Document:

Registration Rights Agreement

 
EXHIBIT 4.20

 
REGISTRATION RIGHTS AGREEMENT

 
THIS REGISTRATION RIGHTS AGREEMENT, dated as
of March 25, 2002, is entered into by and among Kilroy Realty Corporation, a Maryland corporation (the “Company” or the “REIT”), Kilroy Realty, L.P., a Delaware limited partnership (the “Operating Partnership”), and the
unit holders whose names are set forth on the signature pages hereto (each, a “Unit Holder” and collectively, the “Unit Holders”). 
 
RECITALS 
 
WHEREAS, the Company, the Operating Partnership and the Unit Holders are parties to that certain Contribution and Settlement Agreement
dated March 25, 2002 whereby the Company and the Operating Partnership, for good and valuable consideration, agreed to issue to the Unit Holders 1,398,068 common limited partnership units (the “Contribution Units”) in the Operating
Partnership; 
 
WHEREAS, pursuant to the
Partnership Agreement (as defined below), the Contribution Units that will be owned by the Unit Holders will be redeemable for cash or exchangeable, at the option of the Company, for shares of common stock of the Company, par value $.01 per share
(the “Common Stock”), upon the terms and subject to the conditions contained therein; and 
 
WHEREAS, the Unit Holders are willing to enter into the Contribution and Settlement Agreement in consideration of receiving, among other
things, the Contribution Units and the registration rights provided for in this Agreement; 
 
NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 
 
ARTICLE I

DEFINITIONS 
 
SECTION 1.1.    Definitions.    In addition to the definitions set forth above, the
following terms, as used herein, have the following meanings: 
 
“Affiliate” of any Person means any other Person directly or indirectly controlling or controlled by or under common control with such Person. For the purposes of this definition, “control” when used with respect
to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing. 
 
“Agreement” means this Registration Rights Agreement, as it may be amended, supplemented or restated from time to time. 
 
“Articles of Incorporation” means the Articles of Amendment and Restatement of the Company as filed
with the Secretary of State of the State of Maryland, as amended, modified or restated from time to time. 
 
“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York or Los
Angeles, California are authorized by law to close. 
 
“Code” means the Internal Revenue Code of 1986, as amended from time to time or any successor statute thereto, as interpreted by the applicable regulations thereunder. 
 
“Commission” means the Securities and Exchange
Commission. 
 
“Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
 
“General Partner” means the Company or its successors as general partner of the Operating Partnership. 
 

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“Holder” means any Unit Holder who is the record or beneficial owner of any Registrable Security or any assignee or transferee of such Registrable Security (including assignments or transfers of Registrable Securities to
such assignees or transferees as a result of the foreclosure on any loans secured by such Registrable Securities) unless such Registrable Security is acquired in a public distribution pursuant to a registration statement under the Securities Act or
pursuant to transactions exempt from registration under the Securities Act, in each such case where securities sold in such transaction may be resold without subsequent registration under the Securities Act. 
 
“Incapacitated” shall have the meaning set forth in
the Partnership Agreement. 
 
“Ownership Limit
Provisions” mean the various provisions of the Articles of Incorporation set forth in Article IV thereof restricting the ownership of Common Stock by certain Persons to specified percentages of the outstanding Common Stock. 
 
“Partnership Agreement” means the Fourth Amended and
Restated Agreement of Limited Partnership of Kilroy Realty, L.P. dated as of November 24,1998, as the same may be amended, modified or restated from time to time. 
 
“Person” means an individual or a corporation, partnership, limited liability company, association,
trust, or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 
“Piggy-Back Registration” means a Piggy-Back Registration as defined in Section 2.2 hereof. 
 
“REIT” means a real estate investment trust under
Section 856 through Section 860 of the Code. 
 
“Registrable Securities” means shares of Common Stock issuable upon exchange of Contribution Units, at any time owned, either of record or beneficially, by any Holder until (i) a registration statement covering such
securities has been declared effective by the Commission and such shares have been sold or transferred pursuant to such effective registration statement, (ii) such shares are sold under circumstances in which all of the applicable conditions of Rule
144 under the Securities Act (or any similar provisions then in force) under the Securities Act are met or under which such shares may be sold pursuant to Rule 144(k) under the Securities Act or (iii) such shares have been otherwise transferred in a
transaction that would constitute a sale thereof under the Securities Act, the Company has delivered a new certificate or other evidence of ownership for such shares not bearing the Securities Act restricted stock legend and such shares may be
resold without subsequent registration under the Securities Act. 
 
“Securities Act” means the Securities Act of 1933, as amended. 
 
“Selling Holder” means a Holder who is selling Registrable Securities pursuant to a registration statement under the Securities Act pursuant to this Agreement. 
 
“Underwriter” means a securities dealer who
purchases any Registrable Securities as principal and not as part of such dealer’s market-making activities. 
 
ARTICLE II 
REGISTRATION RIGHTS 
 
SECTION 2.1.    Shelf Registration.

 
(a)  The Company shall prepare and
file a “shelf” registration statement with respect to shares of Common Stock issuable upon the exchange of Contribution Units covering the issuance by the Company and the resale thereof by the Holders on an appropriate form for an offering
to be made on a continuous basis pursuant to 

 

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Rule 415 under the Securities Act (the “Shelf Registration Statement”) and shall use its best efforts to cause the Shelf
Registration Statement to be declared effective on or as soon as practicable after the first anniversary of the date on which the Contribution Units were issued, and to keep such Shelf Registration Statement continuously effective for a period
ending when all shares of Common Stock covered by the Shelf Registration Statement have been issued and resold. 
 
(b)  In furtherance of Section 18.2(B) of the Partnership Agreement, if a Lender (as defined therein) has exercised its remedies
under a pledge of the Contribution Units and becomes the owner of such Contribution Units, then, to the extent that such Lender is entitled to the Redemption Right as set forth in Section 18.2(B) of the Partnership Agreement, such Lender may require
the Company to file a Shelf Registration Statement, or amend an existing Shelf Registration Statement, for the resale of the Common Stock issuable upon exchange of such Contribution Units and the Company shall use its best efforts to cause such
Shelf Registration Statement to become effective (or to be so amended, as applicable) as soon as commercially practicable, and to keep such Shelf Registration Statement continuously effective for a period ending when all shares of Common Stock
covered by the Shelf Registration Statement have been resold. 
 
(c)  In furtherance of Section 18.2(C) of the Partnership Agreement, following the occurrence of a Change of Control (as defined therein), and to the extent the Unit Holders are entitled to exercise Redemption Rights
pursuant to the provisions of Section 18.2(C), the Company will file a Shelf Registration Statement, or amend the existing Shelf Registration Statement, for the resale of the Common Stock issuable upon exchange of the Contribution Units held by such
Unit Holders, and the Company will use its best efforts to cause such Shelf Registration Statement to become effective (or to be so amended, as applicable) as soon as commercially practicable, and to keep such Shelf Registration Statement
continuously effective for a period ending when all shares of Common Stock covered by the Shelf Registration have been sold. 
 
SECTION 2.2.    Piggy-Back Registration.    (a) If the Company proposes to file a
registration statement under the Securities Act with respect to an underwritten offering by the Company for its own account (a “Primary Registration”) or for the account of any of its respective securityholders of Common Stock (other
than (i) any registration statement filed by the Company under the Securities Act relating to an offering of Common Stock for its own account as a result of the exercise of the exchange rights set forth in Section 8.6 of the Partnership Agreement or
in connection with any dividend reinvest or direct purchase plan, and covering the resale by the Holders of the shares of common stock received in such exchange, or (ii) a registration statement on Form S-4 or S-8 (or any substitute form that may be
adopted by the Commission) or filed in connection with an exchange offer or offering of securities solely to the Company’s existing securityholders) (a “Secondary Registration”)), then the Company shall give written notice of such
proposed filing to the Holders of Registrable Securities as soon as practicable (but in no event less than ten (10) days before the anticipated filing date), and such notice shall offer such Holders the opportunity to register such number of shares
of Registrable Securities as each such Holder may request (a “Piggy-Back Registration”). The Company shall use its commercially reasonable efforts to cause the managing Underwriter or Underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in a Piggy-Back Registration to be included on the same terms and conditions as any similar securities of the Company included therein. 
 
(b)  Withdrawal from
Registration.    Any Holder requesting inclusion of Registrable Securities pursuant to this Section 2.2 may, at any time prior to the effective date of the registration statement relating to such registration, revoke such
request by delivering written notice of such revocation to the Company; provided, however, that if the Company, in consultation with its financial and legal advisors, determines that such revocation would materially delay the
registration or otherwise require a recirculation of the prospectus contained in the registration statement, then such Holder shall have no such right to revoke its request. If the withdrawal of any Registrable Securities would allow, within the
marketing limitations set forth above, the inclusion in the underwriting of a greater number of shares of Registrable Securities, then, to the extent practicable and without delaying the underwriting, the Company shall offer to the Holders an
opportunity to include additional shares of Registrable Securities in the proportions discussed in Section 2.3 below. 
 

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(c)  Termination or Withdrawal by the Company.    The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 prior to the effectiveness of
such registration whether or not any Holder has elected to include securities in such registration. 
 
SECTION 2.3.    Reduction of Offering.    Notwithstanding anything contained herein, if the
managing Underwriter or Underwriters of an offering described in Section 2.2 hereof are of the opinion that (i) the size of the offering that the Holders, the Company and/or such other persons intend to make or (ii) the kind of securities that the
Holders, the Company and/or any other persons or entities intend to include in such offering are such that the success of the offering would be adversely affected by inclusion of the Registrable Securities requested to be included, then (A) if the
size of the offering is the basis of such Underwriter’s opinion, the amount of securities to be offered for the accounts of Holders shall be reduced pro rata (according to the Registrable Securities proposed for registration) to the extent
necessary to reduce the total amount of securities to be included in such offering to the amount recommended by such managing Underwriter or Underwriters; provided that if securities are being offered for the account of other persons or
entities as well as the Company, then (1) in the case of a Primary Registration, the reduction in the amount of securities requested to be offered shall be made first pro rata among securities offered for the accounts of Holders and such other
persons or entities, and (2) in the case of a Secondary Registration, the reduction in the amount of securities requested to be offered shall be made in accordance with the terms of the registration rights agreement pursuant to which such Secondary
Registration is made, provided that if any such registration rights agreement is silent with respect to reductions in shares being registered thereunder, then with respect to the Registrable Securities intended to be offered by Holders, the
proportion by which the amount of such class of securities intended to be offered by Holders is reduced shall not exceed the proportion by which the amount of such class of securities intended to be offered by such other persons or entities is
reduced and (B) if the combination of securities to be offered is the basis of such Underwriter’s opinion, (x) the Registrable Securities to be included in such offering shall be reduced as described in clause (A) above (subject to the proviso
in clause (A)) or, (y) if the actions described in clause (x) would, in the judgment of the managing Underwriter, be insufficient to substantially eliminate the adverse effect that inclusion of the Registrable Securities requested to be included
would have on such offering, such Registrable Securities will be excluded from such offering. 
 
SECTION 2.4.    Registration Procedures; Filings; Information.    In connection with any Shelf Registration Statement under Section 2.1 hereof, the
Company will use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof as quickly as practicable, and in connection with any such request: 
 
(a)  The Company will as expeditiously as possible
prepare and file with the Commission a registration statement on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for the sale of the Registrable Securities to be
registered thereunder in accordance with the intended method of distribution thereof, and use its best efforts to cause such filed registration statement to become and remain effective for a period of not less than 180 days or in the case of a Shelf
Registration Statement as provided in Section 2.1 hereof. 
 
(b)  The Company will, if requested, prior to filing a registration statement or prospectus or any amendment or supplement thereto, furnish to each Selling Holder and each Underwriter, if any, of the Registrable Securities
covered by such registration statement or prospectus copies of such registration statement or prospectus or any amendment or supplement thereto as proposed to be filed, and thereafter furnish to such Selling Holder and Underwriter, if any, such
number of conformed copies of such registration statement, each amendment and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such registration statement
(including each preliminary prospectus) and such other documents as such Selling Holder or Underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Selling Holder. 
 

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(c)  After the filing of the registration statement, the Company will promptly notify each Selling Holder of Registrable Securities covered by such registration statement of any stop order issued or threatened by the
Commission and take all reasonable actions required to prevent the entry of such stop order or to remove it if entered. 
 
(d)  The Company will use its best efforts to (i) register or qualify the Registrable Securities under such other securities or
blue sky laws of such jurisdictions in the United States (where an exemption is not available) as any Selling Holder or managing Underwriter or Underwriters, if any, reasonably (in light of such Selling Holder’s intended plan of distribution)
requests and (ii) cause such Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts and
things that may be reasonably necessary or advisable to enable such Selling Holder to consummate the disposition of the Registrable Securities owned by such Selling Holder; provided that the Company will not be required to (A) qualify
generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (d), (B) subject itself to taxation in any such jurisdiction or (C) consent to general service of process in any such
jurisdiction. 
 
(e)  The Company will
immediately notify each Selling Holder of such Registrable Securities, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the occurrence of an event requiring the preparation of a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances then existing, not misleading and promptly make available to each Selling Holder a reasonable number of copies of any such supplement or amendment. 
 
(f)  The Company will enter into customary
agreements (including an underwriting agreement, if any, in customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities. 
 
(g)  The Company will make available for inspection
by any Selling Holder of such Registrable Securities, any Underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other professional retained by any such Selling Holder or Underwriter
(collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”) as shall be reasonably necessary to enable them to exercise their due
diligence responsibility, and cause the Company’s officers, directors and employees to supply all information reasonably requested by any Inspectors in connection with such registration statement. Records which the Company determines, in good
faith, to be confidential and which it notifies the Inspectors are confidential shall not be disclosed by the Inspectors unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such registration
statement or (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction. Each Selling Holder of such Registrable Securities agrees that information obtained by it as a result of such
inspections shall be deemed confidential and shall not be used by it as the basis for any market transactions in the securities of the Company or its Affiliates or otherwise disclosed by it unless and until such is made generally available to the
public. Each Selling Holder of such Registrable Securities further agrees that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of the Records deemed confidential. 
 
(h)  The Company will furnish to each Selling Holder and to each Underwriter, if any, a signed counterpart, addressed to such Selling Holder or Underwriter, of (i) an opinion or opinions of
counsel to the Company and (ii) a comfort letter or comfort letters from the Company’s independent public accountants (to the extent permitted by the standards of the American Institute of Certified Public Accountants), each in customary
form and covering such matters of the type customarily covered by opinions or comfort letters, as the case may be, as the Holders of a majority of the Registrable Securities included in such offering or the managing Underwriter or Underwriters
therefor reasonably requests. 
 

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(i)  The Company will otherwise use its best efforts to comply with all applicable rules and regulations of the Commission, and make available to its securityholders, as soon as reasonably practicable, an earnings statement
covering a period of twelve (12) months, beginning within three (3) months after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of the
Commission promulgated thereunder (or any successor rule or regulation hereafter adopted by the Commission). 
 
(j)  The Company will use its best efforts to cause all such Registrable Securities to be listed on each securities exchange on
which similar securities issued by the Company are then listed. 
 
The Company may require, as a condition precedent to the obligations of the Company under this Agreement, each Selling Holder of Registrable Securities to promptly furnish in writing to the Company such information regarding such
Selling Holder, the Registrable Securities held by it and the intended method of distribution of the Registrable Securities as the Company may from time to time reasonably request and such other information as may be legally required in connection
with such registration. 
 
Each Selling Holder
agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 2.4(e) hereof, such Selling Holder will forthwith discontinue disposition of Registrable Securities pursuant to the registration
statement and prospectus covering such Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 2.4(e) hereof, and, if so directed by the Company, such Selling
Holder will deliver to the Company all copies, other than permanent file copies then in such Selling Holder’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. Each Selling
Holder of Registrable Securities agrees that it will immediately notify the Company at any time when a prospectus relating to the registration of such Registrable Securities is required to be delivered under the Securities Act of the happening of an
event as a result of which information previously furnished by such Selling Holder to the Company in writing for inclusion in such prospectus contains an untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading. In the event the Company shall give such notice, the Company shall extend the period during which such registration statement
shall be maintained effective (including the period referred to in Section 2.4(a) hereof) by the number of days during the period from and including the date of the giving of notice pursuant to Section 2.4(e) hereof to the date when the Company
shall make available to the Selling Holder of Registrable Securities covered by such registration statement a prospectus supplemented or amended to conform with the requirements of Section 2.4(e) hereof. 
 
SECTION 2.5.    Registration
Expenses.    In connection with any registration statement required to be filed hereunder, the Company shall pay the following registration expenses incurred in connection with the registration hereunder (the
“Registration Expenses”): (i) all registration and filing fees, (ii) fees and expenses of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities), (iii) printing expenses, (iv) internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), (v) the fees and expenses incurred in connection
with the listing of the Registrable Securities on each securities exchange on which similar securities issued by the Company are then listed, (vi) reasonable fees and disbursements of counsel for the Company and customary fees and expenses for
independent certified public accountants retained by the Company (including the expenses of any comfort letters or costs associated with the delivery by independent certified public accountants of a comfort letter or comfort letters requested
pursuant to Section 2.4(h) hereof), (vii) the reasonable fees and expenses of any special experts retained by the Company in connection with such registration, and (viii) reasonable fees and expenses of one counsel (who shall be reasonably
acceptable to the Company) for the Selling Holders. The Company shall have no obligation to pay any underwriting fees, discounts or commissions attributable to the sale of Registrable Securities, or any out-of-pocket expenses of the Holders (or the
agents who manage their accounts) or any transfer taxes relating to the registration or sale of the Registrable Securities. 
 

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SECTION
2.6.    Indemnification by the Company.    The Company agrees to indemnify and hold harmless each Selling Holder of Registrable Securities, its officers, directors and agents, and each Person, if any,
who controls such Selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities caused by any untrue statement or alleged untrue statement
of a material fact contained in any registration statement or prospectus relating to the Registrable Securities (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus, or
caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information furnished in writing to the Company by such Selling Holder or on such Selling Holder’s
behalf expressly for inclusion therein. The Company also agrees to indemnify any Underwriters of the Registrable Securities, their officers and directors and each Person who controls such Underwriters within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act on substantially the same basis as that of the indemnification of the Selling Holders provided in this Section 2.6, provided that the foregoing indemnity with respect to any preliminary
prospectus shall not inure to the benefit of any Underwriter of the Registrable Securities from whom the person asserting any such losses, claims, damages or liabilities purchased the Registrable Securities which are the subject thereof if such
person did not receive a copy of the prospectus (or the prospectus as supplemented) at or prior to the confirmation of the sale of such Registrable Securities to such person in any case where such delivery is required by the Securities Act and the
untrue statement or omission of a material fact contained in such preliminary prospectus was corrected in the prospectus (or the prospectus as supplemented). 
 
SECTION 2.7.    Indemnification by Holders of Registrable Securities.    Each Selling
Holder agrees, severally but not jointly, to indemnify and hold harmless the Company, its officers, directors and agents and each Person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act to the same extent as the foregoing indemnity from the Company to such Selling Holder, but only with respect to information relating to such Selling Holder furnished in writing by such Selling Holder or on such Selling Holder’s
behalf expressly for use in any registration statement or prospectus relating to the Registrable Securities, or any amendment or supplement thereto, or any preliminary prospectus. In case any action or proceeding shall be brought against the Company
or its officers, directors or agents or any such controlling person, in respect of which indemnity may be sought against such Selling Holder, such Selling Holder shall have the rights and duties given to the Company, and the Company or its officers,
directors or agents or such controlling person shall have the rights and duties given to such Selling Holder, by Section 2.6 hereof. Each Selling Holder also agrees to indemnify and hold harmless Underwriters of the Registrable Securities, their
officers and directors and each Person who controls such Underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act on substantially the same basis as that of the indemnification of the Company provided in
this Section 2.7. 
 
SECTION
2.8.    Conduct of Indemnification Proceedings.    In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought
pursuant to Sections 2.6 or 2.7 hereof, such person (an “Indemnified Party”) shall promptly notify the person against whom such indemnity may be sought (an “Indemnifying Party”) in writing and the Indemnifying Party shall assume
the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses. In any such proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) the named parties to
any such proceeding (including any impleaded parties) include both the Indemnified Party and the Indemnifying Party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between
them. It is understood that the Indemnifying Party shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys 

 

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(in addition to any local counsel) at any time for all such Indemnified Parties, and that all such fees and expenses shall be reimbursed as
they are incurred. In the case of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by (i) in the case of Persons indemnified pursuant to Section 2.6 hereof, by the Selling Holders which owned a majority of
the Registrable Securities sold under the applicable registration statement and (ii) in the case of Persons indemnified pursuant to Section 2.7 hereof, the Company. The Indemnifying Party shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent, or if there be a final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any loss or liability (to
the extent stated above) by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an Indemnifying Party to reimburse the Indemnified Party for fees and expenses of
counsel as contemplated by the third sentence of this paragraph, the Indemnifying Party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than thirty
(30) Business Days after receipt by such Indemnifying Party of the aforesaid request and (ii) such Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request prior to the date of such settlement. No
Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened proceeding in which any Indemnified Party is or could have been a party and indemnity could have been sought
hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability arising out of such proceeding. 
 
SECTION 2.9.    Contribution.    If the indemnification
provided for in Sections 2.6 or 2.7 hereof is unavailable to an Indemnified Party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (i) as between the Company and the Selling Holders on the one hand and the Underwriters on the other, in such
proportion as is appropriate to reflect the relative benefits received by the Company and the Selling Holders on the one hand and the Underwriters on the other from the offering of the securities, or if such allocation is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits but also the relative fault of the Company and the Selling Holders on the one hand and of the Underwriters on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations and (ii) as between the Company on the one hand and each Selling Holder on the other, in such proportion as is
appropriate to reflect the relative fault of the Company and of each Selling Holder in connection with such statements or omissions which resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Selling Holders on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total proceeds from the offering (net of underwriting
discounts and commissions but before deducting expenses) received by the Company and the Selling Holders bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page
of the prospectus. The relative fault of the Company and the Selling Holders on the one hand and of the Underwriters on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Selling Holders or by the Underwriters. The relative fault of the Company on the one hand and of each Selling Holder on the
other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or such
Selling Holder, and the Company’s and the Selling Holder’s relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 
The Company and the Selling Holders agree that it would not be just and equitable if contribution pursuant to
this Section 2.9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an Indemnified Party as a 

 

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result of the losses, claims, damages or liabilities referred to in Sections 2.6 and 2.7 hereof shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 2.9, no Underwriter shall
be required to contribute any amount in excess of the amount by which the total price at which the securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, and no Selling Holder shall be required to contribute any amount in excess of the amount by which the total price at which the
securities of such Selling Holder were offered to the public exceeds the amount of any damages which such Selling Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Selling Holder’s
obligations to contribute pursuant to this Section 2.9 are several in the proportion that the proceeds of the offering received by such Selling Holder bears to the total proceeds of the offering received by all the Selling Holders and not joint.

