Document:

Exhibit 4.1

 

THE NAVIGATORS GROUP, INC.

 

AND

 

JPMORGAN CHASE BANK, N.A., as Trustee

 

 

FIRST SUPPLEMENTAL INDENTURE TO

INDENTURE DATED AS OF APRIL 17, 2006

 

 

SENIOR DEBT SECURITIES

 

Dated as of April 17, 2006

 

 

7% Senior Notes due May 1, 2016

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
  RELATION TO INDENTURE; DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Relation
  to Indenture

  	
  2

  
	
  Section 1.2.

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  THE SERIES OF SECURITIES

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Designation

  	
  5

  
	
  Section 2.2.

  	
  Limitation
  on Aggregate Principal Amount

  	
  5

  
	
  Section 2.3.

  	
  Principal
  Payment Date

  	
  5

  
	
  Section 2.4.

  	
  Interest
  and Interest Rates

  	
  5

  
	
  Section 2.5.

  	
  Place
  of Payment

  	
  6

  
	
  Section 2.6.

  	
  Denomination

  	
  6

  
	
  Section 2.7.

  	
  Currency

  	
  6

  
	
  Section 2.8.

  	
  Form of
  7% Senior Notes; Global Form.

  	
  6

  
	
  Section 2.9.

  	
  Registrar
  and Paying Agent for the 7% Senior Notes

  	
  7

  
	
  Section 2.10.

  	
  Sinking
  Fund Obligations

  	
  7

  
	
  Section 2.11.

  	
  Legal
  Defeasance and Covenant Defeasance

  	
  7

  
	
  Section 2.12.

  	
  Optional
  Redemption.

  	
  7

  
	
  Section 2.13.

  	
  Payment
  of Taxes

  	
  8

  
	
  Section 2.14.

  	
  Limitation
  on Liens on Stock of Significant Subsidiaries

  	
  8

  
	
  Section 2.15.

  	
  Limitations
  on Issue or Disposition of Common Stock of Significant Subsidiaries

  	
  9

  
	
  Section 2.16.

  	
  Events
  of Default

  	
  9

  
	
  Section 2.17.

  	
  Immediately
  Available Funds

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  MISCELLANEOUS PROVISIONS

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Trustee
  Not Responsible For Recitals

  	
  10

  
	
  Section 3.2.

  	
  Adoption,
  Ratification and Confirmation

  	
  10

  
	
  Section 3.3.

  	
  Separability

  	
  10

  
	
  Section 3.4.

  	
  Counterparts

  	
  10

  
	
  Section 3.5.

  	
  GOVERNING
  LAW

  	
  10

  
				

 

EXHIBIT A:  Form of 7% Senior Note due May 1,
2016

 

i

 

THE NAVIGATORS GROUP, INC.

 

FIRST SUPPLEMENTAL INDENTURE TO

INDENTURE DATED AS OF APRIL 17, 2006

 

$125,000,000

 

7% Senior Notes due May 1, 2016

 

FIRST SUPPLEMENTAL INDENTURE, dated as of April 17,
2006 (this “First Supplemental Indenture”) between
THE NAVIGATORS GROUP, INC., a Delaware corporation (the “Company”),
and JPMORGAN CHASE BANK, N.A., a national banking association, as Trustee (the “Trustee”) under the Indenture dated as of April 17, 2006
(the “Indenture”) between the Company and the
Trustee.

 

RECITALS

 

WHEREAS, the
Company executed and delivered the Indenture to the Trustee to provide, among
other things, for unsecured debentures, notes or other evidences of
indebtedness to be issued by the Company from time to time in one or more
series under the Indenture;

 

WHEREAS, Section 2.02
of the Indenture provides for various matters with respect to any series of
Securities issued under the Indenture to be established in an indenture
supplemental to the Indenture.

 

WHEREAS, Section 9.01(g) of
the Indenture provides for the Company and the Trustee to enter into an
indenture supplemental to the Indenture to establish the form and terms and
conditions of Securities of any series as provided by Sections 2.01 and 2.02 of
the Indenture.

 

WHEREAS, the
Board of Directors of the Company has duly adopted resolutions authorizing the
Company to execute and deliver this First Supplemental Indenture;

 

WHEREAS,
pursuant to the terms of the Indenture, the Company desires to enter into this First
Supplemental Indenture to provide for the establishment of a new series of its Securities
to be known as its 7% Senior Notes due May 1, 2016  (the “7% Senior  Notes”); and

 

WHEREAS, the
Company has requested that the Trustee execute and deliver this First
Supplemental Indenture and all things necessary to make (i) this First
Supplemental Indenture a valid instrument in accordance with its terms, and (ii) the
7% Senior Notes, when executed by the Company and authenticated and delivered
by the Trustee, the valid obligations of the Company, have been done.

 

NOW THEREFORE,
in consideration of the purchase and acceptance of the 7% Senior Notes by the
Holders thereof, and for the purpose of setting forth, as provided in 

 

 

the Indenture, the form
and terms of the 7% Senior Notes, the Company covenants and agrees with the
Trustee as follows:

 

ARTICLE I

RELATION TO INDENTURE; DEFINITIONS

 

Section 1.1.                                   Relation to
Indenture.  This First Supplemental
Indenture constitutes an integral part of the Indenture.

 

Section 1.2.                                   Definitions.  For all purposes of this First Supplemental
Indenture:

 

(a)                                  a
term defined in the Indenture has the same meaning when used in this First
Supplemental Indenture unless the definition of such term is amended and
supplemented pursuant to this First Supplemental Indenture;

 

(b)                                 a
term defined anywhere in this First Supplemental Indenture has the same meaning
throughout;

 

(c)                                  the
singular includes the plural and vice versa;

 

(d)                                 a
reference to a Section or Article is to a Section or Article of
this First Supplemental Indenture, unless otherwise indicated;

 

(e)                                  headings
are for convenience of reference only and do not affect interpretation;

 

(f)                                    the
terms “herein,” “hereof,”
“hereunder” and other words of similar
import refer to this First Supplemental Indenture; and

 

(g)                                 the
following terms have the meanings given to them in this Section 1.2(g):

 

“Comparable Treasury Issue,”
means the United States Treasury security selected by an Independent Investment
Banker as having a maturity comparable to the remaining term of the 7% Senior
Notes to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such 7%
Senior Notes (“Remaining Life”).

