Document:

EX-4.6

EXHIBIT 4.6

DECLARATION OF TRUST

     This Declaration of Trust, dated as of July 16, 2009, among The Navigators Group, Inc., a
Delaware corporation, as “Depositor,” The Bank of New York Mellon, a New York banking corporation
(the “Property Trustee”), BNY Mellon Trust of Delaware, a Delaware banking corporation (the
“Delaware Trustee”), and Bruce J. Byrnes, as “Regular Trustee” (the Property Trustee, the Delaware
Trustee and the Regular Trustee, collectively the “Trustees”), not in their individual capacities
but solely as Trustees. The Depositor and the Trustees hereby agree as follows:

     1. The trust created hereby (the “Trust”) shall be known as Navigators Capital Trust II, in
which name the Trustees, or the Depositor to the extent provided herein, may conduct the business
of the Trust, make and execute contracts, and sue and be sued.

     2. The Depositor hereby assigns, transfers, conveys and sets over to the Trustees the sum of
$10. The Trustees hereby acknowledge receipt of such amount in trust from the Depositor, which
amount shall constitute the initial trust estate. The Trustees hereby declare that they will hold
the trust estate in trust for the Depositor. It is the intention of the parties hereto that the
Trust created hereby constitute a statutory trust under Chapter 38 of Title 12 of the Delaware
Code, 12 Del. C. Section 3801 et seq. (the “Statutory Trust Act”), and that this document
constitutes the governing instrument of the Trust. The Trustees are hereby authorized and directed
to execute and file a certificate of trust with the Delaware Secretary of State in accordance with
the provisions of the Statutory Trust Act.

     3. The Depositor and the Trustees will enter into an amended and restated Declaration of
Trust, satisfactory to each such party and substantially in the form included as Exhibit 4.8 to the
1933 Act Registration Statement (as defined below), to provide for the contemplated operation of
the Trust created hereby and the issuance of the Preferred Securities and Common Securities
referred to therein. Prior to the execution and delivery of such amended and restated Declaration
of Trust, the Trustees shall not have any duty or obligation hereunder or with respect to the trust
estate, except as otherwise required by applicable law or as may be necessary to obtain prior to
such execution and delivery of any licenses, consents or approvals required by applicable law or
otherwise.

     4. The Depositor is hereby authorized, as the sponsor of the Trust, in its discretion (i) to
file with the Securities and Exchange Commission (the “Commission”) and execute, in each case on
behalf of the Trust, (a) the Registration Statement on Form S-3 (the “1933 Act Registration
Statement”), including any pre-effective or post-effective amendments to such 1933 Act Registration
Statement (including the prospectus and the exhibits contained therein), relating to the
registration under the Securities Act of 1933, as amended, of the Preferred Securities of the Trust
and certain other securities and (b) a Registration Statement on Form 8-A (the “1934 Act
Registration Statement”) (including any pre-effective and post-effective amendments thereto)
relating to the registration of the Preferred Securities of the Trust under Section 12(b) of the
Securities Exchange Act of 1934, as amended; (ii) to file with The Nasdaq Global Select Market
(“Nasdaq”) and execute on behalf of the Trust a listing application and all other applications,

 

 

statements, certificates, agreements and other instruments as shall be necessary or desirable
to cause the Preferred Securities to be listed on Nasdaq; (iii) to file and execute on behalf of
the Trust such applications, reports, surety bonds, irrevocable consents, appointments of attorney
for service of process and other papers and documents as shall be necessary or desirable to
register the Preferred Securities under the securities or “Blue Sky” laws, and to obtain any
permits under the insurance laws of such jurisdictions as the Depositor, on behalf of the Trust,
may deem necessary or desirable and (iv) to execute on behalf of the Trust one or more Underwriting
Agreements with one or more underwriters relating to the offering of the Preferred Securities. In
the event that any filing referred to in clauses (i) through (iii) above is required by the rules
and regulations of the Commission, Nasdaq or any other national stock exchange or state securities
or blue sky laws, to be executed on behalf of the Trust by the Trustees, in their capacities as
Trustees of the Trust, then the Trustees are hereby authorized and directed to join in any such
filing and to execute on behalf of the Trust any and all of the foregoing, it being understood that
each of The Bank of New York Mellon and BNY Mellon Trust of Delaware, in its capacity as Trustee of
the Trust, shall not be required to join in any such filing or execute on behalf of the Trust any
such document unless required by the rules and regulations of the Commission, Nasdaq or any other
national stock exchange or state securities or blue sky laws. In connection with all of the
foregoing, the Depositor and the Regular Trustee, hereby constitute and appoint Bruce J. Byrnes,
Emily B. Miner and Francis W. McDonnell, and each of them, as his or its, as the case may be, true
and lawful attorneys-in-fact and agents, with full power of substitution, for the Depositor or in
the Depositor’s name, place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to the 1933 Act Registration Statement and the 1934 Act
Registration Statement and to file the same, with all exhibits thereto, and other documents in
connection therewith, with the Commission, granting unto said attorneys-in-fact and agents full
power and authority to do and perform each and every act and thing requisite and necessary to be
done in connection therewith, as fully to all intents and purposes as the Depositor might or could
do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or their respective substitute or substitutes, shall do or cause to be done by virtue hereof.

     5. This Declaration of Trust may be executed in one or more counterparts.

     6. The number of Trustees initially shall be three (3) and thereafter the number of Trustees
shall be such number as shall be fixed from time to time by a written instrument signed by the
Depositor which may increase or decrease the number of Trustees; provided, however, that to the
extent required by the Statutory Trust Act, one Trustee shall either be a natural person who is a
resident of the State of Delaware or, if not a natural person, an entity which has its principal
place of business in the State of Delaware and otherwise meets the requirements of applicable
Delaware law. Subject to the foregoing, the Depositor is entitled to appoint or remove without
cause any Trustee at any time. A Trustee may resign upon 30 days’ prior notice to the Depositor.

     7. The Depositor hereby agrees to (i) reimburse the Property and Delaware Trustee for all
reasonable expenses (including reasonable fees and expenses of counsel and other experts), (ii)
indemnify, defend and hold harmless the Property and Delaware Trustee and their respective
officers, directors, employees and agents (collectively, including each of the Property Trustee and
the Delaware Trustee in its individual capacity, the “Indemnified Persons”) from and

2

 

against any and all losses, damages, liabilities, claims, actions, suits, costs, expenses,
disbursements (including the reasonable fees and expenses of counsel), taxes and penalties of any
kind and nature whatsoever (collectively, the “Expenses”), to the extent that such Expenses arise
out of or are imposed upon or asserted at any time against such Indemnified Persons with respect to
the performance of this Declaration of Trust, the creation, operation, administration or
termination of the Trust, or the transactions contemplated hereby; provided, however, that the
Depositor shall not be required to indemnify an Indemnified Person for Expenses to the extent such
Expenses result from the willful misconduct, bad faith or negligence of such Indemnified Person,
and (iii) advance to each such Indemnified Person Expenses incurred by such Indemnified Person, in
defending any claim, demand, action, suit or proceeding prior to the final disposition of such
claim, demand, action , suit or proceeding prior to the final disposition of such claim, demand,
action, suit or proceeding upon receipt by the Depositor of an undertaking, by or on behalf of such
Indemnified Person, to repay such amount if it shall be determined that such Indemnified Person is
not entitled to be indemnified therefore under this Section 7. The obligations of the Depositor
under this Section 7 shall survive the resignation or removal of the Property or Delaware Trustee
and shall survive the termination, amendment, supplement, and/or restatement of this Declaration of
Trust.

     8. This Declaration of Trust shall be governed by, and construed in accordance with, the laws
of the State of Delaware (without regard to conflict of laws principles).

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     IN WITNESS WHEREOF, the parties hereto have caused this Declaration of Trust to be executed as
of the day and year first above written.

	 	 	 	 	 
	 	THE NAVIGATORS GROUP, INC.,

as Depositor

 	 
	 	By:  	/s/  Francis W. McDonnell
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	                                                /s/  Bruce J. Byrnes
 	 
	 	Bruce J. Byrnes, as Regular Trustee 	 
	 	 	 
	 
	 	THE BANK OF NEW YORK MELLON,

as Property Trustee

 	 
	 	By:  	/s/  Sherma Thomas
 	 
	 	 	Name:  	Sherma Thomas 	 
	 	 	Title:  	Assistant Treasurer 	 
	 
	 	BNY MELLON TRUST OF DELAWARE,

as Delaware Trustee

 	 
	 	By:  	/s/  Kristine K. Gullo
 	 
	 	 	Name:  	Kristine K. Gullo 	 
	 	 	Title:  	Vice President 	 
	 

Declaration of Trust

Navigators Capital Trust IIEX-4.7

EXHIBIT 4.7

[FORM OF AMENDED AND RESTATED DECLARATION OF TRUST]

      

AMENDED AND RESTATED DECLARATION

OF TRUST

[NAVIGATORS CAPITAL TRUST I/II]

Dated as of                      ___, ___

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I INTERPRETATION AND DEFINITIONS
	 	 	1	 
	SECTION 1.1. Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II TRUST INDENTURE ACT
	 	 	9	 
	SECTION 2.1. Trust Indenture Act; Application
	 	 	9	 
	SECTION 2.2. Lists of Holders of Securities
	 	 	9	 
	SECTION 2.3. Reports by the Property Trustee
	 	 	10	 
	SECTION 2.4. Periodic Reports to Property Trustee
	 	 	10	 
	SECTION 2.5. Evidence of Compliance with Conditions Precedent
	 	 	10	 
	SECTION 2.6. Events of Default; Waiver
	 	 	10	 
	SECTION 2.7. Event of Default; Notice
	 	 	12	 
	 
	 	 	 	 
	ARTICLE III ORGANIZATION
	 	 	12	 
	SECTION 3.1. Name
	 	 	12	 
	SECTION 3.2. Office
	 	 	12	 
	SECTION 3.3. Purpose
	 	 	13	 
	SECTION 3.4. Authority
	 	 	13	 
	SECTION 3.5. Title to Property of the Trust
	 	 	13	 
	SECTION 3.6. Powers and Duties of the Regular Trustees
	 	 	13	 
	SECTION 3.7. Prohibition of Actions by the Trust and the Trustees
	 	 	16	 
	SECTION 3.8. Powers and Duties of the Property Trustee
	 	 	17	 
	SECTION 3.9. Certain Duties and Responsibilities of the Property Trustee
	 	 	19	 
	SECTION 3.10. Certain Rights of Property Trustee
	 	 	20	 
	SECTION 3.11. Delaware Trustee
	 	 	24	 
	SECTION 3.12. Execution of Documents
	 	 	24	 
	SECTION 3.13. Not Responsible for Recitals or Issuance of Securities
	 	 	24	 
	SECTION 3.14. Duration of Trust
	 	 	24	 
	SECTION 3.15. Mergers
	 	 	25	 
	 
	 	 	 	 
	ARTICLE IV DEPOSITOR
	 	 	26	 
	SECTION 4.1. Depositor’s Purchase of Common Securities
	 	 	26	 
	SECTION 4.2. Responsibilities of the Depositor
	 	 	26	 
	 
	 	 	 	 
	ARTICLE V TRUSTEES
	 	 	27	 
	SECTION 5.1. Number of Trustees
	 	 	27	 
	SECTION 5.2. Delaware Trustee
	 	 	27	 
	SECTION 5.3. Property Trustee; Eligibility
	 	 	28	 
	SECTION 5.4. Regular Trustees
	 	 	28	 
	SECTION 5.5. Appointment, Removal and Resignation of Trustees
	 	 	29	 
	SECTION 5.6. Vacancies among Trustees
	 	 	30	 
	SECTION 5.7. Effect of Vacancies
	 	 	31	 
	SECTION 5.8. Meetings
	 	 	31	 
	SECTION 5.9. Delegation of Power
	 	 	31	 
	SECTION 5.10. Merger, Conversion, Consolidation or Succession to Business
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VI DISTRIBUTIONS
	 	 	32	 
	SECTION 6.1. Distributions
	 	 	32	 
	SECTION 6.2. Redemption and Distribution
	 	 	32	 
	SECTION 6.3. Exchange
	 	 	36	 
	 
	 	 	 	 
	ARTICLE VII ISSUANCE OF SECURITIES
	 	 	37	 

i 

 

	 	 	 	 	 
	SECTION 7.1. General Provisions Regarding Securities
	 	 	37	 
	SECTION 7.2. Paying Agent
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VIII TERMINATION OF TRUST
	 	 	38	 
	SECTION 8.1. [Dissolution Upon Expiration Date
	 	 	38	 
	SECTION 8.2. Early Dissolution
	 	 	38	 
	SECTION 8.3. Dissolution
	 	 	39	 
	SECTION 8.4. Liquidation
	 	 	39	 
	 
	 	 	 	 
	ARTICLE IX TRANSFER OF INTERESTS
	 	 	41	 
	SECTION 9.1. Transfer of Securities
	 	 	41	 
	SECTION 9.2. Transfer of Certificates
	 	 	41	 
	SECTION 9.3. Deemed Security Holders
	 	 	42	 
	SECTION 9.4. Book Entry Interests
	 	 	42	 
	SECTION 9.5. Notices to Clearing Agency
	 	 	43	 
	SECTION 9.6. Appointment of Successor Clearing Agency
	 	 	43	 
	SECTION 9.7. Definitive Preferred Security Certificates
	 	 	43	 
	SECTION 9.8. Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	44	 
	 
	 	 	 	 
	ARTICLE X LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS
	 	 	44	 
	SECTION 10.1. Liability
	 	 	44	 
	SECTION 10.2. Exculpation
	 	 	44	 
	SECTION 10.3. Fiduciary Duty
	 	 	45	 
	SECTION 10.4. Indemnification; Compensation; Fees
	 	 	46	 
	SECTION 10.5. Outside Businesses
	 	 	49	 
	 
	 	 	 	 
	ARTICLE XI ACCOUNTING
	 	 	49	 
	SECTION 11.1. Fiscal Year
	 	 	49	 
	SECTION 11.2. Certain Accounting Matters
	 	 	49	 
	SECTION 11.3. Banking
	 	 	50	 
	SECTION 11.4. Withholding
	 	 	50	 
	 
	 	 	 	 
	ARTICLE XII AMENDMENTS AND MEETINGS
	 	 	51	 
	SECTION 12.1. Amendments
	 	 	51	 
	SECTION 12.2. Meetings of the Holders of Securities; Action by Written Consent
	 	 	52	 
	 
	 	 	 	 
	ARTICLE XIII REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE
	 	 	53	 
	SECTION 13.1. Representations and Warranties of Property Trustee
	 	 	53	 
	SECTION 13.2. Representations and Warranties of Delaware Trustee
	 	 	54	 
	 
	 	 	 	 
	ARTICLE XIV MISCELLANEOUS
	 	 	55	 
	SECTION 14.1. Notices
	 	 	55	 
	SECTION 14.2. Governing Law
	 	 	56	 
	SECTION 14.3. Intention of the Parties
	 	 	56	 
	SECTION 14.4. Headings
	 	 	56	 
	SECTION 14.5. Successors and Assigns
	 	 	56	 
	SECTION 14.6. Partial Enforceability
	 	 	56	 
	SECTION 14.7. Counterparts
	 	 	57	 
	SECTION 14.8. Waiver of Jury Trial
	 	 	57	 
	SECTION 14.9. Force Majeure
	 	 	57	 

ii 

 

	 	 	 	 	 	 
	 	 	 	Page	 
	ANNEX I 
	TERMS OF SECURITIES	 	 	I-1	 
	EXHIBIT A-1 
	FORM OF PREFERRED SECURITY CERTIFICATE
	 	 	A1-1	 
	EXHIBIT A-2 
	FORM OF COMMON SECURITY CERTIFICATE	 	 	A2-1	 
	EXHIBIT B
	SPECIMEN OF DEBENTURE
	 	 	B-1	 
	EXHIBIT C 
	UNDERWRITING AGREEMENT
	 	 	C-1	 

iii 

 

CROSS-REFERENCE TABLE*

	 	 	 
	Section of Trust Indenture Act of 1939, as amended	 	Section of Declaration
	310(a)
	 	 
	310(b)
	 	5.3(c) and 5.3(d)
	310(c)
	 	 
	311(a)
	 	2.2(b)
	311(b)
	 	2.2(b)
	311(c)
	 	 
	312(a)
	 	 
	312(b)
	 	2.2(b)
	312(c)
	 	 
	313(a)
	 	2.3
	313(b)
	 	 
	313(c)
	 	 
	314(a)
	 	2.4 and 3.6(j)
	314(b)
	 	 
	314(c)
	 	2.5
	314(d)
	 	 
	314(e)
	 	 
	314(f)
	 	 
	315(a)
	 	 
	315(b)
	 	 
	315(c)
	 	 
	315(d)
	 	 
	315(e)
	 	 
	316(a)
	 	2.6(a)
	316(b)
	 	 
	316(c)
	 	3.6(e)
	317(a)
	 	 
	317(b)
	 	3.8(h)
	318(a)
	 	 

 

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

iv 

 

AMENDED AND RESTATED

DECLARATION OF TRUST

OF

[NAVIGATORS CAPITAL TRUST I/II]

     AMENDED AND RESTATED DECLARATION OF TRUST (“Declaration”), dated and effective as of                     
___, ___, by the Trustees (as defined herein), the Depositor (as defined herein) and by the
holders, from time to time, of undivided beneficial interests in the Trust to be issued pursuant to
this Declaration;

     WHEREAS, the Trustees and the Depositor established [Navigators Capital Trust I/II] (the
“Trust”), a trust under the Delaware Statutory Trust Act pursuant to a Declaration of Trust dated
as of July 16, 2009 (the “Original Declaration”) and a Certificate of Trust filed with the
Secretary of State of the State of Delaware on July 16, 2009, for the sole purpose of issuing and
selling certain securities representing undivided beneficial interests in the assets of the Trust
and investing the proceeds thereof in certain Debentures of the Debenture Issuer;

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

     WHEREAS, all of the Trustees and the Depositor, by this Declaration, amend and restate each
and every term and provision of the Original Declaration; and

     NOW, THEREFORE, it being the intention of the parties hereto to continue the Trust as a
statutory trust under the Statutory Trust Act and that this Declaration constitute the governing
instrument of such statutory trust, the Trustees declare that all assets contributed to the Trust
will be held in trust for the benefit of the holders, from time to time, of the securities
representing undivided beneficial interests in the assets of the Trust issued hereunder, subject to
the provisions of this Declaration.