 
SECTION
2.10.    Participation in Underwritten Registrations.    No Person may participate in any underwritten registration hereunder unless such Person (a) agrees to sell such Person’s securities on the
basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
in customary form and reasonably required under the terms of such underwriting arrangements and these registration rights provided for in this Article II. 
 
SECTION 2.11.    Rule 144.    The Company covenants that it will file any reports required
to be filed by it under the Securities Act and the Exchange Act and that it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable Holders to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the
Commission. Upon the request of any Holder, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements. 
 
SECTION 2.12.    Holdback Agreements. 
 
(a)  Restrictions on Public Sale by Holder of Registrable
Securities.    To the extent not inconsistent with applicable law, each Holder whose securities are included in a registration statement agrees, upon receipt of prior written notice from the Company received not later than 13
days prior to the effective date of such registration statement, not to effect any sale or distribution of the issue being registered or a similar security of the Company, or any securities convertible into or exchangeable or exercisable for such
securities, including a sale pursuant to Rule 144 under the Securities Act, during the 10 days prior to, and during the 90-day period beginning on, the effective date of such registration statement (except as part of such registration), if and to
the extent requested in writing by the Company in the case of a non-underwritten public offering or if and to the extent requested in writing by the managing Underwriter or Underwriters in the case of an underwritten public offering. 
 
(b)  In addition to the restrictions set forth in
(a) above, each Holder agrees not to effect any public sale or distribution of shares of Common Stock or any security convertible into or exchangeable or exercisable for shares of Common Stock, including a sale pursuant to Rule 144 under the
Securities Act, during the period beginning 10 days prior to, and ending 90 days after, any public offering of equity securities by the Company. The Company shall give prior written notice of such proposed public offering to Holders no later than 13
days prior to such public offering. Notwithstanding the foregoing, in the event the Company engages in a public offering of its equity securities pursuant to a registration statement registering securities to be offered on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act, the Company will be entitled to give Holders three days prior written notice of such proposed public offering and in such case each Holder agrees that 

 

9 

the period set forth above shall be changed to the period beginning two days prior to, and ending 90 days after, any such public offering of
equity securities by the Company. 
 
(c)  If the Company determines in its good faith judgment that the filing of the Shelf Registration Statement under Section 2.1 hereof or the use of any related prospectus would require the disclosure of non-public material
information that the Company has a bona fide business purpose for preserving as confidential or the disclosure of which would impede the Company’s ability to consummate a material transaction, and that the Company is not otherwise required by
applicable securities laws or regulations to disclose, upon written notice of such determination by the Company, the rights of the Holders to offer, sell or distribute any Registrable Securities pursuant to the Shelf Registration Statement or to
require the Company to take action with respect to the registration or sale of any Registrable Securities pursuant to the Shelf Registration Statement shall be suspended until the earlier of (i) the date upon which the Company notifies the Holders
in writing that suspension of such rights for the grounds set forth in this Section 2.12(c) is no longer necessary and (ii) 180 days. The Company agrees to give such notice as promptly as practicable following the date that such suspension of rights
is no longer necessary. 
 
(d)  If all
reports required to be filed by the Company pursuant to the Exchange Act have not been filed by the required date without regard to any extension, or if the consummation of any business combination by the Company has occurred or is probable for
purposes of Rule 3-05 or Article 11 of Regulation S-X under the Act, upon written notice thereof by the Company to the Holders, the rights of the Holders to offer, sell or distribute any Registrable Securities pursuant to the Shelf Registration
Statement or to require the Company to take action with respect to the registration or sale of any Registrable Securities pursuant to the Shelf Registration Statement shall be suspended until the date on which the Company has filed such reports or
obtained and filed the financial information required by Rule 3-05 or Article 11 of Regulation S-X to be included or incorporated by reference, as applicable, in the Shelf Registration Statement, and the Company shall notify the Holders as promptly
as practicable when such suspension is no longer required. 
 
ARTICLE III 
MISCELLANEOUS 
 
SECTION 3.1.    New York Stock Exchange Listing.    In the
event that the Company shall issue any Common Stock in exchange for the Contribution Units pursuant to Section 8.6 of the Partnership Agreement, then in any such case the Company agrees to cause any such shares of Common Stock to be listed on the
New York Stock Exchange prior to or concurrently with the issuance thereof by the Company. 
 
SECTION 3.2.    Remedies.    In addition to being entitled to exercise all rights provided herein and granted by law, including recovery of damages, the
Holders shall be entitled to specific performance of the rights under this Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement
and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 
 
SECTION 3.3.    Amendments and Waivers.    The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given without the prior written consent of the Company and the Holders or any such Holder’s
representative if any such Holder is Incapacitated. No failure or delay by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon any breach
thereof shall constitute a waiver of any such breach or any other covenant, duty, agreement or condition. 
 

10 

 
SECTION
3.4.    Notices.    All notices and other communications in connection with this Agreement shall be made in writing by hand delivery, registered first-class mail, telex, telecopier, or air courier
guaranteeing overnight delivery: 
 
(1)  if to any Unit Holder, initially c/o Kilroy Realty Corporation, 2250 East Imperial Highway, El Segundo, California 90245 (Attention: Legal Department), or to such other address and to such other Persons as the Unit
Holders may hereafter specify in writing; and 
 
(2)  if to the Company, initially at 2250 East Imperial Highway, El Segundo, California 90245 (Attention: Legal Department), or to such other address as the Company may hereafter specify in writing. 
 
All such notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; when received if deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if telecopied; and on the next business day, if
timely delivered to an air courier guaranteeing overnight delivery. 
 
SECTION 3.5.    Successors and Assigns.    Except as expressly provided in this Agreement, the rights and obligations of the Holders under this Agreement shall not be assignable
by any Holder to any Person that is not a Holder. This Agreement shall be binding upon the parties hereto and their respective successors and assigns. 
 
SECTION 3.6.    Counterparts.    This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Each party shall become bound by this
Agreement immediately upon affixing its signature hereto. 
 
SECTION 3.7.    Governing Law.    This Agreement shall be governed by and construed in accordance with the internal laws of the State of California without regard to the choice of law
provisions thereof. 
 
SECTION
3.8.    Severability.    In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity,
legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 
 
SECTION 3.9.    Entire Agreement.    This Agreement is
intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no
restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject matter. 
 
SECTION 3.10.    Headings.    The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning
hereof. 
 
SECTION
3.11.    No Third Party Beneficiaries.    Nothing express or implied herein is intended or shall be construed to confer upon any person or entity, other than the parties hereto and their respective
successors and assigns, any rights, remedies or other benefits under or by reason of this Agreement. 
 
(Signature Page Follows) 
 
 

11 

 
IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 
 

	 KILROY REALTY CORPORATION,
 a Maryland corporation

	
	 By:
	 	 /s/    JEFFREY C.
HAWKEN        

	 	 	 Name: Jeffrey C. Hawken
 Title: Executive Vice President and
Chief Operating Officer

 

	
	 By:
	 	 /s/    TYLER H.
ROSE        

	 	 	 Name: Tyler H. Rose
 Title: Senior Vice President and Treasurer

 

	 KILROY REALTY, L.P.,
 a Delaware limited partnership

	
	 By:
	 	 Kilroy Realty Corporation, a Maryland corporation, its general partner

	 	 	 

 

	
	 By:
	 	 /s/    JEFFREY C.
HAWKEN        

	 	 	 Name: Jeffrey C. Hawken
 TItle: Executive Vice President and Chief Operating Officer

 

	
	 By:
	 	 /s/    TYLER H.
ROSE        

	 	 	 Name: Tyler H. Rose
 TItle: Senior Vice President and Treasurer

 

12 

 
“UNIT
HOLDERS” 
 

	 ALLEN CAPITAL PARTNERS, LLC,
 a California limited liability company

	
	 By:
	 	 /s/    KEVIN A.
NOELL        

	 	 	 Kevin A. Noell
 President

 

	 COMMERCIAL MANAGEMENT CORP.,
 a California limited liability company

	
	 By:
	 	 /s/    REX
ALLEN        

	 	 	 Rex Allen
 President

 

	 ALLEN INVESTMENTS, INC.,
 a Florida corporation

	
	 By:
	 	 /s/    R. E.
ALLEN        

	 	 	 R. E. Allen
 President

 

	 TAG HOLDINGS, LLC,
 a California limited liability company

	
	 By:
	 	 ALLEN CAPITAL PARTNERS, LLC,
 a California limited liability company, Manager

	 	 	 

 

	
	 By:
	 	 /s/    KEVIN A. NOELL
        

	 	 	 Kevin A. Noell
 President

 

13Amended and Restated Declaration

 
EXHIBIT 4.1

 
AMENDED AND RESTATED DECLARATION OF TRUST

 
OF 
 
AMERICAN SAFETY CAPITAL TRUST 
 
Dated as of May 22, 2003 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 Page

	
	 	  	 ARTICLE I
INTERPRETATION AND
DEFINITIONS
	  	 
	
	 SECTION 1.1.
	  	 Definitions
	  	 1

	
	 	  	 ARTICLE II
ORGANIZATION
	  	 
	
	 SECTION 2.1.
	  	 Name
	  	 10

	 SECTION 2.2.
	  	 Office
	  	 10

	 SECTION 2.3.
	  	 Purpose
	  	 10

	 SECTION 2.4.
	  	 Authority
	  	 10

	 SECTION 2.5.
	  	 Title to Property of the Trust
	  	 10

	 SECTION 2.6.
	  	 Powers and Duties of the Trustees and the Administrators.
	  	 10

	 SECTION 2.7.
	  	 Prohibition of Actions by the Trust and the Trustees.
	  	 15

	 SECTION 2.8.
	  	 Powers and Duties of the Institutional Trustee.
	  	 16

	 SECTION 2.9.
	  	 Certain Duties and Responsibilities of the Trustees and the
Administrators.
	  	 17

	 SECTION 2.10.
	  	 Certain Rights of Institutional Trustee
	  	 19

	 SECTION 2.11.
	  	 Delaware Trustee
	  	 22

	 SECTION 2.12.
	  	 Execution of Documents
	  	 22

	 SECTION 2.13.
	  	 Not Responsible for Recitals or Issuance of Securities
	  	 22

	 SECTION 2.14.
	  	 Duration of Trust
	  	 22

	 SECTION 2.15.
	  	 Mergers
	  	 22

	
	 	  	 ARTICLE III
SPONSOR
	  	 
	
	 SECTION 3.1.
	  	 Sponsor’s Purchase of Common Securities
	  	 24

	 SECTION 3.2.
	  	 Responsibilities of the Sponsor
	  	 24

	
	 	  	 ARTICLE IV
TRUSTEES AND
ADMINISTRATORS
	  	 
	
	 SECTION 4.1.
	  	 Number of Trustees
	  	 25

	 SECTION 4.2.
	  	 Delaware Trustee
	  	 25

	 SECTION 4.3.
	  	 Institutional Trustee; Eligibility.
	  	 25

	 SECTION 4.4.
	  	 Administrators
	  	 26

	 SECTION 4.5.
	  	 Appointment, Removal and Resignation of the Trustees and the
Administrators.
	  	 26

	 SECTION 4.6.
	  	 Vacancies Among Trustees
	  	 28

	 SECTION 4.7.
	  	 Effect of Vacancies
	  	 28

	 SECTION 4.8.
	  	 Meetings of the Trustees and the Administrators
	  	 28

	 SECTION 4.9.
	  	 Delegation of Power
	  	 29

 

i 

	 SECTION 4.10.
	  	 Merger, Conversion, Consolidation or Succession to Business
	  	 29

	
	 	  	 ARTICLE V
DISTRIBUTIONS
	  	 
	
	 SECTION 5.1.
	  	 Distributions
	  	 29

	
	 	  	 ARTICLE VI
ISSUANCE OF SECURITIES
	  	 
	
	 SECTION 6.1.
	  	 General Provisions Regarding Securities.
	  	 30

	 SECTION 6.2.
	  	 Paying Agent, Transfer Agent, Calculation Agent and Registrar.
	  	 31

	 SECTION 6.3.
	  	 Form and Dating.
	  	 31

	 SECTION 6.4.
	  	 Mutilated, Destroyed, Lost or Stolen Certificates
	  	 32

	 SECTION 6.5.
	  	 Temporary Securities
	  	 32

	 SECTION 6.6.
	  	 Cancellation
	  	 32

	 SECTION 6.7.
	  	 Rights of Holders; Waivers of Past Defaults.
	  	 32

	
	 	  	 ARTICLE VII
DISSOLUTION AND TERMINATION OF
TRUST
	  	 
	
	 SECTION 7.1.
	  	 Dissolution and Termination of Trust
	  	 34

	
	 	  	 ARTICLE VIII
TRANSFER OF INTERESTS
	  	 
	
	 SECTION 8.1.
	  	 General
	  	 35

	 SECTION 8.2.
	  	 Transfer Procedures and Restrictions.
	  	 36

	 SECTION 8.3.
	  	 Deemed Security Holders
	  	 39

	
	 	  	 ARTICLE IX
LIMITATION OF LIABILITY OF HOLDERS OF
SECURITIES, TRUSTEES OR OTHERS
	  	 
	
	 SECTION 9.1.
	  	 Liability
	  	 39

	 SECTION 9.2.
	  	 Exculpation
	  	 40

	 SECTION 9.3.
	  	 Fiduciary Duty
	  	 40

	 SECTION 9.4.
	  	 Indemnification
	  	 41

	 SECTION 9.5.
	  	 Outside Businesses
	  	 44

	 SECTION 9.6.
	  	 Compensation; Fee
	  	 44

	
	 	  	 ARTICLE X
ACCOUNTING
	  	 
	
	 SECTION 10.1.
	  	 Fiscal Year
	  	 45

	 SECTION 10.2.
	  	 Certain Accounting Matters.
	  	 45

	 SECTION 10.3.
	  	 Banking
	  	 46

	 SECTION 10.4.
	  	 Withholding
	  	 46

 

ii 

	 	  	 ARTICLE XI
AMENDMENTS AND MEETINGS
	  	 
	
	 SECTION 11.1.
	  	 Amendments
	  	 47

	 SECTION 11.2.
	  	 Meetings of the Holders of the Securities; Action by Written Consent
	  	 48

	
	 	  	 ARTICLE XII
REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
AND DELAWARE TRUSTEE
	  	 
	
	 SECTION 12.1.
	  	 Representations and Warranties of Institutional Trustee
	  	 50

	 SECTION 12.2.
	  	 Representations and Warranties of Delaware Trustee
	  	 51

	
	 	  	 ARTICLE XIII
MISCELLANEOUS
	  	 
	
	 SECTION 13.1.
	  	 Notices
	  	 51

	 SECTION 13.2.
	  	 Governing Law
	  	 53

	 SECTION 13.3.
	  	 Submission to Jurisdiction.
	  	 53

	 SECTION 13.4.
	  	 Intention of the Parties
	  	 53

	 SECTION 13.5.
	  	 Headings
	  	 53

	 SECTION 13.6.
	  	 Successors and Assigns
	  	 53

	 SECTION 13.7.
	  	 Partial Enforceability
	  	 54

	 SECTION 13.8.
	  	 Counterparts
	  	 54

	
	 	  	 ANNEXES AND EXHIBITS
	  	 
	
	 ANNEX I
	  	 Terms of Capital Securities and Common Securities
	  	 
	 EXHIBIT A-1
	  	 Form of Capital Security Certificate
	  	 
	 EXHIBIT A-2
	  	 Form of Common Security Certificate
	  	 
	 EXHIBIT B
	  	 Form of Transferee Certificate to be Executed by Transferees Other than
QIBS
	  	 
	 EXHIBIT C
	  	 Form of Transferor Certificate to be Executed for QIBS
	  	 
	 EXHIBIT D
	  	 Form of Officers’ Certificate
	  	 

 
 

iii 

 
AMENDED AND
RESTATED DECLARATION OF TRUST 
 
OF 
 
AMERICAN SAFETY CAPITAL TRUST 
 
MAY 22, 2003 
 
AMENDED AND RESTATED DECLARATION OF TRUST (as amended or
supplemented from time to time in accordance with the terms hereof, this “Declaration”), dated and effective as of May 22, 2003, by the Trustees (as defined herein), the Administrators (as defined herein), the Guarantor (as defined
herein), the Sponsor (as defined herein) and the holders from time to time of undivided beneficial interests in the assets of the Trust (as defined herein) to be issued pursuant to this Declaration. 
 
WHEREAS, certain of the Trustees and the Sponsor established
AMERICAN SAFETY CAPITAL TRUST (the “Trust”), a statutory trust under the Statutory Trust Act (as defined herein), pursuant to a Declaration of Trust, dated as of May 12, 2003 (the “Original Declaration”), and a Certificate of
Trust filed with the Secretary of State of the State of Delaware on May 12, 2003, for the sole purpose of issuing and selling the Securities (as defined herein) representing undivided beneficial interests in the assets of the Trust, investing the
proceeds thereof in the Debentures (as defined herein) of the Debenture Issuer (as defined herein) and engaging in those activities necessary, advisable or incidental thereto; 
 
WHEREAS, as of the date hereof, no interests in the assets of the Trust have been issued; and 
 
WHEREAS, all of the Trustees, the Administrators, the
Guarantor and the Sponsor, by this Declaration, amend and restate each and every term and provision of the Original Declaration. 
 
NOW, THEREFORE, it being the intention of the parties hereto to continue the Trust as a statutory trust under the Statutory Trust Act and
that this Declaration constitutes the governing instrument of such statutory trust, and that all assets contributed to the Trust will be held in trust for the benefit of the holders, from time to time, of the Securities, subject to the provisions of
this Declaration, and, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties, intending to be legally bound hereby, amend and restate in its
entirety the Original Declaration and agree as follows: 
 
ARTICLE I 
 
INTERPRETATION AND
DEFINITIONS 
 
SECTION 1.1. Definitions.
Unless the context otherwise requires: 
 
(a) capitalized terms used in this Declaration but not defined in the preamble above or elsewhere herein have the respective meanings assigned to them in this Section 1.1 or, if not defined in this Section 1.1 or elsewhere herein, in
the Indenture; 

 
(b) a term defined anywhere in this Declaration has the same meaning throughout; 
 
(c) all references to “the Declaration” or “this Declaration” are to this Declaration and each Annex
and Exhibit hereto, as modified, supplemented or amended from time to time; 
 
(d) all references in this Declaration to Articles and Sections and Annexes and Exhibits are to Articles and Sections of and Annexes and Exhibits to this Declaration unless otherwise specified;

 
(e) a term defined in the Trust
Indenture Act (as defined herein) 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 Interest” has the meaning set forth in
the Indenture. 
 
“Administrative Action”
has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Administrators” means each of Steven B. Mathis, Stephen R. Crim and Fred J. Pinckney, solely in such Person’s capacity as Administrator of the Trust continued hereunder and not in such Person’s individual
capacity, or such Administrator’s successor in interest in such capacity, or any successor appointed as herein provided. 
 
“Affiliate” has the same meaning as given to that term in Rule 405 of the Securities Act or any successor rule thereunder.

 
“Authorized Officer” of a Person means
any Person that is authorized to bind such Person. 
 
“Bankruptcy Event” means, with respect to any Person: 
 
(a) a court having jurisdiction in the premises enters a decree or order for relief in respect of such Person in an involuntary case under any applicable bankruptcy, insolvency or other similar law now
or hereafter in effect, or appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person or for any substantial part of its property, or orders the winding-up or liquidation of its affairs, and such
decree, appointment or order remains unstayed and in effect for a period of 90 consecutive days; or 
 
(b) such Person commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, consents to the entry of an order for relief in an involuntary case under any such law, or consents to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of such Person or of any substantial part of its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts as they become due. 
 

2 

 
“Business
Day” means any day other than Saturday, Sunday or any other day on which banking institutions in Wilmington, Delaware, The City of New York or Atlanta, Georgia are permitted or required by law or executive order to close. 
 
“Calculation Agent” has the meaning set forth in
Section 1.01 of the Indenture. 
 
“Capital
Securities” has the meaning set forth in Section 6.1(a). 
 
“Capital Security Certificate” means a definitive Certificate registered in the name of the Holder representing a Capital Security substantially in the form of Exhibit A-1. 
 
“Certificate” means any certificate evidencing
Securities. 
 
“Certificate of Trust”
means the certificate of trust filed with the Secretary of State of the State of Delaware with respect to the Trust, as amended and restated from time to time. 
 
“Closing Date” has the meaning set forth in the Placement Agreement. 
 
“Code” means the Internal Revenue Code of 1986, as
amended from time to time, or any successor legislation. 
 
“Commission” means the United States Securities and Exchange Commission. 
 
“Common Securities” has the meaning set forth in Section 6.1(a). 
 
“Common Security Certificate” means a definitive Certificate registered in the name of the Holder
representing a Common Security substantially in the form of Exhibit A-2. 
 
“Company Indemnified Person” means (a) any Administrator, (b) any Affiliate of any Administrator, (c) any officers, directors, shareholders, members, partners, employees, representatives or agents of any
Administrator or (d) any officer, employee or agent of the Trust or its Affiliates. 
 
“Comparable Treasury Issue” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Comparable Treasury Price” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Corporate Trust Office” means the office of the
Institutional Trustee at which at any particular time its corporate trust business shall be principally administered, which at all times shall be located within the United States and at the time of execution of this Declaration shall be Rodney
Square North, 1100 North Market Street, Wilmington, DE 19890-0001, Attention: Corporate Trust Administration. 
 
“Coupon Rate” has the meaning set forth in paragraph 2(a) of Annex I. 
 

3 

 
“Covered
Person” means (a) any Administrator, officer, director, shareholder, partner, member, representative, employee or agent of the Trust or the Trust’s Affiliates or (b) any Holder of Securities. 
 
“Debenture Issuer” means American Safety Holdings
Corp., an insurance holding company incorporated in the State of Georgia, in its capacity as issuer of the Debentures under the Indenture, and any permitted successor under the Indenture. 
 
“Debenture Trustee” means Wilmington Trust Company, a Delaware banking corporation, not in its
individual capacity but solely as trustee under the Indenture until a successor is appointed thereunder, and thereafter means such successor trustee. 
 
“Debentures” means the Floating Rate Junior Subordinated Debt Securities due 2033 to be issued by the Debenture Issuer under the
Indenture. 
 
“Default” means any event,
act or condition that with notice or lapse of time, or both, would constitute an Event of Default. 
 