 

“Comparable Treasury Price,”
means, with respect to any Redemption Date, (i) the average of five
Reference Treasury Dealer Quotations for such Redemption Date, after excluding
the highest and lowest Reference Treasury Dealer Quotations, or (ii) if
the Independent Investment Banker obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations.

 

2

 

“Credit Facility,”
means the Second Amended and Restated Credit Agreement among The Navigators
Group, Inc., as Borrower, JPMorgan Chase Bank, N.A., as Administrative
Agent, and a syndicate of lenders, dated as of January 31, 2005.

 

“Depositary,”
means The Depository Trust Company, New York, New York, or any successor
thereto registered as a clearing agency pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934, as amended, or other applicable statute
or regulation.

 

“Fair Value,”
when used with respect to common stock, means the fair value thereof as
determined in good faith by the Board of Directors.

 

“Indebtedness,” of
any Person means the principal of and premium, if any, and interest due on
indebtedness of such Person, whether outstanding on the date of this First
Supplemental Indenture or thereafter created, incurred or assumed, which is (a) indebtedness
for money borrowed, and (b) any amendments, renewals, extensions,
modifications and refundings of any such indebtedness.  For the purposes of this definition, “indebtedness
for money borrowed” means (i) any obligation of, or any obligation
guaranteed by, such Person for the repayment of borrowed money, whether or not
evidenced by bonds, debentures, notes or other written instruments, (ii) any
obligation of, or any such obligation guaranteed by, such Person evidenced by
bonds, debentures, notes or similar written instruments, including obligations
assumed or incurred in connection with the acquisition of property, assets or
businesses (provided, however, that the deferred
purchase price of any other business or property or assets shall not be
considered Indebtedness if the purchase price thereof is payable in full within
90 days from the date on which such indebtedness was created), and (iii) any
obligations of such Person as lessee under leases required to be capitalized on
the balance sheet of the lessee under generally accepted accounting principles
and leases of property or assets made as part of any Sale and Lease-Back Transaction
to which such Person is a party.

 

“Independent Investment
Banker,” means
either Credit Suisse Securities (USA) LLC or J.P. Morgan Securities Inc., as
specified by the Company, or, if these firms are unwilling or unable to select
the Comparable Treasury Issue, an independent investment banking institution of
national standing appointed by the Company.

 

“Redemption
Date,” with respect to any 7% Senior Note or portion thereof to be redeemed, means the
date fixed for such redemption by or pursuant to this First Supplemental
Indenture or such 7% Senior Note.

 

“Redemption Price,”
with respect to any 7% Senior Note or portion thereof to be redeemed, means the
price at which it is to be redeemed as determined by or pursuant to this First
Supplemental Indenture or such 7% Senior Note.

 

“Reference Treasury Dealer,”
means (i) each of Credit
Suisse Securities (USA) LLC and J.P. Morgan Securities Inc. and their
respective successors; provided, however,
that, if any of the foregoing ceases to be a primary U.S. Government securities

 

3

 

dealer in New York City (a “Primary Treasury Dealer”),
the Company shall substitute therefor another Primary Treasury Dealer and (ii) any
three other Primary Treasury Dealers selected by the Company after consultation with the Independent
Investment Banker.

 

“Reference Treasury Dealer
Quotations,” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Independent Investment Banker at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.

 

“Regular
Record Date,” for the interest payable on the 7% Senior Notes on any
Interest Payment Date means the date specified in the 7% Senior Notes as the “record
date.”

 

“Sale and Lease-Back Transaction”
means any arrangement with any Person providing for the leasing by the Company
or any Subsidiary of the Company of any property
(except for temporary leases for a term, including any renewal thereof of not
more than one year and except for leases between the Company and a Subsidiary
or between Subsidiaries of the Company), which property has been or is to be
sold or transferred by the Company or such Subsidiary to such Person.

 

“Significant Subsidiary,”
means a Subsidiary which meets any of the following conditions (i) the
Company and the Company’s other Subsidiaries’ investments in and advances to
the Subsidiary exceed ten percent of the Company’s and the Company’s
Subsidiaries’ total assets as of the end of the Company’s most recently
completed fiscal year; (ii) the Company and the Company’s other
Subsidiaries’ proportionate share of the Subsidiary’s total assets exceed ten
percent of the Company’s and the Company’s Subsidiaries’ total assets as of the
end of the Company’s most recently completed fiscal year; or (iii) the
Company and the Company’s other Subsidiaries’ equity in the Subsidiary’s income
from continuing operations before income taxes, extraordinary items and
cumulative effect of a change in accounting principles exceeds ten percent of the
Company’s and the Company’s Subsidiaries’ income from continuing operations
before income taxes, extraordinary items and cumulative effect of a change in
accounting principles for the Company’s most recently completed fiscal year.

 

“Special Record Date,”
for the payment of any defaulted interest on the 7% Senior Notes means a special
record date fixed by the Company pursuant to Section 2.14 of the
Indenture.

 

“Treasury Rate,”
means, with respect to any Redemption Date: (i) the yield, under the
heading which represents the average for the immediately preceding week,
appearing in the most recently published statistical release designated “H.15(519)”
or any successor publication which is published weekly by the Board of
Governors of the Federal Reserve System and which establishes yields on actively
traded U.S. Treasury 

 

4

 

securities adjusted to
constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no maturity is within
three months before or after the Remaining Life, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or extrapolated from such
yields on a straight line basis, rounding to the nearest month) or (ii) if such release (or any successor release) is
not published during the week preceding the calculation date or does not
contain such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using a price
for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date.  The Treasury Rate will be calculated on the
third Business Day preceding the Redemption Date.

