the Company's total assets minus
            its total liabilities as determined in accordance with generally
            accepted accounting principles (GAAP), divided by the number of
            Shares outstanding.

<PAGE>

      (c)   Business Day. "Business Day" shall mean any day of the week from and
            including Monday through and including Friday; provided, that any
            day that is (i) declared a legal holiday by either the federal or
            state government or (ii) a Jewish high holiday shall not be
            considered a Business Day.

      (d)   Deshe Family Subgroup. "Deshe Family Subgroup" shall mean the
            Agency, Ari, Ann Deshe, their estates, lineal descendants, and any
            trusts for the benefit of any of the foregoing individuals, provided
            that all decisions regarding voting and disposition of Shares held
            by such trusts are controlled by one or more of the foregoing
            individuals.

      (e)   Diamond Family Subgroup. "Diamond Family Subgroup" shall mean Jon,
            Susan Diamond, their estates, lineal descendants, and any trusts for
            the benefit of any of the foregoing individuals, provided that all
            decisions regarding voting and disposition of Shares held by such
            trusts are controlled by one or more of the foregoing individuals.

      (f)   Family Representative. "Family Representative" shall mean the member
            of each Family Subgroup that is appointed by the Family Subgroup's
            members to be their Family Representative and for whom written
            notice of such appointment has been delivered to the Company. The
            initial Family Representatives shall be as follows: with respect to
            the Deshe Family Subgroup, Ari; with respect to the Diamond Family
            Subgroup, Jon; and with respect to the Schottenstein Family
            Subgroup, Jay Schottenstein.

      (g)   Jon. "Jon" shall mean Jon P. Diamond, individually.

      (h)   Offering Shareholder. "Offering Shareholder" shall mean any
            Shareholder whose Shares are likely to become the subject of a
            Transfer due to any event, voluntary or involuntary ("voluntary"
            being defined as an event which is to occur by reason of the
            Shareholder's current voluntary act).

      (i)   Schottenstein Family Subgroup. "Schottenstein Family Subgroup" shall
            mean Jay Schottenstein, Jeanie Schottenstein, their estates, lineal
            descendants, and any trusts for the benefit of any of the foregoing
            individuals, provided that all decisions regarding voting and
            disposition of Shares held by such trusts are controlled by one or
            more of the foregoing individuals.

      (j)   Shareholder. "Shareholder" shall mean, individually, the Deshe
            Family, the Diamond Family, the Schottenstein Family, the Agency,
            and any holder of common stock of the Company that has become a
            party to this Agreement.

                                      -2-
<PAGE>

      (k)   Shares. "Shares" shall mean any shares of common stock of the
            Company or any interest in such shares.

      (l)   Transfer. "Transfer" shall mean any gift, sale, transfer,
            alienation, pledge, encumbrance or other manner of disposal of any
            Shares or any interest therein, voluntarily, involuntarily, by
            operation of law or otherwise. Provided, however, that any gift,
            sale, transfer, or other manner of disposal of any Shares or any
            interest therein by:

            (i)   a member of the Deshe Family Subgroup to a member or members
                  of the Deshe Family Subgroup; or

            (ii)  a member of the Diamond Family Subgroup to a member or members
                  of the Diamond Family Subgroup; or

            (iii) a member of the Schottenstein Family Subgroup to a member or
                  members of the Schottenstein Family Subgroup;

            shall not be a Transfer.

      (m)   Trust. "Trust" means Ari and Jon, or their successors in trust, as
            co-trustees of the GAS Trust created by written trust agreement
            dated February 9, 1998.

2.    Restrictions on Transfer of Shares.

      (a)   Transfers Prohibited. A Shareholder shall not Transfer any Shares of
            the Company or any interest therein, except as specifically
            authorized under this Agreement. Any Transfer or attempted Transfer
            in contravention of the terms and conditions of this Agreement shall
            be null and void and of no force or effect, and the violating or
            noncomplying Shareholder shall offer his Shares to the Company at
            the price and on the terms contained in Section 3.