“Deferred Interest” means any interest on the Debentures that would have been overdue and unpaid for more than one Distribution
Payment Date but for the imposition of an Extension Period, and the interest that shall accrue (to the extent that the payment of such interest is legally enforceable) on such interest at the Coupon Rate applicable during such Extension Period,
compounded quarterly from the date on which such Deferred Interest would otherwise have been due and payable until paid or made available for payment. 
 
“Definitive Capital Securities” means any Capital Securities in definitive form issued by the Trust. 
 
“Delaware Trustee” has the meaning set forth in
Section 4.2. 
 
“Direct Action” has the
meaning set forth in Section 2.8(e). 
 
“Distribution” means a distribution payable to Holders of Securities in accordance with Section 5.1. 
 
“Distribution Payment Date” has the meaning set forth in paragraph 2(e) of Annex I. 
 
“Distribution Period” has the meaning set forth in
paragraph 2(a) of Annex I. 
 
“Event of
Default” means the occurrence of an Indenture Event of Default. 
 
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor legislation. 
 
“Extension Period” has the meaning set forth in paragraph 2(e) of Annex I. 
 

4 

 
“Fiduciary Indemnified Person” means each of the Institutional Trustee (including in its individual capacity), the Delaware Trustee (including in its individual capacity), any Affiliate of the Institutional Trustee or the
Delaware Trustee, and any officers, directors, shareholders, members, partners, employees, representatives, custodians, nominees or agents of the Institutional Trustee or the Delaware Trustee. 
 
“Fiscal Year” has the meaning set forth in Section
10.1 
 
“Guarantee” means the Guarantee
Agreement, dated as of the Closing Date, of the Guarantor in respect of the Capital Securities. 
 
“Guarantor” means American Safety Insurance Group, Ltd., an insurance holding company incorporated under the laws of Bermuda, in its capacity as guarantor under the Indenture and the
Guarantee, and any permitted successor under the Indenture. 
 
“Holder” means a Person in whose name a Certificate representing a Security is registered on the register maintained by or on behalf of the Registrar, such Person being a beneficial owner within the meaning of the Statutory
Trust Act. 
 
“Indemnified Person” means
a Company Indemnified Person or a Fiduciary Indemnified Person. 
 
“Indenture” means the Indenture, dated as of the Closing Date, among the Debenture Issuer, the Guarantor and the Debenture Trustee, and any indenture supplemental thereto pursuant to which the Debentures are to be issued.

 
“Indenture Event of Default” means an
“Event of Default” as defined in the Indenture. 
 
“Institutional Trustee” means the Trustee meeting the eligibility requirements set forth in Section 4.3. 
 
“Investment Company” means an investment company as defined in the Investment Company Act. 
 
“Investment Company Act” means the Investment
Company Act of 1940, as amended from time to time, or any successor legislation. 
 
“Investment Company Event” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Legal Action” has the meaning set forth in Section 2.8(e). 
 
“LIBOR” means the London Interbank Offered Rate for three-month U.S. Dollar deposits in Europe as
determined by the Calculation Agent according to paragraph 2(b) of Annex I. 
 
“LIBOR Banking Day” has the meaning set forth in paragraph 2(b)(1) of Annex I. 
 

5 

 
“LIBOR
Business Day” has the meaning set forth in paragraph 2(b)(1) of Annex I. 
 
“LIBOR Determination Date” has the meaning set forth in paragraph 2(b)(1) of Annex I. 
 
“Liquidation” has the meaning set forth in paragraph 3 of Annex I. 
 
“Liquidation Distribution” has the meaning set forth in paragraph 3 of Annex I. 
 
“Majority in liquidation amount of the Securities”
means Holders of outstanding Securities voting together as a single class or, as the context may require, Holders of outstanding Capital Securities or Holders of outstanding Common Securities voting separately as a class, who are the record owners
of more than 50% of the aggregate liquidation amount (including the amount that would be paid upon the redemption, liquidation or otherwise on the date upon which the voting percentages are determined, plus unpaid Distributions accrued thereon to
such date) of all outstanding Securities of the relevant class. 
 
“Maturity Date” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Maturity Redemption Price” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Officers’ Certificate” means, with respect to
any Person, a certificate signed by two Authorized Officers of such Person or, in the case of a natural Person, 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 Authorized Officer or Person, as the case may be, signing the Officers’ Certificate has read the covenant or condition and the definitions relating thereto; 
 
(b) a brief statement of the nature and scope of the examination or investigation undertaken
by each Authorized Officer or Person, as the case may be, in rendering the Officers’ Certificate; 
 
(c) a statement that each Authorized Officer or Person, as the case may be, has made such examination or investigation as,
in his or her opinion, is necessary to enable such Authorized Officer or Person, as the case may be, 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 Authorized Officer or Person, as the case may be, such condition or covenant has been complied with. 
 
“Optional Redemption Date” has the meaning set forth in paragraph 4(a) of Annex I. 
 

6 

 
“Optional
Redemption Price” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Paying Agent” has the meaning set forth in Section 6.2. 
 
“Payment Amount” has the meaning set forth in Section 5.1. 
 
“Person” means a legal person, including any individual, corporation, estate, partnership, joint
venture, association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 
 
“Placement Agreement” means the Placement Agreement
relating to the offering and sale of Capital Securities. 
 
“PORTAL” has the meaning set forth in Section 2.6(a)(i). 
 
“Primary Treasury Dealer” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Property Account” has the meaning set forth in Section 2.8(c). 
 
“Pro Rata” has the meaning set forth in paragraph 8 of Annex I. 
 
“QIB” means a “qualified institutional
buyer” as defined under Rule 144A. 
 
“Quorum” means a majority of the Administrators or, if there are only two Administrators, both of them. 
 
“Quotation Agent” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Redemption/Distribution Notice” has the meaning set
forth in paragraph 4(e) of Annex I. 
 
“Reference Banks” has the meaning set forth in paragraph 2(b)(2) of Annex I. 
 
“Registrar” has the meaning set forth in Section 6.2. 
 
“Reference Treasury Dealer” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Reference Treasury Dealer Quotations” has the
meaning set forth in paragraph 4(a) of Annex I. 
 
“Relevant Trustee” has the meaning set forth in Section 4.5(a). 
 
“Remaining Life” has the meaning set forth in paragraph 4(a) of Annex I. 
 

7 

 
“Resale
Restriction Termination Date” means, with respect to any Capital Security, the date which is the later of (i) two years (or such shorter period of time as permitted by Rule 144(k) under the Securities Act) after the later of (y) the date of
original issuance of such Capital Security and (z) the last date on which the Trust or any Affiliate of the Trust was the Holder of such Capital Security (or any predecessor thereto) and (ii) such later date, if any, as may be required by any
subsequent change in applicable law. 
 
“Responsible Officer” means, with respect to the Institutional Trustee, any officer within the Corporate Trust Office of the Institutional Trustee with direct responsibility for the administration of this Declaration,
including any vice-president, any assistant vice-president, any secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or other officer of the Corporate Trust Office of the Institutional Trustee customarily
performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge
of and familiarity with the particular subject. 
 
“Restricted Securities Legend” has the meaning set forth in Section 8.2(c). 
 
“Rule 144A” means Rule 144A under the Securities Act. 
 
“Rule 3a-5” means Rule 3a-5 under the Investment Company Act. 
 
“Rule 3a-7” means Rule 3a-7 under the Investment
Company Act. 
 
“Securities” means the
Common Securities and the Capital Securities. 
 
“Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor legislation. 
 
“Special Event” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Special Redemption Date” has the meaning set forth
in paragraph 4(a) of Annex I. 
 
“Special
Redemption Price” has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Sponsor” means American Safety Holdings Corp., an insurance holding company that is incorporated in the State of Georgia, or any permitted successor of the Debenture Issuer under the
Indenture, in its capacity as sponsor of the Trust. 
 
“Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 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 4.5(e). 
 
“Successor
Entity” has the meaning set forth in Section 2.15(b). 
 

8 

 
“Successor Institutional Trustee” has the meaning set forth in Section 4.5(b). 
 
“Successor Securities” has the meaning set forth in Section 2.15(b). 
 
“Super Majority” has the meaning set forth in
paragraph 5(b) of Annex I. 
 
“Tax Event”
has the meaning set forth in paragraph 4(a) of Annex I. 
 
“Telerate Page 3750” has the meaning set forth in paragraph 2(b)(1) of Annex I. 
 
“10% in liquidation amount of the Securities” means Holders of outstanding Securities voting together as a single class or, as
the context may require, Holders of outstanding Capital Securities or Holders of outstanding Common Securities voting separately as a class, who are the record owners of 10% or more of the aggregate liquidation amount (including the stated amount
that would be paid upon the redemption, liquidation or otherwise on the date upon which the voting percentages are determined, plus unpaid Distributions accrued thereon to such date) of all outstanding Securities of the relevant class. 
 
“Transfer Agent” has the meaning set forth in
Section 6.2. 
 
“Treasury Rate” has the
meaning set forth in paragraph 4(a) of Annex I. 
 
“Treasury Regulations” means the income tax regulations, including temporary and proposed regulations, promulgated under the Code by the United States Treasury, as such regulations may be amended from time to time
(including corresponding provisions of succeeding regulations). 
 
“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended from time-to-time, or any successor legislation. 
 
“Trustee” or “Trustees” means each Person who has signed this Declaration as a trustee, so long as such Person shall
continue in office in accordance with the terms hereof, and all other Persons who may from time to time be duly appointed, qualified and serving as Trustees in accordance with the provisions hereof, and references herein to a Trustee or the Trustees
shall refer to such Person or Persons solely in their capacity as trustees hereunder. 
 
“Trust Property” means (a) the Debentures, (b) any cash on deposit in, or owing to, the Property Account and (c) all proceeds and rights in respect of the foregoing and any other property and
assets for the time being held or deemed to be held by the Institutional Trustee pursuant to the trusts of this Declaration. 
 
“U.S. Person” means a United States Person as defined in Section 7701(a)(30) of the Code. 
 
ARTICLE II 
 
ORGANIZATION 
 

9 

 
SECTION 2.1.
Name. The Trust is named “American Safety Capital Trust,” as such name may be modified from time to time by the Administrators following written notice to the Institutional Trustee and the Holders of the Securities. The Trust’s
activities may be conducted under the name of the Trust or any other name deemed advisable by the Administrators. 
 
SECTION 2.2. Office. The address of the principal office of the Trust, which shall be in a state of the United States or the
District of Columbia, is c/o American Safety Holdings Corp., 1845 The Exchange, Suite 200, Atlanta, Georgia 30339. On ten Business Days’ written notice to the Institutional Trustee and the Holders of the Securities, the Administrators may
designate another principal office, which shall be in a state of the United States or the District of Columbia. 
 
SECTION 2.3. Purpose. The exclusive purposes and functions of the Trust are (a) to issue and sell the Securities representing
undivided beneficial interests in the assets of the Trust, (b) to invest the gross proceeds from such sale in the Debentures and (c) except as otherwise limited herein, to engage in only those other activities deemed necessary, advisable or
incidental thereto by the Institutional Trustee, including, without limitation, those activities specified in this Declaration. 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 2.4. Authority. Except as specifically provided in this Declaration, the Institutional Trustee
shall have exclusive and complete authority to carry out the purposes of the Trust. An action taken by a Trustee on behalf of the Trust and in accordance with such Trustee’s 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. The Administrators shall have only those ministerial duties set forth herein with respect to accomplishing the purposes of the Trust and are not intended to be trustees or fiduciaries with respect to the
Trust or the Holders. The Institutional Trustee shall have the right, but shall not be obligated except as provided in Section 2.6, to perform those duties assigned to the Administrators. 
 
SECTION 2.5. Title to Property of the Trust. Except as provided in Section 2.8 with respect to the
Debentures and the Property Account or as otherwise provided in this Declaration, legal title to all assets of the Trust shall be vested in the Trust. The Holders shall not have legal title to any part of the assets of the Trust, but shall have an
undivided beneficial interest in the assets of the Trust. 
 
SECTION 2.6. Powers and Duties of the Trustees and the Administrators. 
 
(a) The Trustees and the Administrators shall conduct the affairs of the Trust in accordance with the terms of this
Declaration. Subject to the limitations set forth in paragraph (b) of this Section, and in accordance with the following provisions (i) and (ii), the Administrators and, at the direction of the Administrators, the Trustees, shall have the authority

 

10 

to enter into all transactions and agreements determined by the Administrators to be appropriate in exercising the authority, express or
implied, otherwise granted to the Trustees or the Administrators, as the case may be, under this Declaration, and to perform all acts in furtherance thereof, including without limitation, the following: 
 
(i) Each Administrator shall have the power,
duty and authority, and is hereby authorized, to act on behalf of the Trust with respect to the following matters: 
 
(A) the issuance and sale of the Securities; 
 
(B) to cause the Trust to enter into, and to execute, deliver and perform on behalf of the
Trust, such agreements as may be necessary or desirable in connection with the purposes and function of the Trust, including agreements with the Paying Agent, a subscription agreement for Debentures between the Trust and the Sponsor, a subscription
agreement for Capital Securities between the Trust and the purchaser of the Capital Securities and a subscription agreement for Common Securities between the Trust and the Sponsor; 
 
(C) ensuring compliance with the Securities Act and applicable securities or blue sky laws
of states and other jurisdictions; 
 
(D) if and at such time determined solely by the Sponsor at the request of the Holders, assisting in the designation of the Capital Securities for trading in the Private Offering, Resales and Trading through the Automatic Linkages
(“PORTAL”) system if available; 
 
(E) the sending of notices (other than notices of default) and other information regarding the Securities and the Debentures to the Holders in accordance with this Declaration, including notice of any notice received from the
Debenture Issuer of its election to defer payments of interest on the Debentures by extending the interest payment period under the Indenture; 
 
(F) the appointment of a Paying Agent, Transfer Agent and Registrar in accordance with this Declaration; 
 
(G) execution and delivery of the Securities
in accordance with this Declaration; 
 
(H) execution and delivery of closing certificates pursuant to the Placement Agreement and the application for a taxpayer identification number; 
 
(I) unless otherwise determined by the Holders of a Majority in liquidation amount of the
Securities or as otherwise required by the Statutory Trust Act, to execute on behalf of the Trust (either acting alone 
 

11 

or together with any or all of the Administrators) any documents that the Administrators have the power to execute pursuant to this
Declaration; 
 
(J) the taking of
any action as the Sponsor or an Administrator may from time to time determine is necessary, advisable or incidental to the foregoing to give effect to the terms of this Declaration for the benefit of the Holders (without consideration of the effect
of any such action on any particular Holder); 
 
(K) to establish a record date with respect to all actions to be taken hereunder that require a record date be established, including Distributions, voting rights, redemptions and exchanges, and to issue relevant notices to the
Holders of Capital Securities and Holders of Common Securities as to such actions and applicable record dates; 
 
(L) to duly prepare and file on behalf of the Trust all applicable tax returns and tax information reports that are
required to be filed with respect to the Trust; 
 
(M) to negotiate the terms of, and the execution and delivery of, the Placement Agreement providing for the sale of the Capital Securities; 
 
(N) to employ or otherwise engage employees, agents (who may be designated as officers with
titles), managers, contractors, advisors, attorneys and consultants and pay reasonable compensation for such services; 
 
(O) to incur expenses that are necessary, advisable or incidental to carry out any of the purposes of the Trust;

 
(P) to give the certificate
required by § 314(a)(4) of the Trust Indenture Act to the Institutional Trustee, which certificate may be executed by an Administrator; and 
 
(Q) to take all action that may be necessary or appropriate for the preservation and the continuation of the Trust’s
valid existence, rights, franchises and privileges as a statutory trust under the laws of each jurisdiction (other than the State of Delaware) in which such existence is necessary to protect the limited liability of the Holders of the Capital
Securities or to enable the Trust to effect the purposes for which the Trust was created. 
 
(ii) As among the Trustees and the Administrators, the Institutional Trustee shall have the power, duty and authority, and
is hereby authorized, to act on behalf of the Trust with respect to the following matters: 
 
(A) the establishment of the Property Account; 
 

12 

 
(B) the receipt of the Debentures; 
 
(C) the collection of interest, principal and any other payments made in respect of the Debentures in the Property Account; 
 
(D) the distribution through the Paying Agent of amounts owed to the Holders in respect of the Securities; 
 
(E) the exercise of all of the rights,
powers and privileges of a holder of the Debentures; 
 
(F) the sending of notices of default and other information regarding the Securities and the Debentures to the Holders in accordance with this Declaration; 
 
(G) the distribution of the Trust Property in accordance with the terms of this Declaration;

 
(H) to the extent provided in
this Declaration, the winding up of the affairs of and liquidation of the Trust and the preparation, execution and filing of the certificate of cancellation with the Secretary of State of the State of Delaware; 
 
(I) after any Event of Default (of which the
Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)) (provided, that such Event of Default is not by or with respect to the Institutional Trustee), the taking of any action that the Institutional Trustee may from time
to time determine is necessary, advisable or incidental for the foregoing to give effect to the terms of this Declaration and protect and conserve the Trust Property for the benefit of the Holders (without consideration of the effect of any such
action on any particular Holder); 
 
(J) 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
to protect the limited liability of the Holders of the Capital Securities or to enable the Trust to effect the purposes for which the Trust was created; and 
 
(K) to undertake any actions set forth in § 317(a) of the Trust Indenture Act. 
 
(iii) The Institutional Trustee shall have
the power and authority, and is hereby authorized, to act on behalf of the Trust with respect to any of the duties, liabilities, powers or the authority of the Administrators set forth in Section 2.6(a)(i)(E) and (F) herein but shall not have a duty
to do any such act unless specifically requested to do so in writing by the Sponsor, and shall then be fully protected in acting pursuant to such written request; and in the event of a conflict 
 

13 

between the action of the Administrators and the action of the Institutional Trustee, the action of the Institutional Trustee shall prevail.

 
(b) So long as this Declaration
remains in effect, the Trust (or the Trustees or Administrators acting on behalf of the Trust) shall not undertake any business, activities or transaction except as expressly provided herein or contemplated hereby. In particular, neither the
Trustees nor the Administrators may cause the Trust to (i) acquire any investments or engage in any activities not authorized by this Declaration, (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise dispose of any of the
Trust Property or interests therein, including to Holders, except as expressly provided herein, (iii) take any action that would cause (or in the case of the Institutional Trustee, to the actual knowledge of a Responsible Officer would cause) the
Trust to fail or cease to qualify as a grantor trust for United States federal income tax purposes, (iv) incur any indebtedness for borrowed money or issue any other debt or (v) take or consent to any action that would result in the placement of a
lien on any of the Trust Property. The Institutional Trustee shall, at the sole cost and expense of the Trust subject to reimbursement under Section 9.6(a), defend all claims and demands of all Persons at any time claiming any lien on any of the
Trust Property adverse to the interest of the Trust or the Holders in their capacity as Holders. 
 
(c) In connection with the issuance and sale of the Capital Securities, the Sponsor shall have the right and
responsibility to assist the Trust with respect to, or effect on behalf of the Trust, the following (and any actions taken by the Sponsor in furtherance of the following prior to the date of this Declaration are hereby ratified and confirmed in all
respects): 
 
(i) the taking of
any action necessary to obtain an exemption from the Securities Act; 
 
(ii) the determination of the jurisdictions in which to take appropriate action to qualify or register for sale all or part of the Capital Securities and the determination of any and all such acts,
other than actions which must be taken by or on behalf of the Trust, and the advisement of and direction to the Trustees of actions they must take on behalf of the Trust, and the preparation for execution and filing of any documents to be executed
and filed by the Trust or on behalf of the Trust, as the Sponsor deems necessary or advisable in order to comply with the applicable laws of any such jurisdictions in connection with the sale of the Capital Securities; and 
 
(iii) the taking of any other actions
necessary or desirable to carry out any of the foregoing activities. 
 
(d) Notwithstanding anything herein to the contrary, the Administrators, the Institutional Trustee and the Holders of a Majority in liquidation amount of the Common Securities are authorized and
directed to conduct the affairs of the Trust and to operate the Trust so that (i) the Trust will not be deemed to be an Investment Company required to be registered under the Investment Company Act (in the case of the Institutional Trustee, to the
actual knowledge of a Responsible Officer), and (ii) the Trust will not fail to be classified as a grantor trust for United States federal income tax purposes (in the case of the Institutional Trustee, to 
 

14 

the actual knowledge of a Responsible Officer) and (iii) the Trust will not take any action inconsistent with the treatment of the Debentures
as indebtedness of the Debenture Issuer for United States federal income tax purposes (in the case of the Institutional Trustee, to the actual knowledge of a Responsible Officer). In this connection, the Institutional Trustee, the Administrators and
the Holders of a Majority in liquidation amount of the Common Securities are authorized to take any action, not inconsistent with applicable laws or this Declaration, as amended from time to time, that each of the Institutional Trustee, the
Administrators and such Holders determine in their discretion to be necessary or desirable for such purposes, even if such action adversely affects the interests of the Holders of the Capital Securities. 
 
(e) All expenses incurred by the
Administrators or the Trustees pursuant to this Section 2.6 shall be reimbursed by the Sponsor, and the Trustees shall have no obligations with respect to such expenses. 
 
(f) The assets of the Trust shall consist of the Trust Property. 
 
(g) Legal title to all Trust Property shall
be vested at all times in the Institutional Trustee (in its capacity as such) and shall be held and administered by the Institutional Trustee for the benefit of the Trust in accordance with this Declaration. 
 
(h) If the Institutional Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this Declaration and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Institutional Trustee or to such Holder, then
and in every such case the Sponsor, the Institutional Trustee and the Holders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies
of the Institutional Trustee and the Holders shall continue as though no such proceeding had been instituted. 
 
SECTION 2.7. Prohibition of Actions by the Trust and the Trustees. 
 
The Trust shall not, and the Institutional Trustee and the Administrators shall not, and the Administrators
shall cause the Trust not to, engage in any activity other than as required or authorized by this Declaration. In particular, the Trust shall not, and the Institutional Trustee and the Administrators shall not cause the Trust to: 
 
(a) invest any proceeds received by the Trust
from holding the Debentures, but shall distribute all such proceeds to Holders of the Securities pursuant to the terms of this Declaration and of the Securities; 
 
(b) acquire any assets other than as expressly provided herein; 
 
(c) possess Trust Property for other than a
Trust purpose; 
 
(d) make any
loans or incur any indebtedness other than loans represented by the Debentures; 
 
(e) possess any power or otherwise act in such a way as to vary the Trust Property or the terms of the Securities; 
 

15 

 
(f) issue any securities or other evidences of beneficial ownership of, or beneficial interest in, the Trust other than the Securities; or 
 
(g) other than as provided in this Declaration (including Annex I), (i) direct the time, method and place of exercising
any trust or power conferred upon the Debenture Trustee with respect to the Debentures, (ii) waive any past default that is waivable under the Indenture, (iii) exercise any right to rescind or annul any declaration that the principal of all the
Debentures shall be due and payable, or (iv) consent to any amendment, modification or termination of the Indenture or the Debentures where such consent shall be required unless the Trust shall have received a written opinion of counsel experienced
in such matters to the effect that such amendment, modification or termination will not cause the Trust to cease to be classified as a grantor trust for United States federal income tax purposes. 
 