 

ARTICLE II

THE SERIES OF SECURITIES

 

Section 2.1.                                   Designation.  There shall be a series of Securities
designated the “7% Senior Notes due May 1, 2016.”

 

Section 2.2.                                   Limitation on
Aggregate Principal Amount.  The
aggregate principal amount of the 7% Senior Notes shall initially be limited to
$125,000,000.  The Company may, without
the consent of the Holders of the 7% Senior Notes, issue additional Securities
having the same interest rate, maturity date and other terms as the 7% Senior
Notes initially issued hereunder.  Any such
additional Securities, together with the 7% Senior Notes initially issued
hereunder, will constitute a single series of Securities under the Indenture.  No additional Securities may be issued if an
Event of Default under the Indenture has occurred and is continuing.

 

Section 2.3.                                   Principal Payment
Date.  The principal amount of the 7%
Senior Notes outstanding (together with any accrued and unpaid interest) shall
be payable in a single installment on May 1, 2016, which date shall be the
Stated Maturity of the 7% Senior Notes outstanding.

 

Section 2.4.                                   Interest and
Interest Rates.  The rate of interest
on each 7% Senior Note shall be 7% per annum, accruing from April 17, 2006,
or from the most recent interest payment date to which interest has been paid
or duly provided for, payable semiannually in arrears on May 1 and November 1
of each year commencing November 1, 2006 (each such date, an “Interest Payment Date”) until the principal thereof shall
have become due and payable, and until the principal thereof is paid or duly
provided for or made available for payment.  The amount of interest payable on any Interest
Payment Date shall be computed on the basis of a 360-day year of twelve 30-day
months.  The amount of interest payable
for any partial period shall be computed on the basis of the actual number of
days elapsed in a 360-day year of twelve 30-day months.  In the event that any date on which interest
is payable on any 7% Senior Note is not a Business Day, then payment of
interest payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or other payment in respect of any such 

 

5

 

delay).  The interest installment so payable in respect
of any 7% Senior Note, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person
in whose name such 7% Senior Note is registered at the close of business on April 15
or October 15 (whether or not a Business Day) immediately preceding such
Interest Payment Date.  Any such interest
installment not so punctually paid or duly provided for in respect of any 7%
Senior Note shall forthwith cease to be payable to the Holder on such Regular
Record Date and shall be paid to the Person in whose name such 7% Senior Note
is registered at the close of business on a Special Record Date to be fixed by
the Company for the payment of such defaulted interest, notice whereof shall be
given to the Holders of the 7% Senior Notes not less than 15 days prior to such
Special Record Date.

 

Section 2.5.                                   Place of Payment.
 The Place of Payment where the 7% Senior
Notes may be presented or surrendered for payment, where the 7% Senior Notes
may be surrendered for registration of transfer or exchange and where notices
and demand to or upon the Company in respect of the 7% Senior Notes and the
Indenture may be served shall be the Corporate Trust Office of
the Trustee.

 

Section 2.6.                                   Denomination.
 The 7% Senior Notes shall be issuable in
registered form without coupons in denominations of $2,000 or integral
multiples of $1,000 in excess thereof.

 

Section 2.7.                                   Currency.  Principal, premium, if any, and interest on the
7% Senior Notes shall be payable in such coin or currency of the United States
of America that at the time of payment is legal tender for payment of public
and private debts.

 

Section 2.8.                                   Form of 7%
Senior Notes; Global Form.

 

(a)                                  The
7% Senior Notes shall be substantially in the form attached as Exhibit A
hereto. The terms and provisions contained in the form of 7% Senior Notes set
forth in Exhibit A shall constitute, and are hereby expressly made,
a part of the Indenture as supplemented by this First Supplemental Indenture.

 

Any of the 7% Senior Notes may have such letters,
numbers or other marks of identification and such notations, legends,
endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not
inconsistent with the provisions of the Indenture as supplemented by this First
Supplemental Indenture, or as may be required by the Depositary or as may be
required to comply with any applicable law or with any rule or regulation
made pursuant thereto, or to conform to usage, or to indicate any special
limitations or restrictions to which any particular 7% Senior Notes are
subject.

 

(b)                                 So
long as any 7% Senior Notes are eligible for book-entry settlement with the Depositary,
or unless otherwise required by law, or otherwise contemplated by Section 2.08
of the Indenture, all of the 7% Senior Notes shall be represented by one or
more Securities in global form registered in the name of the 

 

6

 

Depositary or the nominee
of the Depositary (each and collectively, the “Global Note”).  The
transfer and exchange of beneficial interests in any such Global Note shall be
effected through the Depositary in accordance with the Indenture and the
applicable procedures of the Depositary. 
Except as provided in Section 2.08 of the Indenture, beneficial
owners of a Global Note shall not be entitled to have certificates registered
in their names, will not receive or be entitled to receive physical delivery of
certificates in definitive form and will not be considered Holders of such
Global Note.

 

(c)                                  Any
Global Note shall represent such of the outstanding 7% Senior Notes as shall be
specified therein and shall provide that it shall represent the aggregate
amount of outstanding 7% Senior Notes from time to time endorsed thereon and
that the aggregate amount of outstanding 7% Senior Notes represented thereby
may from time to time be increased or reduced to reflect redemptions, transfers
or exchanges permitted hereby.  Any
endorsement of a Global Note to reflect the amount of any increase or decrease
in the amount of outstanding 7% Senior Notes represented thereby shall be made
by the Trustee in such manner and upon instructions given by the Holder of such
7% Senior Notes in accordance with the Indenture.  Payment of principal of and interest and
premium, if any, on any Global Note shall be made to the Holder of such 7%
Senior Note.