ARTICLE I

INTERPRETATION AND DEFINITIONS

SECTION 1.1. Definitions.

     Unless the context otherwise requires:

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

     (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 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;

     (e) a term defined in the Trust Indenture Act has the same meaning when used in this
Declaration unless otherwise defined in this Declaration or unless the context otherwise requires;
and

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

     “Additional Amount” means, with respect to Securities of a given Liquidation Amount and/or a
given period, the amount of Additional Interest (as defined in the Indenture) paid by the Depositor
on a like Amount of Debentures for such period.

     “Administrative Action” has the meaning set forth in Section 6.2(c).

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

     “Agent” means any Paying Agent.

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

     “Book Entry Interest” means a beneficial interest in a Global Certificate, ownership and
transfers of which shall be maintained and made through book entries by a Clearing Agency as
described in Section 9.4.

     “Business Day” means any day other than a Saturday or Sunday or any day on which banking
institutions in New York, New York are authorized or required by law to close.

     “Certificate” means a Common Security Certificate or a Preferred Security Certificate.

     “Clearing Agency” means an organization registered as a “Clearing Agency” pursuant to Section
17A of the Exchange Act that is acting as depositary for the Preferred Securities and in whose name
or in the name of a nominee of that organization shall be registered a Global Certificate and which
shall undertake to effect book entry transfers and pledges of the Preferred Securities.

     “Clearing Agency Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time the Clearing Agency effects book entry transfers and
pledges of securities deposited with the Clearing Agency.

     “Closing Date” means the “Closing Date” and each “Time of Delivery” under the Underwriting
Agreement.

2

 

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

     “Commission” means the Securities and Exchange Commission.

     “Common Securities” and “Common Security” have the meanings specified in Section 7.1.

     [“Common Securities Guarantee” means the guarantee agreement to be dated as of                      ___,
___, of the Depositor in respect of the Common Securities.]

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

     “Corporate Trust Office” means the office of the Property Trustee at which the corporate trust
business of the Property Trustee shall, at any particular time, be principally administered, which
office at the date of execution of this Agreement is located at 101 Barclay Street, Floor 8 West,
New York, New York 10286, Attention: Corporate Trust Administration, or such other address as the
Property Trustee may designate from time to time by notice to the Holders and the Depositor, or the
principal corporate trust office of any successor Property Trustee (or such other address as such
successor Property Trustee may designate from time to time by notice to the Holders and the
Depositor).

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

     “Debenture Event of Default” means the occurrence of any “Event of Default”, as defined in the
Indenture, with respect to the Debentures.

     “Debenture Issuer” means The Navigators Group, Inc., a Delaware corporation, in its capacity
as issuer of the Debentures under the Indenture.

     “Debenture Trustee” means The Bank of New York Mellon, a New York banking corporation, as
trustee under the Indenture until a successor is appointed thereunder, and thereafter means such
successor trustee.

     “Debentures” means the series of Debentures to be issued by the Debenture Issuer under the
Indenture to be held by the Property Trustee, a specimen certificate for such series of Debentures
being Exhibit B.

     “Delaware Trustee” means BNY Mellon Trust of Delaware, solely in its capacity as Delaware
Trustee of the Trust heretofore formed and continued hereunder and not in its

3

 

individual capacity, or its successor in interest in such capacity, or any successor Delaware
Trustee appointed as herein provided in Section 5.5.

     “Definitive Preferred Security Certificates” has the meaning set forth in Section 9.7.

     “Depositor” means The Navigator Group, Inc., a Delaware corporation, in its capacity as
depositor of the Trust.

     “Depositor Affiliated Holder” has the meaning set forth in Section 6.3(a).

     “Distribution” means a distribution payable to Holders of Securities in accordance with
Section 6.1.

     “DTC” means The Depository Trust Company, the initial Clearing Agency.

     “Early Dissolution Event” has the meaning set forth in Section 8.2.

     “Event of Default” means any one of the following events (whatever the reasons for such Event
of Default 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 Event of Default (as defined in the Indenture); or

     (b) default by the Trust in the payment of any Distribution when it becomes due and payable,
and continuation of such default for a period of 30 days; or

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

     (d) default in the performance, or breach, in any material respect, of any covenant or
warranty of the Trustees in this Declaration (other than a covenant or warranty, a default in the
performance of which or the breach of which is dealt with in clause (b) or (c) 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 defaulting Trustee or Trustees by the Holders of at least 25%
in aggregate liquidation preference of the outstanding Preferred 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.

     “Exchange” has the meaning set forth in Section 6.3(a).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any
successor legislation.

     “Expiration Date” has the meaning set forth in Section 8.1.

     “Fiduciary Indemnified Person” has the meaning set forth in Section 10.4(b).

4

 

     “Global Certificate” has the meaning set forth in Section 9.4.

     “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 Subordinated Indenture, dated as of                      ___, ___, between the
Debenture Issuer and the Debenture Trustee, and any indenture supplemental thereto pursuant to
which the Debentures are to be issued.

     “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” means the receipt by the Trust of an Opinion of Counsel, rendered
by a law firm having a recognized national tax and securities practice, to the effect that, as a
result of the occurrence of a change in law or regulation or a change in interpretation or
application of law or regulation by any legislative body, court, governmental agency or regulatory
authority (a “Change in Investment Company Act Law”), the Trust is or will be considered an
“investment company” that is required to be registered under the Investment Company Act, which
Change in Investment Company Act Law becomes effective on or after the date of original issuance of
the Preferred Securities under this Declaration.

     “Legal Action” has the meaning set forth in Section 3.6(g).

     “Like Amount” means (a) with respect to a redemption of any Securities, Securities having a
Liquidation Amount equal to the principal amount of Debentures to be contemporaneously redeemed in
accordance with the Indenture, the proceeds of which will be used to pay the Redemption Price of
such Securities, (b) with respect to an Exchange, Debentures having a principal amount equal to the
Liquidation Amount of the Securities exchanged therefor, (c) with respect to a distribution of
Debentures to Holders of Securities in connection with a dissolution or liquidation of the Trust,
Debentures having a principal amount equal to the Liquidation Amount of the Securities of the
Holder to whom such Debentures are distributed, and (d) with respect to any distribution of
Additional Amounts to Holders of Securities, Debentures having a principal amount equal to the
Liquidation Amount of the Securities in respect of which such distribution is made.

     “Liquidation Amount” means the stated amount of [ ] per Security.

     “Liquidation Date” means the date of dissolution, winding-up or dissolution of the Trust
pursuant to Section 8.4.

     “Liquidation Distribution” has the meaning set forth in Section 8.4(d).

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     “Majority in Liquidation Amount of the Securities” means, except as provided in the terms of
the Preferred Securities or by the Trust Indenture Act, Holder(s) of outstanding Securities voting
together as a single class or, as the context may require, Holders of outstanding Preferred
Securities or Holders of outstanding Common Securities voting separately as a class, who are the
record owners of more than 50% of the aggregate Liquidation 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.

     “Ministerial Action” has the meaning set forth in the terms of the Securities as set forth in
Annex I.

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by two
Authorized Officers of such Person. Any Officers’ Certificate delivered with respect to compliance
with a condition or covenant provided for in this Declaration shall include:

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

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

     (c) a statement that each such officer has made such examination or investigation as, in such
officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether
or not such covenant or condition has been complied with; and

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

     “90 Day Period” has the meaning specified in Section 6.2(c).

     “No Recognition Opinion” has the meaning specified in Section 6.2(c).

     “Paying Agent” has the meaning specified in Section 7.2.

     “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.

     “Preferred Securities” and “Preferred Security” have the meanings specified in Section 7.1.

     “Preferred Securities Guarantee” means the guarantee agreement to be dated as of                      ___,
___, of the Depositor in respect of the Preferred Securities.

     “Preferred Security Beneficial Owner” means, with respect to a Book Entry Interest, a Person
who is the beneficial owner of such Book Entry Interest, as reflected on the

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books of the Clearing Agency, or on the books of a Person maintaining an account with such
Clearing Agency (directly as a Clearing Agency Participant or as an indirect participant, in each
case in accordance with the rules of such Clearing Agency).

     “Preferred Security Certificate” means a certificate representing a Preferred Security
substantially in the form of Exhibit A- 1.

     “Pricing Agreement” means the pricing agreement among the Trust, the Debenture Issuer, and the
underwriters designated by the Regular Trustees with respect to the offer and sale of the Preferred
Securities.

     “Property Trustee” means The Bank of New York Mellon, a New York banking corporation, solely
in its capacity as Property Trustee of the Trust heretofore formed and continued hereunder and not
in its individual capacity, or its successor in interest in such capacity, or any successor
Property Trustee appointed as herein provided.

     “Property Trustee Account” has the meaning set forth in Section 3.8(c).

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

     “Redemption or Distribution Procedures” has the meaning set forth in Section 6.2(f).

     “Redemption Price” has the meaning set forth in Section 6.2(c).

     “Redemption Tax Opinion” has the meaning set forth in Section 6.2(c).

     “Regular Trustee” has the meaning set forth in Section 5.1.

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

     “Responsible Officer” means, with respect to the Property Trustee, any officer within the
corporate trust department of the Property Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Property Trustee who customarily performs functions similar to those performed by the Persons who
at the time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Declaration.

     “Securities” means the Common Securities and the Preferred Securities.

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

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     “Securities Certificate” means any one of the Common Securities Certificates or the Preferred
Securities Certificates.

     “Special Event” means a Tax Event or an Investment Company Event.

     “Securities Guarantees” means the Common Securities Guarantee and the Preferred Securities
Guarantee.

     “Securities Register” means a register or registers for the purpose of registering Securities
Certificates and transfers and exchanges of Preferred Securities Certificates in which the transfer
agent and registrar designated by the Depositor, subject to such reasonable regulations as it may
prescribe, shall provide for the registration of Preferred Securities Certificates and Common
Securities Certificates and registration of transfers and exchanges of Preferred Securities
Certificates as herein provided.

     “Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code Section
3801 et seq., as it may be amended from time to time, or any successor legislation.

     “Successor Delaware Trustee” has the meaning set forth in Section 5.6(b).

     “Successor Property Trustee” has the meaning set forth in Section 5.6(b).

     “Super Majority” has the meaning set forth in Section 2.6(a)(ii).

     “Supplemental Indenture” means the Supplemental Indenture No. [ ], dated                      ___, ___to
the Indenture.

     “Tax Event” has the meaning set forth in Section 6.2(c).

     “10% in Liquidation Amount of the Securities” means, except as provided in the terms of the
Preferred Securities or by the Trust Indenture Act, Holder(s) of outstanding Securities voting
together as a single class or, as the context may require, Holders of outstanding Preferred
Securities or Holders of outstanding Common Securities voting separately as a class, who are the
record owners of 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.

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

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

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     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended from time to time, or
any successor legislation.

     “Trust Property” means (a) the Debentures, (b) the rights of the Property Trustee under the
Securities Guarantees, (c) any cash on deposit in, or owing to, the Property Trustee Account and
(d) 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 Property Trustee pursuant to the trusts of this
Declaration.

     “Underwriting Agreement” means the Underwriting Agreement for the offering and sale of
Preferred Securities in the form of Exhibit C.

ARTICLE II

TRUST INDENTURE ACT

SECTION 2.1. Trust Indenture Act; Application.

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

     (b) The Property Trustee shall be the only Trustee which is a Trustee for the purposes of the
Trust Indenture Act.

     (c) If and to the extent that any provision of this Declaration limits, qualifies or conflicts
with the duties imposed by Section 310 to 317, inclusive, of the Trust Indenture Act, such imposed
duties shall control.

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

SECTION 2.2. Lists of Holders of Securities.

     (a) Each of the Depositor and the Regular Trustees on behalf of the Trust shall provide the
Property Trustee (i) within 14 days after each record date for payment of Distributions, a list, in
such form as the Property Trustee may reasonably require, of the names and addresses of the Holders
of the Securities (“List of Holders”) as of such record date; provided that neither the Depositor
nor the Regular Trustees on behalf of the Trust shall be obligated to provide such List of Holders
at any time the List of Holders does not differ from the most recent List of Holders given to the
Property Trustee by the Depositor and the Regular Trustees on behalf of the Trust, and (ii) at any
other time, within 30 days of receipt by the Trust of a written request for a List of Holders as of
a date no more than 14 days before such List of Holders is given to the Property Trustee. The
Property Trustee shall preserve, in as current a form as is reasonably practicable, all information
contained in Lists of Holders given to it or which it receives in the capacity as Paying Agent (if
acting in such capacity); provided that the Property Trustee may destroy any List of Holders
previously given to it on receipt of a new List of Holders.

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

SECTION 2.3. Reports by the Property Trustee.

     Within 60 days after May 15 of each year, the Property Trustee shall provide to the Holders of
the Preferred Securities such reports as are required by Section 313 of the Trust Indenture Act, if
any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The
Property Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture
Act. The Depositor will promptly notify the Property Trustee in writing when the Preferred
Securities are listed on any stock exchange and of any delisting thereof.

SECTION 2.4. Periodic Reports to Property Trustee.

     Each of the Depositor and the Regular Trustees on behalf of the Trust shall provide to the
Property Trustee such documents, reports and information as required by Section 314 (if any) and
the compliance certificate required by Section 314 of the Trust Indenture Act in the form, in the
manner and at the times required by Section 314 of the Trust Indenture Act.

SECTION 2.5. Evidence of Compliance with Conditions Precedent. 

     Each of the Depositor and the Regular Trustees on behalf of the Trust shall provide to the
Property Trustee such evidence of compliance with any conditions precedent, if any, provided for in
this Declaration that relate to any of the matters set forth in Section 314(c) of the Trust
Indenture Act. Any certificate or opinion required to be given by an officer pursuant to Section
314(c)(1) may be given in the form of an Officers’ Certificate.

SECTION 2.6. Events of Default; Waiver.

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

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

     (ii) requires the consent or vote of greater than a majority in principal
amount of the holders of the Debentures (a “Super Majority”) to be waived under the
Indenture, the Event of Default under the Declaration may only be waived by the vote
of the Holders of at least the proportion in Liquidation Amount of the Preferred
Securities that the relevant Super Majority represents of the aggregate principal
amount of the Debentures outstanding.

     The foregoing provisions of this Section 2.6(a) shall be in lieu of Section 316(a)(1)(B) of
the Trust Indenture Act and such Section 316(a)(1)(B) of the Trust Indenture Act is hereby
expressly excluded from this Declaration and the Securities, as permitted

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by the Trust Indenture Act. Upon such waiver, any such default shall cease to exist, and any
Event of Default with respect to the Preferred Securities arising therefrom shall be deemed to have
been cured, for every purpose of this Declaration, but no such waiver shall extend to any
subsequent or other default or an Event of Default with respect to the Preferred Securities or
impair any right consequent thereon. Any waiver by the Holders of the Preferred Securities of an
Event of Default with respect to the Preferred Securities shall also be deemed to constitute a
waiver by the Holders of the Common Securities of any such Event of Default with respect to the
Common Securities for all purposes of this Declaration without any further act, vote or consent of
the Holders of the Common Securities.

     (b) The Holders of a Majority in Liquidation Amount of the Common Securities may, by vote, on
behalf of the Holders of all of the Common Securities, waive any past Event of Default with respect
to the Common Securities and its consequences; provided that, if the underlying Event of Default
under the Indenture:

     (i) is not waivable under the Indenture, except where the Holders of the Common
Securities are deemed to have waived such Event of Default under the Declaration as
provided below in this Section 2.6(b), the Event of Default under the Declaration
shall also not be waivable; or

     (ii) requires the consent or vote of a Super Majority to be waived, except
where the Holders of the Common Securities are deemed to have waived such Event of
Default under the Declaration as provided below in this Section 2.6(b), the Event of
Default under the Declaration may only be waived by the vote of the Holders of at
least the proportion in Liquidation Amount of the Common Securities that the
relevant Super Majority represents of the aggregate principal amount of the
Debentures outstanding;

     provided further, each Holder of Common Securities will be deemed to have waived any such
Event of Default and all Events of Default with respect to the Common Securities and its
consequences until all Events of Default with respect to the Preferred Securities have been cured,
waived or otherwise eliminated, and until such Events of Default have been so cured, waived or
otherwise eliminated, the Property Trustee will be deemed to be acting solely on behalf of the
Holders of the Preferred Securities and only the Holders of the Preferred Securities will have the
right to direct the Property Trustee in accordance with the terms of the Securities. The foregoing
provisions of this Section 2.6(b) shall be in lieu of Section 316(a)(1)(A) and 316(a)(1)(B) of the
Trust Indenture Act and such Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act are
hereby expressly excluded from this Declaration and the Securities, as permitted by the Trust
Indenture Act. Subject to the foregoing provisions of this Section 2.6(b), upon such waiver, any
such default shall cease to exist and any Event of Default with respect to the Common Securities
arising therefrom shall be deemed to have been cured for every purpose of this Declaration, but no
such waiver shall extend to any subsequent or other default or Event of Default with respect to the
Common Securities or impair any right consequent thereon.