            This paragraph and the requirement of the Shareholder to offer
            Shares contained herein shall be binding upon the Shareholder and
            any transferee, pledgee or other person to whom the Shares are
            attempted to be transferred either voluntarily or involuntarily,
            including but not limited to any executor, administrator, receiver,
            the trustee or custodian in bankruptcy, or other personal or legal
            representative of the Shareholder, pledgee and/or the transferee or
            purchaser of Shares sold or transferred by court order or on
            execution or at any judicial or creditor sale.

      (b)   Conditions to Transfer. A Transfer shall be subject to prior
            exercise, or termination unexercised, of the rights of refusal
            granted under Section 3 of this Agreement.

                                      -3-
<PAGE>

3.    Rights of Refusal. Prior to any Transfer of Shares by a Shareholder, such
Shareholder shall offer to sell such Shares pursuant to this Section 3.

      (a)   Notice of Intent to Transfer. An Offering Shareholder shall give
            prior written notice to the Company and to all other Shareholders of
            any event, voluntary or involuntary, by which the Shares are likely
            to become the subject of a Transfer. Such notice shall give all
            particulars of the event, and (if applicable) shall specifically
            identify (i) the Shares proposed to be Transferred, (ii) the date of
            the proposed Transfer, (iii) the price and terms of the proposed
            Transfer, (iv) the identity and mailing address of the proposed
            transferee, and shall be given at least forty (40) Business Days
            prior to the proposed effective date of any Transfer. The Offering
            Shareholder shall attach to said notice true and correct copies of
            all existing documents respecting such proposed Transfer. Said
            notice shall constitute the Shareholder's representation that the
            terms of said proposed Transfer are bona fide.

      (b)   Rights of First Refusal. The Company shall have the right of refusal
            to purchase all, or any portion of, the Shares which were the
            subject of the notice given in accordance with Section 3(a).

            Such rights may be exercised by written notice of exercise delivered
            or mailed to the Offering Shareholder and all other interested
            parties disclosed by said notice no later than the close of business
            of the twentieth (20th) Business Day prior to the proposed effective
            date of any Transfer. Such notice of exercise shall specify the
            number of Shares which the Company is willing to purchase pursuant
            to this Section 3(b). Such notice of exercise shall irrevocably
            obligate the Company to purchase that number of such Shares.

      (c)   Price and Terms of Purchase. If the notice given to the Company in
            accordance with Section 3(a) constitutes an intended voluntary sale
            and provides the price thereof, the Company shall purchase such
            Shares for the same per share price. If the notice constitutes an
            intended voluntary pledge or encumbrance, the Company shall purchase
            such shares for the sum intended to be secured by such pledge or
            encumbrance, provided said sum does not exceed the Book Value
            hereinbefore defined. In the case of any other Transfer, voluntary
            or involuntary, the purchase price shall be the greater of:

            (i)   the Book Value of the Shares as of the month-end immediately
                  preceding the date on which the notice under Section 3(a) was
                  given; or

                                      -4-
<PAGE>

            (ii)  the amount for which the Shares subject to the proposed
                  Transfer were originally issued by the Company.

            The terms of the sale of the Shares to the Company upon exercise of
            its option as aforesaid shall be as follows:

            (i)   Unless otherwise mutually agreed by the affected parties, the
                  closing of such Transfer shall take place at the principal
                  offices of the Company at 10:00 a.m. on the tenth (10th)
                  Business Day after the last day for exercise of the Company's
                  rights of refusal.

            (ii)  Payment of the purchase price shall be made at the closing in
                  any combination of the following, as determined in the sole
                  discretion of the Company:

                  (A)   Cash or other immediately available funds; or

                  (B)   A negotiable promissory note, which (i) is payable to
                        the order of Offering Shareholder, (ii) provides for all
                        principal and accrued interest to be due and payable at
                        a maturity date which is not more than five (5) years
                        after the date of the closing, and (iii) bears interest
                        from the date of the closing at a variable rate equal to
                        the sum of the prime rate as announced from time to time
                        by the Company's primary state or federally chartered
                        banking institution and one percent (1%) (with such
                        interest being calculated on the basis of a 360-day year
                        and the actual number of elapsed days and with changes
                        in such interest rate being effective on the effective
                        date of each change in such prime rate).