SECTION 2.8. Powers and Duties of the Institutional
Trustee. 
 
(a) The legal
title to the Debentures shall be owned by and held of record in the name of the Institutional Trustee in trust for the benefit of the Trust. The right, title and interest of the Institutional Trustee to the Debentures shall vest automatically in
each Person who may hereafter be appointed as Institutional Trustee in accordance with Section 4.5. Such vesting and cessation of title shall be effective whether or not conveyancing documents with regard to the Debentures have been executed and
delivered. 
 
(b) The
Institutional Trustee shall not transfer its right, title and interest in the Debentures to the Administrators or to the Delaware Trustee. 
 
(c) The Institutional Trustee shall: 
 
(i) establish and maintain a segregated non-interest bearing trust account (the
“Property Account”) in the United States (as defined in Treasury Regulations § 301.7701-7), in the name of and under the exclusive control of the Institutional Trustee, and maintained in the Institutional Trustee’s trust
department, on behalf of the Holders of the Securities and, upon the receipt of payments of funds made in respect of the Debentures held by the Institutional Trustee, deposit such funds into the Property Account and make payments to the Holders of
the Capital Securities and Holders of the Common Securities from the Property Account in accordance with Section 5.1. Funds in the Property Account shall be held uninvested until disbursed in accordance with this Declaration; 
 
(ii) engage in such ministerial activities as
shall be necessary or appropriate to effect the redemption of the Capital Securities and the Common Securities to the extent the Debentures are redeemed or mature; and 
 
(iii) upon written notice of distribution issued by the Administrators in accordance with the
terms of the Securities, engage in such ministerial activities as shall be necessary or appropriate to effect the distribution of the Debentures to Holders of Securities upon the occurrence of the circumstances specified therefor under the terms of
the Securities. 
 

16 

 
(d) The Institutional Trustee shall take all actions and perform such duties as may be specifically required of the Institutional Trustee pursuant to the terms of the Securities. 
 
(e) The Institutional Trustee may bring or
defend, pay, collect, compromise, arbitrate, resort to legal action with respect to, or otherwise adjust claims or demands of or against, the Trust (a “Legal Action”) which arise out of or in connection with an Event of Default of which a
Responsible Officer of the Institutional Trustee has actual knowledge or the Institutional Trustee’s duties and obligations under this Declaration or the Trust Indenture Act; provided, however, that if an Event of Default has
occurred and is continuing and such event is attributable to the failure of the Debenture Issuer to pay interest or premium, if any, on or principal of the Debentures on the date such interest, premium, if any, or principal is otherwise payable (or
in the case of redemption, on the date of redemption), then a Holder of the Capital Securities may directly institute a proceeding for enforcement of payment to such Holder of the principal of or premium, if any, or interest on the Debentures having
a principal amount equal to the aggregate liquidation amount of the Capital Securities of such Holder (a “Direct Action”) on or after the respective due date specified in the Debentures. In connection with such Direct Action, the rights of
the Holders of the Common Securities will be subrogated to the rights of such Holder of the Capital Securities to the extent of any payment made by the Debenture Issuer to such Holder of the Capital Securities in such Direct Action; provided,
however, that a Holder of the Common Securities may exercise such right of subrogation only if no Event of Default with respect to the Capital Securities has occurred and is continuing. 
 
(f) The Institutional Trustee shall continue
to serve as a Trustee until either: 
 
(i) the Trust has been completely liquidated and the proceeds of the liquidation distributed to the Holders of the Securities pursuant to the terms of the Securities and this Declaration (including Annex I); or 
 
(ii) a Successor Institutional Trustee has
been appointed and has accepted that appointment in accordance with Section 4.5. 
 
(g) The Institutional Trustee shall have the legal power to exercise all of the rights, powers and privileges of a holder
of the Debentures under the Indenture and, if an Event of Default occurs and is continuing, the Institutional Trustee may, for the benefit of Holders of the Securities, enforce its rights as holder of the Debentures subject to the rights of the
Holders pursuant to this Declaration (including Annex I) and the terms of the Securities. 
 
(h) The Institutional Trustee must exercise the powers set forth in this Section 2.8 in a manner that is consistent with
the purposes and functions of the Trust set out in Section 2.3, and the Institutional Trustee shall not take any action that is inconsistent with the purposes and functions of the Trust set out in Section 2.3. 
 
SECTION 2.9. Certain Duties and Responsibilities of the
Trustees and the Administrators. 
 
(a) The Institutional Trustee, before the occurrence of any Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)) and after the curing of all Events of Default that may have
occurred, shall undertake to perform only 
 

17 

such duties as are specifically set forth in this Declaration and no implied covenants shall be read into this Declaration against the
Institutional Trustee. In case an Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)), has occurred (that has not been cured or waived pursuant to Section 6.7), the Institutional Trustee shall
exercise such of the rights and powers vested in it by this Declaration, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

 
(b) The duties and
responsibilities of the Trustees and the Administrators shall be as provided by this Declaration and, in the case of the Institutional Trustee, by the Trust Indenture Act. Notwithstanding the foregoing, no provision of this Declaration shall require
any Trustee or Administrator to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity satisfactory to it against such risk or liability is not reasonably assured to it. Whether or not therein expressly so provided, every provision of this Declaration relating to the conduct
or affecting the liability of or affording protection to the Trustees or the Administrators shall be subject to the provisions of this Article. Nothing in this Declaration shall be construed to release a Trustee from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct or bad faith. Nothing in this Declaration shall be construed to release an Administrator from liability for its own gross negligent action, its own gross negligent failure to
act, or its own willful misconduct or bad faith. To the extent that, at law or in equity, a Trustee or an Administrator has duties and liabilities relating to the Trust or to the Holders, such Trustee or Administrator shall not be liable to the
Trust or to any Holder for such Trustee’s or Administrator’s good faith reliance on the provisions of this Declaration. The provisions of this Declaration, to the extent that they restrict the duties and liabilities of the Administrators
or the Trustees otherwise existing at law or in equity, are agreed by the Sponsor and the Holders to replace such other duties and liabilities of the Administrators or the Trustees. 
 
(c) All payments made by the Institutional Trustee or a Paying Agent in respect of the
Securities shall be made only from the revenue and proceeds from the Trust Property and only to the extent that there shall be sufficient revenue or proceeds from the Trust Property to enable the Institutional Trustee or a Paying Agent to make
payments in accordance with the terms hereof. Each Holder, by its acceptance of a Security, agrees that it will look solely to the revenue and proceeds from the Trust Property to the extent legally available for distribution to it as herein provided
and that the Trustees and the Administrators are not personally liable to it for any amount distributable in respect of any Security or for any other liability in respect of any Security. This Section 2.9(c) does not limit the liability of the
Trustees expressly set forth elsewhere in this Declaration or, in the case of the Institutional Trustee, in the Trust Indenture Act. 
 
(d) No provision of this Declaration shall be construed to relieve the Institutional Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful misconduct or bad faith with respect to matters that are within the authority of the Institutional Trustee under this Declaration, except that: 
 

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(i) the Institutional Trustee shall not be liable for any error or judgment made in good faith by an Authorized Officer of the Institutional Trustee, unless it shall be proved that the Institutional Trustee was negligent in
ascertaining the pertinent facts; 
 
(ii) the Institutional Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a Majority in liquidation amount of the Capital
Securities or the Common Securities, as applicable, relating to the time, method and place of conducting any proceeding for any remedy available to the Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee
under this Declaration; 
 
(iii)
the Institutional Trustee’s sole duty with respect to the custody, safe keeping and physical preservation of the Debentures and the Property Account shall be to deal with such property in a similar manner as the Institutional Trustee deals with
similar property for its own account, subject to the protections and limitations on liability afforded to the Institutional Trustee under this Declaration and the Trust Indenture Act; 
 
(iv) the Institutional Trustee shall not be liable for any interest on any money received by
it except as it may otherwise agree in writing with the Sponsor; and money held by the Institutional Trustee need not be segregated from other funds held by it except in relation to the Property Account maintained by the Institutional Trustee
pursuant to Section 2.8(c)(i) and except to the extent otherwise required by law; and 
 
(v) the Institutional Trustee shall not be responsible for monitoring the compliance by the Administrators or the Sponsor
with their respective duties under this Declaration, nor shall the Institutional Trustee be liable for any default or misconduct of the Administrators or the Sponsor. 
 
SECTION 2.10. Certain Rights of Institutional Trustee. Subject to the provisions of Section 2.9:

 
(a) the Institutional Trustee
may conclusively rely and shall fully be protected in acting or refraining from acting in good faith upon any resolution, written opinion of counsel, certificate, written representation of a Holder or transferee, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, appraisal, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, sent
or presented by the proper party or parties; 
 
(b) if (i) in performing its duties under this Declaration, the Institutional Trustee is required to decide between alternative courses of action, (ii) in construing any of the provisions of this Declaration, the Institutional
Trustee finds the same ambiguous or inconsistent with any other provisions contained herein, or (iii) the Institutional Trustee is 
 

19 

unsure of the application of any provision of this Declaration, then, except as to any matter as to which the Holders of Capital Securities
are entitled to vote under the terms of this Declaration, the Institutional Trustee may deliver a notice to the Sponsor requesting the Sponsor’s opinion as to the course of action to be taken and the Institutional Trustee shall take such
action, or refrain from taking such action, as the Institutional Trustee in its sole discretion shall deem advisable and in the best interests of the Holders, in which event the Institutional Trustee shall have no liability except for its own
negligence, willful misconduct or bad faith; 
 
(c) any direction or act of the Sponsor or the Administrators contemplated by this Declaration shall be sufficiently evidenced by an Officers’ Certificate; 
 
(d) whenever in the administration of this Declaration, the Institutional Trustee shall deem
it desirable that a matter be proved or established before undertaking, suffering or omitting any action hereunder, the Institutional Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part,
request and conclusively rely upon an Officers’ Certificate which, upon receipt of such request, shall be promptly delivered by the Sponsor or the Administrators; 
 
(e) the Institutional Trustee shall have no duty to see to any recording, filing or
registration of any instrument (including any financing or continuation statement or any filing under tax or securities laws) or any rerecording, refiling or reregistration thereof; 
 
(f) the Institutional Trustee may consult with counsel of its selection (which counsel may be
counsel to the Sponsor or any of its Affiliates) and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon and in
accordance with such advice; the Institutional Trustee shall have the right at any time to seek instructions concerning the administration of this Declaration from any court of competent jurisdiction; 
 
(g) the Institutional Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this Declaration at the request or direction of any of the Holders pursuant to this Declaration, unless such Holders shall have offered to the Institutional Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction; provided, that nothing contained in this Section 2.10(g) shall be taken to relieve
the Institutional Trustee, upon the occurrence of an Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)) that has not been cured or waived, of its obligation to exercise the rights and powers
vested in it by this Declaration; 
 
(h) the Institutional Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond,
debenture, note or other evidence of indebtedness or other paper or document, unless requested in writing to do so by one or more Holders, but the Institutional Trustee may make such further inquiry or investigation into such facts or matters as it
may see fit; 
 

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(i) the Institutional Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through its agents or attorneys and the Institutional Trustee shall not be responsible for any
misconduct or negligence on the part of, or for the supervision of, any such agent or attorney appointed with due care by it hereunder; 
 
(j) whenever in the administration of this Declaration the Institutional Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Institutional Trustee (i) may request instructions from the Holders of the Common Securities and the Capital Securities, which instructions may be
given only by the Holders of the same proportion in liquidation amount of the Common Securities and the Capital Securities as would be entitled to direct the Institutional Trustee under the terms of the Common Securities and the Capital Securities
in respect of such remedy, right or action, (ii) may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (iii) shall be fully protected in acting in accordance with such instructions;

 
(k) except as otherwise
expressly provided in this Declaration, the Institutional Trustee shall not be under any obligation to take any action that is discretionary under the provisions of this Declaration; 
 
(l) when the Institutional Trustee incurs expenses or renders services in connection with a
Bankruptcy Event, such expenses (including the fees and expenses of its counsel) and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or law relating to creditors rights generally;

 
(m) the Institutional Trustee
shall not be charged with knowledge of an Event of Default unless a Responsible Officer of the Institutional Trustee has actual knowledge of such event or the Institutional Trustee receives written notice of such event from any Holder, except that
the Institutional Trustee shall be deemed to have knowledge of any Event of Default pursuant to Sections 5.01(a) or 5.01(b) of the Indenture (other than an Event of Default resulting from the default in the payment of Additional Interest or
resulting from the default in the payment of any premium payable upon a redemption of Debentures following a Special Event, in each case if the Institutional Trustee does not have actual knowledge or written notice that such payment is due and
payable); 
 
(n) any action taken
by the Institutional Trustee or its agents hereunder shall bind the Trust and the Holders of the Securities, and the signature of the Institutional Trustee or its agents alone shall be sufficient and effective to perform any such action and no third
party shall be required to inquire as to the authority of the Institutional Trustee to so act or as to its compliance with any of the terms and provisions of this Declaration, both of which shall be conclusively evidenced by the Institutional
Trustee’s or its agent’s taking such action; and 
 
(o) no provision of this Declaration shall be deemed to impose any duty or obligation on the Institutional Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred
or imposed on it, in any jurisdiction in which it shall be illegal, or in which the Institutional Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such act or acts, or to exercise any such right, power,
duty or 
 

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obligation, and no permissive power or authority available to the Institutional Trustee shall be construed to be a duty. 
 
SECTION 2.11. Delaware Trustee. Notwithstanding any
other provision of this Declaration other than Section 4.2, the Delaware Trustee shall not be entitled to exercise any powers, and the Delaware Trustee shall not have any of the duties and responsibilities of any of the Trustees or the
Administrators specified in this Declaration (except as may be required under the Statutory Trust Act). Except as set forth in Section 4.2, the Delaware Trustee shall be a Trustee for the sole and limited purpose of fulfilling the requirements of
§ 3807 of the Statutory Trust Act. 
 
SECTION
2.12. Execution of Documents. Unless otherwise determined in writing by the Institutional Trustee, and except as otherwise required by the Statutory Trust Act, the Institutional Trustee, or any one or more of the Administrators, as the case
may be, is authorized to execute and deliver on behalf of the Trust any documents, agreements, instruments or certificates that the Trustees or the Administrators, as the case may be, have the power and authority to execute pursuant to Section 2.6.

 
SECTION 2.13. Not Responsible for Recitals or
Issuance of Securities. The recitals contained in this Declaration and the Securities shall be taken as the statements of the Sponsor, and the Trustees do not assume any responsibility for their correctness. The Trustees make no representations
as to the value or condition of the Trust Property or any part thereof. The Trustees make no representations as to the validity or sufficiency of this Declaration, the Debentures or the Securities. 
 
SECTION 2.14. Duration of Trust. The Trust, unless
dissolved pursuant to the provisions of Article VII hereof, shall have existence for thirty-five (35) years from the Closing Date. 
 
SECTION 2.15. 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 Person, except as described in this Section 2.15 and except with respect to the distribution of Debentures to Holders of Securities pursuant to Section
7.1(a)(iv) of this Declaration or Section 4 of Annex I. 
 
(b) The Trust may, with the consent of the Administrators (which consent will not be unreasonably withheld) and without the consent of the Institutional Trustee, the Delaware Trustee or the Holders of the Capital Securities,
consolidate, amalgamate, merge with or into, or be replaced by, or convey, transfer or lease its properties and assets as an entirety or substantially as an entirety to a trust organized as such under the laws of any state; provided, that:

 
(i) if the Trust is not the
survivor, such successor entity (the “Successor Entity”) either: 
 
(A) expressly assumes all of the obligations of the Trust under the Securities; or 
 

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(B) substitutes for the Securities other securities having substantially the same terms as the Securities (the “Successor Securities”) so that the Successor Securities rank the same as the Securities rank with respect to
Distributions and payments upon Liquidation, redemption and otherwise; 
 
(ii) the Sponsor expressly appoints, as the holder of the Debentures, a trustee of the Successor Entity that possesses the same powers and duties as the Institutional Trustee; 
 
(iii) the Capital Securities or any Successor
Securities are listed or quoted, or any Successor Securities will be listed or quoted upon notification of issuance, on any national securities exchange or with another organization on which the Capital Securities are then listed or quoted, if any;

 
(iv) such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease does not cause the rating on the Capital Securities or any Successor Securities to be downgraded or withdrawn by any nationally recognized statistical rating organization, if
the Capital Securities are then rated; 
 
(v) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences and privileges of the Holders of the Securities or any Successor Securities in any material
respect (other than with respect to any dilution of such Holders’ interests in the Successor Entity); 
 
(vi) such Successor Entity, if any, has a purpose substantially identical to that of the Trust; 
 
(vii) prior to such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, the Trust has received a written opinion of a nationally recognized independent counsel to the Trust experienced in such matters to the effect that: 
 
(A) such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences and privileges of the Holders of the Securities or any Successor Securities in any material respect (other than with respect to any dilution
of such Holders’ interests in the Successor Entity); 
 
(B) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, neither the Trust nor the Successor Entity will be required to register as an Investment Company
under the Investment Company Act; and 
 
(C) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, the Trust or the Successor 
 

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Entity will continue to be classified as a grantor trust for United States federal income tax purposes; 
 
(viii) the Sponsor guarantees the obligations
of the Successor Entity under the Successor Securities to the same extent provided by the Indenture, the Guarantee, the Debentures and this Declaration; and 
 
(ix) prior to such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, the Institutional
Trustee shall have received an Officers’ Certificate of the Administrators and an opinion of counsel, each to the effect that all conditions precedent of this paragraph (b) to such transaction have been satisfied. 
 
(c) Notwithstanding Section 2.15(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, or convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to, any other Person or permit any other Person to consolidate, amalgamate, merge with or into, or replace it if such consolidation, amalgamation, merger, replacement, conveyance, transfer or lease would cause the Trust
or Successor Entity to be classified as other than a grantor trust for United States federal income tax purposes. 
 
ARTICLE III 
 
SPONSOR 
 
SECTION 3.1. Sponsor’s Purchase of Common Securities. On the Closing Date, the Sponsor will purchase all of the Common Securities issued by the Trust, in an amount at least equal to 3% of the capital of the Trust, at the
same time as the Capital Securities are sold. 
 
SECTION 3.2. Responsibilities of the Sponsor. In connection with the issue and sale of the Capital Securities, the Sponsor shall have the exclusive right and responsibility and sole decision to engage in, or direct the
Administrators to engage in, the following activities: 
 
(a) to determine the jurisdictions in which to take appropriate action to qualify or register for sale of all or part of the Capital Securities and to do any and all such acts, other than actions which must be taken by the
Trust, and advise the Trust of actions it must take, and prepare for execution and filing any documents to be executed and filed by the Trust, as the Sponsor deems necessary, advisable or incidental thereto in order to comply with the applicable
laws of any such jurisdictions; 
 
(b) to prepare for filing and request the Administrators to cause the filing by the Trust, as may be appropriate, of an application to the PORTAL system, for listing or quotation upon notice of issuance of any Capital Securities, as
requested by the Holders of not less than a Majority in liquidation amount of the Capital Securities; and 
 
(c) to negotiate the terms of and/or execute and deliver on behalf of the Trust, the Placement Agreement and other related
agreements providing for the sale of the Capital Securities. 
 

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ARTICLE IV

TRUSTEES AND ADMINISTRATORS 
 
SECTION 4.1. Number of Trustees. The number of Trustees initially shall be two, and: 
 
(a) at any time before the issuance of any
Securities, the Sponsor may, by written instrument, increase or decrease the number of Trustees; and 
 
(b) after the issuance of any Securities, the number of Trustees may be increased or decreased by vote of the Holder of a
Majority in liquidation amount of the Common Securities voting as a class at a meeting of the Holder of the Common Securities; provided, however, that there shall be a Delaware Trustee if required by Section 4.2; and there shall always
be one Trustee who shall be the Institutional Trustee, and such Trustee may also serve as Delaware Trustee if it meets the applicable requirements, in which case Section 2.11 shall have no application to such entity in its capacity as Institutional
Trustee. 
 
SECTION 4.2. 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 and a U.S. Person at least 21 years of age; or

 
(b) if not a natural person, an
entity which is organized under the laws of the United States or any state thereof or the District of Columbia, has its principal place of business in the State of Delaware, and otherwise meets the requirements of applicable law, including
§3807 of the Statutory Trust Act. 
 
The
initial Delaware Trustee shall be Wilmington Trust Company. 
 
SECTION 4.3. Institutional Trustee; Eligibility. 
 
(a) There shall at all times be one Trustee which shall act as Institutional Trustee which shall: 
 
(i) not be an Affiliate of the Sponsor; 
 
(ii) not offer or provide credit or credit enhancement to the Trust; and 
 
(iii) be a banking corporation or national
association organized and doing business under the laws of the United States of America or any state thereof or of the District of Columbia and authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of
at least fifty million U.S. dollars ($50,000,000), and subject to supervision or examination by federal, state or District of Columbia authority. If such corporation or national association publishes reports of condition at least annually, pursuant
to law or to the requirements of the supervising or examining authority referred to above, then 
 

25 

for the purposes of this Section 4.3(a)(iii), the combined capital and surplus of such corporation or national association shall be deemed to
be its combined capital and surplus as set forth in its most recent report of condition so published. 
 
(b) If at any time the Institutional Trustee shall cease to be eligible to so act under Section 4.3(a), the Institutional
Trustee shall immediately resign in the manner and with the effect set forth in Section 4.5. 
 
(c) If the Institutional Trustee has or shall acquire any “conflicting interest” within the meaning of §
310(b) of the Trust Indenture Act, the Institutional Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to this Declaration. 
 
(d) The initial Institutional Trustee shall be Wilmington Trust Company. 
 
SECTION 4.4. Administrators. Each Administrator shall
be a U.S. Person. There shall at all times be at least one Administrator. Except where a requirement for action by a specific number of Administrators is expressly set forth in this Declaration and except with respect to any action the taking of
which is the subject of a meeting of the Administrators, any action required or permitted to be taken by the Administrators may be taken by, and any power of the Administrators may be exercised by, or with the consent of, any one such Administrator
acting alone. 
 