     (c) A waiver of an Event of Default under the Indenture by the Property Trustee at the
direction of the Holders of the Preferred Securities, constitutes a waiver of the

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corresponding Event of Default under this Declaration. The foregoing provisions of this
Section 2.6(c) shall be in lieu of Section 316(a)(1)(B) of the Trust Indenture Act and such
Section 316(a)(1)(B) of the Trust Indenture Act is hereby expressly excluded from this Declaration
and the Securities, as permitted by the Trust Indenture Act.

SECTION 2.7. Event of Default; Notice.

     (a) The Property Trustee shall, within 90 days after the occurrence of an Event of Default,
transmit by mail, first class postage prepaid, to the Holders of the Securities, notices of all
defaults with respect to the Securities actually known to a Responsible Officer of the Property
Trustee, unless such defaults have been cured before the giving of such notice (the term “defaults”
for the purposes of this Section 2.7(a) being hereby defined to be an Event of Default as defined
in the Indenture, not including any periods of grace provided for therein and irrespective of the
giving of any notice provided therein); provided that, except for a default in the payment of
principal of (or premium, if any) or interest on any of the Debentures or in the payment of any
sinking fund installment established for the Debentures, the Property Trustee shall be protected in
withholding such notice if and so long as a Responsible Officer of the Property Trustee in good
faith determines that the withholding of such notice is in the interests of the Holders of the
Securities.

     (b) The Property Trustee shall not be deemed to have knowledge of any default except:

     (i) a default under Section 6.01(d) of the Indenture; or

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

ARTICLE III

ORGANIZATION

SECTION 3.1. Name.

     The Trust is named [“Navigators Capital Trust I/II”], as such name may be modified from time
to time by the Regular Trustees following written notice to the Holders of Securities and
compliance with the Statutory Trust Act. The Trust’s activities may be conducted under the name of
the Trust or any other name deemed advisable by the Regular Trustees.

SECTION 3.2. Office.

     The address of the principal office of the Trust is c/o The Navigators Group, Inc., 6
International Drive, Rye Brook, New York 10573. On ten Business Days written notice to the Holders
of Securities, the Regular Trustees may designate another principal office.

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SECTION 3.3. Purpose.

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

SECTION 3.4. Authority.

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

SECTION 3.5. Title to Property of the Trust.

     Except as provided in Section 3.8 with respect to the Debentures and the Property Trustee
Account or as otherwise provided in this Declaration, legal title to all assets of the Trust shall
be vested in the Trust. The Holders shall not have legal title to any part of the assets of the
Trust, but shall have an undivided beneficial interest in the assets of the Trust.

SECTION 3.6. Powers and Duties of the Regular Trustees.

     The Trust, and the Regular Trustees on the Trust’s behalf, shall have the exclusive power,
duty and authority to cause the Trust to engage in the following activities:

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

     (b) in connection with the issuance and sale of the Preferred Securities, at the direction of
the Depositor, to:

     (i) execute and file with the Commission the registration statement on Form S-3
prepared by the Depositor, including any amendments thereto, pertaining to the
Preferred Securities;

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

     (iii) execute and file an application, prepared by the Depositor, to The Nasdaq
Global Select Market or any other national stock exchange or the New York Stock
Exchange, Inc. for listing upon notice of issuance of any Preferred Securities;

     (iv) execute and file with the Commission a registration statement on Form 8-A,
including any amendments thereto, prepared by the Depositor, relating to the
registration of the Preferred Securities under Section 12(b) of the Exchange Act;
and

     (v) execute and enter into the Underwriting Agreement and Pricing Agreement
providing for the sale of the Preferred Securities;

     (c) to acquire the Debentures with the proceeds of the sale of the Preferred Securities and
the Common Securities; provided, however, that the Regular Trustees shall cause legal title to the
Debentures to be held of record in the name of the Property Trustee for the benefit of the Holders
of the Preferred Securities and the Holders of Common Securities;

     (d) to give the Depositor and the Property Trustee prompt written notice of the occurrence of
a Tax Event; provided that the Regular Trustees shall consult with the Depositor and the Property
Trustee before taking or refraining from taking any Ministerial Action in relation to a Tax Event;

     (e) to establish a record date with respect to all actions to be taken hereunder that require
a record date be established, including and with respect to, for the purposes of Section 316(c) of
the Trust Indenture Act, Distributions, voting rights, redemptions and exchanges, and to issue
relevant notices to the Holders of Preferred Securities and Holders of Common Securities as to such
actions and applicable record dates;

     (f) to take all actions and perform such duties as may be required of the Regular Trustees
pursuant to the terms of the Securities;

     (g) to bring or defend, pay, collect, compromise, arbitrate, resort to legal action, or
otherwise adjust claims or demands of or against the Trust (“Legal Action”), unless pursuant to
Section 3.8(e), the Property Trustee has the exclusive power to bring such Legal Action;

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

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

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     (j) to give the certificate required by Section 314(a)(4) of the Trust Indenture Act to the
Property Trustee, which certificate may be executed by any Regular Trustee;

     (k) to incur expenses that are necessary or incidental to carry out any of the purposes of the
Trust;

     (l) to act as, or appoint another Person to act as, registrar and transfer agent for the
Securities;

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

     (n) to execute all documents or instruments, perform all duties and powers, and do all things
for and on behalf of the Trust in all matters necessary or incidental to the foregoing;

     (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 the State of Delaware and of each other jurisdiction in which such existence is
necessary to protect the limited liability of the Holders of the Preferred Securities or to enable
the Trust to effect the purposes for which the Trust was created;

     (p) to take any action, not inconsistent with this Declaration or with applicable law, that
the Regular Trustees determine in their discretion to be necessary or desirable in carrying out the
activities of the Trust as set out in this Section 3.6, including, but not limited to:

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

     (ii) causing the Trust to be classified for United States federal income tax
purposes as a grantor trust; and

     (iii) cooperating with the Debenture Issuer to ensure that the Debentures will
be treated as indebtedness of the Debenture Issuer for United States federal income
tax purposes;

provided that such action does not adversely affect the interests of Holders;

     (q) to take all action necessary to cause all applicable tax returns and tax information
reports that are required to be filed with respect to the Trust to be duly prepared and filed by
the Regular Trustees, on behalf of the Trust; and

     (r) to the extent provided in this Declaration, to terminate, dissolve and liquidate the Trust
and to prepare, execute and file the certificate of cancellation with the Secretary of State of the
State of Delaware.

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     The Regular Trustees must exercise the powers set forth in this Section 3.6 in a manner that
is consistent with the purposes and functions of the Trust set out in Section 3.3, and the Regular
Trustees shall not take any action that is inconsistent with the purposes and functions of the
Trust set forth in Section 3.3.

     Subject to this Section 3.6, the Regular Trustees shall have none of the powers or the
authority of the Property Trustee set forth in Section 3.8.

     Any expenses incurred by the Regular Trustees pursuant to this Section 3.6 shall be reimbursed
by the Debenture Issuer.

SECTION 3.7. Prohibition of Actions by the Trust and the Trustees. 

     (a) The Trust shall not, and the Trustees (including the Property Trustee) shall not, engage
in any activity other than as required or authorized by this Declaration. In particular, the Trust
shall not and the Trustees (including the Property 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 Securities pursuant to the terms of
this Declaration and of the Securities;

     (ii) acquire any assets other than as expressly provided herein;

     (iii) possess Trust property for other than a Trust purpose;

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

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

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

     (vii) other than as provided in this Declaration or 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 an opinion of counsel
to the effect that such modification will not cause more than an insubstantial risk
that for United States federal income tax purposes the Trust will not be classified
as a grantor trust.

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SECTION 3.8. Powers and Duties of the Property Trustee.

     (a) The legal title to the Debentures shall be owned on behalf of the Trust by and held of
record in the name of the Property Trustee in trust for the benefit of the Holders of the
Securities. The right, title and interest of the Property Trustee to the Debentures shall vest
automatically in each Person who may hereafter be appointed as Property Trustee in accordance with
Section 5.6. 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 Property Trustee shall not transfer its right, title and interest in the Debentures to
the Regular Trustees or to the Delaware Trustee (if the Property Trustee does not also act as
Delaware Trustee).

     (c) The Property Trustee shall:

     (i) establish and maintain a segregated non-interest bearing trust account (the
“Property Trustee Account”) in the name of and under the exclusive control of the
Property Trustee on behalf of the Holders of the Securities and, upon the receipt of
payments of funds made in respect of the Debentures held by the Property Trustee,
deposit such funds into the Property Trustee Account and make payments to the
Holders of the Preferred Securities and Holders of the Common Securities from the
Property Trustee Account in accordance with Section 6.1. Funds in the Property
Trustee Account shall be held uninvested until disbursed in accordance with this
Declaration. The Property Trustee Account shall be an account that is maintained
with a banking institution, which institution may be the Property Trustee in its
individual capacity, the rating on whose long-term unsecured indebtedness is at
least equal to the rating assigned to the Preferred Securities by a “nationally
recognized statistical rating organization”, as that term is defined for purposes of
Rule 436(g)(2) under the Securities Act;

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

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

     (d) The Property Trustee shall take all actions and perform such duties as may be specifically
required of the Property Trustee pursuant to the terms of the Securities.

     (e) The Property Trustee shall take any Legal Action which arises out of or in connection with
an Event of Default of which a Responsible Officer of the Property Trustee has actual knowledge or
the Property Trustee’s duties and obligations under this Declaration or the

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Trust Indenture Act; provided, however, that if an Event of Default under this Declaration 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 such interest or principal is otherwise
payable (or in the case of redemption, on the redemption date), then a Holder of Preferred
Securities may directly institute a proceeding for enforcement of payment to such Holder of the
principal of or interest on the Debentures having a principal amount equal to the aggregate
Liquidation Amount of the Preferred 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
Preferred Securities to the extent of any payment made by the Debenture Issuer to such Holder of
Preferred Securities in such Direct Action. Except as provided in the preceding sentences, the
Holders of Preferred Securities will not be able to exercise directly any other remedy available to
the holders of the Debentures.

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

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

     (ii) a Successor Property Trustee has been appointed and has accepted that
appointment in accordance with Section 5.6.

     (g) The Property Trustee shall have the legal power to exercise all of the rights, powers and
privileges of a holder of Debentures under the Indenture and, if an Event of Default actually known
to a Responsible Officer of the Property Trustee occurs and is continuing, the Property Trustee
shall, for the benefit of Holders of the Securities, enforce its rights as holder of the Debentures
subject to the rights of the Holders pursuant to the terms of such Securities.

     (h) The Property Trustee may authorize one or more Persons (each, a “Paying Agent”) to pay
Distributions, redemption payments or liquidation payments on behalf of the Trust with respect to
all securities and any such Paying Agent shall comply with Section 317(b) of the Trust Indenture
Act. Any Paying Agent may be removed by the Property Trustee at any time and a successor Paying
Agent or additional Paying Agents may be appointed at any time by the Property Trustee.

     (i) Subject to this Section 3.8, the Property Trustee shall have none of the duties,
liabilities, powers or the authority of the Regular Trustees set forth in Section 3.6.

     The Property Trustee must exercise the powers set forth in this Section 3.8 in a manner that
is consistent with the purposes and functions of the Trust set out in Section 3.3, and the Property
Trustee shall not take any action that is inconsistent with the purposes and functions of the Trust
set out in Section 3.3.

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SECTION 3.9. Certain Duties and Responsibilities of the Property Trustee. 

     (a) The Property Trustee, before the occurrence of any Event of Default and after the curing
of all Events of Default that may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Declaration and no implied covenants shall be read into this
Declaration against the Property Trustee. In case an Event of Default has occurred (that has not
been cured or waived pursuant to Section 2.6) of which a Responsible Officer of the Property
Trustee has actual knowledge, the Property Trustee shall exercise such of the rights and powers
vested in it by this Declaration, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of his or her own
affairs.

     (b) No provision of this Declaration shall be construed to relieve the Property Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

     (i) prior to the occurrence of an Event of Default and after the curing or
waiving of all such Events of Default that may have occurred:

     (A) the duties and obligations of the Property Trustee shall be determined
solely by the express provisions of this Declaration and the Property Trustee shall
not be liable except for the performance of such duties and obligations as are
specifically set forth in this Declaration, and no implied covenants or obligations
shall be read into this Declaration against the Property Trustee; and

     (B) in the absence of bad faith on the part of the Property Trustee, the
Property Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Property Trustee and conforming to the requirements of this
Declaration; but in the case of any such certificates or opinions that by any
provision hereof are specifically required to be furnished to the Property Trustee,
the Property Trustee shall be under a duty to examine the same to determine whether
or not they conform to the requirements of this Declaration (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).

     (ii) the Property Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer of the Property Trustee, unless it shall be
proved that the Property Trustee was negligent in ascertaining the pertinent facts;

     (iii) the Property Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction of the
Holders of not less than a Majority in Liquidation Amount of the Securities relating
to the time, method and place of conducting any proceeding for any

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remedy available to the Property Trustee, or exercising any trust or power
conferred upon the Property Trustee under this Declaration;

     (iv) no provision of this Declaration shall require the Property Trustee to
expend or risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that the repayment of such funds
or liability is not reasonably assured to it under the terms of this Declaration or
indemnity satisfactory to the Property Trustee against such risk or liability is not
reasonably assured to it;

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

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

     (vii) the Property Trustee shall not be liable for any interest on any money
received by it except as it may otherwise agree in writing with the Depositor.
Money held by the Property Trustee need not be segregated from other funds held by
it except in relation to the Property Trustee Account maintained by the Property
Trustee pursuant to Section 3.8(c)(i) and except to the extent otherwise required by
law; and

     (viii) the Property Trustee shall not be responsible for monitoring the
compliance by the Regular Trustees or the Depositor with their respective duties
under this Declaration, nor shall the Property Trustee be liable for any default or
misconduct of the Regular Trustees or the Depositor.

SECTION 3.10. Certain Rights of Property Trustee.

     (a) Subject to the provisions of Section 3.9:

     (i) the Property Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document believed
by it to be genuine and to have been signed, sent or presented by the proper party
or parties;

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     (ii) any direction or act of the Depositor or the Regular Trustees contemplated
by this Declaration shall be sufficiently evidenced by an Officers’ Certificate;

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

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

     (v) the Property Trustee may consult with counsel or other experts of its
selection and the advice or opinion of such counsel and experts with respect to
legal matters or advice within the scope of such experts’ area of expertise shall be
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance with such advice
or opinion. Such counsel may be counsel to the Depositor or any of its Affiliates,
and may include any of its employees. The Property Trustee shall have the right at
any time to seek instructions concerning the administration of this Declaration from
any court of competent jurisdiction;

     (vi) the Property Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Declaration at the request or direction of any
Holder, unless such Holder shall have provided to the Property Trustee security and
indemnity satisfactory to the Property Trustee, against the costs, expenses
(including attorneys’ fees and expenses and the expenses of the Property Trustee’s
agents, nominees or custodians) and liabilities that might be incurred by it in
complying with such request or direction, including such reasonable advances as may
be requested by the Property Trustee provided, that, nothing contained in this
Section 3.10(a)(vi) shall be taken to relieve the Property Trustee, upon the
occurrence of an Event of Default, of its obligation to exercise the rights and
powers vested in it by this Declaration;

     (vii) the Property Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or document, but the Property Trustee,
in its discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Property Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books, records
and premises of the Depositor, personally or by agent or attorney

21

 

at the sole cost of the Depositor and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation;

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

     (ix) any action taken by the Property Trustee or its agents hereunder shall
bind the Trust and the Holders of the Securities, and the signature of the Property
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
Property 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
Property Trustee’s or its agent’s taking such action;

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

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

     (xii) the Property Trustee shall not be liable for any action taken, suffered,
or omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by this
Declaration;

     (xiii) in no event shall the Property Trustee be responsible or liable for
special, indirect, or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the Property
Trustee has been advised of the likelihood of such loss or damage and regardless of
the form of action;

     (xiv) the Property Trustee shall not be deemed to have notice of any default or
Event of Default unless a Responsible Officer of the Property Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Property Trustee at the Corporate Trust Office of

22

 

the Property Trustee, and such notice references the Securities and this
Declaration;

     (xv) the rights, privileges, protections, immunities and benefits given to the
Property Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Property Trustee in each of its
capacities hereunder, and each agent, custodian and other Person employed to act
hereunder; and

     (xvi) the Property Trustee may request that the Depositor deliver a certificate
setting forth the names of individuals and/or titles of officers authorized at such
time to take specified actions pursuant to this Declaration.

     (b) No provision of this Declaration shall be deemed to impose any duty or obligation on the
Property 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
Property 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 Property Trustee shall be construed to be a duty.

     (c) Any Trustee or any other agent of any Trustee or the Trust, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections 8.8 and 8.13, may
otherwise deal with the Trust with the same rights it would have if it were not a Trustee or such
other agent.

     (d) If and when the Property Trustee shall be or become a creditor of the Depositor or the
Trust (or any other obligor upon the Preferred Securities), the Property Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of claims against the
Depositor or the Trust (or any such other obligor).