      (d)   Timely Transfer. If the Company shall not exercise its first right
            of refusal as aforesaid, the Offering Shareholder shall be free to
            Transfer said Shares, however, such Transfer shall be made solely
            for the price, terms, or other consideration set forth in said
            notice and in accordance with the documents attached thereto. The
            Offering Shareholder shall provide reasonable evidence concerning
            the Transfer upon request, from time to time. If the Transfer is not
            so made, the Shares shall again be subject to all the restriction
            contained in this Agreement.

      (e)   Stock Legend. All share certificates issued by the Company subject
            to this Agreement shall bear the following legend:

                                      -5-
<PAGE>

            "The rights of a holder of this certificate are governed by the
            Corporation's Articles of Incorporation, Code of Regulations and a
            certain Stock Restriction Agreement and Close Corporation Agreement
            dated February 9, 1998, which includes significant transfer
            restrictions. Copies of such documents are on file at the
            Corporation's office, and the Corporation will mail to the holder of
            this certificate, a copy of such documents upon request therefor.
            The holder of this certificate, by acceptance hereof, agrees to the
            terms of the Articles of Incorporation, Code of Regulations and
            Stock Restriction and Close Corporation Agreement."

4.    Amendment to Agreement in Regards to New Shareholders. No person who shall
not have signed this Agreement shall be recognized, nor have any status, as a
Shareholder of the Company, nor have his interest registered on the books of the
Company, unless said person shall have received a Transfer of his Shares
pursuant to the terms of this Agreement and shall execute an amendment to this
Agreement by which act he shall agree to be bound by all the terms and
conditions hereof as if an original signatory. Each Shareholder hereby appoints
the Chief Executive Officer of the Company as his attorney-in-fact with full
power to execute said amendment on his behalf. Copies of said amendment shall be
mailed to all Shareholders.

5.    Close Corporation Provisions.

      (a)   Close Corporation Agreement. This Agreement is to be governed by
            Section 1701.591 of the Ohio Revised Code and is a "close
            corporation agreement" as the term is defined in Section 1701.01(X)
            of the Ohio Revised Code.

      (b)   Supersedes Certain Provisions of Chapter 1701 of the Ohio Revised
            Code. This Agreement shall regulate certain aspects of the internal
            affairs of the Company and the relations of shareholders among
            themselves to the extent set forth herein. If any provision of
            Chapter 1701 of the Ohio Revised Code, other than Section 1701.591,
            is inconsistent with this Agreement, such inconsistent provisions
            are hereby waived, to the extent waivable, to the maximum extent
            necessary for carrying out the purposes of this Agreement. To the
            extent not inconsistent with the provisions of this Agreement, the
            other provisions of Chapter 1701 of the Ohio Revised Code shall
            regulate aspects of the internal affairs of the Company and the
            relations of the shareholders among themselves.

      (c)   Right of Inspection. Each party to this Agreement, or his designated
            agent, or both, shall have the absolute right, without the necessity
            of stating any purpose, to examine and copy, during the Company's
            normal business hours, any of the Company's records or documents to
            which reference is made in Ohio Revised Code Section 1701.37 or any
            similar statute which may be in effect at the time.

                                      -6-
<PAGE>

      (d)   Issuance of Additional Shares. Except as provided in Section 6(e),
            no authorized unissued shares and no treasury shares of the Company
            may be issued or sold without the affirmative vote or written
            approval of the holders of at least sixty percent (60%) of the
            outstanding voting shares of the Company.

      (e)   Record of Proceedings. The parties shall cause this Agreement and
            the execution thereof by the corporate parties hereto to be
            authorized by written resolution by consent without a meeting of the
            directors and shareholders of each corporation.