SECTION 4.5. Appointment,
Removal and Resignation of the Trustees and the Administrators. 
 
(a) No resignation or removal of any Trustee (the “Relevant Trustee”) and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable requirements of this Section. 
 
(b) Subject to Section 4.5(a), a Relevant Trustee may resign at any time by giving written notice thereof to the Holders
of the Securities and by appointing a successor Relevant Trustee. Upon the resignation of the Institutional Trustee, the Institutional Trustee shall appoint a successor by requesting from at least three Persons meeting the eligibility requirements
their expenses and charges to serve as the successor Institutional Trustee on a form provided by the Administrators, and selecting the Person who agrees to the lowest expense and charges (the “Successor Institutional Trustee”). If the
instrument of acceptance by the successor Relevant Trustee required by this Section shall not have been delivered to the Relevant Trustee within 60 days after the giving of such notice of resignation or delivery of the instrument of removal, the
Relevant Trustee may petition, at the expense of the Trust, any federal, state or District of Columbia court of competent jurisdiction for the appointment of a successor Relevant Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Relevant Trustee. The Institutional Trustee shall have no liability for the selection of such successor pursuant to this Section. 
 
(c) Unless an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by an act of the Holders of a Majority in liquidation 
 

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amount of the Common Securities. If any Trustee shall be so removed, the Holders of the Common Securities, by act of the Holders of a
Majority in liquidation amount of the Common Securities delivered to the Relevant Trustee, shall promptly appoint a successor Relevant Trustee, and such successor Trustee shall comply with the applicable requirements of this Section. If an Event of
Default shall have occurred and be continuing, the Institutional Trustee or the Delaware Trustee, or both of them, may be removed by the act of the Holders of a Majority in liquidation amount of the Capital Securities, delivered to the Relevant
Trustee (in its individual capacity and on behalf of the Trust). If any Trustee shall be so removed, the Holders of Capital Securities, by act of the Holders of a Majority in liquidation amount of the Capital Securities then outstanding delivered to
the Relevant Trustee, shall promptly appoint a successor Relevant Trustee or Trustees, and such successor Trustee shall comply with the applicable requirements of this Section. If no successor Relevant Trustee shall have been so appointed by the
Holders of a Majority in liquidation amount of the Capital Securities and accepted appointment in the manner required by this Section within 30 days after delivery of an instrument of removal, the Relevant Trustee or any Holder who has been a Holder
of the Securities for at least six months may, on behalf of himself and all others similarly situated, petition any federal, state or District of Columbia court of competent jurisdiction for the appointment of a successor Relevant Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a successor Relevant Trustee or Trustees. 
 
(d) The Institutional Trustee shall give notice of each resignation and each removal of a Trustee and each appointment of
a successor Trustee to all Holders and to the Sponsor. Each notice shall include the name of the successor Relevant Trustee and the address of its Corporate Trust Office if it is the Institutional Trustee. 
 
(e) Notwithstanding the foregoing or any
other provision of this Declaration, in the event a Delaware Trustee who is a natural person dies or is adjudged by a court to have become incompetent or incapacitated, the vacancy created by such death, incompetence or incapacity may be filled by
the Institutional Trustee following the procedures in this Section (with the successor being a Person who satisfies the eligibility requirement for a Delaware Trustee set forth in this Declaration) (the “Successor Delaware Trustee”).

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

27 

Trust Property, all proceeds thereof and money held by such retiring Relevant Trustee hereunder with respect to the Securities and the Trust
subject to the payment of all unpaid fees, expenses and indemnities of such retiring Relevant Trustee. 
 
(g) No Institutional Trustee or Delaware Trustee shall be liable for the acts or omissions to act of any Successor
Institutional Trustee or Successor Delaware Trustee, as the case may be. 
 
(h) The Holders of the Capital Securities will have no right to vote to appoint, remove or replace the Administrators, which voting rights are vested exclusively in the Holders of the Common
Securities. 
 
(i) Any Successor
Delaware Trustee shall file an amendment to the Certificate of Trust with the Secretary of State of the State of Delaware identifying the name and principal place of business of such Delaware Trustee in the State of Delaware. 
 
SECTION 4.6. Vacancies Among Trustees. If a Trustee
ceases to hold office for any reason and the number of Trustees is not reduced pursuant to Section 4.1, or if the number of Trustees is increased pursuant to Section 4.1, a vacancy shall occur. A resolution certifying the existence of such vacancy
by the Trustees or, if there are more than two, a majority of the Trustees shall be conclusive evidence of the existence of such vacancy. The vacancy shall be filled with a Trustee appointed in accordance with Section 4.5. 
 
SECTION 4.7. 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 dissolve, terminate or annul the Trust or terminate this Declaration. Whenever a vacancy in
the number of Trustees shall occur, until such vacancy is filled by the appointment of a Trustee in accordance with Section 4.5, the Institutional Trustee shall have all the powers granted to the Trustees and shall discharge all the duties imposed
upon the Trustees by this Declaration. 
 
SECTION
4.8. Meetings of the Trustees and the Administrators. Meetings of the Trustees or the Administrators shall be held from time to time upon the call of any Trustee or Administrator, as applicable. Regular meetings of the Trustees and the
Administrators, respectively, may be in person in the United States or by telephone, at a place (if applicable) and time fixed by resolution of the Trustees or the Administrators, as applicable. Notice of any in-person meetings of the Trustees or
the Administrators shall be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier) not less than 48 hours before such meeting. Notice of any telephonic meetings of the Trustees or the
Administrators or any committee thereof shall be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier) not less than 24 hours before a meeting. Notices shall contain a brief statement of the
time, place and anticipated purposes of the meeting. The presence (whether in person or by telephone) of a Trustee or an Administrator, as the case may be, at a meeting shall constitute a waiver of notice of such meeting except where a Trustee or an
Administrator, as the case may be, attends a meeting for the express purpose of objecting to the transaction of any activity on the ground that the meeting has not been lawfully called or convened. Unless provided otherwise in this Declaration, any

 

28 

action of the Trustees or the Administrators, as the case may be, may be taken at a meeting by vote of a majority of the Trustees or the
Administrators present (whether in person or by telephone) and eligible to vote with respect to such matter; provided, that, in the case of the Administrators, a Quorum is present, or without a meeting by the unanimous written consent of the
Trustees or the Administrators, as the case may be. Meetings of the Trustees and the Administrators together shall be held from time to time upon the call of any Trustee or Administrator. 
 
SECTION 4.9. Delegation of Power. (a) Any Trustee or any Administrator, as the case may be, may, by
power of attorney consistent with applicable law, delegate to any other natural person over the age of 21 that is a U.S. Person his or her power for the purpose of executing any documents, instruments or other writings contemplated in Section 2.6.

 
(b) The Trustees shall have
power to delegate from time to time to such of their number or to any officer of the Trust that is a U.S. Person, the doing of such things and the execution of such instruments or other writings either in the name of the Trust or the names of the
Trustees or otherwise as the Trustees may deem expedient, to the extent such delegation is not prohibited by applicable law or contrary to the provisions of the Trust, as set forth herein. 
 
SECTION 4.10. Merger, Conversion, Consolidation or
Succession to Business. Any Person into which the Institutional Trustee or the Delaware Trustee, as the case may be, may be merged or converted or with which either may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Institutional Trustee or the Delaware Trustee, as the case may be, shall be a party, or any Person succeeding to all or substantially all the corporate trust business of the Institutional Trustee or the Delaware Trustee,
as the case may be, shall be the successor of the Institutional Trustee or the Delaware Trustee, as the case may be, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided such
Person shall be otherwise qualified and eligible under this Article and, provided, further, that such Person shall file an amendment to the Certificate of Trust with the Secretary of State of the State of Delaware as contemplated in
Section 4.5(i). 
 
ARTICLE V 
 
DISTRIBUTIONS 
 
SECTION 5.1. Distributions. Holders shall receive
Distributions in accordance with the applicable terms of the relevant Holder’s Securities. Distributions shall be made on the Capital 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 or the Guarantor makes a payment of interest (including any Additional Interest or Deferred Interest) or premium, if any, on or principal of the Debentures held by the Institutional Trustee (the amount
of any such payment being a “Payment Amount”), the Institutional Trustee shall and is directed, to the extent funds are available in the Property Account for that purpose, to make a distribution (a “Distribution”) of the Payment
Amount to Holders. For the avoidance of doubt, funds in the Property Account shall not be distributed to Holders to the extent of any taxes payable by the Trust, in the case of withholding taxes, as determined by the Institutional Trustee or any
Paying 
 

29 

Agent and, in the case of taxes other than withholding tax taxes, as determined by the Administrators in a written notice to the
Institutional Trustee. 
 
ARTICLE VI 
 
ISSUANCE OF SECURITIES 
 
SECTION 6.1. General Provisions Regarding Securities.

 
(a) The Administrators shall on
behalf of the Trust issue one series of capital securities, evidenced by a certificate substantially in the form of Exhibit A-1, representing undivided beneficial interests in the assets of the Trust and having such terms as are set forth in Annex I
(the “Capital Securities”), and one series of common securities, evidenced by a certificate substantially in the form of Exhibit A-2, representing undivided beneficial interests in the assets of the Trust and having such terms as are set
forth in Annex I (the “Common Securities”). The Trust shall issue no securities or other interests in the assets of the Trust other than the Capital Securities and the Common Securities. The Capital Securities rank pari passu and
payment thereon shall be made Pro Rata with the Common Securities except that, where an Event of Default has occurred and is continuing, the rights of Holders of the Common Securities to payment in respect of Distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights to payment of the Holders of the Capital Securities. 
 
(b) The Certificates shall be signed on behalf of the Trust by one or more Administrators. Such signature shall be the
facsimile or manual signature of any Administrator. In case any Administrator of the Trust who shall have signed any of the Securities shall cease to be such Administrator before the Certificates so signed shall be delivered by the Trust, such
Certificates nevertheless may be delivered as though the person who signed such Certificates had not ceased to be such Administrator. Any Certificate may be signed on behalf of the Trust by such person who, at the actual date of execution of such
Security, shall be an Administrator of the Trust, although at the date of the execution and delivery of the Declaration any such person was not such an Administrator. A Capital Security shall not be valid until authenticated by the manual signature
of an Authorized Officer of the Institutional Trustee. Such signature shall be conclusive evidence that the Capital Security has been authenticated under this Declaration. Upon written order of the Trust signed by one Administrator, the
Institutional Trustee shall authenticate the Capital Securities for original issue. The Institutional Trustee may appoint an authenticating agent that is a U.S. Person acceptable to the Trust to authenticate the Capital Securities. A Common Security
need not be so authenticated and shall be valid upon execution by one or more Administrators. 
 
(c) The consideration received by the Trust for the issuance of the Securities shall constitute a contribution to the
capital of the Trust and shall not constitute a loan to the Trust. 
 
(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, and each Holder thereof shall be
entitled to the benefits provided by this Declaration. 
 

30 

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

 
SECTION 6.2. Paying Agent, Transfer Agent,
Calculation Agent and Registrar. 
 
(a) The Trust shall maintain in Wilmington, Delaware (i) an office or agency where the Securities may be presented for payment (the “Paying Agent”) and (ii) an office or agency where Securities may be presented for
registration of transfer or exchange (the “Transfer Agent”). The Trust shall keep or cause to be kept at such office or agency a register for the purpose of registering Securities and transfers and exchanges of Securities, such register to
be held by a registrar (the “Registrar”). The Administrators may appoint the Paying Agent, the Registrar and the Transfer Agent, and may appoint one or more additional Paying Agents, one or more co-Registrars, or one or more co-Transfer
Agents in such other locations as it shall determine. The term “Paying Agent” includes any additional Paying Agent, the term “Registrar” includes any additional Registrar or co-Registrar and the term “Transfer Agent”
includes any additional Transfer Agent or co-Transfer Agent. The Administrators may change any Paying Agent, Transfer Agent or Registrar at any time without prior notice to any Holder. The Administrators shall notify the Institutional Trustee of the
name and address of any Paying Agent, Transfer Agent and Registrar not a party to this Declaration. The Administrators hereby initially appoint the Institutional Trustee to act as Paying Agent, Transfer Agent and Registrar for the Capital Securities
and the Common Securities at its Corporate Trust Office. The Institutional Trustee or any of its Affiliates in the United States may act as Paying Agent, Transfer Agent or Registrar. 
 
(b) The Trust shall also appoint a Calculation Agent, which shall determine the Coupon Rate
in accordance with the terms of the Securities. The Trust initially appoints the Institutional Trustee as Calculation Agent. 
 
SECTION 6.3. Form and Dating. 
 
(a) The Capital Securities and the Institutional Trustee’s certificate of authentication thereon shall be
substantially in the form of Exhibit A-1, and the Common Securities shall be substantially in the form of Exhibit A-2, each of which is hereby incorporated in and expressly made a part of this Declaration. Certificates may be typed, printed,
lithographed or engraved or may be produced in any other manner as is reasonably acceptable to the Administrators, as conclusively evidenced by their execution thereof. The Securities may have letters, numbers, notations or other marks of
identification or designation and such legends or endorsements required by law, stock exchange rule, agreements to which the Trust is subject, if any, or usage (provided, that any such notation, legend or endorsement is in a form acceptable
to the Sponsor). The Trust at the direction of the Sponsor shall furnish any such legend not contained in Exhibit A-1 to the Institutional Trustee in writing. Each Capital Security shall be dated the date of its authentication. The terms and
provisions of the Securities set forth in Annex I and the forms of Securities set forth in Exhibits A-1 and A-2 are part of the terms of this Declaration and to the extent applicable, the Institutional Trustee, the Delaware Trustee, the
Administrators and the Sponsor, by their execution and delivery of this Declaration, 
 

31 

expressly agree to such terms and provisions and to be bound thereby. Capital Securities will be issued only in blocks having an aggregate
liquidation amount of not less than $100,000. 
 
(b) The Capital Securities are being offered and sold by the Trust initially pursuant to the Placement Agreement in definitive form, registered in the name of the Holder thereof, without coupons and with the Restricted Securities
Legend. 
 
SECTION 6.4. Mutilated, Destroyed,
Lost or Stolen Certificates. If: 
 
(a) any mutilated Certificates should be surrendered to the Registrar, or if the Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate; and 
 
(b) there shall be delivered to the
Registrar, the Administrators and the Institutional Trustee such security or indemnity as may be required by them to keep each of them harmless; then, in the absence of notice that such Certificate shall have been acquired by a bona fide purchaser,
an Administrator on behalf of the Trust shall execute (and in the case of a Capital Security Certificate, the Institutional Trustee shall authenticate) and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Certificate, a new Certificate of like denomination. In connection with the issuance of any new Certificate under this Section, the Registrar or the Administrators may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith. Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of an ownership interest in the relevant Securities, as if originally issued, whether or not the lost,
stolen or destroyed Certificate shall be found at any time. 
 
SECTION 6.5. Temporary Securities. Until definitive Securities are ready for delivery, the Administrators may prepare and, in the case of the Capital Securities, the Institutional Trustee shall authenticate, temporary
Securities. Temporary Securities shall be substantially in form of definitive Securities but may have variations that the Administrators consider appropriate for temporary Securities. Without unreasonable delay, the Administrators shall prepare and,
in the case of the Capital Securities, the Institutional Trustee shall authenticate definitive Securities in exchange for temporary Securities. 
 
SECTION 6.6. Cancellation. The Administrators at any time may deliver Securities to the Institutional Trustee for cancellation. The
Registrar shall forward to the Institutional Trustee any Securities surrendered to it for registration of transfer, redemption or payment. The Institutional Trustee shall promptly cancel all Securities surrendered for registration of transfer,
payment, replacement or cancellation and shall dispose of such canceled Securities as the Administrators direct. The Administrators may not issue new Securities to replace Securities that have been paid or that have been delivered to the
Institutional Trustee for cancellation. 
 
SECTION
6.7. Rights of Holders; Waivers of Past Defaults. 
 
(a) The legal title to the Trust Property is vested exclusively in the Institutional Trustee (in its capacity as such) in accordance with Section 2.5, and the Holders shall not have any right or title therein other than the
undivided beneficial interest in the assets 
 

32 

of the Trust conferred by their Securities and they shall have no right to call for any partition or division of property, profits or rights
of the Trust except as described below. The Securities shall be personal property giving only the rights specifically set forth therein and in this Declaration. The Securities shall have no, and the issuance of the Securities shall not be subject
to, preemptive or other similar rights and when issued and delivered to Holders against payment of the purchase price therefor, the Securities will be fully paid and nonassessable by the Trust. 
 
(b) For so long as any Capital Securities
remain outstanding, if, upon an Indenture Event of Default, the Debenture Trustee fails or the holders of not less than 25% in principal amount of the outstanding Debentures fail to declare the principal of all of the Debentures to be immediately
due and payable, the Holders of not less than a Majority in liquidation amount of the Capital Securities then outstanding shall have the right to make such declaration by a notice in writing to the Institutional Trustee, the Sponsor and the
Debenture Trustee. 
 
(c) At any
time after the acceleration of maturity of the Debentures has been made and before a judgment or decree for payment of the money due has been obtained by the Debenture Trustee as provided in the Indenture, if the Institutional Trustee, subject to
the provisions hereof, fails to annul any such acceleration and waive such default, the Holders of a Majority in liquidation amount of the Capital Securities, by written notice to the Institutional Trustee, the Sponsor and the Debenture Trustee, may
rescind and annul such acceleration and its consequences if: 
 
(i) the Sponsor has paid or deposited with the Debenture Trustee a sum sufficient to pay 
 
(A) all overdue installments of interest on all of the Debentures; 
 
(B) any accrued Deferred Interest on all of
the Debentures; 
 
(C) all
payments on any Debentures that have become due otherwise than by such acceleration and interest and Deferred Interest thereon at the rate borne by the Debentures; and 
 
(D) all sums paid or advanced by the Debenture Trustee under the Indenture and the
reasonable compensation, documented expenses, disbursements and advances of the Debenture Trustee and the Institutional Trustee, their agents and counsel; and 
 
(ii) all Events of Default with respect to the Debentures, other than the non-payment of the principal of or premium, if
any, on the Debentures that has become due solely by such acceleration, have been cured or waived as provided in Section 5.07 of the Indenture. 
 
(d) The Holders of a Majority in liquidation amount of the Capital Securities may, on behalf of the Holders of all the
Capital Securities, waive any past Default or Event of Default, except a Default or Event of Default arising from the non-payment of principal of or premium, if any, or interest on the Debentures (unless such Default or Event of Default has been

 

33 

cured and a sum sufficient to pay all matured installments of interest, premium and principal due otherwise than by acceleration has been
deposited with the Debenture Trustee) or a Default or Event of Default in respect of a covenant or provision that under the Indenture cannot be modified or amended without the consent of the holder of each outstanding Debenture. No such rescission
shall affect any subsequent default or impair any right consequent thereon. 
 
(e) Upon receipt by the Institutional Trustee of written notice declaring such an acceleration, or rescission and annulment thereof, by Holders of any part of the Capital Securities, a record date
shall be established for determining Holders of outstanding Capital Securities entitled to join in such notice, which record date shall be at the close of business on the day the Institutional Trustee receives such notice. The Holders on such record
date, or their duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether or not such Holders remain Holders after such record date; provided, that, unless such declaration of acceleration, or rescission
and annulment, as the case may be, shall have become effective by virtue of the requisite percentage having joined in such notice prior to the day that is 90 days after such record date, such notice of declaration of acceleration, or rescission and
annulment, as the case may be, shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after expiration of such 90-day
period, a new written notice of declaration of acceleration, or rescission and annulment thereof, as the case may be, that is identical to a written notice that has been canceled pursuant to the proviso to the preceding sentence, in which event a
new record date shall be established pursuant to the provisions of this Section. 
 
(f) Except as otherwise provided in this Section, the Holders of a Majority in liquidation amount of the Capital
Securities may, on behalf of the Holders of all the Capital Securities, waive any past Default or Event of Default and its consequences. Upon such waiver, any such Default or Event of Default shall cease to exist, and any Default or Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this Declaration, but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. 
 
ARTICLE VII 
 
DISSOLUTION AND TERMINATION OF TRUST 
 
SECTION 7.1. Dissolution and Termination of Trust. (a)
The Trust shall dissolve on the first to occur of: 
 
(i) unless earlier dissolved, on May 22, 2038, the expiration of the term of the Trust; 
 
(ii) a Bankruptcy Event with respect to the Sponsor, the Trust, the Debenture Issuer or the Guarantor; 
 
(iii) (other than in connection with a
merger, consolidation or similar transaction permitted by the Indenture, this Declaration or the Guarantee, as the 
 

34 

case may be) the filing of a certificate of dissolution or its equivalent with respect to the Sponsor or the Guarantor or upon the revocation
of the charter of the Sponsor or the Guarantor and the expiration of 90 days after the date of revocation without a reinstatement thereof; 
 
(iv) the distribution of all of the Debentures to the Holders of the Securities, upon exercise of the right of the Holders
of all of the outstanding Common Securities to dissolve the Trust as provided in Annex I hereto; 
 
(v) the entry of a decree of judicial dissolution of any Holder of the Common Securities, the Sponsor, the Trust, the
Debenture Issuer or the Guarantor; 
 
(vi) when all of the Securities are then subject to redemption and the amounts necessary for redemption thereof shall have been paid to the Holders in accordance with the terms of the Securities; or 
 
(vii) before the issuance of any Securities,
with the consent of all of the Trustees and the Sponsor. 
 
(b) As soon as is practicable after the occurrence of an event referred to in Section 7.1(a), and after satisfaction of liabilities to creditors of the Trust as required by applicable law, including §3808 of the
Statutory Trust Act, and subject to the terms set forth in Annex I, the Institutional Trustee shall terminate the Trust by filing a certificate of cancellation with the Secretary of State of the State of Delaware. 
 
(c) The provisions of Section 2.9 and Article
IX shall survive the termination of the Trust. 
 
ARTICLE VIII 
 
TRANSFER OF
INTERESTS 
 
SECTION 8.1. General. (a) Where
Capital Securities are presented to the Registrar with a request to register a transfer or to exchange them for an equal aggregate liquidation amount of Capital Securities represented by different Certificates, the Registrar shall register the
transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and exchanges, the Trust shall issue and the Institutional Trustee shall authenticate Capital Securities at the Registrar’s
request. 
 
(b) Upon issuance of
the Common Securities, the Sponsor shall acquire and retain beneficial and record ownership of the Common Securities and, for so long as the Securities remain outstanding, the Sponsor shall maintain 100% ownership of the Common Securities;
provided, however, that any permitted successor of the Debenture Issuer under the Indenture may succeed to the Sponsor’s ownership of the Common Securities. 
 