     (e) In case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other similar judicial proceeding relative to the Trust or
any other obligor upon the Securities or the property of the Trust or of such other obligor or
their creditors, the Property Trustee (irrespective of whether any Distributions on the Trust
Securities shall then be due and payable and irrespective of whether the Property Trustee shall
have made any demand on the Trust for the payment of any past due Distributions) shall be entitled
and empowered, to the fullest extent permitted by law, by intervention in such proceeding or
otherwise:

     (i) to file and prove a claim for the whole amount of any Distributions owing
and unpaid in respect of the Securities and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Property Trustee
(including any claim for the reasonable compensation, expenses, disbursements and
advances of the Property Trustee, its agents and counsel) and of the Holders allowed
in such judicial proceeding, and

     (ii) to collect and receive any moneys or other property payable or deliverable
on any such claims and to distribute the same;

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and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Property Trustee and, in the event the Property Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Property Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Property Trustee, its agents
and counsel, and any other amounts due the Property Trustee.

     Nothing herein contained shall be deemed to authorize the Property Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement
adjustment or compensation affecting the Trust Securities or the rights of any Holder thereof or to
authorize the Property Trustee to vote in respect of the claim of any Holder in any such
proceeding.

SECTION 3.11. Delaware Trustee.

     Notwithstanding any other provision of this Declaration other than Section 5.2, the Delaware
Trustee shall not be entitled to exercise any of the powers nor have any of the duties and
responsibilities of the Regular Trustees or the Property Trustee described in this Declaration.
Except as set forth in Section 5.2, the Delaware Trustee shall be a Trustee for the sole and
limited purpose of fulfilling the requirements of Section 3807 of the Statutory Trust Act and shall
have no powers, duties or responsibilities whatsoever, except as expressly provided herein or in
the Statutory Trust Act. The Delaware Trustee shall be entitled to all of the protections,
immunities and indemnities of the Property Trustee hereunder.

SECTION 3.12. Execution of Documents.

     Unless otherwise determined by the Regular Trustees, and except as otherwise required by the
Statutory Trust Act, a majority of or, if there are only two, any Regular Trustee or, if there is
only one, such Regular Trustee is authorized to execute on behalf of the Trust any documents that
the Regular Trustees have the power and authority to execute pursuant to Section 3.6.

SECTION 3.13. Not Responsible for Recitals or Issuance of Securities. 

     The recitals contained in this Declaration and the Securities shall be taken as the statements
of the Depositor, and the Trustees do not assume any responsibility for their correctness. The
Trustees make no representations as to the value or condition of the property of the Trust or any
part thereof. The Trustees make no representations as to the validity or sufficiency of this
Declaration or the Securities. The Trustees shall not be accountable for the use or application by
the Depositor of the proceeds of the Securities.

SECTION 3.14. Duration of Trust.

     The Trust, unless terminated pursuant to the provisions of Article VIII hereof, [shall have
existence for fifty-five (55)years /be perpetual] from the Closing Date.

24

 

SECTION 3.15. 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 Section 3.15(b) and (c).

     (b) The Trust may, with the consent of the Regular Trustees or, if there are more than two, a
majority of the Regular Trustees and without the consent of the Holders of the Securities, the
Delaware Trustee or the Property Trustee, consolidate, amalgamate, merge with or into, or be
replaced by a trust organized as such under the laws of any State; provided that:

     (i) 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 Preferred Securities (the “Successor Securities”) so long as the
Successor Securities rank the same as the Preferred Securities rank with respect to
Distributions and payments upon liquidation, redemption and otherwise;

     (ii) the Debenture Issuer expressly acknowledges a trustee of the Successor
Entity that possesses the same powers and duties as the Property Trustee as the
holder of the Debentures;

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

     (iv) such merger, consolidation, amalgamation or replacement does not cause the
Preferred Securities (including any Successor Securities) to be downgraded by any
nationally recognized statistical rating organization;

     (v) such merger, consolidation, amalgamation or replacement does not adversely
affect the rights, preferences and privileges of the Holders of the Securities
(including any Successor Securities) in any material respect (other than with
respect to any dilution of such Holders’ interests in the Preferred Securities as a
result of such merger, consolidation, amalgamation or replacement);

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

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

25

 

     (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 (other than with
respect to any dilution of the Holders’ interest in the new entity); and

     (B) following such merger, consolidation, amalgamation or replacement, neither
the Trust nor the Successor Entity will be required to register as an Investment
Company;

     (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; and

     (viii) the Depositor guarantees the obligations of such Successor Entity under
the Successor Securities at least to the extent provided by the Preferred Securities
Guarantee.

     (c) Notwithstanding Section 3.15(b), the Trust shall not, except with the consent of Holders
of 100% in 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 IV

DEPOSITOR

SECTION 4.1. Depositor’s Purchase of Common Securities.

     On the Closing Date the Depositor 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/[ ] Common Securities], at
the same time as the Preferred Securities are sold.

SECTION 4.2. Responsibilities of the Depositor.

     In connection with the issuance and sale of the Preferred Securities, the Depositor shall have
the exclusive right and responsibility to engage in the following activities:

     (a) to prepare for filing by the Trust with the Commission a registration statement on Form
S-3 in relation to the Preferred Securities, including any amendments thereto;

     (b) to determine the States and foreign jurisdictions in which to take appropriate action to
qualify or register for sale all or part of the Preferred Securities and to do any and all such
acts, other than actions which must be taken by the Trust, and advise the Trust of actions it must
take, and prepare for execution and filing any documents to be executed and filed by the Trust, as
the Depositor deems necessary or advisable in order to comply with the applicable laws of any such
States and foreign jurisdictions;

26

 

     (c) to prepare for filing by the Trust an application to The Nasdaq Global Select Market or
any other national stock exchange or the New York Stock Exchange for listing upon notice of
issuance of any Preferred Securities;

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

     (e) to negotiate the terms of the Underwriting Agreement and Pricing Agreement providing for
the sale of the Preferred Securities.

ARTICLE V

TRUSTEES

SECTION 5.1. Number of Trustees.

     The number of Trustees initially shall be [three (3)], and:

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

     (b) after the issuance of any Securities, the number of Trustees may be increased or decreased
by vote of the Holders of a majority in Liquidation Amount of the Common Securities voting as a
class at a meeting of the Holders of the Common Securities; provided, however, that, the number of
Trustees shall in no event be less than two (2); provided further that (1) one Trustee, in the case
of a natural person, shall be a person who is a resident of the State of Delaware or that, if not a
natural person, is an entity which has its principal place of business in the State of Delaware;
(2) there shall be at least one Trustee who is an employee or officer of, or is affiliated with the
Depositor (a “Regular Trustee”); and (3) one Trustee shall be the Property Trustee for so long as
this Declaration is required to qualify as an indenture under the Trust Indenture Act, and such
Trustee may also serve as Delaware Trustee if it meets the applicable requirements.

SECTION 5.2. Delaware Trustee.

     If required by the Statutory Trust Act, one Trustee (the “Delaware Trustee”) shall be:

     (a) a natural person who is a resident of the State of Delaware; or

     (b) if not a natural person, an entity which has its principal place of business in the State
of Delaware, and otherwise meets the requirements of applicable law; provided that, if the Property
Trustee has its principal place of business in the State of Delaware and otherwise meets the
requirements of applicable law, then the Property Trustee shall also be the Delaware Trustee and
Section 3.11 shall have no application.

     The Initial Delaware Trustee shall be: BNY Mellon Trust of Delaware.

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SECTION 5.3. Property Trustee; Eligibility.

     (a) There shall at all times be one Trustee which shall act as Property Trustee which shall:

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

     (ii) be a corporation organized and doing business under the laws of the United
States of America or any State or Territory thereof or of the District of Columbia,
or a corporation or Person permitted by the Commission to act as an institutional
trustee under the Trust Indenture Act, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least 50 million
U.S. dollars ($50,000,000), and subject to supervision or examination by Federal,
State, Territorial or District of Columbia authority. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements of
the supervising or examining authority referred to above, then for the purposes of
this Section 5.3(a)(ii), the combined capital and surplus of such corporation shall
be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published.

     (b) If at any time the Property Trustee shall cease to be eligible to so act under Section
5.3(a), the Property Trustee shall immediately resign in the manner and with the effect set forth
in Section 5.6(c).

     (c) If the Property Trustee has or shall acquire any “conflicting interest” within the meaning
of Section 310(b) of the Trust Indenture Act, the Property Trustee and the Holder of the Common
Securities (as if it were the obligor referred to in Section 310(b) of the Trust Indenture Act)
shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

     (d) The Preferred Securities Guarantee shall be deemed to be specifically described in this
Declaration for purposes of clause (i) of the first provision contained in Section 310(b) of the
Trust Indenture Act.

     (e) The initial Property Trustee shall be: The Bank of New York Mellon.

SECTION 5.4. Regular Trustees.

     (a) Each Regular Trustee shall be either a natural person who is at least 21 years of age or a
legal entity that shall act through one or more Authorized Officers.

     The initial Regular Trustees shall be:

                                                                 

                                                                 

                                                                 

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     (b) Except as expressly set forth in this Declaration and except if a meeting of the Regular
Trustees is called with respect to any matter over which the Regular Trustees have power to act,
any power of the Regular Trustees may be exercised by, or with the consent of, any one such Regular
Trustee.

     (c) Unless otherwise determined by the Regular Trustees, and except as otherwise required by
the Statutory Trust Act or applicable law, any Regular Trustee is authorized to execute on behalf
of the Trust any documents which the Regular Trustees have the power and authority to cause the
Trust to execute pursuant to Section 3.6; and

     (d) a Regular Trustee may, by power of attorney consistent with applicable law, delegate to
any other natural person over the age of 21 his or her power for the purposes of signing any
documents which the Regular Trustees have power and authority to cause the Trust to execute
pursuant to Section 3.6.

SECTION 5.5. Appointment, Removal and Resignation of Trustees. 

     (a) Subject to Section 5.5(b), Trustees may be appointed or removed without cause at any time:

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

     (ii) after the issuance of any Securities (but prior to the occurrence of an
Event of Default if in the case of the Property Trustee or the Delaware Trustee), by
the Depositor; and

     (iii) after the issuance of any Securities and the occurrence of an Event of
Default, and only with respect to each of the Property Trustee and Delaware Trustee,
by vote of the Holders of a Majority in Liquidation Amount of the Securities.

(b) The Property Trustee shall not be removed in accordance with Section 5.5(a)
until a successor Property Trustee possessing the qualifications to act as Property
Trustee under Section 5.3 (a “Successor Property Trustee”) has been appointed and
has accepted such appointment by written instrument executed by such Successor
Property Trustee and delivered to the Regular Trustees and the Depositor. The
Delaware Trustee shall not be removed in accordance with Section 5.5(a) until a
successor Delaware Trustee possessing the qualifications to act as Delaware Trustee
under Sections 5.2 (a “Successor Delaware Trustee”) has been appointed and has
accepted such appointment by written instrument executed by such Successor Delaware
Trustee and delivered to the Regular Trustees and the Depositor.

(c) A Trustee appointed to office shall hold office until his or its successor shall
have been appointed, until his death or its dissolution or until their or its
removal or resignation. Any Trustee may resign from office (without need for prior
or subsequent accounting) by an instrument in writing signed by the Trustee

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and delivered to the Depositor and the Trust, which resignation shall take effect
upon such delivery or upon such later date as is specified therein; provided,
however, that:

     (i) no such resignation of the Property Trustee shall be effective:

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

     (B) until the assets of the Trust have been completely liquidated and
the proceeds thereof distributed to the holders of the Securities; and

     (ii) no such resignation of the Delaware Trustee shall be effective until a
Successor Delaware Trustee has been appointed and has accepted such appointment by
instrument executed by such Successor Delaware Trustee and delivered to the Trust,
the Depositor and the resigning Delaware Trustee.

(d) The Depositor shall use its best efforts to promptly appoint a Successor
Delaware Trustee or Successor Property Trustee, as the case may be, if the Property
Trustee or the Delaware Trustee delivers an instrument of resignation in accordance
with this Section 5.5.

(e) If no Successor Property Trustee or Successor Delaware Trustee, as the case may
be, shall have been appointed and accepted appointment as provided in this Section
5.5 within 60 days after delivery to the Depositor and the Trust of an instrument of
resignation or removal, the resigning or removed Property Trustee or Delaware
Trustee, as applicable, may petition any court of competent jurisdiction in the U.S.
for appointment of a Successor Property Trustee or Successor Delaware Trustee, as
applicable. Such court may thereupon, after prescribing such notice, if any, as it
may deem proper, appoint a Successor Property Trustee or Successor Delaware Trustee,
as the case may be.

(f) No Trustee shall be liable for the acts or omissions to act of any successor.

(g) The Depositor shall give notice of each resignation and each removal of a
Trustee and each appointment of a successor Trustee to all Holders in the manner
provided in Section 14.1. Each notice shall include the name of the successor
Trustee and the address of its Corporate Trust Office if it is the Property Trustee.

SECTION 5.6. Vacancies among Trustees.

     If a Trustee ceases to hold office for any reason and the number of Trustees is not reduced
pursuant to Section 5.1, or if the number of Trustees is increased pursuant to Section 5.1, a
vacancy shall occur. A resolution certifying the existence of such vacancy by the Regular Trustees
or, if there are more than two, a majority of the Regular Trustees shall be conclusive

30

 

evidence of the existence of such vacancy. The vacancy shall be filled with a Trustee
appointed in accordance with Section 5.5.

SECTION 5.7. Effect of Vacancies.

     The death, resignation, retirement, removal, bankruptcy, dissolution, liquidation,
incompetence or incapacity to perform the duties of a Trustee shall not operate to annul the Trust.
Whenever a vacancy in the number of Regular Trustees shall occur, until such vacancy is filled by
the appointment of a Regular Trustee in accordance with Section 5.5, the Regular Trustees in
office, regardless of their number, shall have all the powers granted to the Regular Trustees and
shall discharge all the duties imposed upon the Regular Trustees by this Declaration.

SECTION 5.8. Meetings.

     If there is more than one Regular Trustee, meetings of the Regular Trustees shall be held from
time to time upon the call of any Regular Trustee. Regular meetings of the Regular Trustees may be
held at a time and place fixed by resolution of the Regular Trustees. Notice of any in-person
meetings of the Regular Trustees shall be hand delivered or otherwise delivered in writing
(including by facsimile, with a hard copy by overnight courier) not less than 48 hours before such
meeting. Notice of any telephonic meetings of the Regular Trustees or any committee thereof shall
be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 24 hours before a meeting. Notices shall contain a brief
statement of the time, place and anticipated purposes of the meeting. The presence (whether in
person or by telephone) of a Regular Trustee at a meeting shall constitute a waiver of notice of
such meeting except where a Regular Trustee attends a meeting for the express purpose of objecting
to the transaction of any activity on the ground that the meeting has not been properly called or
convened. Unless provided otherwise in this Declaration, any action of the Regular Trustees may be
taken at a meeting by vote of a majority of the Regular Trustees present (whether in person or by
telephone) and eligible to vote with respect to such matter, provided that a Quorum is present, or
without a meeting by the unanimous written consent of the Regular Trustees. In the event there is
only one Regular Trustee, any and all action of such Regular Trustee shall be evidenced by a
written consent of such Regular Trustee.

SECTION 5.9. Delegation of Power.

     (a) Any Regular Trustee may, by power of attorney consistent with applicable law, delegate to
any other natural person over the age of 21 his or her power for the purpose of executing any
documents contemplated in Section 3.6, including any registration statement or amendment thereto
filed with the Commission, or making any other governmental filing; and

     (b) the Regular Trustees shall have power to delegate from time to time to such of their
number or to officers of the Trust the doing of such things and the execution of such instruments
either in the name of the Trust or the names of the Regular Trustees or otherwise as the Regular
Trustees may deem expedient, to the extent such delegation is not prohibited by applicable law or
contrary to the provisions of the Trust, as set forth herein.

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SECTION 5.10. Merger, Conversion, Consolidation or Succession to Business. 

     Any corporation into which the Property Trustee or the Delaware Trustee, as the case may be,
may be merged or converted or with which either may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Property Trustee or the Delaware Trustee,
as the case may be, shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Property Trustee or the Delaware Trustee, as the case may be, shall
be the successor of the Property Trustee or the Delaware Trustee, as the case may be, hereunder,
provided such corporation 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 VI

DISTRIBUTIONS

SECTION 6.1. Distributions. 

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

SECTION 6.2. Redemption and Distribution.

     (a) Upon the repayment of the Debentures in whole or in part, whether at maturity or upon
redemption (either at the option of the Debenture Issuer or pursuant to a Tax Event as described
below), the proceeds from such repayment or payment subject to Article VIII hereof, shall be
simultaneously applied to redeem Securities having an aggregate Liquidation Amount equal to the
aggregate principal amount of the Debentures so repaid or redeemed at a redemption price of $___
per Security plus an amount equal to accrued and unpaid Distributions thereon at the date of the
redemption, payable in cash (the “Redemption Price”). Holders will be given not less than 30 nor
more than 60 days notice of such redemption.

     (b) If fewer than all the outstanding Securities are to be so redeemed, the Common Securities
and the Preferred Securities will be redeemed Pro Rata and the Preferred Securities to be redeemed
will be as described in Section 6(f)(ii) below.