 

Section 2.9.                                   Registrar and
Paying Agent for the 7% Senior Notes.  The Trustee shall serve initially as Registrar
and Paying Agent for the 7% Senior Notes.

 

Section 2.10.                             Sinking Fund
Obligations.  The Company has no
obligation to redeem or purchase any 7% Senior Notes pursuant to any sinking
fund or analogous requirement or upon the happening of a specified event or at
the option of a Holder thereof.

 

Section 2.11.                             Legal Defeasance and
Covenant Defeasance.  The provisions
of Section 8.02 of the Indenture (relating to legal defeasance) and Section 8.03
(relating to covenant defeasance) shall apply to the 7% Senior Notes. 

 

Section 2.12.                             Optional Redemption.

 

(a)                                  The
Company may redeem the 7% Senior Notes, in whole or in part, at any time at a Redemption
Price equal to the greater of (i) 100%
of the principal amount of the 7% Senior Notes then outstanding to be redeemed or (ii) an amount, as
determined by an Independent Investment Banker, equal to the sum of the present
values of the remaining scheduled payments of principal of and interest on the 7%
Senior Notes to be redeemed (not including any portion of such payments of
interest accrued as of the Redemption Date) discounted to the Redemption Date
on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the applicable Treasury Rate, plus 40 basis points, plus, in either
of the above cases, accrued and unpaid interest thereon to, but not including,
the Redemption Date.

 

(b)                                 If
less than all of the 7% Senior Notes are to be redeemed, the Trustee will
select, by such method as it will deem fair and appropriate, including pro 

 

7

 

rata or by lot, the 7% Senior Notes to be redeemed in whole or in part;
provided, that no 7% Senior Notes having a principal amount of $2,000 or less
shall be redeemed in part; and provided, further, that 7 % Senior Notes and
portions of 7% Senior Notes selected for redemption shall be in principal
amounts of $2,000 or integral multiples of $1,000 in excess thereof.

 

(c)                                  Unless
the Company defaults in payment of the Redemption Price, on and after the
Redemption Date, interest will cease to accrue on the 7% Senior Notes or
portions thereof called for redemption.

 

(d)                                 Notwithstanding
Section 3.03 of the Indenture, any notice to Holders of the foregoing
redemption need not set forth the Redemption Price but only the manner of
calculation thereof.  Promptly after the
Company calculates the Redemption Price, 
the Company shall give the Trustee notice thereof and the Trustee shall
have no responsibility for calculating the Redemption Price.

 

Section 2.13.                             Payment of Taxes.  The following covenant shall be solely for the
benefit of the Holders of the 7% Senior Notes. 
The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary of
the Company or upon the income, profits or property of the Company or any
Subsidiary of the Company, and lawful claims for labor, materials and supplies,
which, if unpaid, might by law become a lien upon the property of the Company
or any such Subsidiary; provided, however,
that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment, governmental charge or claim whose
amount, applicability or validity is being contested in good faith by
appropriate proceedings.

 

Section 2.14.                             Limitation on Liens on
Stock of Significant Subsidiaries.  The
following covenant shall be solely for the benefit of the Holders of the 7%
Senior Notes.  Except for the lien on the
shares of Navigators Insurance Company common stock under the Credit Facility,
or any amendment, extension or replacement thereof, including replacements in
the form of other instruments, facilities or structures that are used primarily
to support the Company’s participation in the Lloyd’s of London market through
Subsidiaries of the Company which are Lloyd’s corporate members, the Company
will not, and it will not permit any Subsidiary of the Company to create, assume,
incur or permit to exist any Indebtedness secured by a pledge, lien or other
encumbrance (any pledge, lien or other encumbrance being hereinafter in this Section referred
to as a “lien”) on the voting securities of any Significant
Subsidiary or any Subsidiary succeeding to any substantial part of the business
of the Company now conducted by any Significant Subsidiary, or the voting
securities of a Subsidiary that owns, directly or indirectly, the voting
securities of any of the Significant Subsidiaries or any Subsidiary succeeding
to any substantial part of the business of the Company now conducted by any
Significant Subsidiary without making effective provision whereby the 7% Senior
Notes then outstanding (and, if the Company so elects, any other Indebtedness of
the Company that is not subordinate to the 7% Senior Notes and with respect to
which the governing instruments require, or pursuant to which the Company is
otherwise 

 

8

 

obligated or required, to
provide such security) shall be equally and ratably secured with such secured Indebtedness
so long as such other Indebtedness shall be secured.  For the purposes of this covenant, “voting
securities” means capital stock or other equity interests which ordinarily have
voting power for the election of directors, managers or trustees of a
Subsidiary, whether at all times or only so long as no senior class of capital
stock or equity interest has such voting power by reason of any contingency.

 

If the Company shall hereafter be required to secure
the 7% Senior Notes equally and ratably with any other Indebtedness pursuant to
this Section, (i) the Company will promptly deliver to the Trustee an
Officers’ Certificate stating that the foregoing covenant has been complied
with, and an Opinion of Counsel stating that in the opinion of such counsel the
foregoing covenant has been complied with and that any instruments executed by
the Company or any Subsidiary of the Company in the performance of the
foregoing covenant comply with the requirements of the foregoing covenant and (ii) the
Trustee is hereby authorized to enter into an indenture or agreement
supplemental hereto in form satisfactory to the Trustee in order to provide for
such security.