      (f)   Directors and Officers. The directors of the Company shall include
            Ari and three other directors nominated by Ari in writing
            (representing the Deshe Family Subgroup), Jon and one other director
            nominated by Jon in writing (representing the Diamond Family
            Subgroup) and a director nominated by Jay Schottenstein
            (representing the Schottenstein Family Subgroup). In the event any
            director representing a Subgroup is unable or unwilling to continue
            to serve, his or her successor shall be named by his or her
            respective Subgroup. The current officers of the Company shall be
            Ari, Chairman of the Board and Chief Executive Officer, Jon,
            President and Secretary, and Thomas R. Ketteler, Vice President and
            Treasurer. The officers of the Company shall be chosen by the
            directors and shall continue in office until their respective
            successors have been duly elected and qualified.

      (g)   Chief Executive Officer. As long as Ari is employed on a full-time
            basis by the Company, he shall hold the offices set forth in Section
            5(f). If Ari shall be employed on a part-time basis, he shall remain
            the Chairman of the Board and Jon shall become the Chief Executive
            Officer and President. If Ari shall cease being employed for any
            reason, Jon shall become the Chairman of the Board and Chief
            Executive Officer with an immediate twenty-five percent (25%)
            increase in his then current annual base salary. In addition, his
            annual base salary for each subsequent fiscal year shall be
            increased by a percentage equal to or greater than one hundred fifty
            percent (150%) of the percentage increase in the consumer price
            index for all urban consumers, U.S. city average, all items ("CPI")
            reported by the U.S. Department of Labor for the previous calendar
            year.

            During the tenure of Ari or Jon in such offices any of the following
            transactions on behalf of the Company or any affiliate or subsidiary
            must be approved by the Board of Directors:

                                      -7-
<PAGE>

            (i)   (A) any proposed expenditure, incurrence of indebtedness or
                  other liability, capital acquisition, investment or
                  divestiture, or any other agreement or transaction, not in the
                  ordinary course of business, or (B) if in the ordinary course
                  of business, in excess of One Hundred Thousand Dollars
                  ($100,000), which sum shall be adjusted annually by a factor
                  of two times the CPI, but not less than five percent, nor more
                  than ten percent;

            (ii)  any employment agreement or charitable contribution; or

            (iii) any agreement with a member of the Deshe, Diamond or
                  Schottenstein Family Subgroups.

            As soon as either Ari or Jon cease holding any of such offices, the
            Chairman of the Board and Chief Executive Officer shall furnish
            complete financial statements to the directors at least quarterly
            each year, which statements shall itemize (A) all expenditures in
            excess of Twenty Five Thousand Dollars ($25,000), and (B) all sums
            expended by the Chairman of the Board and Chief Executive Officer
            for business travel and transportation.

      (h)   Shareholder Meetings. The Shareholder meetings of the Company shall
            be conducted at 3883 E. Broad Street, Columbus, Ohio 43213.

      (i)   Conduct of Business. The day-to-day operations of the Company shall
            be the responsibility of the Chief Executive Officer, subject to any
            limitations on his authority as contained in this Agreement.

      (j)   Place of Business. The principal place of business of the Company
            shall be 3883 E. Broad Street, Columbus, Ohio 43213 or such other
            place of business as shall be determined by the Shareholders.

      (k)   Amendments. Amendments to the Articles of Incorporation of the
            Company may only be adopted by the vote of the Deshe Family and
            either the Diamond Family or the Schottenstein Family.

      (l)   Material Decisions. In addition to any other limitation herein
            contained, the prior approval of the Family Representative of the
            Deshe Family Subgroup and the approval of either the Family
            Representative of the Diamond Family Subgroup or the Schottenstein
            Family Subgroup shall be required for any of the following
            transactions:

                                      -8-
<PAGE>

            (i)   Any public offering of the shares of the Company;

            (ii)  Any change in the compensation of, or the granting of any loan
                  or fringe benefits to, Ari or Jon or members of their
                  respective Family Subgroups;

            (iii) The liquidation or dissolution of the Company for any reason;

            (iv)  The purchase or sales of assets other than those used in the
                  ordinary course of business; and

            (v)   The acquisition of any other company.