     (c) If, at any time, a Tax Event (as defined below) shall occur and be continuing the Regular
Trustees shall, except in certain limited circumstances described in this Section 6(c), dissolve
the Trust and, after satisfaction of claims and obligations of the Trust pursuant to Section 3808
of the Statutory Trust Act, cause Debentures held by the Property

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Trustee, having an aggregate principal amount equal to the aggregate stated Liquidation Amount
of, with an interest rate identical to the Coupon Rate of, and accrued and unpaid interest equal to
accrued and unpaid Distributions on, and having the same record date for payment as the Securities,
to be distributed to the Holders of the Securities in liquidation of such Holders’ interests in the
Trust on a Pro Rata basis, within 90 days following the occurrence of such Tax Event (the “90 Day
Period”); provided, however, that, as a condition of such dissolution and distribution, the Regular
Trustees and the Property Trustee shall have received an opinion of a nationally recognized
independent tax counsel experienced in such matters (a “No Recognition Opinion”), which opinion may
rely on published revenue rulings of the Internal Revenue Service, to the effect that the Holders
of the Securities will not recognize any gain or loss for United States federal income tax purposes
as a result of the dissolution of the Trust and the distribution of Debentures; and provided,
further, that, if at the time there is available to the Trust the opportunity to eliminate, within
the 90 Day Period, the Tax Event by taking some ministerial action, such as filing a form or making
an election, or pursuing some other similar reasonable measure that has no adverse effect on the
Trust, the Debenture Issuer, the Depositor or the Holders of the Securities (“Ministerial Action”),
the Trust will pursue such Ministerial Action in lieu of dissolution.

     If in the event of a Tax Event, (i) after receipt of a Tax Event Opinion (as defined
hereinafter) by the Regular Trustees and the Property Trustee, the Debenture Issuer has received an
opinion (a “Redemption Tax Opinion”) of a nationally recognized independent tax counsel experienced
in such matters that, as a result of a Tax Event, there is more than an insubstantial risk that the
Debenture Issuer would be precluded from deducting the interest on the Debentures for United States
federal income tax purposes even after the Debentures were distributed to the Holders of Securities
in liquidation of such Holders’ interests in the Trust as described in this Section 4(c), or (ii)
the Regular Trustees shall have been informed by such tax counsel that a No Recognition Opinion
cannot be delivered to the Trust, the Debenture Issuer, as provided in the Supplemental Indenture,
shall have the right at any time, upon not less than 30 nor more than 60 days notice, to redeem the
Debentures in whole or in part for cash within 90 days following the occurrence of such Tax Event,
and, following such redemption, Securities with an aggregate Liquidation Amount equal to the
aggregate principal amount of the Debentures so redeemed shall be redeemed by the Trust at the
Redemption Price on a Pro Rata basis; provided, however, that, if at the time there is available to
the Debenture Issuer or the Trust the opportunity to eliminate, within such 90 day period, the
Special Event by taking some Ministerial Action, the Trust or the Debenture Issuer will pursue such
Ministerial Action in lieu of redemption.

     “Tax Event” means that the Regular Trustees shall have received an opinion of a nationally
recognized independent tax counsel experienced in such matters (a “Dissolution Tax Opinion”) to the
effect that on or after the date of the Prospectus Supplement, as a result of (a) any amendment to,
clarification of 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 affecting taxation, (b) any judicial decision, official administrative
pronouncement, ruling, regulatory procedure, notice or announcement, including any notice or
announcement of intent to adopt such procedures or regulations (an “Administrative Action”) or (c)
any amendment to, clarification of, or change in the official position or the interpretation of
such Administrative Action or judicial decision that differs from the theretofore generally
accepted position, in each case, by any legislative body, court,

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governmental authority or regulatory body, irrespective of the manner in which such amendment,
clarification or change is made known, which amendment, clarification, or change is effective or
such pronouncement or decision is announced, in each case, on or after, the first date of issuance
of the Securities, there is more than an insubstantial risk that (i) the Trust is or will be within
90 days of the date thereof, subject to United States federal income tax with respect to interest
accrued or received on the Debentures, (ii) the Trust is, or will be within 90 days of the date
thereof, subject to more than a de minimis amount of taxes, duties or other governmental charges,
or (iii) interest payable by the Debenture Issuer to the Trust on the Debentures is not, or within
90 days of the date thereof will not be, deductible, in whole or in part, by the Debenture Issuer
for United States federal income tax purposes.

     On and from the date fixed by the Regular Trustees for any distribution of Debentures and
dissolution of the Trust: (i) the Securities will no longer be deemed to be outstanding, (ii) in
the event that DTC or its nominee (or any successor Clearing Agency or its nominee), is the record
Holder of the Preferred Securities, DTC will receive a registered global certificate or
certificates representing the Debentures to be delivered upon such distribution and any
certificates representing Securities, except for certificates representing Preferred Securities
held by DTC or its nominee (or any successor Clearing Agency or its nominee), as provided in the
Supplemental Indenture, will be deemed to represent beneficial interests in the Debentures having
an aggregate principal amount equal to the aggregate stated Liquidation Amount of, with an interest
rate identical to the Coupon Rate of, and accrued and unpaid interest equal to accrued and unpaid
Distributions on such Securities until such certificates are presented to the Debenture Issuer or
its agent for transfer or reissue.

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

     (e) If the Debentures are distributed to holders of the Securities pursuant to the terms of
the Supplemental Indenture, the Debenture Issuer will use its best efforts to have the Debentures
listed on The Nasdaq Global Select Market or on such other exchange as the Preferred Securities
were listed immediately prior to the distribution of the Debentures.

     (f) “Redemption or Distribution Procedures.”

     (i) Notice of any redemption of, or notice of distribution of Debentures in
exchange for the Securities (a “Redemption/Distribution Notice”) will be given by
the Trust by mail to each Holder of Securities to be redeemed or exchanged not fewer
than 30 nor more than 60 days before the date fixed for redemption or exchange
thereof which, in the case of a redemption, will be the date fixed for redemption of
the Debentures. For purposes of the calculation of the date of redemption or
exchange and the dates on which notices are given pursuant to this Section 6(f)(i),
a Redemption/ Distribution Notice shall be deemed to be given on the day such notice
is first mailed by first-class mail, postage prepaid, to Holders of Securities.
Each Redemption/Distribution Notice shall be addressed to the Holders of Securities
at the address of each such Holder appearing in the books and records of the Trust.
No defect in the

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Redemption/Distribution Notice or in the mailing of either thereof with respect
to any Holder shall affect the validity of the redemption or exchange proceedings
with respect to any other Holder.

     (ii) In the event that fewer than all the outstanding Securities are to be
redeemed, the Securities to be redeemed shall be redeemed Pro Rata from each Holder
of Preferred Securities, it being understood that, in respect of Preferred
Securities registered in the name of and held of record by the DTC or its nominee
(or any successor Clearing Agency or its nominee) or any nominee, the distribution
of the proceeds of such redemption will be made to each Clearing Agency Participant
(or Person on whose behalf such nominee holds such securities) in accordance with
the procedures applied by such agency or nominee.

     (iii) If Securities are to be redeemed and the Trust gives a
Redemption/Distribution Notice, which notice may only be issued if the Debentures
are redeemed as set out in this Section 6 (which notice will be irrevocable), then
(A) while the Preferred Securities are in book-entry only form, with respect to the
Preferred Securities, by 12:00 noon, New York City time, on the redemption date,
provided that the Debenture Issuer has paid the Property Trustee a sufficient amount
of cash in connection with the related redemption or maturity of the Debentures, the
Property Trustee will deposit irrevocably with DTC or its nominee (or successor
Clearing Agency or its nominee) funds sufficient to pay the applicable Redemption
Price with respect to the Preferred Securities and will give DTC irrevocable
instructions and authority to pay the Redemption Price to the Holders of the
Preferred Securities, and (B) with respect to Preferred Securities issued in
definitive form and Common Securities, provided that the Debenture Issuer has paid
the Property Trustee a sufficient amount of cash in connection with the related
redemption or maturity of the Debentures, the Property Trustee will pay the relevant
Redemption Price to the Holders of such Securities by check mailed to the address of
the relevant Holder appearing on the books and records of the Trust on the
redemption date. If a Redemption/Distribution Notice shall have been given and
funds deposited as required, if applicable, then immediately prior to the close of
business on the date of such deposit, or on the redemption date, as applicable,
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 Redemption Price, but
without interest on such Redemption Price. None of the Regular Trustees, the
Property Trustee, the Delaware Trustee or the Trust shall be required to register or
cause to be registered the transfer of any Securities that have been so called for
redemption. If any date fixed for redemption of Securities is not a Business Day,
then payment of the Redemption Price payable on such date will be made on the next
succeeding day that is a Business Day (and without any interest or other payment in
respect of any such delay) except that, if such Business Day falls in the next
calendar year, such payment will be made on the immediately preceding Business Day,
in each case with the same force and effect as if made on such date fixed for
redemption. If payment of the Redemption Price in respect of any Securities is

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improperly withheld or refused and not paid either by the Depositor as
guarantor pursuant to the relevant Securities Guarantee, Distributions on such
Securities will continue to accrue from the original 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 Redemption Price.

     (iv) Redemption/Distribution Notices shall be sent by the Regular Trustees on
behalf of the Trust to (A) in respect of the Preferred Securities, DTC or its
nominee (or any successor Clearing Agency or its nominee) if the Global Certificates
have been issued or, if Definitive Preferred Security Certificates have been issued,
to the Holder thereof, and (B) in respect of the Common Securities to the Holder
thereof.

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

SECTION 6.3. Exchange.

     (a) If at any time the Depositor or any of its Affiliates (in any such case, a “Depositor
Affiliated Holder”) is the Owner or Holder of any Preferred Securities, such Depositor Affiliated
Holder shall have the right to deliver to the Property Trustee all or such portion of its Preferred
Securities as it elects and, subject to the terms of the Indenture, receive, in exchange therefor,
a Like Amount of Debentures (such an exchange being referred to herein as an “Exchange”). Such
election

     (i) shall be exercisable, and shall be effective on any Business Day, provided
that such Business Day is not a record date or any date falling between a record
date and a Distribution Date, by such Depositor Affiliated Holder delivering to the
Property Trustee a written notice of such election specifying the aggregate
Liquidation Amount of Preferred Securities with respect to which such election is
being made and the date on which such Exchange shall occur, which date shall be not
less than [ ] Business Days after the date of receipt by the Property Trustee of
such election notice and

     (ii) shall be conditioned upon such Depositor Affiliated Holder having
delivered or caused to be delivered to the Property Trustee or its designee the
Preferred Securities which are the subject of such election by 10:00 a.m. New York
City time, on the date on which such Exchange is to occur. After the Exchange, such
Preferred Securities shall be cancelled and shall no longer be deemed to be
outstanding and all rights of the Depositor Affiliated Holder with respect to such
Preferred Securities shall cease. So long as the Preferred Securities are in
book-entry-only form, the delivery and the cancellation of the

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Preferred Securities pursuant to this Section 6.3 shall be made in accordance
with the customary procedures for the Clearing Agency for the Preferred Securities.

     (b) [In the case of an Exchange described in Section 6.3(a), the Trust shall, on the date of
such Exchange, exchange Debentures having a principal amount equal to a proportional amount of the
aggregate Liquidation Amount of the outstanding Common Securities, such proportional amount
determined by multiplying the aggregate Liquidation Amount of the outstanding Common Securities by
the ratio of the aggregate Liquidation Amount of the Preferred Securities exchanged pursuant to
Section 6.3(a) to the aggregate Liquidation Amount of the Preferred Securities outstanding
immediately prior to such Exchange, for such proportional amount of Common Securities held by the
Depositor (which contemporaneously shall be cancelled and no longer be deemed to be outstanding);
provided, that the Depositor delivers or causes to be delivered to the Property Trustee or its
designee the required amount of Common Securities to be exchanged by 10:00 a.m., New York City
time, on the date on which such Exchange is to occur.]

ARTICLE VII

ISSUANCE OF SECURITIES

SECTION 7.1. General Provisions Regarding Securities. 

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

     (b) The Certificates shall be signed on behalf of the Trust by the Regular Trustee. Such
signature shall be the manual or facsimile signature of any present or any future Regular Trustee.
In case the Regular Trustee of the Trust who shall have signed any of the Securities shall cease to
be the Regular Trustee 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 the Regular Trustee; 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 the Regular Trustees
of the Trust, although at the date of the execution and delivery of the Declaration any such person
was not the Regular Trustee. The Certificates so executed shall be delivered to the Property
Trustee and upon such delivery the Property Trustee shall manually authenticate upon the written
order of the Depositor such Certificates and deliver such Certificates upon the written order of
the Depositor, executed by an authorized officer thereof, without further corporate action by the
Depositor, in authorized denominations. Each Certificate shall be dated the date of its
authentication. Certificates shall be printed, lithographed or engraved or may be produced in any
other manner as is reasonably acceptable to the Regular Trustee, as evidenced by their execution
thereof, and may have such letters, numbers or other marks of identification or designation and
such legends or endorsements as the Regular Trustee

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may deem appropriate, or as may be required to comply with any law or with any rule or
regulation of any stock exchange on which Securities may be listed, or to conform to usage.

     (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.

     (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 non-assessable.

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

SECTION 7.2. Paying Agent.

     In the event that the Preferred Securities are not in book-entry only form, the Trust shall
maintain in the Borough of Manhattan, The City of New York, State of New York, an office or agency
where the Preferred Securities may be presented for payment (“Paying Agent). The Trust may appoint
the Paying Agent and may appoint one or more additional paying agents in such other locations as it
shall determine. The term “Paying Agent” includes any additional paying agent. The Trust may
change any Paying Agent without prior notice to any Holder. The Trust shall notify the Property
Trustee of the name and address of any Agent not a party to this Declaration. If the Trust fails
to appoint or maintain another entity as Paying Agent, the Property Trustee shall act as such. The
Property Trustee on behalf of the Trust or any of its Affiliates may act as Paying Agent. The
Property Trustee shall initially act as Paying Agent for the Preferred Securities and the Common
Securities.

ARTICLE VIII

TERMINATION OF TRUST

SECTION 8.1. [Dissolution Upon Expiration Date.

     Unless earlier dissolved, the Trust shall automatically dissolve, and its affairs be wound up,
on December 31, [ ] (the “Expiration Date”), following the distribution of the Trust Property in
accordance with Section 8.4.]

SECTION 8.2. Early Dissolution.

     The first to occur of any of the following events is an “Early Dissolution Event”:

     (a) the occurrence of a bankruptcy in respect of, or the dissolution or liquidation of, the
Depositor, in its capacity as the Holder of the Common Securities, unless the Depositor shall
transfer the Common Securities as provided in Section 9.1(c), in which case this provision shall
refer instead to any such successor Holder of the Common Securities.

     (b) the written direction to the Property Trustee from all of the Holders of the Common
Securities at any time to dissolve the Trust and to distribute the Debentures to Holders

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in exchange for the Preferred Securities (which direction is optional and wholly within the
discretion of the Holders of the Common Securities);

     (c) the redemption of all of the Preferred Securities in connection with the redemption of all
the Debentures;

     (d) a distribution of Debentures in exchange of 100% of the Preferred Securities;

     (e) nothwithstanding the exceptions described in Section 6(c), the occurrence and continuation
of a Tax Event as described in Section 6(c); and

     (f) the entry of an order for dissolution of the Trust by a court of competent jurisdiction.

     As soon as is practicable after the occurrence of an event referred to in this Section 8.2 and
upon completion of the winding up and liquidation of the Trust, the Trustees shall terminate the
Trust by filing a certificate of cancellation with the Secretary of State of the State of Delaware.

SECTION 8.3. Dissolution.

     The respective obligations and responsibilities of the Trustees, the Regular Trustees and the
Trust created and continued hereby shall terminate upon the latest to occur of the following:

     (a) after the payment of all claims and obligations of the Trust required by applicable law,
the distribution upon receipt thereof by the Property Trustee to Holders of all amounts required to
be distributed hereunder upon the liquidation of the Trust pursuant to Section 8.4, or upon the
redemption of all of the Securities pursuant to the relevant Holder’s Securities;

     (b) the payment of any expenses owed by the Trust;

     (c) the discharge of all administrative duties of the Regular Trustees, including the
performance of any tax reporting obligations with respect to the Trust or the Holders; and

     (d) the filing of a certificate of cancellation.

SECTION 8.4. Liquidation.

     (a) If an Early Dissolution Event specified in clause (a), (b) or (e) of Section 8.2 occurs or
upon the Expiration Date, the Trust Property shall be liquidated by the Property Trustee as
expeditiously as the Property Trustee determines to be possible by distributing, after satisfaction
of all claims and obligations of the Trust as provided by applicable law, to each Holder a Like
Amount of Debentures, subject to Section 8.4(d). Notice of liquidation shall be given by the
Property Trustee at the request of the Regular Trustee by first-class mail, postage

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prepaid, mailed not less than 30 nor more than 60 days prior to the Liquidation Date to each
Holder of Securities at such Holder’s address appearing in the Securities Register. All such
notices of liquidation shall be prepared by the Regular Trustee and shall:

     (i) state the CUSIP Number of the Securities;

     (ii) state the Liquidation Date;

     (iii) state that from and after the Liquidation Date, the Securities will no
longer be deemed to be outstanding and any Securities Certificates not surrendered
for exchange will be deemed to represent a Like Amount of Debentures; and

     (iv) provide such information with respect to the mechanics by which Holders
may exchange Securities Certificates for Debentures, or if Section 8.4(d) applies,
receive a Liquidation Distribution, as the Property Trustee (after consultation with
the Regular Trustees) shall deem appropriate.