 

Section 2.15.                             Limitations on Issue or
Disposition of Common Stock of Significant Subsidiaries.  The following covenant shall be solely for the
benefit of the Holders of the 7% Senior Notes. 
As long as any of the 7% Senior Notes remain outstanding, the Company
will not, and will not permit any Subsidiary of the Company to, issue, sell,
assign, transfer or otherwise dispose of, directly or indirectly, any of the
common stock of any Significant Subsidiary (except to the Company or to one or
more Subsidiaries of the Company or for the purpose of qualifying directors); provided, however, that this covenant shall not apply if (i) the
issuance, sale, assignment, transfer or other disposition is required to comply
with the order of a court or regulatory authority of competent jurisdiction,
other than an order issued at the request of the Company or one of its
Subsidiaries; (ii) the entire common stock of a Significant Subsidiary
then owned by the Company or by its Subsidiaries is disposed of in a single
transaction or in a series of related transactions for consideration consisting
of cash or other property which is at least equal to the Fair Value of such
common stock; or (iii) after giving effect to the issuance, sale,
assignment, transfer or other disposition, the Company and its Subsidiaries
would own directly or indirectly at least 80% of the issued and outstanding
common stock of such Significant Subsidiary and such issuance, sale,
assignment, transfer or other disposition is made for consideration consisting
of cash or other property which is at least equal to the Fair Value of such
common stock.

 

Section 2.16.                             Events of Default.  In addition to the Events of Default set
forth in Section 6.01 of the Indenture, the occurrence of the following
shall be an Event of Default with respect to the 7% Senior Notes:

 

(a)                                  any event of default as defined in any
mortgage, indenture or instrument under which there may be issued, or by which
there may be secured or evidenced, any Indebtedness of the Company (including
an Event of Default under any other series of Securities), whether such Indebtedness
now exists or shall hereafter be created or incurred, shall happen and shall
consist of default in the payment of more than $50,000,000 in principal amount
of such Indebtedness at the maturity thereof (after 

 

9

 

giving effect to any
applicable grace period) or shall result in such Indebtedness in principal
amount in excess of $50,000,000 becoming or being declared due and payable
prior to the date on which it would otherwise become due and payable, and such
default shall not be cured or such acceleration shall not be rescinded or
annulled within a period of 30 days after there shall have been received by the
Company from the Trustee, or by the Company and the Trustee from the Holders of
at least 25% in aggregate principal amount of the 7% Senior Notes then
outstanding, a Notice of Default (as defined in the Indenture) with respect to
the foregoing Default;

 

Section 2.17.                             Immediately Available
Funds.  All payments of principal,
premium, if any, and interest on Global Notes shall be made in immediately
available funds.

 

ARTICLE III

MISCELLANEOUS PROVISIONS

 

Section 3.1.                                   Trustee Not
Responsible For Recitals.  The
recitals herein contained are made by the Company and not by the Trustee, and
the Trustee assumes no responsibility for the correctness thereof.  The Trustee makes no representation as to the
validity or sufficiency of this First Supplemental Indenture.

 

Section 3.2.                                   Adoption,
Ratification and Confirmation.  The
Indenture, as supplemented and amended by this First Supplemental Indenture, is
in all respects hereby adopted, ratified and confirmed.

 

Section 3.3.                                   Separability.  In case any one or more of the provisions
contained in this First Supplemental Indenture or in the 7% Senior Notes shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provisions of this First Supplemental Indenture or of the 7% Senior Notes, but
this First Supplemental Indenture and the 7% Senior Notes shall be construed as
if such invalid or illegal or unenforceable provision had never been contained
herein or therein.

 

Section 3.4.                                   Counterparts.
 This First Supplemental Indenture may be
executed in any number of counterparts, each of which shall be an original, but
such counterparts shall together constitute but one and the same instrument.

 

Section 3.5.                                   GOVERNING LAW.
 THIS FIRST SUPPLEMENTAL INDENTURE AND
EACH 7% SENIOR NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, EXCEPT
AS MAY OTHERWISE BE REQUIRED BY MANDATORY PROVISIONS OF LAW.

 

10

 

IN WITNESS WHEREOF, the parties hereto have caused
this First Supplemental Indenture to be duly executed as of the day and year
first above written.

 

	
   

  	
  THE NAVIGATORS
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE
  BANK, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

11

 

EXHIBIT A

 

(FACE OF NOTE)

 

 7% Senior Note due May 1, 2016

 

[Unless
this certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to
Issuer or its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.]*

 

	
  CUSIP No. 638904 AA 0

  	
   

  	
  $

  
	
  No.

  	
   

  	
   

  

 

 

THE NAVIGATORS GROUP, INC., promises to pay to [CEDE &
CO.]* or registered assigns, the principal sum of                         
DOLLARS [or such other principal sum as set forth in the Schedule of
Exchanges of Interests in the Global Note attached hereto]* on May 1, 2016.

 

Interest Payment Dates:                 May 1 and November 1 of each
year commencing November 1, 2006.

 

Regular Record Dates:        the
close of business on April 15 or October 15 (whether or not a
Business Day).

 

	
   

  	
  THE NAVIGATORS
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

This is one of the Securities of the series designated
therein referred to in the within-mentioned Indenture.

 

Dated:

 

 

	
   

  	
  JPMORGAN CHASE
  BANK, N.A.,

  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  

 

* Insert in Global Notes.

 

A-1

 

(BACK OF NOTE)

 

7% Senior Note due May 1, 2016

 

Capitalized terms used herein have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

 

1.                                       Interest.   The Navigators Group, Inc.,
a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Note at the rate of 7%
per annum from April 17, 2006 until maturity. The Company will pay
interest semiannually on May 1 and November 1 of each year (each an “Interest Payment Date”). Interest on the Notes will accrue
from the most recent date to which interest has been paid or duly provided for
or, if no interest has been paid or duly provided for, from the date of
original issuance thereof; provided, that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
Regular Record Date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further, that the first Interest Payment Date shall be November 1, 2006.
The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful.  The
amount of interest payable on any Interest Payment Date shall be computed on
the basis of a 360-day year of twelve 30-day months.  The amount of interest payable for any
partial period shall be computed on the basis of the actual number of days
elapsed in a 360-day year of twelve 30-day months.