            Provided, however, that upon exercise of the option hereinafter
            granted to the Diamond Family Subgroup, said approval shall no
            longer be required for items (i), (ii), (iv) and (v).

      (m)   Change in Executive Management. If Jon shall cease being employed by
            the Company for any reason (except his death), the Diamond Family
            Subgroup shall have the following options:

            (i)   The Family Representative of the Diamond Family Subgroup shall
                  have the option, once the severance payments due Jon under his
                  Executive Employment Agreement terminate (if any), to sell a
                  certain number of their Shares each year to the Company at the
                  price and in the amount as follows:

                  (A)   The price per Share shall be its Book Value as of the
                        first day of the then current fiscal year of the Company
                        (the "Denominator"); and

                  (B)   The amount of Shares shall be determined by dividing the
                        amount of Jon's annual base salary on the Severance
                        Date, adjusted by a percentage equal to one hundred
                        fifty percent (150%) of the percentage increase in CPI
                        since the Severance Date, by the Denominator.

                  The Company shall be obligated to purchase such tendered
                  Shares in accordance with this Section 5(m)(i).

            (ii)  All payments due the exercising members of the Diamond Family
                  under this Section 5(m) shall be made in cash or other
                  immediately available funds within thirty (30) days after
                  notice of exercise.

                                      -9-
<PAGE>

            (iii) If and when the Family Representative of the Diamond Family
                  Subgroup exercises the aforesaid option, the Company shall
                  have the option, at any time, and from time to time, to
                  purchase the remaining Shares held by the Diamond Family
                  Subgroup for the same price and in quantities not less than
                  those determined under the aforesaid formula.

      (n)   Termination of Certain Restrictions. Upon the disposition of all of
            the Shares owned by either the Deshe Family Subgroup or the Diamond
            Family Subgroup, this Section 5 (except for subsections (g) and (I)
            in the event of the disposition of all of the Shares owned by the
            Deshe Family Subgroup) shall no longer be in force or effect.

6.    Life Insurance. The parties hereto acknowledge that the Trust is
contemplating the purchase of certain life insurance policies on the lives of
Ari and Jon (the "Policies"). If the Trust purchases the Policies, upon the
death of Ari or Jon, whichever occurs first:

      (a)   The Family Representative of the decedent's Family Subgroup and the
            Family Representative of the Schottenstein Family Subgroup, on
            behalf of all members of his respective Family Subgroup, shall have
            the option, for a period of three (3) years after the Determination
            Date (defined in Section 6(f) below), to tender for sale all, but
            not less than all, of the Shares held by such Family Subgroup to the
            Trust, the purchase price per share for which shall be the greater
            of the (i) Book Value as of the Determination Date, or (ii) Insured
            Value (defined in Section 6(g) below). If any such Family
            Representative shall tender for sale less than all of the Shares
            held by his Family Subgroup, such non-complying tender shall be null
            and void and of no force or effect.

            Upon notice by such Family Representative of his tender of the
            Shares held by his Family Subgroup for sale to the Trust, and upon
            delivery of appropriate stock certificates with stock powers duly
            endorsed, the Trust shall purchase all of the tendered Shares;
            provided, however, that the Trust's aggregate monetary obligation to
            purchase Shares under this Section 6(a) shall not exceed the net
            death benefit proceeds received under the Policies (the "Death
            Proceeds").

      (b)   Upon the expiration of such three (3) year period (the "Expiration
            Date"), the Trust shall retain any Death Proceeds which remain and
            any rights the members of the decedent's Family Subgroup and the
            Schottenstein Family Subgroup may have to tender Shares for sale to
            the Trust shall immediately terminate.

                                      -10-
<PAGE>

      (c)   If the Book Value of the Shares held by members of the decedent's
            Family Subgroup and the Schottenstein Family Subgroup as of the
            Determination Date is greater than the Insured Value:

            (i)   The Trust shall only be obligated to purchase an aggregate
                  number of Shares determined by the quotient of (A) the Death
                  Proceeds, divided by (B) the Book Value as of the
                  Determination Date, not to exceed the number of Shares
                  tendered.