     (b) Except where Section 8.2(c), 8.2(d) or 8.4(d) applies, in order to effect the liquidation
of the Trust and distribution of the Debentures to Holders, the Property Trustee, either itself
acting as exchange agent or through the appointment of a separate exchange agent, shall establish a
record date for such distribution (which shall be not more than 30 days prior to the Liquidation
Date) and, establish such procedures as it shall deem appropriate to effect the distribution of
Debentures in exchange for the outstanding Common and Preferred Securities Certificates.

     (c) Except where Section 8.2(c), 8.2(d) or 8.4(d) applies, after the Liquidation Date,

     (i) the Trust Securities will no longer be deemed to be outstanding,

     (ii) certificates representing a Like Amount of Debentures will be issued to
Holders of Securities Certificates, upon surrender of such Certificates to the
exchange agent for exchange,

     (iii) any Trust Securities Certificates not so surrendered for exchange will be
deemed to represent a Like Amount of Debentures bearing accrued and unpaid interest
in an amount equal to the accumulated and unpaid Distributions on such Trust
Securities Certificates until such certificates are so surrendered (and until such
certificates are so surrendered, no payments of interest or principal will be made
to Holders of Trust Securities Certificates with respect to such Debentures) and

     (iv) all rights of Holders holding Trust Securities will cease, except the
right of such Holders to receive Debentures upon surrender of Common and Preferred
Securities Certificates.

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     (d) If, notwithstanding the other provisions of this Section 8.4, whether because of an order
for dissolution entered by a court of competent jurisdiction or otherwise, distribution of the
Debentures in the manner provided herein is determined by the Property Trustee not to be practical,
or if an Early Dissolution Event specified in clause (c) or clause (d) of Section 8.2 occurs, the
Trust Property shall be liquidated, and the Trust shall be dissolved and its affairs wound-up, by
the Property Trustee in such manner as the Property Trustee determines consistent with applicable
law. In such event, on the date of the dissolution, winding-up or other termination of the Trust,
Holders will be entitled to receive out of the assets of the Trust available for distribution to
Holders, after satisfaction of all claims and obligations of the Trust as provided by applicable
law, an amount equal to the Liquidation Amount per Security plus accumulated and unpaid
Distributions thereon to the date of payment (such amount being the “Liquidation Distribution”).
If, upon any such dissolution, winding up or termination, 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, subject to the next succeeding sentence, the amounts payable by the
Trust on the Securities shall be paid on a pro rata basis (based upon Liquidation Amounts). The
Holders of the Common Securities will be entitled to receive Liquidation Distributions upon any
such dissolution, winding-up or termination pro rata (determined as aforesaid) with Holders of
Preferred Securities, except that, if a Debenture Event of Default specified in Section 6.01 or
6.02 of the Indenture has occurred and is continuing, Preferred Securities shall have a priority
over the Common Securities as provided in Annex 1.

ARTICLE IX

TRANSFER OF INTERESTS

SECTION 9.1. Transfer of Securities.

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

     (b) Subject to this Article IX, Preferred Securities shall be freely transferable.

     (c) The Depositor may not transfer the Common Securities, other than in connection with a
consolidation or merger of the Depositor into another Person, or any conveyance, transfer or lease
by the Depositor of its properties and assets substantially as an entirety to any Person, pursuant
to Section 5.1 of the Indenture.

SECTION 9.2. Transfer of Certificates.

     The Property Trustees shall provide for the registration of Certificates and of transfers of
Certificates, which will be effected without charge but only upon payment (with such indemnity as
the Property Trustees may require) in respect of any tax or other government charges that may be
imposed in relation to it. Upon surrender for registration of transfer of any Certificate, the
Property Trustees shall cause one or more new Certificates to be issued in the name of the
designated transferee or transferees. Every Certificate surrendered for registration of

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transfer shall be accompanied by a written instrument of transfer in form satisfactory to the
Property Trustees duly executed by the Holder or such Holder’s attorney duly authorized in writing.
Each Certificate surrendered for registration of transfer shall be canceled by the Property
Trustees. A transferee of a Certificate shall be entitled to the rights and subject to the
obligations of a Holder hereunder upon the receipt by such transferee of a Certificate. By
acceptance of a Certificate, each transferee shall be deemed to have agreed to be bound by this
Declaration.

SECTION 9.3. Deemed Security Holders.

     The Trustees may treat the Person in whose name any Certificate shall be registered on the
books and records of the Trust as the sole holder of such Certificate and of the Securities
represented by such Certificate for purposes of receiving 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 shall have actual or other notice thereof.

SECTION 9.4. Book Entry Interests.

     Unless otherwise specified in the terms of the Preferred Securities, the Preferred Securities
Certificates, on original issuance, will be issued in the form of one or more, fully registered,
global Preferred Security Certificates (each a “Global Certificate”), to be delivered to DTC, the
initial Clearing Agency, by, or on behalf of, the Trust. Such Global Certificates shall initially
be registered on the books and records of the Trust in the name of Cede & Co., the nominee of DTC,
and no Preferred Security Beneficial Owner will receive a definitive Preferred Security Certificate
representing such Preferred Security Beneficial Owner’s interests in such Global Certificates,
except as provided in Section 9.7. Unless and until definitive, fully registered Preferred
Security Certificates (the “Definitive Preferred Security Certificates”) have been issued to the
Preferred Security Beneficial Owners pursuant to Section 9.7:

     (a) the provisions of this Section 9.4 shall be in full force and effect;

     (b) the Trust and the Trustees shall be entitled to deal with the Clearing Agency for all
purposes of this Declaration (including the payment of Distributions on the Global Certificates and
receiving approvals, votes or consents hereunder) as the Holder of the Preferred Securities and the
sole holder of the Global Certificates and shall have no obligation to the Preferred Security
Beneficial Owners;

     (c) to the extent that the provisions of this Section 9.4 conflict with any other provisions
of this Declaration, the provisions of this Section 9.4 shall control; and

     (d) the rights of the Preferred Security Beneficial Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law and agreements between such
Preferred Security Beneficial Owners and the Clearing Agency and/or the Clearing Agency
Participants and receive and transmit payments of Distributions on the Global Certificates to such
Clearing Agency Participants. DTC will make book entry transfers among the Clearing Agency
Participants.

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SECTION 9.5. Notices to Clearing Agency.

     Whenever a notice or other communication to the Preferred Security Holders is required under
this Declaration, unless and until Definitive Preferred Security Certificates shall have been
issued to the Preferred Security Beneficial Owners pursuant to Section 9.7, the Regular Trustees
shall give all such notices and communications specified herein to be given to the Preferred
Security Holders to the Clearing Agency, and shall have no notice obligations to the Preferred
Security Beneficial Owners.

SECTION 9.6. Appointment of Successor Clearing Agency.

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

SECTION 9.7. Definitive Preferred Security Certificates. 

     If:

     (a) a Clearing Agency elects to discontinue its services as securities depositary with respect
to the Preferred Securities and a successor Clearing Agency is not appointed within 90 days after
such discontinuance pursuant to Section 9.6; or

     (b) the Regular Trustees elect after consultation with the Depositor to terminate the book
entry system through the Clearing Agency with respect to the Preferred Securities;

then:

     (c) Definitive Preferred Security Certificates shall be prepared by the Regular Trustees on
behalf of the Trust with respect to such Preferred Securities; and

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

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SECTION 9.8. Mutilated, Destroyed, Lost or Stolen Certificates. 

     If:

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

     (b) there shall be delivered to the Regular Trustees 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 bona fide purchaser, any Regular Trustee on behalf of the
Trust shall execute and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Certificate, a new Certificate of like denomination. In connection with the issuance of
any new Certificate under this Section 9.8, the Regular Trustees may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection
therewith. Any duplicate Certificate issued pursuant to this Section shall constitute conclusive
evidence of an ownership interest in the relevant Securities, as if originally issued, whether or
not the lost, stolen or destroyed Certificate shall be found at any time.

ARTICLE X

LIMITATION OF LIABILITY OF

HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 10.1. Liability.

     (a) Except as expressly set forth in this Declaration, the Securities Guarantees and the terms
of the Securities, the Depositor shall not be:

     (i) personally liable for the return of any portion of the capital
contributions (or any return thereon) of the Holders of the Securities which shall
be made solely from assets of the Trust; and

     (ii) be required to pay to the Trust or to any Holder of Securities any deficit
upon dissolution of the Trust or otherwise.

     (b) The Holder of the Common Securities shall be liable for all of the debts and obligations
of the Trust (other than with respect to the Securities) to the extent not satisfied out of the
Trust’s assets.

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

SECTION 10.2. 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

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by reason of any act or omission performed or omitted by such Indemnified Person in good faith
on behalf of the Trust and in a manner such Indemnified Person reasonably believed to be within the
scope of the authority conferred on such Indemnified Person by this Declaration or by law, except
that an Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of
such Indemnified Person’s negligence or willful misconduct with respect to such acts or omissions.

     (b) An Indemnified Person shall be fully protected in relying in good faith upon the records
of the Trust and upon such information, opinions, reports or statements presented to the Trust by
any Person as to matters the Indemnified Person reasonably believes are within such other Person’s
professional or expert competence and who has been selected with reasonable care by or on behalf of
the Trust, including information, opinions, reports or statements as to the value and amount of the
assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount of
assets from which Distributions to Holders of Securities might properly be paid.

SECTION 10.3. 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 or eliminate the duties and liabilities of an
Indemnified Person otherwise existing at law or in equity (other than the duties imposed on the
Property Trustee under the Trust Indenture Act), are agreed by the parties hereto to replace such
other duties and liabilities of such Indemnified Person.

     (b) Unless otherwise expressly provided herein:

     (i) whenever a conflict of interest exists or arises between any Covered
Persons; or

     (ii) whenever this Declaration or any other agreement contemplated herein or
therein provides that an Indemnified Person shall act in a manner that is, or
provides terms that are, fair and reasonable to the Trust or any Holder of
Securities,

the Indemnified Person shall resolve such conflict of interest, take such action or provide such
terms, considering in each case the relative interest of each party (including its own interest) to
such conflict, agreement, transaction or situation and the benefits and burdens relating to such
interests, any customary or accepted industry practices, and any applicable generally accepted
accounting practices or principles. In the absence of bad faith by the Indemnified Person, the
resolution, action or term so made, taken or provided by the Indemnified Person shall not
constitute a breach of this Declaration or any other agreement contemplated herein or of any duty
or obligation of the Indemnified Person at law or in equity or otherwise.

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

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

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

SECTION 10.4. Indemnification; Compensation; Fees.

(a) (i) The Depositor shall indemnify, to the full extent permitted by law, any
Company 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) by reason of the fact that he is or was a Company Indemnified Person
against expenses (including 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 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 Company 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.

     (ii) The Depositor shall indemnify, to the full extent permitted by law, any
Company 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 by reason of the fact that he is or was a
Company Indemnified Person against expenses (including 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 and except that
no such indemnification shall be made in respect of any claim, issue or matter as to
which such Company Indemnified Person shall have been adjudged to be liable to the
Trust unless and only to the extent that the Court of Chancery of Delaware or 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 of Chancery or such other court shall deem proper.

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     (iii) To the extent that a Company 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 (i) and (ii) of this Section 10.4(a),
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) actually
and reasonably incurred by him in connection therewith.

     (iv) Any indemnification under paragraphs (i) and (ii) of this Section 10.4(a)
(unless ordered by a court) shall be made by the Depositor only as authorized in the
specific case upon a determination that indemnification of the Company Indemnified
Person is proper in the circumstances because he has met the applicable standard of
conduct set forth in paragraphs (i) and (ii). Such determination shall be made (1)
by the Regular Trustees by a majority vote of a quorum consisting of such Regular
Trustees who were not parties to such action, suit or proceeding, (2) if such a
quorum is not obtainable, or, even if obtainable, if a quorum of disinterested
Regular Trustees so directs, by independent legal counsel in a written opinion, or
(3) by the Common Security Holder of the Trust.

     (v) Expenses (including attorneys’ fees and expenses) incurred by a Company
Indemnified Person in defending a civil, criminal, administrative or investigative
action, suit or proceeding referred to in paragraphs (i) and (ii) of this Section
10.4(a) shall be paid by the Depositor in advance of the final disposition of such
action, suit or proceeding upon receipt of an undertaking by or on behalf of such
Company Indemnified Person to repay such amount if it shall ultimately be determined
that he is not entitled to be indemnified by the Depositor as authorized in this
Section 10.4(a). Notwithstanding the foregoing, no advance shall be made by the
Depositor if a determination is reasonably and promptly made (i) by the Regular
Trustees by a majority vote of a quorum of disinterested Regular Trustees, (ii) if
such a quorum is not obtainable, or, even if obtainable, if a quorum of
disinterested Regular Trustees so directs, by independent legal counsel in a written
opinion or (iii) the Common Security Holder of the Trust, that, based upon the facts
known to the Regular Trustees, counsel or the Common Security Holder at the time
such determination is made, such Company Indemnified Person acted in bad faith or in
a manner that such person did not believe to be in or not opposed to the best
interests of the Trust, or, with respect to any criminal proceeding, that such
Company 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 Regular
Trustees, independent legal counsel or Common Security Holder reasonably determine
that such person deliberately breached his duty to the Trust or its Common or
Preferred Security Holders.

     (vi) The indemnification and advancement of expenses provided by, or granted
pursuant to, the other paragraphs of this Section 10.4(a) 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

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stockholders or disinterested directors of the Depositor or Preferred 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 10.4(a) shall be deemed to be provided by a
contract between the Depositor and each Company Indemnified Person who serves in
such capacity at any time while this Section 10.4(a) is in effect. Any repeal or
modification of this Section 10.4(a) shall not affect any rights or obligations then
existing.

     (vii) The Depositor or the Trust may purchase and maintain insurance on behalf
of any person who is or was a Company 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 Debenture Issuer would have the power to
indemnify him against such liability under the provisions of this Section 10.4(a).

     (viii) For purposes of this Section 10.4(a), 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 10.4(a) with respect to the
resulting or surviving entity as he would have with respect to such constituent
entity if its separate existence had continued.

     (ix) The indemnification and advancement of expenses provided by, or granted
pursuant to, this Section 10.4(a) shall, unless otherwise provided when authorized
or ratified, continue as to a person who has ceased to be a Company Indemnified
Person and shall inure to the benefit of the heirs, executors and administrators of
such a person.

     (b) The Debenture Issuer agrees to indemnify the (i) Property Trustee, (ii) the Delaware
Trustee (in its individual capacity), (iii) any Affiliate of the Property Trustee and the Delaware
Trustee, and (iv) any officers, directors, shareholders, members, partners, employees,
representatives, custodians, nominees or agents of the Property Trustee and the Delaware Trustee
(each of the Persons in (i) through (iv) being referred to as a “Fiduciary Indemnified Person”)
for, and to hold each Fiduciary Indemnified Person harmless against, any and all loss, liability,
damage, claim or expense including taxes (other than taxes based on the income of such Fiduciary
Indemnified Person) incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration or the trust or trusts hereunder, including the
costs and expenses (including reasonable legal fees and expenses) of defending itself against or
investigating any claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder. The obligation to indemnify as set forth in this Section 10.4(b) shall
survive the satisfaction and discharge of this Declaration.

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     (c) The Depositor agrees (i) to pay to the Trustees from time to time such reasonable
compensation for all services rendered by them 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 (ii) to reimburse the Trustees upon request for all
reasonable expenses, disbursements and advances incurred or made by the Trustees in accordance with
any provision of this Declaration (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement or advance as may
be attributable to their negligence or willful misconduct.

SECTION 10.5. Outside Businesses.

     Any Covered Person, the Depositor, the Delaware Trustee and the Property Trustee may engage in
or possess an interest in other business ventures of any nature or description, independently or
with others, similar or dissimilar to the business of the Trust, and the Trust and the Holders of
Securities shall have no rights by virtue of this Declaration in and to such independent ventures
or the income or profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or improper. No Covered
Person, the Depositor, the Delaware Trustee, or the Property 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
Depositor, the Delaware Trustee and the Property Trustee shall have the right to take for its own
account (individually or as a partner or fiduciary) or to recommend to others any such particular
investment or other opportunity. Any Covered Person, the Delaware Trustee and the Property Trustee
may engage or be interested in any financial or other transaction with the Depositor or any
Affiliate of the Depositor, 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 Depositor or its
Affiliates.

ARTICLE XI

ACCOUNTING

SECTION 11.1. Fiscal Year.

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

SECTION 11.2. Certain Accounting Matters.

     (a) At all times during the existence of the Trust, the Regular Trustees shall keep, or cause
to be kept, full books of account, records and supporting documents, which shall reflect in
reasonable detail, each transaction of the Trust. The books of account shall be maintained on the
accrual method of accounting, in accordance with generally accepted accounting principles,
consistently applied. The Trust shall use the accrual method of accounting for United States
federal income tax purposes. The books of account and the records of the Trust shall be examined
by and reported upon as of the end of each Fiscal Year of the Trust by a firm of independent
certified public accountants selected by the Regular Trustees.

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     (b) The Regular Trustees shall cause to be prepared and delivered to each of the Holders of
Securities, within [90] days after the end of each Fiscal Year of the Trust, annual financial
statements of the Trust, including a balance sheet of the Trust as of the end of such Fiscal Year,
and the related statements of income or loss;

     (c) The Regular Trustees shall cause to be duly prepared and delivered to each of the Holders
of Securities, any annual United States federal income tax information statement, required by the
Code, containing such information with regard to the Securities held by each Holder as is required
by the Code and the Treasury Regulations. Notwithstanding any right under the Code to deliver any
such statement at a later date, the Regular Trustees shall endeavor to deliver all such statements
within 30 days after the end of each Fiscal Year of the Trust.