(c) Capital Securities may only be transferred, in whole or in part, in accordance with the
terms and conditions set forth in this Declaration and in the terms of the 
 

35 

Capital Securities. To the fullest extent permitted by applicable law, any transfer or purported transfer of any Security not made in
accordance with this Declaration shall be null and void and will be deemed to be of no legal effect whatsoever and any such transferee shall be deemed not to be the Holder of such Capital Securities for any purpose, including, but not limited to,
the receipt of Distributions on such Capital Securities, and such transferee shall be deemed to have no interest whatsoever in such Capital Securities. 
 
(d) The Registrar shall provide for the registration of Securities and of transfers of Securities, which will be effected
without charge but only upon payment (with such indemnity as the Registrar may require) in respect of any tax or other governmental charges that may be imposed in relation to it. Upon surrender for registration of transfer of any Securities, the
Registrar shall cause one or more new Securities to be issued in the name of the designated transferee or transferees. Any Security issued upon any registration of transfer or exchange pursuant to the terms of this Declaration shall evidence the
same Security and shall be entitled to the same benefits under this Declaration as the Security surrendered upon such registration of transfer or exchange. Every Security surrendered for registration of transfer shall be (i) duly endorsed or
accompanied by a written instrument of transfer in form reasonably satisfactory to the Registrar duly executed by the Holder or such Holder’s attorney duly authorized in writing and (ii) accompanied, if such Security is being transferred prior
to the Resale Restriction Termination Date, by a certificate substantially in the form set forth as Exhibit B or C, as applicable, hereto. Each Security surrendered for registration of transfer shall be canceled by the Institutional Trustee pursuant
to Section 6.6. A transferee of a Security shall be entitled to the rights and subject to the obligations of a Holder hereunder upon the receipt by such transferee of a Security. By acceptance of a Security, each transferee shall be deemed to have
agreed to be bound by this Declaration. 
 
(e) Neither the Trust nor the Registrar shall be required (i) to issue, register the transfer of, or exchange any Securities during a period beginning at the opening of business 15 days before the day of any selection of Securities
for redemption and ending at the close of business on the earliest date on which the relevant notice of redemption is deemed to have been given to all Holders of the Securities to be redeemed, or (ii) to register the transfer or exchange of any
Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part. 
 
SECTION 8.2. Transfer Procedures and Restrictions. 
 
(a) Prior to the Resale Restriction Termination Date, the Capital Securities shall bear the
Restricted Securities Legend. The Restricted Securities Legend on any outstanding Capital Security shall not be removed unless there is delivered to the Trust such satisfactory evidence, which may include an opinion of counsel, as may be reasonably
required by the Trust, that neither the Restricted Securities Legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply with the provisions of the Securities Act or that such Securities are not
“restricted” within the meaning of Rule 144 under the Securities Act. Upon provision of such satisfactory evidence, the Institutional Trustee, at the written direction of the Trust, shall authenticate and deliver Capital Securities that do
not bear the Restricted Securities Legend in exchange for the Capital Securities bearing the Restricted Securities Legend. 
 

36 

 
(b) When Capital Securities are presented to the Registrar (x) to register the transfer of such Capital Securities, or (y) to exchange such Capital Securities for an equal aggregate liquidation amount of Capital Securities
represented by different Certificates, the Registrar shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Capital Securities surrendered
for registration of transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Trust and the Registrar duly executed by the Holder thereof or his attorney duly authorized in
writing and (i) if such Capital Securities are being transferred prior to the Resale Restriction Termination Date to a QIB, accompanied by a certificate of the transferor substantially in the form set forth as Exhibit C hereto or (ii) if such
Capital Securities are being transferred prior to the Resale Restriction Termination Date otherwise than to a QIB, accompanied by a certificate of the transferee substantially in the form set forth as Exhibit B hereto. 
 
(c) The Capital Securities may not be
transferred prior to the Resale Restriction Termination Date except in compliance with restrictions on transfer set forth in the legend set forth below (the “Restricted Securities Legend”), and except as otherwise contemplated in Section
8.2(a), prior to the Resale Restriction Termination Date, each Capital Security shall bear the Restricted Securities Legend: 
 
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, HEREIN
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE
LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST DATE ON WHICH THE TRUST OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE SECURITIES ACT) OF THE TRUST WAS THE HOLDER OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION (OR ANY
PREDECESSOR THERETO) AND (ii) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE DEBENTURE ISSUER OR THE TRUST, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER,” AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS 
 

37 

ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES PURSUANT TO REGULATION
S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C), (D) OR (E)
ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER
OR THE TRUST. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS. 
 
THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION
HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON
OF ANY PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF
AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR
THEREOF, AS THE CASE MAY BE, THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION. 
 

38 

 
IN CONNECTION
WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE AMENDED AND RESTATED DECLARATION OF TRUST TO CONFIRM THAT THE TRANSFER COMPLIES WITH
THE FOREGOING RESTRICTIONS. 
 
THIS SECURITY WILL
BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000
SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN. 
 
(d) Capital Securities may only be transferred
in minimum blocks of $100,000 aggregate liquidation amount (100 Capital Securities) and multiples of $1,000 in excess thereof. Any attempted transfer of Capital Securities in a block having an aggregate liquidation amount of less than $100,000 shall
be deemed to be void and of no legal effect whatsoever. Any such purported transferee shall be deemed not to be a Holder of such Capital Securities for any purpose, including, but not limited to, the receipt of Distributions on such Capital
Securities, and such purported transferee shall be deemed to have no interest whatsoever in such Capital Securities. 
 
SECTION 8.3. Deemed Security Holders. The Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the
Registrar may treat the Person in whose name any Certificate shall be registered on the books and records of the Trust as the sole Holder and owner 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 other
Person, whether or not the Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the Registrar shall have actual or other notice thereof. 
 
ARTICLE IX 
 
LIMITATION OF LIABILITY OF 
HOLDERS OF SECURITIES, TRUSTEES OR OTHERS 
 
SECTION 9.1. Liability. (a) Except as expressly set forth in this Declaration, the Guarantee and the terms of the Securities, the Sponsor shall not be: 
 

39 

 
(i) personally liable for the return of any portion of the capital contributions (or any return thereon) of the Holders of the Securities which shall be made solely from assets of the Trust; and 
 
(ii) required to pay to the Trust or to any
Holder of the Securities any deficit upon dissolution of the Trust or otherwise. 
 
(b) The Holder of the Common Securities shall be liable for all of the debts and obligations of the Trust (other than with
respect to the Securities) to the extent not satisfied out of the Trust’s assets. 
 
(c) Pursuant to § 3803(a) of the Statutory Trust Act, the Holders of the 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, except as otherwise specifically set forth herein. 
 
SECTION 9.2. Exculpation. (a) No Indemnified Person
shall be liable, responsible or accountable in damages or otherwise to the Trust or any Covered Person for any loss, damage or claim incurred by reason of 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 (other than an Administrator) shall
be liable for any such loss, damage or claim incurred by reason of such Indemnified Person’s negligence, willful misconduct or bad faith with respect to such acts or omissions and except that an Administrator shall be liable for any such loss,
damage or claim incurred by reason of such Administrator’s gross negligence, willful misconduct or bad faith with respect to such acts or omissions. 
 
(b) An Indemnified Person shall be fully protected in relying in good faith upon the records of the Trust and upon such
information, opinions, reports or statements presented to the Trust by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence and, if selected by such Indemnified
Person, has been selected by such Indemnified Person with reasonable care by or on behalf of the Trust, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses or any other facts
pertinent to the existence and amount of assets from which Distributions to Holders of Securities might properly be paid. 
 
SECTION 9.3. Fiduciary Duty. (a) To the extent that, at law or in equity, an Indemnified Person has duties (including fiduciary
duties) and liabilities relating thereto to the Trust or to any other Covered Person, an Indemnified Person acting under this Declaration shall not be liable to the Trust or to any other Covered Person for its good faith reliance on the provisions
of this Declaration. The provisions of this Declaration, to the extent that they restrict the duties and liabilities of an Indemnified Person otherwise existing at law or in equity (other than the duties imposed on the Institutional Trustee under
the Trust Indenture Act), are agreed by the parties hereto to replace such other duties and liabilities of the Indemnified Person. 
 

40 

 
(b) Whenever in this Declaration an Indemnified Person is permitted or required to make a decision: 
 
(i) in its “discretion” or under a grant of similar authority, the Indemnified Person shall be entitled to
consider such interests and factors as it desires, including its own interests, and shall have no duty or obligation to give any consideration to any interest of or factors affecting the Trust or any other Person; or 
 
(ii) in its “good faith” or under
another express standard, the Indemnified Person shall act under such express standard and shall not be subject to any other or different standard imposed by this Declaration or by applicable law. 
 
SECTION 9.4. Indemnification. (a) 
 
(i) The Sponsor shall indemnify, to the
fullest extent permitted by law, any Indemnified Person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other
than an action by or in the right of the Trust) by reason of the fact that such Person is or was an Indemnified Person against expenses (including attorneys’ fees and expenses), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such Person in connection with such action, suit or proceeding if such Person acted in good faith and in a manner such Person 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 such conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall
not, of itself, create a presumption that the Indemnified Person did not act in good faith and in a manner which such Person 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 such conduct was unlawful. 
 
(ii) The Sponsor shall indemnify, to the fullest extent permitted by law, any Indemnified Person who was or is a party or is threatened to be made a party to any threatened, pending or completed action
or suit by or in the right of the Trust to procure a judgment in its favor by reason of the fact that such Person is or was an Indemnified Person against expenses (including attorneys’ fees and expenses) actually and reasonably incurred by such
Person in connection with the defense or settlement of such action or suit if such Person acted in good faith and in a manner such Person 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 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 

 

41 

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. 
 
(iii) To the extent that an Indemnified Person shall be successful on the merits or otherwise (including dismissal of an action without prejudice or the settlement of an action without admission of liability) in defense of
any action, suit or proceeding referred to in paragraphs (i) and (ii) of this Section 9.4(a), or in defense of any claim, issue or matter therein, such Person shall be indemnified, to the fullest extent permitted by law, against expenses (including
attorneys’ fees and expenses) actually and reasonably incurred by such Person in connection therewith. 
 
(iv) Any indemnification of an Administrator under paragraphs (i) and (ii) of this Section 9.4(a) (unless ordered by a
court) shall be made by the Sponsor only as authorized in the specific case upon a determination that indemnification of the Indemnified Person is proper in the circumstances because such Person has met the applicable standard of conduct set forth
in said paragraphs (i) and (ii). Such determination shall be made (A) by the Administrators by a majority vote of a Quorum consisting of such Administrators who were not parties to such action, suit or proceeding, (B) if such a Quorum is not
obtainable, or, even if obtainable, if a Quorum of disinterested Administrators so directs, by independent legal counsel in a written opinion, or (C) by the Common Security Holder of the Trust. 
 
(v) To the fullest extent permitted by law,
expenses (including attorneys’ fees and expenses) incurred by an Indemnified Person in defending a civil, criminal, administrative or investigative action, suit or proceeding referred to in paragraphs (i) and (ii) of this Section 9.4(a) shall
be paid by the Sponsor in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined that such Person is not
entitled to be indemnified by the Sponsor as authorized in this Section 9.4(a). Notwithstanding the foregoing, no advance shall be made by the Sponsor if a determination is reasonably and promptly made (1) in the case of a Company Indemnified Person
(A) by the Administrators by a majority vote of a Quorum of disinterested Administrators, (B) if such a Quorum is not obtainable, or, even if obtainable, if a Quorum of disinterested Administrators so directs, by independent legal counsel in a
written opinion or (C) by the Common Security Holder of the Trust, that, based upon the facts known to the Administrators, counsel or the Common Security Holder at the time such determination is made, such Indemnified Person acted in bad faith or in
a manner that such Person either believed to be opposed to or did not believe to be in the best interests of the Trust, or, with respect to any criminal proceeding, that such Indemnified Person believed or had reasonable cause to believe such
conduct was unlawful, or (2) in the case of a Fiduciary Indemnified Person, by independent legal counsel in a written opinion that, based upon the facts known to the counsel at the time such determination is made, such Indemnified Person acted in
bad faith or in a manner that such Indemnified 

 

42 

Person either believed to be opposed to or did not believe to be in the best interests of the Trust, or, with respect to any criminal
proceeding, that such Indemnified Person believed or had reasonable cause to believe such conduct was unlawful. In no event shall any advance be made (i) to a Company Indemnified Person in instances where the Administrators, independent legal
counsel or the Common Security Holder reasonably determine that such Person deliberately breached such Person’s duty to the Trust or its Common or Capital Security Holders or (ii) to a Fiduciary Indemnified Person in instances where independent
legal counsel promptly and reasonably determines in a written opinion that such Person deliberately breached such Person’s duty to the Trust or its Common or Capital Security Holders. 
 
(b) The Sponsor shall indemnify, to the
fullest extent permitted by applicable law, each Indemnified Person from and against any and all loss, damage, liability, tax (other than taxes based on the income of such Indemnified Person), penalty, expense or claim of any kind or nature
whatsoever incurred by such Indemnified Person arising out of or in connection with or by reason of the creation, administration or termination of the Trust, or any act or omission of such Indemnified Person in good faith on behalf of the Trust and
in a manner such Indemnified Person reasonably believed to be within the scope of authority conferred on such Indemnified Person by this Declaration, except that no Indemnified Person shall be entitled to be indemnified in respect of any loss,
damage, liability, tax, penalty, expense or claim incurred by such Indemnified Person by reason of negligence, willful misconduct or bad faith with respect to such acts or omissions. 
 
(c) The indemnification and advancement of expenses provided by, or granted pursuant to, the
other paragraphs of this Section shall not be deemed exclusive of any other rights to which those seeking indemnification and advancement of expenses may be entitled under any agreement, vote of stockholders or disinterested directors of the Sponsor
or Capital Security Holders of the Trust or otherwise, both as to action in such Person’s official capacity and as to action in another capacity while holding such office. All rights to indemnification under this Section shall be deemed to be
provided by a contract between the Sponsor and each Indemnified Person who serves in such capacity at any time while this Section is in effect. Any repeal or modification of this Section shall not affect any rights or obligations then existing.

 
(d) The Sponsor or the Trust
may purchase and maintain insurance on behalf of any Person who is or was an Indemnified Person against any liability asserted against such Person and incurred by such Person in any such capacity, or arising out of such Person’s status as such,
whether or not the Sponsor would have the power to indemnify such Person against such liability under the provisions of this Section. 
 
(e) For purposes of this Section, 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 with respect to the 

 

43 

resulting or surviving entity as such Person would have with respect to such constituent entity if its separate existence had continued.

 
(f) The indemnification and
advancement of expenses provided by, or granted pursuant to, this Section shall, unless otherwise provided when authorized or ratified, continue as to a Person who has ceased to be an Indemnified Person and shall inure to the benefit of the heirs,
executors and administrators of such a Person. 
 
(g) The provisions of this Section shall survive the termination of this Declaration or the earlier resignation or removal of the Institutional Trustee. The obligations of the Sponsor under this Section to compensate and indemnify
the Trustees and to pay or reimburse the Trustees for expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of the Securities upon all property
and funds held or collected by the Trustees as such, except funds held in trust for the benefit of the Holders of particular Capital Securities, provided, that the Sponsor is the Holder of the Common Securities. 
 
SECTION 9.5. Outside Businesses. Any Covered Person,
the Sponsor, the Delaware Trustee and the Institutional Trustee (subject to Section 4.3(c)) may engage in or possess an interest in other business ventures of any nature or description, independently or with others, similar or dissimilar to the
business of the Trust, and the Trust and the Holders of Securities shall have no rights by virtue of this Declaration in and to such independent ventures or the income or profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or improper. None of any Covered Person, the Sponsor, the Delaware Trustee or the Institutional Trustee shall be obligated to present any particular investment or other
opportunity to the Trust even if such opportunity is of a character that, if presented to the Trust, could be taken by the Trust, and any Covered Person, the Sponsor, the Delaware Trustee and the Institutional Trustee shall have the right to take
for its own account (individually or as a partner or fiduciary) or to recommend to others any such particular investment or other opportunity. Any Covered Person, the Delaware Trustee and the Institutional Trustee may engage or be interested in any
financial or other transaction with the Sponsor or any Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or act on any committee or body of holders of, securities or other obligations of the Sponsor or its Affiliates.

 
SECTION 9.6. Compensation; Fee. (a) The
Sponsor agrees: 
 
(i) to pay to
the Trustees from time to time such compensation for all services rendered by them hereunder as the parties shall agree in writing 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) except as otherwise expressly provided herein, to reimburse each of the Trustees upon request for all reasonable, documented expenses, disbursements and advances incurred or made by such Person in accordance with any provision
of this Declaration (including the reasonable compensation and the expenses and disbursements of such Person’s agents and counsel), except any 

 

44 

such expense, disbursement or advance attributable to such Person’s negligence, willful misconduct or bad faith. 
 
(b) The provisions of this Section shall
survive the dissolution of the Trust and the termination of this Declaration and the removal or resignation of any Trustee. 
 
ARTICLE X 
 
ACCOUNTING 
 
SECTION 10.1. Fiscal Year. The fiscal year (the “Fiscal Year”) of the Trust shall be the calendar year, or such other
year as is required by the Code. 
 
SECTION 10.2.
Certain Accounting Matters. 
 
(a) At all times during the existence of the Trust, the Administrators shall keep, or cause to be kept, at the principal office of the Trust in the United States, as defined for purposes of Treasury Regulations § 301.7701-7,
full books of account, records and supporting documents, which shall reflect in reasonable detail each transaction of the Trust. The books of account shall be maintained on the accrual method of accounting, in accordance with generally accepted
accounting principles, consistently applied. 
 
(b) The Sponsor and the Guarantor shall cause the Administrators to deliver to each Holder of Securities: (i) within 45 days after the end of each quarterly fiscal period other than year end, (1) unaudited consolidated financial
statements of each of the Sponsor and the Guarantor, as the case may be (including balance sheet and income statement), covering such period and (2) an Officer’s Certificate of each of the Sponsor and the Guarantor to the effect specified in
Exhibit D hereto; (ii) within 60 days after the end of each year end, (1) unaudited consolidated financial statements of each of the Sponsor and the Guarantor, as the case may be (including balance sheet and income statement) covering the related
annual period and (2) an Officer’s Certificate of each of the Sponsor and the Guarantor to the effect specified in Exhibit D hereto; (iii) within the earlier of (x) 90 days after the end of each year end and (y) such earlier number of days
prescribed by the Commission for the filing with it of a Form 10-K, in the case of the Company, or Form 20-F, in the case of the Guarantor, by companies subject to the informational reporting requirements of the Exchange Act, (1) audited
consolidated financial statements of each of the Sponsor and the Guarantor, as the case may be (including balance sheet and income statement), covering the related annual period, (2) the report of the independent accountants with respect to such
financial statements and (3) an Officer’s Certificate of each of the Sponsor and the Guarantor detailing any material differences between the unaudited financial statements for such annual period delivered pursuant to clause (ii)(1) above and
those delivered pursuant to this clause; and (iv) within 7 days after the filing thereof, each Form 10-K, Form 20-F, Form 10-Q and Form 6-K that is filed with the Commission in respect of the Sponsor, the Guarantor or the Trust in accordance with
the Exchange Act, if any. 
 
(c)
The Administrators shall cause to be duly prepared and delivered to each of the Holders of Securities Form 1099 or such other annual United States federal income tax information statement required by the Code, containing such information with regard
to the 

 

45 

Securities held by each Holder as is required by the Code and the Treasury Regulations. Notwithstanding any right under the Code to deliver
any such statement at a later date, the Administrators shall endeavor to deliver all such statements within 30 days after the end of each Fiscal Year of the Trust. 
 
(d) The Administrators shall cause to be duly prepared in the United States, as defined for
purposes of Treasury Regulations § 301.7701-7, and filed an annual United States federal income tax return on a Form 1041 or such other form required by United States federal income tax law, and any other annual income tax returns required to
be filed by the Administrators on behalf of the Trust with any state or local taxing authority. 
 
(e) So long as the only Holder of the Capital Securities is InCapS Funding I, Ltd. or a trustee thereof, the
Administrators will cause copies of the annual financial statements of the Sponsor and/or Affiliates that are filed with the insurance regulator in the jurisdiction in which the Sponsor or any such Affiliate is incorporated to be delivered to the
Holder promptly following their filing. 
 
SECTION
10.3. Banking. The Trust shall maintain one or more bank accounts in the United States, as defined for purposes of Treasury Regulations § 301.7701-7, in the name and for the sole benefit of the Trust; provided, however,
that all payments of funds in respect of the Debentures held by the Institutional Trustee shall be made directly to the Property Account and no other funds of the Trust shall be deposited in the Property Account. The sole signatories for such
accounts (including the Property Account) shall be designated by the Institutional Trustee. 
 
SECTION 10.4. Withholding. The Institutional Trustee or any Paying Agent and the Administrators shall comply with all withholding requirements under United States federal, state and local law.
The Institutional Trustee or any Paying Agent shall request, and each Holder shall provide to the Institutional Trustee or any Paying Agent, such forms or certificates as are necessary to establish an exemption from withholding with respect to the
Holder, and any representations and forms as shall reasonably be requested by the Institutional Trustee or any Paying Agent to assist it in determining the extent of, and in fulfilling, its withholding obligations. The Administrators shall file
required forms with applicable jurisdictions and, unless an exemption from withholding is properly established by a Holder, shall remit amounts withheld with respect to the Holder to applicable jurisdictions. To the extent that the Institutional
Trustee or any Paying Agent is required to withhold and pay over any amounts to any authority with respect to distributions or allocations to any Holder, the amount withheld shall be deemed to be a Distribution to the Holder in the amount of the
withholding. In the event of any claimed overwithholding, Holders shall be limited to an action against the applicable jurisdiction. If the amount required to be withheld was not withheld from actual Distributions made, the Institutional Trustee or
any Paying Agent may reduce subsequent Distributions by the amount of such withholding. 
 
ARTICLE XI 
 
AMENDMENTS AND MEETINGS 
 

46 

 
SECTION 11.1.
Amendments. (a) Except as otherwise provided in this Declaration or by any applicable terms of the Securities, this Declaration may only be amended by a written instrument approved and executed by 
 
(i) the Institutional Trustee, 
 
(ii) if the amendment affects the rights,
powers, duties, obligations or immunities of the Delaware Trustee, the Delaware Trustee, 
 
(iii) if the amendment affects the rights, powers, duties, obligations or immunities of the Administrators, the
Administrators, and 
 
(iv) the
Holders of a Majority in liquidation amount of the Common Securities. 
 