            (ii)  The Shares purchased by the Trust in accordance with Section
                  6(c)(i) shall be allocated among the tendering Shareholders in
                  proportion to the number of Shares owned by each of them as of
                  the Determination Date.

            (iii) The decedent's Family Subgroup and the Schottenstein Family
                  Subgroup shall have the option to sell a certain remaining
                  number of Shares retained by such Shareholders under Section
                  6(c)(i) each year to the Company at the price and in the
                  amount as follows:

                  (A)   The price per Share shall be its Book Value as of the
                        first day of the then current fiscal year of the
                        Company.

                  (B)   The amount of Shares shall be determined by dividing the
                        amount of the decedent's annual base salary on the date
                        of his death, adjusted by a percentage equal to one
                        hundred fifty percent (150%) of the percentage increase
                        in CPI since the date of his death, by the number
                        calculated in accordance with Section 6(c)(i).

                  (C)   The Company shall be obligated to purchase such tendered
                        Shares in accordance with this Section 6(c)(iii).

                  (D)   All payments due the decedent's Family Subgroup and the
                        Schottenstein Family Subgroup under this Section
                        6(c)(iii) shall be made in cash or other immediately
                        available funds within thirty (30) days after notice of
                        exercise.

            (iv)  The Company shall have the option to purchase any number of
                  the remaining Shares retained by the decedent's Family
                  Subgroup and the Schottenstein Family Subgroup under Section
                  6(c)(i) in accordance with the following:

                  (A)   The price per Share shall be its Book Value as of the
                        first day of the then current fiscal year of the
                        Company.

                                      -11-
<PAGE>

            (B)   The decedent's Family Subgroup and the Schottenstein Family
                  Subgroup shall be obligated to sell such Shares in accordance
                  with this Section 6(c)(iv).

            (C)   All payments due the decedent's Family Subgroup and the
                  Schottenstein Family Subgroup under this Section 6(c)(iv)
                  shall be made in cash or other immediately available funds
                  within thirty (30) days after receipt of notice of exercise
                  from the Company.

(d)   If Ari shall predecease Jon:

      (i)   And the Family Representative of the Deshe Family Subgroup does not
            exercise the option under Section 6(a):

            (A)   The Family Representative of the Diamond Family Subgroup, on
                  behalf of all members of his Family Subgroup, shall have the
                  option, for a period of one (1) year after the Expiration
                  Date, to tender for sale all, but not less than all, of the
                  Shares held by such Family Subgroup to the Trust, the purchase
                  price per share for which shall be the greater of the (i) Book
                  Value as of the Determination Date, or (ii) Insured Value.

                  Upon notice by such Family Representative of his tender of the
                  Shares held by his Family Subgroup to the Trust, and upon
                  delivery of appropriate stock certificates with stock powers
                  duly endorsed, the Trust shall purchase all of the tendered
                  Shares; provided, however, the Trust's aggregate monetary
                  obligation to purchase Shares under this Section 6(d) shall
                  not exceed the Death Proceeds which remain after any exercise
                  by the Schottenstein Family Representative of the option set
                  forth in Section 6(a). The Trust shall deliver payment of the
                  purchase price in cash or other immediately available funds
                  within ten (10) Business Days after its receipt of the notice.

            (B)   Upon the expiration of such one (1) year period, the Trust
                  shall retain the Death Proceeds which remain after the
                  exercise of the options set forth in Sections 6(a) and
                  6(d)(i)(A) and any rights the members of the Diamond Family
                  Subgroup may have to tender Shares for sale to the Trust shall
                  immediately terminate.

            (C)   If the Book Value of the Shares held by members of the Diamond
                  Family Subgroup and the Schottenstein Family

                                      -12-
<PAGE>

                  Subgroup as of the Determination Date is greater than the
                  Insured Value:

                  (1)   The Trust shall only be obligated to purchase an
                        aggregate number of Shares determined by the quotient of
                        (A) the Death Proceeds which remain after the exercise
                        of the option set forth in Section 6(a), divided by (B)
                        the Book Value as of the Determination Date, not to
                        exceed the number of Shares tendered.