 

2.                                       Method of Payment.  The
Company will pay interest on the Notes (except defaulted interest) to the
Persons who are registered Holders of Notes at the close of business on the April 15
or October 15  (whether or not a
Business Day) next preceding the Interest Payment Date, even if such Notes are
canceled after such Regular Record Date and on or before such Interest Payment
Date, except as provided in Section 2.14 of the Indenture with respect to
defaulted interest. The Notes will be payable as to principal, premium, if any,
and interest at the office or agency of the Company maintained for such purpose
within the State of New York; provided, that payment by wire transfer of
immediately available funds will be required with respect to principal of and
interest and premium on, all Global Notes and all other Notes the Holders of
which shall have provided wire transfer instructions to the Company and the
Paying Agent at least 15 days prior to the applicable payment date. Such
payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

 

3.                                       Paying Agent and Registrar. 
Initially, JPMorgan Chase Bank, N.A., the Trustee under the Indenture,
will act as Paying Agent and Registrar. The Company may change any Paying Agent
or Registrar without notice to any Holder. The Company may act in any such
capacity.

 

4.                                       Indenture.  The Company issued the Notes
under a Senior Indenture dated as of April 17, 2006 between the Company
and the Trustee. The terms of the Notes include those stated in the Indenture
and in a First Supplemental Indenture dated as of April 17, 2006 (collectively
herein called the “Indenture”),
and those terms made part of the Indenture by reference to the Trust Indenture
Act of 1939, as amended (the “TIA”). The
Notes are subject to all such terms, and Holders are referred to the Indenture
and the TIA for a statement of such terms. The Notes are general obligations of
the Company. “Notes” means this Note and all other
Notes of the series of 

 

A-2

 

which this Note is a
part. The Notes are “Securities”
within the meaning of the Indenture, and references in the Indenture to “Securities” (including terms such as “Global
Securities”) include the Notes (and any “Global Notes”
as used herein).

 

5.                                       Optional Redemption.

 

(a)                                  The
Company may redeem the Notes, in whole or in part, at any time at a Redemption Price
equal to the greater of (i) 100%
of the principal amount of the Notes then outstanding to be redeemed or (ii) an amount, as
determined by an Independent Investment Banker, equal to the sum of the present
values of the remaining scheduled payments of principal of and interest on the
Notes to be redeemed (not including any portion of such payments of interest
accrued as of the Redemption Date) discounted to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the applicable Treasury Rate, plus 40 basis points, plus, in either of the
above cases, accrued and unpaid interest thereon to, but not including, the Redemption
Date.

 

(b)                                 If
less than all of the Notes are to be redeemed, the Trustee will select, by such
method as it will deem fair and appropriate, including pro rata or by lot, the Notes
to be redeemed in whole or in part; provided, that no Notes having a principal
amount of $2,000 or less shall be redeemed in part; and provided, further, that
Notes and portions of Notes selected for redemption shall be in principal
amounts of $2,000 or integral multiples of $1,000 in excess thereof.

 

(c)                                  Unless
the Company defaults in payment of the Redemption Price, on and after the
Redemption Date, interest will cease to accrue on the Notes or portions thereof
called for redemption.

 

6.                                       Mandatory Redemption.  The
Company shall not be required to make mandatory redemption or sinking fund
payments with respect to the Notes.

 

7.                                       Notice
of Redemption.  At least 30 days but
not more than 60 days before a Redemption Date, the Company shall mail a notice
of redemption by first-class mail, postage prepaid, to each Holder of Notes to
be redeemed.  On and after the Redemption
Date interest ceases to accrue on Notes or portions thereof called for
redemption.

 

8.                                       Denomination, Transfer, Exchange.  The
Notes are in registered form without coupons in denominations of $2,000 or integral multiples
of $1,000 in excess thereof. The transfer of Notes may be registered and Notes
may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Company may require a Holder to pay any taxes
and fees required by law or permitted by the Indenture. The Company need not
transfer or exchange any Note selected for redemption, except for the
unredeemed portion of any Note being redeemed in part. Also, it need not
transfer or exchange any Note for a period of 15 days before the mailing of a
notice of redemption.

 

9.                                       Persons Deemed Owners.  The
registered Holder of a Note may be treated as its owner for all purposes,
except as provided in the Indenture.

 

A-3

 

10.                                 Amendment,
Supplement and Waiver.  Subject to
certain exceptions, the Indenture or the Notes may be amended or supplemented
with the consent of the Holders of a majority in principal amount of the then
outstanding Notes and other series of Securities affected (treating the Notes
and such other series as a single class), and any existing default or compliance with any provision of
the Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes and other series of
Securities affected (treating the Notes and such other series as a single
class). Without the consent of any Holder of a Note, the Indenture or the Notes
may be amended or supplemented to cure any ambiguity, defect or inconsistency,
to provide for uncertificated Notes in addition to or in place of certificated
Notes, to provide for the assumption of the Company’s obligations to Holders of
the Notes in case of a merger, consolidation or certain other events, to make
any change that would provide any additional rights or benefits to the Holders
of the Notes or that does not adversely affect in any material respect the
interests under the Indenture of any such Holder, or to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA.