(b) Notwithstanding any other provision of this Article XI, no amendment shall be made, and any such purported amendment shall be void and ineffective: 
 
(i) unless the Institutional Trustee shall
have first received 
 
(A) an
Officers’ Certificate from each of the Trust and the Sponsor that such amendment is permitted by, and conforms to, the terms of this Declaration (including the terms of the Securities); and 
 
(B) an opinion of counsel (who may be
counsel to the Sponsor or the Trust) that such amendment is permitted by, and conforms to, the terms of this Declaration (including the terms of the Securities) and that all conditions precedent to the execution and delivery of such amendment have
been satisfied; or 
 
(ii) if the
result of such amendment would be to 
 
(A) cause the Trust to cease to be classified for purposes of United States federal income taxation as a grantor trust; 
 
(B) reduce or otherwise adversely affect the powers of the Institutional Trustee in contravention of the Trust Indenture
Act; or 
 
(C) cause the Trust to
be deemed to be an Investment Company required to be registered under the Investment Company Act. 
 
(c) Except as provided in Section 11.1(d), (e) or (g), no amendment shall be made, and any such purported amendment shall
be void and ineffective, unless the Holders of a Majority in liquidation amount of the Capital Securities shall have consented to such amendment. 
 
(d) In addition to and notwithstanding any other provision in this Declaration, without the consent of each affected
Holder, this Declaration may not be amended to (i) change 

 

47 

the amount or timing of any Distribution on the Securities or any redemption or liquidation provisions applicable to the Securities or
otherwise adversely affect the amount of any Distribution required to be made in respect of the Securities as of a specified date or (ii) restrict the right of a Holder to institute suit for the enforcement of any Distributions or other amounts on
or after their due date. 
 
(e)
Sections 9.1(b) and 9.1(c) and this Section shall not be amended without the consent of all of the Holders of the Securities. 
 
(f) The rights of the Holders of the Capital Securities and Common Securities, as applicable, under Article IV to increase
or decrease the number of, and appoint and remove, Trustees shall not be amended without the consent of the Holders of a Majority in liquidation amount of the Capital Securities or Common Securities, as applicable. 
 
(g) This Declaration may be amended by the
Institutional Trustee and the Holder of a Majority in liquidation amount of the Common Securities without the consent of the Holders of the Capital Securities to: 
 
(i) cure any ambiguity; 
 
(ii) correct or supplement any provision in this Declaration that may be defective or
inconsistent with any other provision of this Declaration; 
 
(iii) add to the covenants, restrictions or obligations of the Sponsor; or 
 
(iv) modify, eliminate or add to any provision of this Declaration to such extent as may be necessary or desirable,
including, without limitation, to ensure that the Trust will be classified for United States federal income tax purposes at all times as a grantor trust and will not be required to register as an Investment Company under the Investment Company Act
(including without limitation to conform to any change in Rule 3a-5, Rule 3a-7 or any other applicable rule under the Investment Company Act or written change in interpretation or application thereof by any legislative body, court, government agency
or regulatory authority); 
 
provided,
however, that no such amendment contemplated in clause (i), (ii), (iii) or (iv) shall adversely affect the powers, preferences, rights or interests of Holders of Capital Securities. 
 
SECTION 11.2. Meetings of the Holders of the Securities; Action by Written Consent. 
 
(a) Meetings of the Holders of the Capital
Securities or the Common Securities may be called at any time by the Administrators (or as provided in the terms of such Securities) to consider and act on any matter on which Holders of such Securities are entitled to act under the terms of this
Declaration, the terms of such Securities or the rules of any stock exchange on which the Capital Securities are listed or admitted for trading, if any. The Administrators shall call a meeting of the Holders of such Securities if directed to do so
by the Holders of not less than 10% in liquidation amount of such Securities. Such direction shall be 

 

48 

given by delivering to the Administrators one or more notices in a writing stating that the signing Holders of such Securities wish to call a
meeting and indicating the general or specific purpose for which the meeting is to be called. Any Holders of Securities calling a meeting shall specify in writing the Certificates held by the Holders of the Securities exercising the right to call a
meeting and only those Securities represented by such Certificates shall be counted for purposes of determining whether the required percentage set forth in the second sentence of this paragraph has been met. 
 
(b) Except to the extent otherwise provided
in the terms of the Securities, the following provisions shall apply to meetings of Holders of the Securities: 
 
(i) Notice of any such meeting shall be given to all the Holders of the Securities having a right to vote thereat at least
7 days and not more than 60 days before the date of such meeting. Whenever a vote, consent or approval of the Holders of the Securities is permitted or required under this Declaration or the rules of any stock exchange on which the Capital
Securities are listed or admitted for trading, if any, such vote, consent or approval may be given at a meeting of the Holders of the Securities. Any action that may be taken at a meeting of the Holders of the Securities may be taken without a
meeting if a consent in writing setting forth the action so taken is signed by the Holders of the Securities owning not less than the minimum liquidation amount of Securities that would be necessary to authorize or take such action at a meeting at
which all Holders of the Securities having a right to vote thereon were present and voting. Prompt notice of the taking of action without a meeting shall be given to the Holders of the Securities entitled to vote who have not consented in writing.
The Administrators may specify that any written ballot submitted to the Holders of the Securities for the purpose of taking any action without a meeting shall be returned to the Trust within the time specified by the Administrators. 
 
(ii) Each Holder of a Security may authorize
any Person to act for it by proxy on all matters in which a Holder of Securities is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. No proxy shall be valid after the expiration of 11 months
from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Holder of the Securities executing it. Except as otherwise provided herein, all matters relating to the giving, voting or validity of
proxies shall be governed by the General Corporation Law of the State of 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. Each meeting of the Holders of the Securities shall be conducted by the Administrators or by such other Person that the Administrators may designate. 
 
(iii) 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 Capital Securities are then listed or admitted for trading, if any, otherwise provides, the Administrators, in their sole discretion, shall establish all 

 

49 

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 the Securities, waiver of any such notice, action by consent without a meeting, the establishment of a record date, quorum requirements, voting in person or by proxy or any other matter with respect to the
exercise of any such right to vote; provided, however, that each meeting shall be conducted in the United States (as that term is defined in Treasury Regulations § 301.7701-7). 
 
ARTICLE XII 
 
REPRESENTATIONS OF INSTITUTIONAL TRUSTEE  
AND DELAWARE TRUSTEE 
 
SECTION 12.1. Representations and Warranties of Institutional Trustee. The Trustee that acts as initial Institutional Trustee
represents and warrants to the Trust and to the Sponsor at the date of this Declaration, and each Successor Institutional Trustee represents and warrants to the Trust and the Sponsor at the time of the Successor Institutional Trustee’s
acceptance of its appointment as Institutional Trustee, that: 
 
(a) the Institutional Trustee is a banking corporation or national association with trust powers, duly organized, validly existing and in good standing under the laws of the State of Delaware or the
United States of America, respectively, with trust power and authority to execute and deliver, and to carry out and perform its obligations under the terms of, this Declaration; 
 
(b) the Institutional Trustee has a combined capital and surplus of at least fifty million
U.S. dollars ($50,000,000); 
 
(c)
the Institutional Trustee is not an Affiliate of the Sponsor, nor does the Institutional Trustee offer or provide credit or credit enhancement to the Trust; 
 
(d) the execution, delivery and performance by the Institutional Trustee of this Declaration has been duly authorized by
all necessary action on the part of the Institutional Trustee, and this Declaration has been duly executed and delivered by the Institutional Trustee, and under Delaware law (excluding any securities laws) constitutes a legal, valid and binding
obligation of the Institutional Trustee, enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency and other similar laws affecting creditors’ rights generally and to general
principles of equity and the discretion of the court (regardless of whether considered in a proceeding in equity or at law); 
 
(e) the execution, delivery and performance of this Declaration by the Institutional Trustee does not conflict with or
constitute a breach of the charter or by-laws of the Institutional Trustee; and 
 
(f) no consent, approval or authorization of, or registration with or notice to, any state or federal banking authority governing the trust powers of the Institutional Trustee is required for the
execution, delivery or performance by the Institutional Trustee of this Declaration. 
 

50 

 
SECTION 12.2.
Representations and Warranties of Delaware Trustee. The Trustee that acts as initial Delaware Trustee represents and warrants to the Trust and to the Sponsor at the date of this Declaration, and each Successor Delaware Trustee represents and
warrants to the Trust and the Sponsor at the time of the Successor Delaware Trustee’s acceptance of its appointment as Delaware Trustee that: 
 
(a) if it is not a natural person, the Delaware Trustee is duly organized, validly existing and in good standing under the
laws of the State of Delaware; 
 
(b) if it is not a natural person, the execution, delivery and performance by the Delaware Trustee of this Declaration has been duly authorized by all necessary corporate action on the part of the Delaware Trustee, and this
Declaration has been duly executed and delivered by the Delaware Trustee, and under Delaware law (excluding any securities laws) 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 considered
in a proceeding in equity or at law); 
 
(c) if it is not a natural person, the execution, delivery and performance of this Declaration by the Delaware Trustee does not conflict with or constitute a breach of the charter or by-laws of the Delaware Trustee; 
 
(d) it has trust power and authority to
execute and deliver, and to carry out and perform its obligations under the terms of, this Declaration; 
 
(e) no consent, approval or authorization of, or registration with or notice to, any state or federal banking authority
governing the trust powers of the Delaware Trustee is required for the execution, delivery or performance by the Delaware Trustee of this Declaration; and 
 
(f) the Delaware Trustee is a natural person who is a resident of the State of Delaware or, if not a natural person, it is
an entity which has its principal place of business in the State of Delaware and, in either case, a Person that satisfies for the Trust the requirements of §3807 of the Statutory Trust Act. 
 
ARTICLE XIII 
 
MISCELLANEOUS 
 
SECTION 13.1. Notices. All notices provided for in
this Declaration shall be in writing, duly signed by the party giving such notice, and shall be delivered, telecopied (which telecopy shall be followed by notice delivered or mailed by first class mail) or mailed by first class mail, as follows:

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

51 

American Safety Capital Trust 
c/o American Safety Holdings Corp. 
1845 The Exchange, Suite 200 
Atlanta, Georgia 30339 
Attention: Steven B. Mathis, Chief Financial Officer 
Telecopy: 770-980-0628 
Telephone: 770-916-1908 
 
(b) if given to the Delaware Trustee, at the
mailing address set forth below (or such other address as the Delaware Trustee may give notice of to the Holders of the Securities): 
 
Wilmington Trust Company 
Rodney Square North 
1100 North Market Street 
Wilmington, DE 19890-0001 
Attention: Corporate Trust Administration 
Telecopy:
302-651-8882 
Telephone: 302-651-1000 
 
(c) if given to the Institutional Trustee, at the Institutional Trustee’s mailing
address set forth below (or such other address as the Institutional Trustee may give notice of to the Holders of the Securities): 
 
Wilmington Trust Company 
Rodney Square North 
1100 North Market Street 
Wilmington, DE 19890-0001 
Attention: Corporate Trust Administration 
Telecopy:
302-651-8882 
Telephone: 302-651-1000 
 
(d) if given to the Holder of the Common Securities, at the mailing address of the Sponsor
set forth below (or such other address as the Holder of the Common Securities may give notice of to the Trust): 
 
American Safety Holdings Corp. 
1845 The Exchange, Suite 200 
Atlanta, Georgia 30339 
Attention: Steven B. Mathis, Chief Financial Officer 
Telecopy: 770-980-0628 
Telephone: 770-916-1908 
 
(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 

 

52 

notice was given, such notice or other document shall be deemed to have been delivered on the date of such refusal or inability to deliver.

 
SECTION 13.2. Governing Law. This
Declaration and the rights and obligations of the parties hereunder shall be governed by and interpreted in accordance with the law of the State of Delaware and all rights, obligations and remedies shall be governed by such laws without regard to
the principles of conflict of laws of the State of Delaware or any other jurisdiction that would call for the application of the law of any jurisdiction other than the State of Delaware. 
 
SECTION 13.3. Submission to Jurisdiction. 
 
(a) Each of the Sponsor, the Trustees, the
Administrators and the Holders of the Common Securities hereto agrees that any suit, action or proceeding arising out of or based upon this Declaration, or the transactions contemplated hereby, may be instituted in any of the courts of the State of
New York and the United States District Courts, in each case located in the Borough of Manhattan, City and State of New York, and further agrees to submit to the jurisdiction of any competent court in the place of its corporate domicile in respect
of actions brought against it as a defendant. In addition, each such party irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of such suit, action or proceeding
brought in any such court and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum and irrevocably waives any right to which it may be entitled on account of its
place of corporate domicile. Each such party hereby irrevocably waives any and all right to trial by jury in any legal proceeding arising out of or relating to this Declaration or the transactions contemplated hereby. Each such party agrees that
final judgment in any proceedings brought in such a court shall be conclusive and binding upon it and may be enforced in any court to the jurisdiction of which it is subject by a suit upon such judgment. 
 
(b) Each of the Sponsor, the Trustees, the
Administrators and the Holder of the Common Securities irrevocably consents to the service of process on it in any such suit, action or proceeding by the mailing thereof by registered or certified mail, postage prepaid, to it at its address given in
or pursuant to Section 13.1 hereof. 
 
(c) To the extent permitted by law, nothing herein contained shall preclude the Sponsor, the Trustees, the Administrators and the Holders of the Common Securities from effecting service of process in any lawful manner or from
bringing any suit, action or proceeding in respect of this Declaration in any other state, country or place. 
 
SECTION 13.4. Intention of the Parties. It is the intention of the parties hereto that the Trust be classified for United States
federal income tax purposes as a grantor trust. The provisions of this Declaration shall be interpreted to further this intention of the parties. 
 
SECTION 13.5. 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. 
 

53 

 
SECTION 13.6.
Successors and Assigns. Whenever in this Declaration any of the parties hereto is named or referred to, the successors and assigns of such party shall be deemed to be included, and all covenants and agreements in this Declaration by the
Sponsor and the Trustees shall bind and inure to the benefit of their respective successors and assigns, whether or not so expressed. 
 
SECTION 13.7. Partial Enforceability. If any provision of this Declaration, or the application of such provision to any Person or
circumstance, shall be held invalid, the remainder of this Declaration, or the application of such provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby. 
 
SECTION 13.8. 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 and Administrators to any of such counterpart signature pages. All of such counterpart signature
pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed a single signature page. 
 

54 

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

	 WILMINGTON TRUST COMPANY,
as Delaware Trustee

	
	 By:
	 	  

	 	 	 Name:
 Title:

	
	 WILMINGTON TRUST COMPANY,
as Institutional Trustee

	
	 By:
	 	  

	 	 	 Name:
 Title:

	
	 AMERICAN SAFETY HOLDINGS CORP.,
as Sponsor

	
	 By:
	 	  

	 	 	 Name:
 Title:

	
	 AMERICAN SAFETY INSURANCE GROUP
LTD.,
as Guarantor

	
	 By:
	 	  

	 	 	 Name:
 Title:

	
	

	 Steven B. Mathis
as Administrator

	
	

	 Stephen R. Crim
as Administrator

	
	

	 Fred J. Pinckney
as Administrator

 
 

55 

 
ANNEX I

 
TERMS OF 
CAPITAL SECURITIES AND COMMON SECURITIES 
 
Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of May 22, 2003 (as amended from time to time, the
“Declaration”), the designation, rights, privileges, restrictions, preferences and other terms and provisions of the Capital Securities and the Common Securities (collectively, the “Securities”) are set out below (each
capitalized term used but not defined herein has the meaning set forth in the Declaration): 
 
1. Designation and Number. 
 
(a) Capital Securities. 8,000 Capital Securities of American Safety Capital Trust (the “Trust”), with an aggregate liquidation amount with respect to the assets of the Trust of EIGHT MILLION
Dollars ($8,000,000) and a liquidation amount with respect to the assets of the Trust of $1,000 per Capital Security, are hereby designated for the purposes of identification only as the “InCapSSM” (the “Capital Securities”). The Capital Security Certificates evidencing the Capital Securities shall be substantially in the form of Exhibit
A-1 to the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice or to conform to the rules of any stock exchange on which the Capital Securities are listed, if any.

 
(b) Common Securities. 248
Common Securities of the Trust (the “Common Securities”) will be evidenced by Common Security Certificates substantially in the form of Exhibit A-2 to the Declaration, with such changes and additions thereto or deletions therefrom as may
be required by ordinary usage, custom or practice. In the absence of an Event of Default, the Common Securities will have an aggregate liquidation amount with respect to the assets of the Trust of TWO HUNDRED AND FORTY- EIGHT THOUSAND Dollars
($248,000) and a liquidation amount with respect to the assets of the Trust of $1,000 per Common Security. 
 
2. Distributions. (a) Distributions payable on each Security will be payable at a floating rate of interest per annum, which, with
respect to any Distribution Period (as defined herein), will be equal to LIBOR, as determined on the LIBOR Determination Date for such Distribution Period, plus 4.20% (the “Coupon Rate”); provided, that the Coupon Rate for any
Distribution Period prior to the Distribution Period commencing on the Distribution Payment Date (as defined herein) in May 2008 may not exceed 12.5% per annum; provided, further, that the Coupon Rate for any Distribution Period may
not exceed the Interest Rate (as defined in the Indenture) for the related Interest Period (as defined in the Indenture). Distributions in arrears for more than one Distribution Period will bear interest thereon, compounded quarterly, at the
applicable Coupon Rate for each Distribution Period thereafter (to the extent permitted by applicable law). The term “Distributions”, as used herein, includes cash Distributions, any such compounded Distributions and any Additional
Interest payable on the Debentures unless otherwise stated. A Distribution is payable only to the extent that payments are made in respect of the Debentures held by the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions payable for any Distribution Period will be computed on the basis of a 360- day year and the actual 

 

A-I-1 

number of days elapsed in such Distribution Period; provided, however, that if the Special Redemption Date is before May 23,
2008, the amounts payable upon redemption of the Securities pursuant to this Declaration shall be calculated as set forth in the definition of Special Redemption Price. 
 
The term “Distribution Period”, as used herein, means (i) in the case of the first Distribution
Period, the period from, and including, the date of original issuance of the Securities to, but excluding, the initial Distribution Payment Date and (ii) thereafter, from, and including, the first day following the end of the preceding Distribution
Period to, but excluding, the related Distribution Payment Date or, in the case of the last Distribution Period, the related date of redemption. 
 
(b) LIBOR shall be determined by the Calculation Agent for each Distribution Period in accordance with the following
provisions: 
 
(1) On the second
LIBOR Business Day (provided, that on such day commercial banks are open for business (including dealings in foreign currency deposits) in London (a “LIBOR Banking Day”), and otherwise the next preceding LIBOR Business Day that is also a
LIBOR Banking Day) prior to March 1, June 1, September 1, or December 1, as the case may be, immediately succeeding the commencement of such Distribution Period (or, in the case of the first Distribution Period, on May 20, 2003) (each such day, a
“LIBOR Determination Date”), LIBOR shall equal the rate, as obtained by the Calculation Agent, for three-month U.S. Dollar deposits in Europe, which appears on Telerate (as defined in the International Swap and Derivatives Association,
Inc. 2000 Interest Rate and Currency Exchange Definitions) page 3750 or such other page as may replace such page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date, as reported by Bloomberg Financial Markets Commodities News or
any successor service (“Telerate Page 3750”). “LIBOR Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banking institutions in The City of New York or Wilmington, Delaware are authorized
or obligated by law or executive order to be closed. If such rate is superseded on Telerate Page 3750 by a corrected rate before 12:00 noon (London time) on such LIBOR Determination Date, the corrected rate as so substituted will be LIBOR for such
LIBOR Determination Date. 
 
(2)
If, on such LIBOR Determination Date, such rate does not appear on Telerate Page 3750, the Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference Banks (as defined below) to leading banks in the London
interbank market for three-month U.S. Dollar deposits in Europe (in an amount determined by the Calculation Agent) by reference to requests for quotations as of approximately 11:00 a.m. (London time) on such LIBOR Determination Date made by the
Calculation Agent to the Reference Banks. If, on such LIBOR Determination Date, at least two of the Reference Banks provide such quotations, LIBOR shall equal the arithmetic mean of such quotations. If, on such LIBOR Determination Date, only one or
none of the Reference Banks provide such a quotation, LIBOR shall be deemed to be the 

 

A-I-2 

arithmetic mean of the offered quotations that at least two leading banks in The City of New York (as selected by the Calculation Agent) are
quoting on such LIBOR Determination Date for three-month U.S. Dollar deposits in Europe at approximately 11:00 a.m. (London time) (in an amount determined by the Calculation Agent). As used herein, “Reference Banks” means four major banks
in the London interbank market selected by the Calculation Agent. 
 
(3) If the Calculation Agent is required but is unable to determine a rate in accordance with at least one of the procedures provided above, LIBOR for such Distribution Period shall be LIBOR in effect
for the immediately preceding Distribution Period. 
 
(c) All percentages resulting from any calculations on the Securities will be rounded, if necessary, to the nearest one hundred- thousandth of a percentage point, with five one- millionths of a percentage point rounded
upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)), and all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent (with one- half cent being rounded upward). 
 
(d) On each LIBOR Determination Date, the
Calculation Agent shall notify, in writing, the Sponsor and the Paying Agent of the applicable Coupon Rate that applies to the related Distribution Period. The Calculation Agent shall, upon the request of a Holder of any Securities, inform such
Holder of the Coupon Rate that applies to the related Distribution Period. All calculations made by the Calculation Agent in the absence of manifest error shall be conclusive for all purposes and binding on the Sponsor and the Holders of the
Securities. The Paying Agent shall be entitled to rely on information received from the Calculation Agent or the Sponsor as to the applicable Coupon Rate. The Sponsor shall, from time to time, provide any necessary information to the Paying Agent
relating to any original issue discount and interest on the Securities that is included in any payment and reportable for taxable income calculation purposes. 
 
(e) Distributions on the Securities will be cumulative, will accrue from the date of original issuance, and will be
payable, subject to extension of Distribution Periods as described herein, quarterly in arrears on February 23, May 23, August 23 and November 23 of each year, commencing on August 23, 2003 (each, a “Distribution Payment Date”). The
Debenture Issuer has the right under the Indenture to defer payments of interest on the Debentures by extending the interest payment period for up to 20 consecutive quarterly periods (each such extended interest payment period, together with all
previous and future consecutive extensions thereof, is referred to herein as an “Extension Period”) at any time and from time to time on the Debentures, subject to the conditions described below and in the Indenture. No Extension Period
may end on a date other than a Distribution Payment Date or extend beyond the Maturity Date, any Optional Redemption Date or the Special Redemption Date, as the case may be (each such term as defined herein). During any Extension Period, interest
will continue to accrue on the Debentures, and interest on such accrued interest (such accrued interest and interest thereon referred to herein as “Deferred Interest”) will accrue, at an annual rate equal to the Coupon Rate applicable
during such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable were it not for the Extension Period, to the extent permitted by applicable law. At the end of any Extension Period, the Debenture Issuer

 

A-I-3 

and the Guarantor shall be subject to the restrictions specified in Section 3.08 of the Indenture. Prior to the termination of any Extension
Period, the Debenture Issuer may further extend such Extension Period, provided, that no Extension Period (including all previous and further consecutive extensions that are part of such Extension Period) shall exceed 20 consecutive quarterly
periods. Upon the termination of any Extension Period and upon the payment of all Deferred Interest, the Debenture Issuer may commence a new Extension Period, subject to the requirements herein and in the Indenture. No interest or Deferred Interest
(except any Additional Interest that may be due and payable) shall be due and payable during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of interest that would otherwise have been due and
payable during such Extension Period until such installment is paid. 
 