                  (2)   The Shares purchased by the Trust in accordance with
                        Section 6(d)(i)(C)(1) shall be allocated among the
                        tendering Shareholders in proportion to the number of
                        Shares owned by each of them as of the Determination
                        Date.

                  (3)   The decedent's Family Subgroup and the Schottenstein
                        Family Subgroup shall have the option to sell a certain
                        number of remaining Shares retained by such Shareholders
                        under Section 6(d)(i)(C)(1) each year to the Company at
                        the price and in the amount as follows:

                        (I)   The price per Share shall be its Book Value as of
                              the first day of the then current fiscal year of
                              the Company.

                        (II)  The amount of Shares shall be determined by
                              dividing the amount of the decedent's annual base
                              salary on the date of his death, adjusted by a
                              percentage equal to one hundred fifty percent
                              (150%) of the percentage increase in CPI since the
                              date of his death, by the number calculated in
                              accordance with Section 6(d)(i)(C)(1).

                        (III) The Company shall be obligated to purchase such
                              tendered Shares in accordance with this Section
                              6(d)(i)(C).

                        (IV)  All payments due the decedent's Family Subgroup
                              and the Schottenstein Family Subgroup under this
                              Section 6(d)(i)(C) shall be made in cash or other
                              immediately available funds within thirty (30)
                              days after notice of exercise.

                                      -13-
<PAGE>

            (ii)  [Intentionally left blank]

      (e)   If any Death Proceeds remain in the Trust after exercise or
            expiration of the options hereinbefore granted, the Trust shall
            purchase and the Company shall sell such number of original issuance
            shares of common stock of the Company as shall equal the said
            remaining Death Proceeds divided by the Book Value as of the first
            of the month following such exercise or expiration.

      (f)   The "Determination Date" shall be (i) for the purposes of Section
            6(a), the last day of the month immediately preceding the decedent's
            death, and (ii) for the purposes of Section 6(d), the Expiration
            Date.

      (g)   The "Insured Value" of each of the Company's Shares shall be
            determined by the quotient of (i) Six Million Dollars ($6,000,000)
            divided by (ii) the number of Shares held by the decedent's Family
            Subgroup and the Schottenstein Family Subgroup.

7.    Miscellaneous.

      (a)   Construction. Wherever the context so permits, the use of words in
            this Agreement in the masculine, feminine or neuter gender shall be
            construed to include all of said genders. All references to
            articles, sections, subsections, or subparagraphs are to provisions
            of this Agreement unless the context dictates otherwise.

      (b)   Attorneys Fees. Each of the parties hereby agrees that if any party
            violates any of the covenants set forth herein, such party shall
            indemnify all other parties from and against any loss or liability
            (including without limitation reasonable attorney fees and expenses)
            which such other parties may incur or suffer, directly or
            indirectly, by reason of the enforcement of the covenants set forth
            herein.

      (c)   Entire Agreement. This Agreement sets forth the entire agreement and
            understanding among the parties as to the subject matter hereof and
            merges and supersedes all prior discussions, agreements and
            undertakings of every kind and nature between them with respect to
            the subject matter hereof, including the Previous Agreement. This
            Agreement may be executed in one or more counterparts, which shall
            together constitute a single agreement. In the event of execution of
            more than one counterpart of this Agreement, the Company is
            expressly authorized to remove the signature pages from each such
            counterpart and attach all such signature pages to a single
            counterpart of this Agreement; provided, however, the Company shall
            promptly thereafter provide a complete and accurate copy of such
            single counterpart to each party.

                                      -14-
<PAGE>

      (d)   Further Assurances. Each of the parties agrees, at any time and from
            time to time, upon the reasonable request of any other party, to do,
            execute, acknowledge and deliver, or cause to be done, executed,
            acknowledged and delivered, all such further acts, documents and
            instruments as may be required to effect any of the transactions
            contemplated by this Agreement.