 

11.                                 Defaults and Remedies.  Each
of the following constitutes an Event of Default with respect to the Notes: (i) default
by the Company in the payment of interest on the Notes when the same becomes
due and payable and default continues for a period of 30 days; (ii) default
by the Company in the payment of the principal of or premium, if any, on the
Notes when the same becomes due and payable at maturity, upon redemption or
otherwise; (iii) failure by the Company to comply with Section 5.01
of the Indenture; (iv) failure by the Company for 60 days after notice to
comply with any of its other agreements in the Indenture or the Notes which are
for the benefit of the Notes; (v) failure by the Company to cure a default
under any mortgage, indenture or other instrument of more than $50,000,000 in
principal amount of Indebtedness within 30 days after written notice of default;
and (vi) certain events of bankruptcy or insolvency with respect to the
Company. If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes and
other series of Securities affected (treating the Notes and such other series
as a single class) may declare all the Notes to be due and payable immediately.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency with respect to the Company, all
outstanding Notes will become due and payable without further action or notice.
Holders of the Notes may not enforce the Indenture or the Notes except as
provided in the Indenture. Subject to certain limitations, Holders of a majority
in principal amount of the then outstanding Notes and other series of
Securities affected (treating the Notes and such other series as a single
class) may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Holders of the Notes notice of any continuing Default
or Event of Default (except a Default or Event of Default relating to the
payment of principal or interest) if it determines that withholding notice is
in their interest. The Holders of a majority in aggregate principal amount of
the Notes and other series of Securities affected (treating the Notes and such
other series as a single class) then outstanding by notice to the Trustee may
on behalf of the Holders of all of the Notes waive any existing Default or
Event of Default and its consequences under the Indenture except a continuing
Default or Event of Default in the payment of principal, interest or premium on
the Notes. The Company is required to deliver to the Trustee annually a
statement regarding compliance with the Indenture, and the Company is required
upon becoming aware of any Default or Event of Default, to deliver to the
Trustee a statement specifying such Default or Event of Default.

 

A-4

 

12.                                 Trustee Dealings With The Company.  The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

 

13.                                 No Recourse Against Others.  No
director, officer, employee, incorporator or stockholder of the Company shall
have any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Notes by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

 

14.                                 Authentication. This Note shall not be valid until
authenticated by the manual signature of an authorized officer of the Trustee
or an authenticating agent.

 

15.           Abbreviations.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties); JT TEN (= joint tenants with right of
survivorship and not as tenants in common); CUST (= Custodian); and U/G/M/A (=
Uniform Gifts to Minors Act).

 

16.                                 CUSIP Numbers.  
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Notes and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

A-5

 

The Company will furnish to any Holder upon written
request and without charge a copy of the Indenture. Requests may be made to:

 

The Navigators Group, Inc.

Reckson Executive Park

6 International Drive

Rye Brook, New York 10573

Telephone: (914) 933-6025

Facsimile No.: (914) 933-6033

Attention:            Bradley D. Wiley, Senior Vice President,

Financial Compliance Officer and Secretary

 

A-6

 

ASSIGNMENT FORM

 

(To assign this Note, fill in the form below)

 

(I) or (we) assign and
transfer this Note to

 

	
   

  	
   

  	
   

  
	
   

  	
  (Insert assignee’s soc. sec. or tax I.D.
  no.)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print or type assignee’s name, address and
  zip code)

  	
   

  

 

and irrevocably appoint                                       to
transfer this Note on the books of the Company. The agent may substitute
another to act for him.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed

  	
   

  

 

 

NOTICE:  The signature to the
foregoing Assignment must correspond to the name as written upon the face of
this Note in every particular, without alteration or any change whatsoever.

 

A-7

 

SCHEDULE OF
EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this Global Note for an interest
in another Global Note or for a certificated Note, or exchanges of a part of
another Global Note or certificated Note for an interest in this Global Note,
have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of this

  Global Note

  	
   

  	
  Amount of increase in

  Principal Amount of this

  Global Note

  	
   

  	
  Principal Amount of this

  Global Note following 

  such decrease (or

  increase)

  	
   

  	
  Signature of authorized

  signatory of Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8Exhibit 10.1

 

Execution Version

 

AMENDMENT NO. 1 TO SECOND AMENDED AND 

RESTATED CREDIT AGREEMENT

 

This Amendment (this “Amendment”) is entered
into as of April 7, 2006, by and among The Navigators Group, Inc., a
Delaware corporation (the “Borrower”), certain lenders, JPMorgan Chase
Bank, N.A. as Administrative Agent (“Agent”), Barclays Bank plc, as
Syndication Agent, LaSalle Bank National Association and Commerzbank
Aktiengesselschaft, New York and Grand Cayman Branches, as Documentation
Agents, Credit Suisse First Boston, as Managing Agent, and Brown Brothers
Harriman & Co., as Co-Agent.

 

RECITALS

 

A.                                   The
Borrower, the Agent and the Lenders are party to that certain Second Amended
and Restated Credit Agreement dated as of January 31, 2005 (the “Credit
Agreement”).  Unless otherwise
specified herein, capitalized terms used in this amendment shall have the
meanings ascribed to them in the Credit Agreement.

 

B.                                     The
Borrower, the Agent and the undersigned Lenders wish to amend the Credit
Agreement on the terms and conditions set forth below.

 

NOW, THEREFORE, in consideration of the mutual
execution hereof and other good and valuable consideration, the parties hereto
agree as follows:

 

1.                                       Amendment
to Credit Agreement.  Upon the “Effective
Date” (as defined below), the Credit Agreement shall be amended as follows:

 

(a)                                  Section 7.1(n)
of the Credit Agreement is hereby amended to state in its entirety as follows:

 

“(n)  Promptly,
and in any event within five days after (i) learning thereof, notification
of any changes after the date hereof in the Borrower’s S&P Financial
Strength Rating or Moody’s Financial Strength Rating or in the rating given by A.M.
Best & Co. in respect of any Insurance Subsidiary and (ii) receipt
thereof, copies of any ratings analysis by A.M. Best & Co.
relating to any Insurance Subsidiary.”