     (d) The Regular Trustees shall cause to be duly prepared and filed with the appropriate taxing
authority, an annual United States federal income tax return, on a Form 1041 or such other form
required by United States federal income tax law, and any other annual income tax returns required
to be filed by the Regular Trustees on behalf of the Trust with any state or local taxing
authority.

SECTION 11.3. Banking.

     The Trust shall maintain one or more bank accounts in the name and for the sole benefit of the
Trust; provided, however, that all payments of funds in respect of the Debentures held by the
Property Trustee shall be made directly to the Property Trustee Account and no other funds of the
Trust shall be deposited in the Property Trustee Account. The sole signatories for such accounts
shall be designated by the Regular Trustees; provided, however, that the Property Trustee shall
designate the signatories for the Property Trustee Account.

SECTION 11.4. Withholding.

     The Trust and the Regular Trustees shall comply with all withholding requirements under United
States federal, state and local law. The Trust shall request, and the Holders shall provide to the
Trust, such forms or certificates as are necessary to establish an exemption from withholding with
respect to each Holder, and any representations and forms as shall reasonably be requested by the
Trust to assist it in determining the extent of, and in fulfilling, its withholding obligations.
The Regular Trustees shall file required forms with applicable jurisdictions and, unless an
exemption from withholding is properly established by a Holder, shall remit amounts withheld with
respect to the Holder to applicable jurisdictions. To the extent that the Trust is required to
withhold and pay over any amounts to any authority with respect to distributions or allocations to
any Holder, the amount withheld shall be deemed to be a distribution in the amount of the
withholding to the Holder. In the event of any claimed over withholding, Holders shall be limited
to an action against the applicable jurisdiction. If the amount required to be withheld was not
withheld from actual Distributions made, the Trust may reduce subsequent Distributions by the
amount of such withholding.

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ARTICLE XII

AMENDMENTS AND MEETINGS

SECTION 12.1. Amendments.

     (a) This Declaration may be amended from time to time by the Regular Trustees and the Holders
of all of the Common Securities:

     (i) without the consent of any Holder of Preferred Securities to: (A) cure any
ambiguity, correct or supplement any provision herein that may be inconsistent with
any other provision herein, or make any other provisions with respect to matters or
questions arising under this Declaration, which shall not be inconsistent with the
other provisions of this Declaration; or (B) modify, eliminate or add to any
provisions of this Declaration to such extent as shall be necessary to ensure that
the Trust will not be taxable as a corporation or classified as other than a grantor
trust for United States federal income tax purposes at all times that any Trust
Securities are outstanding and/or to ensure that the Trust will not be required to
register as an “investment company” under the Investment Company Act;

     (ii) upon the consent of the Property Trustee and each affected Holder as to
the Securities held by such Holder (such consent being obtained in accordance with
Section 12.2 hereof), to: (A) change the timing of any Distribution or the amount of
Distribution per Liquidation Amount on such Securities held by such affected Holder
or otherwise adversely affect the amount of any Distribution required to be made in
respect of the Liquidation Amount of such Securities held by such affected Holder as
of a specified date; or (B) restrict the right of such affected Holder to institute
suit for the enforcement of any such payment on or after such date;

     (iii) upon the consent of the Property Trustee and the unanimous consent of all
Holders (such consent being obtained in accordance with Section 12.2 hereof), to
amend paragraph (a)(ii) and this paragraph (a)(iii) of this Section 12.1; and

     (iv) except for amendments described in paragraphs (a)(ii) and (a)(iii) of this
Section 12.1, upon the consent of the Property Trustee and Holders of at least a
Majority in Liquidation Amount of Preferred Securities.

     (b) Notwithstanding any other provision in this Declaration:

     (i) No Trustee shall enter into or consent to any amendment to this Declaration
that would cause the Trust to be (A) required to register as an “investment company”
under the Investment Company Act or (B) taxable as a corporation for United States
federal income tax purposes.

     (ii) Without the consent of the Depositor, this Declaration may not be amended
in a manner that imposes any additional obligation on the Depositor.

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     (iii) No Trustee shall be required to enter into or consent to any amendment to
this Declaration that adversely affects in any material respect its own rights,
duties or immunities under this Declaration.

     (iv) In the event the consent of the Property Trustee is required for an
amendment pursuant to paragraphs (a)(ii), (a)(iii) or (a)(iv) of this Section 12.1
and if specifically required to be furnished by the Trust Indenture Act, the
Property Trustee shall be entitled to receive an opinion of counsel and an Officers’
Certificate stating that the conditions precedent, if any, to such amendment have
been complied with.

     (c) In the event that any amendment to this Declaration is made, the Regular Trustees shall
promptly provide to the Depositor a copy of such amendment.

SECTION 12.2. Meetings of the Holders of Securities; Action by Written Consent.

     (a) Meetings of the Holders of any class of Securities may be called at any time by the
Regular Trustees (or as provided in the terms of the Securities) to consider and act on any matter
on which Holders of such class of Securities are entitled to act under the terms of this
Declaration, the terms of the Securities or the rules of any stock exchange on which the Preferred
Securities are listed or admitted for trading. The Regular Trustees 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 class of Securities. Such direction shall be given by delivering to the Regular Trustees one
or more calls in a writing stating that the signing Holders of Securities wish to call a meeting
and indicating the general or specific purpose for which the meeting is to be called. Any Holders
of Securities calling a meeting shall specify in writing the Security Certificates held by the
Holders of Securities exercising the right to call a meeting and only those Securities specified
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 Securities:

     (i) notice of any such meeting shall be given to all the Holders of Securities
having a right to vote thereat at least 7 days and not more than 60 days before the
date of such meeting. Whenever a vote, consent or approval of the Holders of
Securities is permitted or required under this Declaration or the rules of any stock
exchange on which the Preferred Securities are listed or admitted for trading, such
vote, consent or approval may be given at a meeting of the Holders of Securities.
Any action that may be taken at a meeting of the Holders of Securities may be taken
without a meeting if a consent in writing setting forth the action so taken is
signed by the Holders of Securities owning not less than the minimum amount of
Securities in Liquidation Amount that would be necessary to authorize or take such
action at a meeting at which all Holders of Securities having a right to vote
thereon were present and voting. Prompt notice of the taking of action without a
meeting shall be given to the Holders of Securities entitled to vote who have not
consented in writing. The Regular Trustees may

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specify that any written ballot submitted to the Security Holder for the
purpose of taking any action without a meeting shall be returned to the Trust within
the time specified by the Regular Trustees;

     (ii) each Holder of a Security may authorize any Person to act for it by proxy
on all matters in which a Holder of Securities is entitled to participate, including
waiving notice of any meeting, or voting or participating at a meeting. No proxy
shall be valid after the expiration of 11 months from the date thereof unless
otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of
the Holder of Securities executing it. Except as otherwise provided herein, all
matters relating to the giving, voting or validity of proxies shall be governed by
the General Corporation Law of the State of Delaware relating to proxies, and
judicial interpretations thereunder, as if the Trust were a Delaware corporation and
the Holders of the Securities were stockholders of a Delaware corporation;

     (iii) each meeting of the Holders of the Securities shall be conducted by the
Regular Trustees or by such other Person that the Regular Trustees may designate;
and

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

ARTICLE XIII

REPRESENTATIONS OF PROPERTY TRUSTEE

AND DELAWARE TRUSTEE

SECTION 13.1. Representations and Warranties of Property Trustee. 

     The Trustee that acts as initial Property Trustee represents and warrants to the Trust and to
the Depositor at the date of this Declaration, and each Successor Property Trustee, mutatis
mutandis represents and warrants to the Trust and the Depositor at the time of the Successor
Property Trustee’s acceptance of its appointment as Property Trustee that:

     (a) the Property Trustee is a banking corporation with trust powers, duly organized, validly
existing and in good standing under the laws of the State of New York 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 execution, delivery and performance by the Property Trustee of the Declaration has
been duly authorized by all necessary corporate action on the part of the

53

 

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

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

     (d) no consent, approval or authorization of, or registration with or notice to banking
authority of the State of New York or federal banking authority governing the banking or trust
powers of the Property Trustee is required for the execution, delivery or performance by the
Property Trustee, of this Declaration.

SECTION 13.2. Representations and Warranties of Delaware Trustee. 

     The Trustee that acts as initial Delaware Trustee represents and warrants to the Trust and to
the Depositor at the date of this Declaration, and each Successor Delaware Trustee represents and
warrants to the Trust and the Depositor at the time of the Successor Delaware Trustee’s acceptance
of its appointment as Delaware Trustee that:

     (a) the Delaware Trustee is a natural person who is a resident of the State of Delaware or, if
not a natural person, an entity which has its principal place of business in the State of Delaware,
and is duly organized, validly existing and in good standing under the laws of the jurisdiction of
formation, 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 Delaware Trustee has been authorized to perform its obligations under the Certificate
of Trust and this Declaration. This Declaration under Delaware law constitutes a legal, valid and
binding obligation of the Delaware Trustee, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, moratorium, insolvency, and other similar laws
affecting creditors’ rights generally and to general principles of equity and the discretion of the
court (regardless of whether the enforcement of such remedies is considered in a proceeding in
equity or at law).

     (c) no consent, approval or authorization of, or registration with or notice to, any banking
authority of the State of Delaware or any federal banking authority governing the banking or trust
powers of the Delaware Trustee is required for the execution, delivery or performance by the
Delaware Trustee, of this Declaration.

54

 

ARTICLE XIV

MISCELLANEOUS

SECTION 14.1. 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 or mailed by first class mail, as follows:

     (a) if given to the Trust, in care of the Regular Trustees at the Trust’s mailing address set
forth below (or such other address as the Trust may give notice of to the Holders of the
Securities):

Navigators Capital Trust I/II]

c/o The Navigators Group, Inc.

Reckson Executive Park

6 International Drive

Rye Brook, New York 10573

Attention: Francis W. McDonnell, Senior Executive Vice President and Chief
Financial Officer

Facsimile No: (914) 933-6033

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

BNY Mellon Trust of Delaware

100 White Clay Center

Route 273

Newark, Delaware 19711

Attention: Corporate Trust Administration

Telephone: (302) 453-8905

Facsimile: (302) 453-4000

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

The Bank of New York Mellon

101 Barclay Street, Floor 8W

New York, New York 10286

Attention: Corporate Trust Administration

Telephone: (212) 815-5360

Facsimile: (212) 815-5704

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

55

 

The Navigators Group, Inc.

Reckson Executive Park

6 International Drive

Rye Brook, New York 10573

Attention: Francis W. McDonnell, Senior Executive Vice President and
Chief
Financial Officer

Facsimile No: (914) 933-6033

     (e) 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 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 14.2. Governing Law.

     This Declaration and the rights of the parties hereunder shall be governed by and interpreted
in accordance with the laws of the State of Delaware and all rights and remedies shall be governed
by such laws without regard to principles of conflict of laws.

SECTION 14.3. 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 14.4. 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 14.5. 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 Depositor and the Trustees shall bind and inure to the benefit of their
respective successors and assigns, whether so expressed.

SECTION 14.6. 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.

56

 

SECTION 14.7. 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 Trustees to one of such
counterpart signature pages. All of such counterpart signature pages shall be read as though one,
and they shall have the same force and effect as though all of the signers had signed a single
signature page.

SECTION 14.8. Waiver of Jury Trial.

     EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS DECLARATION, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

SECTION 14.9. Force Majeure.

     In no event shall the Property Trustee be responsible or liable for any failure or delay in
the performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

57

 

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

	 	 	 	 	 	 	 	 	 
	 	 	 	,	 	 	 
	 	 	as Regular Trustee	 	 	 	 
	 	 	 	,	 	 	 
	 	 	as Regular Trustee	 	 	 	 
	 	 	 	,	 	 	 
	 	 	as Regular Trustee	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BNY MELLON TRUST OF DELAWARE,

as Delaware Trustee	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON,

as Property Trustee	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE NAVIGATORS GROUP, INC., 

as Depositor	 	 	 	 
	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

Form of Amended and Restated Declaration of Trust

 

 

ANNEX I

TERMS OF

                    %                      PREFERRED SECURITIES

                    %                      COMMON SECURITIES

          Pursuant to Section 7.1 of the Amended and Restated Declaration of Trust, dated as of                     
     ,                      (as amended from time to time, the “Declaration”), the designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Preferred Securities and the Common
Securities are set out below (each capitalized term used but not defined herein has the meaning set
forth in the Declaration or, if not defined in such Declaration, as defined in the Prospectus
referred to below):

          (1) Designation and Number.

               (a) Preferred Securities.                      Preferred Securities of the Trust with an aggregate
Liquidation Amount with respect to the assets of the Trust of                                          dollars
($                    ) and a Liquidation Amount with respect to the assets of the Trust of $      per
preferred security, are hereby designated for the purposes of identification only as “                    %
                     Preferred Securities (the “Preferred Securities”). The Preferred Security Certificates
evidencing the Preferred 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 or to conform to the rules of any stock exchange on which the
Preferred Securities are listed.

               (b) Common Securities.                      Common Securities of the Trust with an aggregate
Liquidation Amount of with respect to the assets of the Trust of                                          dollars
($                    ) and a Liquidation Amount with respect to the assets of the Trust of [3% of the
capital of the Trust/[          ] Common Securities] per common security, are hereby designated for the
purposes of identification only as “     %                      Common Securities” (the “Common
Securities”). The Common Security Certificates evidencing the Common Securities shall be
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 payable on each Security will be fixed at a rate per annum of      % (the
“Coupon Rate”) of the stated Liquidation Amount of $      per Security, such rate being the rate of
interest payable on the Debentures to be held by the Property Trustee. Distributions in arrears
for more than one quarter will bear interest thereon compounded quarterly at the Coupon Rate (to
the extent permitted by applicable law). The term “Distributions” as used herein includes such
cash distributions and any such interest payable unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures held by the Property
Trustee and to the extent the Property Trustee has funds available therefor. The amount of
Distributions payable for any period will be computed for any full quarterly Distribution period on
the basis of a 360-day year of twelve 30-day months,

I-1

 

and for any period shorter than a full quarterly Distribution period for which Distributions
are computed, Distributions will be computed on the basis of the actual number of days elapsed per
90-day quarter.

               (b) Distributions on the Securities will be cumulative, will accrue from                           ,      , and
will be payable quarterly in arrears, on      ,      ,      , and       of each year, commencing on
                          ,      , except as otherwise described below. The Debenture Issuer has the right under the
Indenture to defer payments of interest by extending the interest payment period from time to time
on the Debentures for a period not exceeding 20 consecutive quarters or extending beyond the
maturity date of the Debentures (each an “Extension Period”), during which Extension Period no
interest shall be due and payable on the Debentures; provided that no Extension Period shall last
beyond the date of maturity of the Debentures. As a consequence of such deferral, Distributions
will also be deferred. Despite such deferral, quarterly Distributions will continue to accrue with
interest thereon (to the extent permitted by applicable law) at the Coupon Rate compounded
quarterly during any such Extension Period. Prior to the termination of any such Extension Period,
the Debenture Issuer may further extend such Extension Period; provided that such Extension Period
together with all such previous and further extensions thereof may not exceed 20 consecutive
quarters or extend beyond the maturity of the Debentures. Payments of accrued Distributions will
be payable to Holders as they appear on the books and records of the Trust on the first record date
after the end of the Extension Period. Upon the termination of any Extension Period and the
payment of all amounts then due, the Debenture Issuer may commence a new Extension Period, subject
to the above requirements.

               (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. While the Preferred Securities
remain in book-entry only form, the relevant record dates shall be one Business Day prior to the
relevant payment dates which payment dates correspond to the interest payment dates on the
Debentures. Subject to any applicable laws and regulations and the provisions of the Declaration,
each such payment in respect of the Preferred Securities will be made as described under the
heading “Description of the Preferred Securities — Book-Entry Only Issuance — The Depository
Trust Company” in the Prospectus Supplement dated                           ,                     , to the Prospectus dated                     
     ,                      (together, the “Prospectus”), of the Trust included in the Registration Statement on Form
S-3 of the Depositor, the Trust and certain other statutory trusts. The relevant record dates for
the Common Securities shall be the same record date as for the Preferred Securities. If the
Preferred Securities shall not continue to remain in book-entry only form, the relevant record
dates for the Preferred Securities, shall conform to the rules of any securities exchange on which
the securities are listed and, if none, shall be selected by the Regular Trustees, which dates
shall be at least one Business Day but less than 60 Business Days before the relevant payment
dates, which payment dates correspond to the interest payment dates on the Debentures.
Distributions payable on any Securities that are not punctually paid on any Distribution payment
date, as a result of the Debenture Issuer having failed to make a payment under the Debentures,
will cease to be payable to the Person in whose name such Securities are registered on the relevant
record date, and such defaulted Distribution will instead be payable to the Person in whose name
such Securities are registered on the special record date or other specified date determined in
accordance with the Indenture. If any date on which Distributions are payable on the Securities is
not a Business Day, then payment of the Distribution payable on

I-2

 

such date will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay) except that, if such Business Day is in the
next succeeding calendar year, such payment shall be made on the immediately preceding Business
Day, in each case with the same force and effect as if made on such date.

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

          (3) Voting Rights — Preferred Securities.

               (a) Except as provided under Sections 3(b) and as otherwise required by law and the
Declaration, the Holders of the Preferred Securities will have no voting rights.