      (e)   Binding Effect. This Agreement shall be binding upon and inure to
            the benefit of the parties and their respective heirs, executors and
            permitted assigns.

      (f)   Governing Law Venue. This Agreement shall be governed by and
            construed in accordance with the laws of the State of Ohio
            (regardless of the laws that might be applicable under principles of
            conflicts of laws) as to all matters, including but not limited to
            matters of validity, construction, effect and performance. Any
            controversy or claim arising out of or relating to this contract
            shall be determined by arbitration by three arbitrators in Columbus,
            Ohio in accordance with the Commercial Arbitration Rules of the
            American Arbitration Association and judgment upon the award
            rendered by the arbitrators may be entered in any court having
            jurisdiction thereof. Provided, however, that any claim for purely
            equitable relief, such as injunction, may be brought in the Franklin
            County Common Pleas Court, to the jurisdiction and venue of which
            the parties hereby consent.

      (g)   Notices. All notices permitted or required to be given pursuant to
            this Agreement by any party, shall be in writing and shall be mailed
            by certified United States mail, postage prepaid, return receipt
            requested, to the Shareholder at the address set forth below his
            signature and to the Company at the following address:

                                     Safe Auto Group, Inc.
                                     3883 E. Broad Street
                                     Columbus, Ohio 43213
                                     Attn: Chief Executive Officer

            All such notices shall be deemed given upon receipt or upon refusal
            of the addressee to receive the same as evidenced on the return
            receipt. Any party may designate a different address by notice given
            hereunder.

      (h)   Invalidity. In the event that this Agreement becomes invalid
            pursuant to the provisions of Ohio Revised Code Section 1701.591, or
            if it or any of its provisions is held invalid by the decision of
            any court of competent jurisdiction from which no appeal is or can
            be taken, this Agreement shall be deemed to be void in its entirety.

      (i)   Amendment of Agreement. This Agreement shall not be modified or.
            amended except only by a writing signed by the holders, then parties
            to this Agreement, of all the issued and outstanding Shares.

                                      -15-
<PAGE>

      (j)   Headings. The headings used in this Agreement are for convenience
            only and shall be ignored in interpreting this Agreement.

      (k)   Waiver. No failure by any party to insist upon the strict
            performance of any covenant, duty, agreement, or condition of this
            Agreement or to exercise any right or remedy consequent upon a
            breach thereof shall constitute waiver of any breach or any other
            covenant, duty, agreement, or condition.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

COMPANY:                                        DESHE FAMILY:

SAFE AUTO GROUP, INC.,
  an Ohio corporation

By:  /s/ Ari Deshe                              /s/ Ari Deshe
    -----------------------------------         ------------------------------
      Ari Deshe, Chief Executive Officer        Ari Deshe

                                                /s/ Ann Deshe
                                                ------------------------------
                                                Ann Deshe

                                                Address:  393 N. Columbia Avenue
                                                          Columbus, Ohio 43209

AGENCY:

SAFE AUTO INSURANCE AGENCY, INC.
  an Ohio corporation

By:  /s/ Ari Deshe
    ------------------------------
    Ari Deshe, President

DIAMOND FAMILY:                                SCHOTTENSTEIN FAMILY:

/s/ Jon P. Diamond                             /s/ Jay Schottenstein
-------------------------------                -------------------------------
Jon P. Diamond                                 Jay Schottenstein

/s/ Susan Diamond                              /s/ Jeanie Schottenstein
-----------------------------                  --------------------------------
Susan Diamond                                  Jeanie Schottenstein

Address: 320 S. Parkview Avenue                Address:  445 N. Parkview Avenue
         Columbus, Ohio 43209                            Columbus, Ohio 43209

                                      -16-
<PAGE>

TRUST:                                             ARI DESHE:

THE GAS TRUST

By: /s/ Ari Deshe                                  /s/ Ari Deshe
   ---------------------------------               ----------------------------
   Ari Deshe, Co-Trustee                           Ari Deshe, Individually

By: /s/ Jon P. Diamond
   ---------------------------------
   Jon P. Diamond, Co-Trustee

                                      -17-

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