 

(b)                                 Section 7.10
of the Credit Agreement is hereby amended to state in its entirety as follows:

 

“7.10  Dividends
and Stock Repurchases.  The Borrower
will not, nor will it permit any Subsidiary to, declare or pay any dividends or
make any distributions on its capital stock (other than dividends payable in
its own capital stock) or redeem, repurchase or otherwise acquire or retire any
of its capital stock or any options or other rights in respect thereof at any
time outstanding, except that (a) any Subsidiary may declare and pay
dividends or make distributions to the Borrower or to a Wholly-Owned Subsidiary
of 

 

 

the Borrower and (b) the Borrower may repurchase
capital stock in an aggregate amount not to exceed $10,000,000 in any Fiscal
Year ending prior to the Revolving Credit Termination Date and Letter of Credit
Availability Termination Date and may pay dividends in an aggregate amount not
to exceed $5,000,000 in any Fiscal Year ending prior to the Revolving Credit
Termination Date and Letter of Credit Availability Termination Date; provided,
however, that the Borrower may not repurchase any capital stock or pay
any dividends unless after giving effect thereto Borrower would be in pro forma
compliance with the terms of this Agreement.”

 

(c)                                  Section 7.11
of the Credit Agreement is hereby amended to state in its entirety as follows:

 

“7.11  Indebtedness.  The Borrower will not, nor will it permit any
Subsidiary to, create, incur or suffer to exist any Indebtedness, except:

 

(a)                                  the
Revolving Credit Loans and other Obligations;

 

(b)                                 up
to $125,000,000 Indebtedness of the Borrower to be issued pursuant to a senior
indenture between the Borrower and JPMorgan Chase Bank, N.A., as trustee, dated
on or about April, 2006; and

 

(c)                                  guaranties
permitted under Section 7.15.”

 

(d)                                 Section 7.14
(e) of the Credit Agreement is hereby amended to state in its entirety
as follows:

 

“(e)                            Investments
by the Borrower (not including Investments in Subsidiaries) in equity securities
in an aggregate amount not to exceed 15% of the Consolidated Net Worth of the
Borrower and its Consolidated Subsidiaries; provided that no single
Investment in equity securities shall be in an amount in excess of 5% of the
Consolidated Net Worth of the Borrower and its Consolidated Subsidiaries.”

 

(e)                                  Section 7.23.3
of the Credit Agreement is hereby amended to state in its entirety as follows:

 

“7.23.3  Leverage
Ratio.  The Borrower will not permit
the Leverage Ratio to exceed 0.30 to 1.0 at any time.”

 

(f)                                    Section 8.17
of the Credit Agreement is hereby deleted and intentionally left blank.

 

2

 

2.                                       Representations
and Warranties of the Borrower.  The
Borrower represents and warrants that:

 

(a)                                  The
execution, delivery and performance by the Borrower of this Amendment have been
duly authorized by all necessary corporate action and this Amendment is a
legal, valid and binding obligation of the Borrower enforceable against the
Borrower in accordance with its terms, except as the enforcement thereof may be
subject to the effect of any applicable bankruptcy, insolvency, reorganization,
moratorium or similar law affecting creditors’ rights generally;

 

(b)                                 Each
of the representations and warranties contained in the Credit Agreement is true
and correct in all material respects on and as of the date hereof as if made on
the date hereof, except to the extent any such representation or warranty is
stated to relate solely to an earlier date, in which case such representation
or warranty shall have been true and correct on and as of such earlier date;
and

 

(c)                                  After
giving effect to this Amendment, no Default or Unmatured Default has occurred
and is continuing.

 

3.                                       Effective
Date.  Section 1 of this
Amendment shall not become effective unless and until the Borrower has
furnished the following to the Agent with sufficient copies for the Lenders and
the other conditions set forth below have been satisfied:

 

(a)                                  Amendment.  A copy of this Amendment, executed by the
Borrower, the Agent and the Required Lenders.

 

(b)                                 Officer’s
Certificate  A certificate of the
General Counsel, Secretary or an Assistant Secretary of the Borrower of its
Board of Directors’ resolutions authorizing the execution and delivery of this
Amendment.

 

(c)                                  Other.  Such other documents as the Agent, any Lender
or their counsel may have reasonably requested.

 

The date on
which the foregoing conditions have been satisfied is the “Effective Date.”

 

4.                                       Reference
to and Effect Upon the Credit Agreement.

 

(a)                                  Except
as specifically amended above, the Credit Agreement and the other Facility
Documents shall remain in full force and effect and are hereby ratified and
confirmed.

 

(b)                                 The
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Agent or any Lender under the
Credit Agreement or any Facility Document, nor constitute a waiver of any
provision of the Credit Agreement or any Facility Document, except as
specifically set forth herein.  Upon the
effectiveness of this Amendment, each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall
mean and be a reference to the Credit Agreement as amended hereby.

 

5.                                       Costs
and Expenses.  The Borrower hereby
affirms its obligation under Section 10.7 of the Credit Agreement
to reimburse the Agent for all reasonable costs, internal 

 

3

 

charges and out-of-pocket expenses paid or incurred by the Agent in connection
with the preparation, negotiation, execution and delivery of this Amendment,
including but not limited to reasonable attorneys’ fees and time charges of
attorneys for the Agent with respect thereto.

 

6.                                       GOVERNING
LAW.  THIS AMENDMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS
OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.

 

7.                                       Headings.  Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purposes.

 

8.                                       Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed shall be deemed an original but
all such counterparts shall constitute one and the same instrument.

 

[signature pages follow]

 

4

 

IN WITNESS WHEREOF, the parties have executed this
Amendment as of the date and year first above written.

 

	
   

  	
  THE NAVIGATORS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bradley D. Wiley

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Senior Vice President and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., as a Lender

  and Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael M. Tolentino

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BARCLAYS BANK plc, as a Lender and Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION, as a Lender and
  Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brandon S. Allison

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Vice President

  

 

 

	
   

  	
  COMMERZBANK AKTIENGESELLSCHAFT,

  New York and Grand Cayman Branches, as a

  Lender and as Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CREDIT SUISSE, Cayman Islands Branch, as a

  Lender and Manager Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay Chall

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Neira

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Associate

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BROWN BROTHERS HARRIMAN & CO., as a

  Lender and Co-Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ann Hobart

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Senior Vice President

  	
   

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]