               (b) Subject to the requirements set forth in this paragraph, the Holders of a Majority in
aggregate Liquidation Amount of the Preferred Securities, voting separately as a class may direct
the time, method, and place of conducting any proceeding for any remedy available to the Property
Trustee, or exercising any trust or power conferred upon the Property Trustee under the
Declaration, including the right to direct the Property Trustee, as holder of the Debentures, to
(i) exercise the remedies available under the Indenture, conducting any proceeding for any remedy
available to the Debenture Trustee, or exercising any trust or power conferred on the Debenture
Trustee with respect to the Debentures, (ii) waive any past default and its consequences that is
waivable under Section 6.04 of the Indenture, or (iii) exercise any right to rescind or annul a
declaration that the principal of all the Debentures shall be due and payable; provided, however,
that, where a consent under the Indenture would require the consent or act of the Holders of
greater than a majority of the Holders in principal amount of Debentures affected thereby, (a
“Super Majority”), the Property 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 Preferred
Securities which the relevant Super Majority represents of the aggregate principal amount of the
Debentures outstanding. The Property Trustee shall not revoke any action previously authorized or
approved by a vote of the Holders of the Preferred Securities. Other than with respect to
directing the time, method and place of conducting any remedy available to the Property Trustee or
the Debenture Trustee as set forth above, the Property Trustee shall not take any action in
accordance with the directions of the Holders of the Preferred Securities under this paragraph
unless the Property 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 a Declaration 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 such interest or principal is otherwise payable (or in the
case of redemption, on the redemption date), then a holder of Preferred Securities may directly
institute a proceeding for enforcement of payment to such Holder of the principal of or interest on
the Debentures having a principal amount equal to the aggregate Liquidation Amount of the Preferred
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 Holder will be subrogated to the rights of such holder of Preferred Securities to the
extent of any payment made by the Issuer to such holder of Preferred Securities in such Direct
Action. Except as provided in the preceding

I-3

 

sentences, the Holders of Preferred Securities will not be able to exercise directly any other
remedy available to the holders of the Debentures.

          Any approval or direction of Holders of Preferred Securities may be given at a separate
meeting of Holders of Preferred Securities convened for such purpose, at a meeting of all of the
Holders of Securities in the Trust or pursuant to written consent. The Regular Trustees will cause
a notice of any meeting at which Holders of Preferred Securities are entitled to vote, or of any
matter upon which action by written consent of such Holders is to be taken, to be mailed to each
Holder of record of Preferred Securities. Each such notice will include a statement setting forth
(i) the date of such meeting or the date by which such action is to be taken, (ii) a description of
any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or
of such matter upon which written consent is sought and (iii) instructions for the delivery of
proxies or consents.

          No vote or consent of the Holders of the Preferred Securities will be required for the Trust
to redeem and cancel Preferred Securities or to distribute the Debentures in accordance with the
Declaration and the terms of the Securities.

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

          (4) Voting Rights — Common Securities.

               (a) Except as provided under Sections 4(b), (c), and 6 as otherwise required by law and the
Declaration, the Holders of the Common Securities will have no voting rights.

               (b) The Holders of the Common Securities are entitled, in accordance with Article V of the
Declaration, to vote to appoint, remove or replace any Trustee or to increase or decrease the
number of Trustees.

               (c) Subject to Section 2.6 of the Declaration and only after the Event of Default with respect
to the Preferred Securities has been cured, waived, or otherwise eliminated and subject to the
requirements of the 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 Property Trustee, or
exercising any trust or power conferred upon the Property Trustee under the Declaration, including
(i) directing the time, method, place of conducting any proceeding for any remedy available to the
Debenture Trustee, or exercising any trust or power conferred on the Debenture Trustee with respect
to the Debentures, (ii) waive any past default and its consequences that is waivable under Section
6.04 of the Indenture, or (iii) exercise any right to rescind or annul a declaration that the
principal of all the Debentures shall be due and payable; provided that, where a consent or action
under the Indenture would require the consent or act of a Super Majority, the Property 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

I-4

 

Common Securities which the relevant Super Majority represents of the aggregate principal
amount of the Debentures outstanding. Pursuant to this Section 4(c), the Property Trustee shall
not revoke any action previously authorized or approved by a vote of the Holders of the Preferred
Securities. Other than with respect to directing the time, method and place of conducting any
remedy available to the Property Trustee or the Debenture Trustee as set forth above, the Property
Trustee shall not take any action in accordance with the directions of the Holders of the Common
Securities under this paragraph unless the Property 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 Property Trustee fails
to enforce its rights under the Declaration, any Holder of Common Securities may institute a legal
proceeding directly against any Person to enforce the Property Trustee’s rights under the
Declaration, without first instituting a legal proceeding against the Property Trustee or any other
Person.

          Any approval or direction of Holders of Common Securities may be given at a separate meeting
of Holders of Common Securities convened for such purpose, at a meeting of all of the Holders of
Securities in the Trust or pursuant to written consent. The Regular Trustees will cause a notice
of any meeting at which Holders of Common Securities are entitled to vote, or of any matter upon
which action by written consent of such Holders is to be taken, to be mailed to each Holder of
record of Common Securities. Each such notice will include a statement setting forth (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.

          (5) Amendments to Declaration and Indenture.

               (a) In addition to any requirements under Section 12.1 of the Declaration, if any proposed
amendment to the Declaration provides for, or the Regular Trustees otherwise propose to effect, (i)
any action that would adversely affect the powers, preferences or special rights of the Securities,
whether by way of amendment to the Declaration or otherwise, or (ii) the dissolution, winding- up
or termination of the Trust, other than as described in Section 8.1 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 (but not on any other amendment or proposal) and such amendment or
proposal shall not be effective except with the approval of the Holders of at least 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 Preferred Securities or
only the Common Securities, then only the affected class will be entitled to vote on such amendment
or proposal and such amendment or proposal shall not be effective except with the approval of a
Majority in Liquidation Amount of such class of Securities.

I-5

 

               (b) In the event the consent of the Property Trustee as the holder of the Debentures is
required under the Indenture with respect to any amendment, modification or termination on the
Indenture or the Debentures, the Property 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 the consent of a Super Majority, the Property
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]; provided, further, that the Property Trustee shall
not take any action in accordance with the directions of the Holders of the Securities under this
Section 7(b) unless the Property 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.

          (6) Pro Rata.

          A reference in these terms of the Securities to any payment, distribution or treatment as
being “Pro Rata” shall mean pro rata to each Holder of Securities according to the aggregate
Liquidation Amount of the Securities held by the relevant Holder in relation to the aggregate
Liquidation Amount of all Securities outstanding unless, in relation to a payment, an Event of
Default under the Declaration has occurred and is continuing, in which case any funds available to
make such payment shall be paid first to each Holder of the Preferred Securities pro rata according
to the aggregate Liquidation Amount of Preferred Securities held by the relevant Holder relative to
the aggregate Liquidation Amount of all Preferred Securities outstanding, and only after
satisfaction of all amounts owed to the Holders of the Preferred Securities, to each Holder of
Common Securities pro rata according to the aggregate Liquidation Amount of Common Securities held
by the relevant Holder relative to the aggregate Liquidation Amount of all Common Securities
outstanding.

          (7) Ranking.

          The Preferred Securities rank pari passu and payment thereon shall be made Pro Rata with the
Common Securities except that, where a Declaration Event of Default occurs 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 Preferred Securities.

          (8) Listing.

          The Regular Trustees shall use their best efforts to cause the Preferred Securities to be
listed for quotation on The Nasdaq Global Select Market.

          (9) Acceptance of Securities Guarantee and Indenture.

          Each Holder of Preferred Securities and Common Securities, by the acceptance thereof, agrees
to the provisions of the Preferred Securities Guarantee and the Common

I-6

 

Securities Guarantee, respectively, including the subordination provisions therein and to the
provisions of the Indenture.

          (10) No Preemptive Rights.

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

          (11) Miscellaneous.

          These terms constitute a part of the Declaration.

          The Depositor will provide a copy of the Declaration, the Preferred Securities Guarantee or
the Common Securities Guarantee (as may be appropriate), and the Indenture to a Holder without
charge on written request to the Trust at its principal place of business.

I-7

 

EXHIBIT A-1

FORM OF PREFERRED SECURITY CERTIFICATE

          This Preferred Security is a Global Certificate within the meaning of the Declaration
hereinafter referred to and is registered in the name of The Depository Trust Company (“DTC”) or a
nominee of DTC. This Preferred Security is exchangeable for Preferred Securities registered in the
name of a person other than DTC or its nominee only in the limited circumstances described in the
Declaration and no transfer of this Preferred Security (other than a transfer of this Preferred
Security as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of
DTC) may be registered except in limited circumstances.

          Unless this Preferred Security is presented by an authorized representative of DTC (55 Water
Street, New York, New York) to the Trust or its agent for registration of transfer, exchange or
payment, and any Preferred Security issued is registered in the name of Cede & Co. or such other
name as requested by an authorized representative of DTC and any payment hereon is made to Cede &
Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since
the registered owner hereof, Cede & Co., has an interest herein.

			
	 	 	 
	Certificate Number
	 	Number of Preferred Securities
	 
	 	CUSIP NO.                     

Certificate Evidencing Preferred Securities

of

[Navigators Capital Trust I/II]

               %                      Preferred Securities

          (Liquidation Amount $      per Preferred Security)

          [Navigators Capital Trust I/II], a statutory trust formed under the laws of the State of
Delaware (the “Trust”), hereby certifies that                      (the “Holder”) is the registered owner
of preferred securities of the Trust representing undivided beneficial interests in the assets of
the Trust designated the      %                      Preferred Securities (Liquidation Amount $      per
Preferred Security) (the “Preferred Securities”). The Preferred Securities are transferable on the
books and records of the Trust, in person or by a duly authorized attorney, upon surrender of this
certificate duly endorsed and in proper form for transfer. The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Preferred Securities represented
hereby are issued and shall in all respects be subject to the provisions of the Amended and
Restated Declaration of Trust of the Trust dated as of                           ,                     , as the same may be amended
from time to time (the “Declaration”), including the designation of the terms of the Preferred
Securities as set forth in Annex I to the Declaration. Capitalized terms used herein but not
defined shall have the meaning given them in the Declaration. The Holder is entitled to the
benefits of the Preferred Securities Guarantee to the extent provided therein. The Depositor will

A1-1

 

provide a copy of the Declaration, the Preferred Securities Guarantee and the Indenture to a
Holder without charge upon written request to the Trust at its principal place of business.

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

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

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

	 	 	 	 	 
	 	[NAVIGATORS CAPITAL TRUST I/II]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Regular Trustee 	 
	 
	 
	     This is one of the
Securities referred to in the within-mentioned Declaration of
Trust.
	 
	 	THE BANK OF NEW YORK MELLON,

as Property Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

A1-2

 

[FORM OF REVERSE OF SECURITY]

          Distributions payable on each Preferred Security will be fixed at a rate per annum of                     %
(the “Coupon Rate”) of the stated Liquidation Amount of $                     per Preferred Security, such rate
being the rate of interest payable on the Debentures to be held by the Property Trustee.
Distributions in arrears for more than one quarter will bear interest thereon compounded quarterly
at the Coupon Rate (to the extent permitted by applicable law). The term “Distributions” as used
herein includes such cash distributions and any such interest payable unless otherwise stated. A
Distribution is payable only to the extent that payments are made in respect of the Debentures held
by the Property Trustee and to the extent the Property Trustee has funds available therefor. The
amount of Distributions payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year of twelve 30-day months, and for any period shorter than a
full quarterly Distribution period for which Distributions are computed, Distributions will be
computed on the basis of the actual number of days elapsed per 90-day quarter.

          Except as otherwise described below, distributions on the Preferred Securities will be
cumulative, will accrue from the date of original issuance and will be payable quarterly in
arrears, on                     ,                     ,                     , and              
        of each year,
commencing on                           ,      , to                           ,
                    . The Debenture Issuer has the right under the Indenture to defer payments of interest by
extending the interest payment period from time to time on the Debentures for a period not
exceeding 20 consecutive quarters (each an “Extension Period”); provided that no Extension Period
shall last beyond the date of the maturity of the Debentures and as a consequence of such deferral,
Distributions will also be deferred. Despite such deferral, quarterly Distributions will continue
to accrue with interest thereon (to the extent permitted by applicable law) at the Coupon Rate
compounded quarterly during any such Extension Period. Prior to the termination of any such
Extension Period, the Debenture Issuer may further extend such Extension Period; provided that such
Extension Period together with all such previous and further extensions thereof may not exceed 20
consecutive quarters or extend beyond the maturity of the Debentures. Payments of accrued
Distributions will be payable to Holders as they appear on the books and records of the Trust on
the first record date after the end of the Extension Period. Upon the termination of any Extension
Period and the payment of all amounts then due, the Debenture Issuer may commence a new Extension
Period, subject to the above requirements.

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

A1-3

 

 

ASSIGNMENT

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

 

 

 

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

 

 

 

          (Insert address and zip code of assignee)

and irrevocably appoints

	 	 	 
	 
	 
	 	 
	 
	 

	 	agent to          
	 	 	 

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

	 	 	 
	Date:

	 	 
	 

	 	 

	 	 	 
	Signature:

	 	 
	 

	 	 

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

	 	 	 
	Signature Guarantee*:

	 	 
	 

	 	 

 

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

A1-4

 

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

			
	 	 	 
	Certificate Number
	 	Number of Common Securities          

Certificate Evidencing Common Securities

of

[Navigators Capital Trust I/II]

                    %                      Common Securities

(Liquidation Amount $      per Common Security)

          [Navigators Capital Trust I/II], a statutory trust formed under the laws of the State of
Delaware (the “Trust”), hereby certifies that [The Navigators Group, Inc.] (the “Holder”) is the
registered owner of common securities of the Trust representing undivided beneficial interests in
the assets of the Trust designated the                     %                      Common Securities (Liquidation Amount $     
per Common Security) (the “Common Securities”). The Depositor may not transfer the Common
Securities, other than in connection with a consolidation or merger of the Depositor into another
Person, or any conveyance, transfer or lease by the Depositor of its properties and assets
substantially as an entirety to any Person, pursuant to Section 5.1 of the Indenture. The
designation, rights, privileges, restrictions, preferences and other terms and provisions of the
Common Securities represented hereby are issued and shall in all respects be subject to the
provisions of the Amended and Restated Declaration of Trust of the Trust dated as of                           ,
     , as the same may be amended from time to time (the “Declaration”), including the designation
of the terms of the Common Securities as set forth in Annex I to the Declaration. Capitalized
terms used herein but not defined shall have the meaning given them in the Declaration. The Holder
is entitled to the benefits of the Common Securities Guarantee to the extent provided therein. The
Depositor will provide a copy of the Declaration, the Common Securities Guarantee and the Indenture
to a Holder without charge upon written request to the Trust at its principal place of business.

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

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

A2-1

 

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

	 	 	 	 	 
	 	[NAVIGATORS CAPITAL TRUST I/II]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Regular Trustee 	 
	 
	 
	     This is one of the Securities
referred to in the within-mentioned Declaration of Trust.
	 
	 	THE BANK OF NEW YORK MELLON,

as Property Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A2-2

 

	 	 	 	 	 

[FORM OF REVERSE OF SECURITY]

          Distributions payable on each Common Security will be fixed at a rate per annum of                     % (the
“Coupon Rate”) of the stated Liquidation Amount of $      per Common Security, such rate being the
rate of interest payable on the Debentures to be held by the Property Trustee. Distributions in
arrears for more than one quarter will bear interest thereon compounded quarterly at the Coupon
Rate (to the extent permitted by applicable law). The term “Distributions” as used herein includes
such cash distributions and any such interest payable unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures held by the Property
Trustee and to the extent the Property Trustee has funds available therefor. The amount of
Distributions payable for any period will be computed for any full quarterly Distribution period on
the basis of a 360-day year of twelve 30-day months, and for any period shorter than a full
quarterly Distribution period for which Distributions are computed, Distributions will be computed
on the basis of the actual number of days elapsed per 90-day quarter.

          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               
      ,                     ,                     , and                 
     of each year, commencing
on                           ,                     , to Holders of
record fifteen (15) days prior to such payment dates, which payment dates shall correspond to the
interest payment dates on the Debentures. The Debenture Issuer has the right under the Indenture
to defer payments of interest by extending the interest payment period from time to time on the
Debentures for a period not exceeding 20 consecutive quarters (each an “Extension Period”);
provided that no Extension Period shall last beyond the date of the maturity of the Debentures and
as a consequence of such deferral, Distributions will also be deferred. Despite such deferral,
quarterly Distributions will continue to accrue with interest thereon (to the extent permitted by
applicable law) at the Coupon Rate compounded quarterly during any such Extension Period. Prior to
the termination of any such Extension Period, the Debenture Issuer may further extend such
Extension Period; provided that such Extension Period together with all such previous and further
extensions thereof may not exceed 20 consecutive quarters or extend beyond the maturity date of the
Debentures. Payments of accrued Distributions will be payable to Holders as they appear on the
books and records of the Trust on the first record date after the end of the Extension Period.
Upon the termination of any Extension Period and the payment of all amounts then due, the Debenture
Issuer may commence a new Extension Period, subject to the above requirements.

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

A2-3

 

 

ASSIGNMENT

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

	 	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 

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

	 	 	 	(Insert address
	 	 	 
	and 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 Preferred Security Certificate)

	 	 	 
	Signature Guarantee*:

	 	 
	 

	 	 

 

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

A2-4

 

EXHIBIT B

SPECIMEN OF DEBENTURE

B-1

 

EXHIBIT C

UNDERWRITING AGREEMENT

C-1

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