As a consequence of any Extension Period, Distributions will be deferred. Notwithstanding any such deferral, Distributions will continue to accrue on the Securities, and Distributions on such accrued Distributions will
accrue, at the Coupon Rate applicable during such Extension Period, compounded quarterly, to the extent permitted by applicable law. If Distributions are deferred, the Distributions due shall be paid on the date that such Extension Period terminates
to Holders of the Securities as they appear on the books and records of the Trust on the regular record date immediately preceding the Distribution Payment Date on which such Extension Period terminates to the extent that the Trust has funds legally
available for the payment of such Distributions in the Property Account of the Trust. 
 
The Trust’s funds available for Distributions to the Holders of the Securities will be limited to payments received from the Debenture Issuer. The payment of Distributions out of moneys held by
the Trust is guaranteed by the Guarantor pursuant to the Guarantee. 
 
(f) Distributions on the Securities will be payable to the Holders thereof as they appear on the books and records of the Registrar on the relevant regular record dates. The relevant “regular record dates” shall be
15 days before the relevant Distribution Payment Dates. Distributions payable on any Securities that are not punctually paid on any Distribution Payment Date, as a result of the Debenture Issuer having failed to make a payment under the Debentures,
as the case may be, when due (taking into account any Extension Period), will cease to be payable to the Person in whose name such Securities are registered on the original relevant regular record date, and such defaulted Distributions will instead
be payable to the Person in whose name such Securities are registered on the regular record date preceding the Distribution Payment Date on which the related Extension Period terminates or, in the absence of an Extension Period, a special record
date therefor selected by the Administrators. 
 
(g) 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.

 
(h) If any Distribution Payment Date, other
than any date of redemption, falls on a day that is not a Business Day, then Distributions payable will be paid on, and such Distribution Payment Date will be moved to, the next succeeding Business Day, and additional Distributions will accrue for
each day that such payment is delayed as a result thereof. 
 

A-I-4 

 
3.
Liquidation Distribution Upon Dissolution. In the event of the voluntary or involuntary liquidation, dissolution, winding- up or termination of the Trust (each, a “Liquidation”), the Holders of the Securities will be entitled to
receive out of the assets of the Trust legally available for distribution to Holders of the Securities, after satisfaction of liabilities to creditors of the Trust (to the extent not satisfied by the Debenture Issuer), an amount in cash equal to the
aggregate of the liquidation amount of $1,000 per Security plus unpaid Distributions accrued thereon to the date of payment (collectively, the “Liquidation Distribution”), unless: (i) the Debentures have been redeemed in full in accordance
with the terms thereof and of the Indenture; or (ii) the Debentures in an aggregate principal amount equal to the aggregate liquidation amount of such Securities and bearing accrued and unpaid interest in an amount equal to the accrued and unpaid
Distributions on such Securities, after paying or making reasonable provision to pay all claims and obligations of the Trust in accordance with Section 3808(e) of the Statutory Trust Act, shall be distributed on a Pro Rata basis to the Holders of
the Securities in exchange for such Securities. 
 
The Sponsor, as the Holder of all of the Common Securities, has the right at any time, upon receipt by the Debenture Issuer and the Institutional Trustee for the benefit of the Trust of an opinion of nationally recognized tax
counsel, which opinion may rely on private rulings of the Internal Revenue Service or public rulings of the Internal Revenue Service, that Holders will not recognize any gain or loss for United States Federal income tax purposes as a result of the
distribution of Debentures, to dissolve the Trust (including, without limitation, upon the occurrence of a Tax Event or an Investment Company Event, each as defined herein) and, after satisfaction of liabilities to creditors of the Trust, cause the
Debentures to be distributed to the Holders of the Securities on a Pro Rata basis in accordance with the aggregate liquidation amount thereof. 
 
The Trust shall dissolve on the first to occur of (i) May 22, 2038, the expiration of the term of the Trust, (ii) a Bankruptcy Event with
respect to the Sponsor, the Trust, the Debenture Issuer or the Guarantor, (iii) (other than in connection with a merger, consolidation or similar transaction permitted by the Indenture, this Declaration or the Guarantee, as the case may be) the
filing of a certificate of dissolution or its equivalent with respect to the Sponsor or the Guarantor or upon the revocation of the charter of the Sponsor or the Guarantor and the expiration of 90 days after the date of revocation without a
reinstatement thereof, (iv) the distribution of all of the Debentures to the Holders of the Securities, upon exercise of the right of the Holders of all of the outstanding Common Securities to dissolve the Trust as described above, (v) the entry of
a decree of a judicial dissolution of any Holder of the Common Securities, the Sponsor, the Guarantor, the Trust or the Debenture Issuer, (vi) when all of the Securities are then subject to redemption and the amounts necessary for redemption thereof
shall have been paid to the Holders in accordance with the terms of the Securities, or (vii) before the issuance of any Securities, with the consent of all of the Trustees and the Sponsor. As soon as practicable after the dissolution of the Trust
and upon completion of the winding up of the Trust, the Trust shall terminate upon the filing of a certificate of cancellation with the Secretary of State of the State of Delaware. 
 
Notwithstanding the foregoing, if a Liquidation of the Trust occurs as described in clause (i), (ii), (iii)
or (v) in the immediately preceding paragraph, the Trust shall be liquidated by the Institutional Trustee of the Trust as expeditiously as such Trustee determines to be 

 

A-I-5 

practical by distributing, after satisfaction of liabilities to creditors of the Trust (to the extent not satisfied by the Debenture Issuer)
as provided by applicable law, to the Holders of the Securities, the Debentures on a Pro Rata basis, unless such distribution is determined by the Institutional Trustee not to be practical, in which event such Holders will be entitled to receive on
a Pro Rata basis, out of the assets of the Trust legally available for distribution to the Holders of the Securities, after satisfaction of liabilities to creditors of the Trust (to the extent not satisfied by the Debenture Issuer), an amount in
cash equal to the Liquidation Distribution. A Liquidation of the Trust pursuant to clause (iv) of the immediately preceding paragraph shall occur if the Institutional Trustee determines that such Liquidation is practical by distributing, after
satisfaction of liabilities to creditors of the Trust (to the extent not satisfied by the Debenture Issuer), to the Holders of the Securities on a Pro Rata basis, the Debentures, and such distribution occurs. 
 
If, upon any Liquidation of the Trust, the Liquidation
Distribution can be paid only in part because the Trust has insufficient assets available to pay in full the aggregate Liquidation Distribution, then the amounts payable directly by the Trust on the Securities shall be paid to the Holders of the
Securities on a Pro Rata basis, except that if an Event of Default has occurred and is continuing, then the Capital Securities shall have a preference over the Common Securities with regard to such amounts. 
 
Upon any Liquidation of the Trust involving a distribution of
the Debentures, if at the time of such Liquidation, the Capital Securities were rated by at least one nationally- recognized statistical rating organization, the Debenture Issuer will use its reasonable best efforts to obtain from at least one such
or other rating organization a rating for the Debentures. 
 
After the date for any distribution of the Debentures upon any Liquidation of the Trust, (i) the Securities of the Trust will be deemed to be no longer outstanding, (ii) any certificates representing the Capital Securities will be
deemed to represent undivided beneficial interests in such of the Debentures as have an aggregate principal amount equal to the aggregate liquidation amount of such Capital Securities and bearing accrued and unpaid interest equal to accrued and
unpaid distributions on such Capital Securities until such certificates are presented to the Debenture Issuer or its agent for transfer or reissuance (and until such certificates are so surrendered, no payments shall be made to Holders of Securities
in respect of any payments due and payable under the Debentures) and (iii) all rights of Holders of Securities shall cease, except the right of such Holders to receive Debentures upon surrender of certificates representing such Securities.

 
4. Redemption and Distribution.

 
(a) The Debentures will mature on May 23, 2033
(the “Maturity Date”) at an amount in cash equal to 100% of the principal amount thereof plus unpaid interest accrued thereon to such date (the “Maturity Redemption Price”). The Debentures may be redeemed by the Debenture Issuer,
at its option, in whole or in part, on any Distribution Payment Date on or after May 23, 2008 (each, an “Optional Redemption Date”), at the Optional Redemption Price, upon not less than 30 nor more than 60 days’ prior written notice
to holders of such Debentures. In addition, upon the occurrence and continuation of a Tax Event or an Investment Company Event, the Debentures may be redeemed by the Debenture Issuer, at its option, in whole but not 

 

A-I-6 

in part, at any time within 90 days following the occurrence of such Tax Event or Investment Company Event, as the case may be (the
“Special Redemption Date”), at the Special Redemption Price, upon not less than 30 nor more than 60 days’ prior written notice to holders of the Debentures so long as such Tax Event or Investment Company Event, as the case may be, is
continuing. Additional interest may also be payable by the Debenture Issuer in connection with such Tax Event or Investment Company Event as specified in Section 10.02 of the Indenture. Any such interest received by the Trust will be distributed
promptly to Holders of the Securities on a Pro Rata basis. 
 
“Tax Event” means the receipt by the Debenture Issuer and the Institutional Trustee for the benefit of the Trust of an opinion of counsel experienced in such matters to the effect that, as a result of any amendment to or
change (including any announced prospective change) in the laws or any regulations thereunder of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement
(including any private letter ruling, technical advice memorandum, regulatory procedure, notice or announcement) (an “Administrative Action”) or judicial decision interpreting or applying such laws or regulations, regardless of whether
such Administrative Action or judicial decision is issued to or in connection with a proceeding involving the Debenture Issuer or the Trust and whether or not subject to review or appeal, which amendment, clarification, change, Administrative Action
or decision is enacted, promulgated or announced, in each case on or after the date of original issuance of the Debentures, there is more than an insubstantial risk that: (i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or accrued on the Debentures; (ii) interest payable by the Debenture Issuer on the Debentures is not, or within 90 days of the date of such opinion, will not be, deductible
by the Debenture Issuer, in whole or in part, for United States federal income tax purposes; or (iii) the Trust is, or will be within 90 days of the date of such opinion, subject to or otherwise required to pay or required to withhold from
Distributions, more than a de minimis amount of other taxes (including withholding taxes), duties, assessments or other governmental charges. 
 
“Investment Company Event” means the receipt by the Debenture Issuer and the Institutional Trustee for the benefit of the Trust
of an opinion of counsel experienced in such matters to the effect that, as a result of a change in law or regulation or written change in interpretation or application of law or regulation by any legislative body, court, governmental agency or
regulatory authority, there is more than an insubstantial risk that the Trust is or, within 90 days of the date of such opinion will be, considered an Investment Company that is required to be registered under the Investment Company Act, which
change or prospective change becomes effective or would become effective, as the case may be, on or after the date of the original issuance of the Debentures. 
 
“Optional Redemption Price” means an amount in cash equal to 100% of the principal amount of the Debentures being redeemed plus
unpaid interest accrued on such Debentures to the related Optional Redemption Date or, in the case of a redemption due to the occurrence of a Special Event, to the Special Redemption Date if the Special Redemption Date is on or after May 23, 2008.

 

A-I-7 

 
“Special
Event” means either a Tax Event or an Investment Company Event, or both. 
 
“Special Redemption Price” means, with respect to the redemption of the Debentures following a Special Event, an amount in cash equal to (1) if the Special Redemption Date is before May 23,
2008, the greater of (a) 100% of the outstanding principal amount thereof or (b) as determined by the Quotation Agent, the sum of the present value of the principal amount payable as part of the Optional Redemption Price with respect to a redemption
as of May 23, 2008, together with the present value of interest payments calculated at a fixed rate of interest per annum equal to 7.60% over the Remaining Life of such Debentures, discounted to the Special Redemption Date on a quarterly basis
(assuming a 360- day year consisting of twelve 30- day months) at the Treasury Rate plus 2.0%, plus, in the case of either (a) or (b), unpaid interest accrued on such Debentures to the Special Redemption Date and (2) if the Special Redemption Date
is on or after May 23, 2008, the Optional Redemption Price for the Special Redemption Date. 
 
“Comparable Treasury Issue” means, with respect to the Special Redemption Date, the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the
Remaining Life that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life. If no United States Treasury
security has a maturity which is within a period from three months before to three months after May 23, 2008, the two most closely corresponding United States Treasury securities shall be used as the Comparable Treasury Issue, and the Treasury Rate
shall be interpolated or extrapolated on a straight- line basis, rounding to the nearest month using such securities. 
 
“Comparable Treasury Price” means, with respect to the Special Redemption Date, (a) the average of three Reference Treasury
Dealer Quotations (as defined herein) for the Special Redemption Date received by the Quotation Agent, after excluding the highest and lowest of five such Reference Treasury Dealer Quotations so received, or (b) if the Quotation Agent receives fewer
than five such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations. 
 
“Primary Treasury Dealer” means a primary United States Government securities dealer in The City of New York. 
 
“Quotation Agent” means Citigroup Global Markets
Inc. and its successors; provided, however, that if the foregoing shall cease to be a Primary Treasury Dealer, the Debenture Issuer shall substitute therefor another Primary Treasury Dealer. 
 
“Reference Treasury Dealer” means (i) the Quotation
Agent and (ii) any other Primary Treasury Dealer selected by the Debenture Trustee after consultation with the Debenture Issuer. 
 
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and the Special Redemption Date,
the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as 

 

A-I-8 

a percentage of its principal amount) quoted in writing to the Debenture Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding the Special Redemption Date. 
 
“Remaining Life” means the period from the Special Redemption Date through May 23, 2008. 
 
“Treasury Rate” means, with respect to the Special Redemption Price, (i) the yield, under the heading which represents the
average for the week immediately prior to the third Business Day immediately preceding the Special Redemption Date, appearing in the most recently published statistical release designated H.15 (519) or any successor publication which is published
weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Remaining Life (provided that if no maturity is within three months before or after the Remaining Life, then the yields for the two published maturities most closely corresponding to the Remaining Life shall be
determined and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight- line basis, rounding to the nearest month) or (ii) if such release (or any successor release) is not published during the week immediately prior
to the third Business Day immediately preceding the Special Redemption Date or does not contain such yields, the rate per annum equal to the quarterly equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the Special Redemption Date. 
 
(b) Upon any repayment of the Debentures at maturity or in whole or in part upon redemption (other than following the distribution of the
Debentures to the Holders of the Securities), the proceeds from such repayment shall concurrently be applied to redeem Pro Rata, at a redemption price corresponding to the applicable Maturity Redemption Price, Optional Redemption Price or Special
Redemption Price for the Debentures, as the case may be, Securities having an aggregate liquidation amount equal to the aggregate principal amount of the Debentures so repaid; provided, however, that Holders of such Securities shall be
given not less than 30 nor more than 60 days’ prior written notice of such redemption (other than a redemption resulting from the maturity of the Debentures on the Maturity Date). 
 
(c) If fewer than all the outstanding Securities are to be so redeemed, the Common Securities and the Capital
Securities will be redeemed Pro Rata and the Capital Securities to be redeemed will be as described in Section 4(e)(ii) below. 
 
(d) The Trust may not redeem fewer than all the outstanding Capital Securities unless all accrued and unpaid Distributions have been paid
on all Capital Securities for all Distribution Periods terminating on or before the related date of redemption. 
 
(e) Redemption or Distribution Procedures. 
 
(i) Written notice of any redemption of, or written notice of distribution of the Debentures
in exchange for, the Securities (a 

 

A-I-9 

“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 of redemption or exchange thereof which, in the case of a redemption, will be the date of 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 4(e)(i), a Redemption/Distribution Notice shall be deemed to be given on the day such notice is first mailed by first-class mail, postage prepaid, to Holders of such Securities. Each
Redemption/Distribution Notice shall be addressed to the Holders of such Securities at the address of each such Holder appearing on the books and records of the Registrar. No defect in the Redemption/Distribution Notice or in the mailing thereof
with respect to any Holder shall affect the validity of the redemption or exchange proceedings with respect to any other Holder. 
 
(ii) In the event that fewer than all the outstanding Capital Securities are to be redeemed, the Capital Securities to be
redeemed shall be redeemed Pro Rata from each Holder. 
 
(iii) If the Securities are to be redeemed and the Trust gives a Redemption/Distribution Notice, which notice may only be issued if the Debentures are redeemed or repaid as set out in this Section (which notice will be
irrevocable), then, provided, that the Institutional Trustee has a sufficient amount of cash in connection with the related redemption or maturity of the Debentures, the Institutional Trustee will pay the price payable upon redemption of the
Securities to the Holders of such Securities by check mailed to the address of each such Holder appearing on the books and records of the Trust on the related date of redemption. If a Redemption/Distribution Notice shall have been given and funds
deposited as required, then immediately prior to the close of business on the date of such deposit, Distributions will cease to accrue on the Securities so subject to redemption and all rights of Holders of such Securities so subject to redemption
will cease, except the right of the Holders of such Securities to receive the applicable price specified in Section 4(a), but without interest on such price. If any date of redemption of the Securities falls on a day that is not a Business Day, then
payment of all amounts payable on such date will be made on the next succeeding Business Day, and no additional Distributions will accrue in respect of such payment on such next succeeding Business Day. If any amount payable upon redemption of the
Securities is improperly withheld or refused and not paid either by the Trust, the Debenture Issuer or the Sponsor as guarantor pursuant to the Guarantee, Distributions on such Securities will continue to accrue at the Coupon Rate applicable from
the date of redemption to the actual date of payment, in which case the actual payment date will be considered the date of redemption for purposes of calculating the price payable upon redemption of the Securities. 
 
The Trust shall not be required to (i) issue,
register the transfer of or exchange any Security during a period beginning at the opening of business 15 days before any selection for redemption of the Securities and ending at the close of business on the earliest date on which the relevant
notice of redemption is deemed to have been given to all Holders of the Securities to be so redeemed or (ii) register the transfer of or exchange 

 

A-I-10 

any Securities so selected for redemption, in whole or in part, except for the unredeemed portion of any Securities being redeemed in part.

 
(iv) Redemption/Distribution
Notices shall be sent by the Administrators on behalf of the Trust (A) in respect of the Capital Securities, to the Holders 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), and provided, that the acquiror is not the Holder of the Common Securities or the obligor under the Indenture, the Sponsor or any of its subsidiaries may at any time
and from time to time purchase outstanding Capital Securities by tender, in the open market or by private agreement. 
 
5. Voting Rights—Capital Securities. (a) Except as provided under Sections 5(b) and 7 and as otherwise required by law and the
Declaration, the Holders of the Capital Securities will have no voting rights. The Administrators are required to call a meeting of the Holders of the Capital Securities if directed to do so by Holders of not less than 10% in liquidation amount of
the Capital Securities. 
 
(b) Subject to the
requirements of obtaining a tax opinion by the Institutional Trustee in certain circumstances set forth in the last sentence of this paragraph, the Holders of a Majority in liquidation amount of the Capital Securities, voting separately as a class,
have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee under the Declaration, including (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) waiving any past default and
its consequences that are waivable under the Indenture, (iii) exercising any right to rescind or annul an acceleration of the principal of all the Debentures or (iv) consenting on behalf of all the Holders of the Capital Securities to any amendment,
modification or termination of the Indenture or the Debentures where such consent shall be required; provided, however, that, where a consent or action under the Indenture would require the consent or act of the holders of greater than
a simple majority in principal amount of Debentures (a “Super Majority”) affected thereby, the Institutional Trustee may only give such consent or take such action at the written direction of the Holders of not less than the proportion in
liquidation amount of the Capital Securities outstanding which the relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. If the Institutional Trustee fails to enforce its rights under the Debentures
after the Holders of a Majority or Super Majority, as the case may be, in liquidation amount of such Capital Securities have so directed the Institutional Trustee, to the fullest extent permitted by law, a Holder of the Capital Securities may
institute a legal proceeding directly against the Debenture Issuer to enforce the Institutional Trustee’s rights under the Debentures without first instituting any legal proceeding against the Institutional Trustee or any other person or
entity. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing and such event is attributable to the failure of the Debenture Issuer to pay interest or premium, if any, on or principal of the Debentures on the date such
interest, premium, if any, or principal is payable (or in the case of redemption, the date of redemption), then a Holder of the Capital Securities may directly institute a proceeding for enforcement of 

 

A-I-11 

payment, on or after the respective due dates specified in the Debentures, to such Holder directly of the principal of or premium, if any, or
interest on the Debentures having an aggregate principal amount equal to the aggregate liquidation amount of the Capital Securities of such Holder. Except with respect to directing the time, method and place of conducting a proceeding for a remedy,
the Institutional Trustee shall not take any of the actions described in clause (i), (ii), (iii) or (iv) above unless the Institutional Trustee has obtained an opinion of tax counsel to the effect that, as a result of such action, the Trust will not
be classified as other than a grantor trust for United States federal income tax purposes. 
 
The Institutional Trustee shall notify all Holders of the Capital Securities of any Default actually known to the Institutional Trustee with respect to the Debentures unless (x) such Default has been
cured prior to the giving of such notice or (y) the Institutional Trustee determines in good faith that the withholding of such notice is in the interest of the Holders of such Capital Securities, except, in the case of clause (y), where the Default
relates to the payment of principal of or premium, if any, or interest on any of the Debentures. Such notice shall state that such Indenture Event of Default also constitutes an Event of Default hereunder. 
 
A waiver of an Indenture Event of Default will constitute a
waiver of the corresponding Event of Default hereunder. Any required approval or direction of Holders of the Capital Securities may be given at a separate meeting of Holders of the Capital Securities convened for such purpose, at a meeting of all of
the Holders of the Securities in the Trust or pursuant to written consent. The Institutional Trustee will cause a notice of any meeting at which Holders of the Capital Securities are entitled to vote, or of any matter upon which action by written
consent of such Holders is to be taken, to be mailed to each Holder of the Capital Securities. Each such notice will include a statement setting forth the following information (i) the date of such meeting or the date by which such action is to be
taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or of such matter upon which written consent is sought and (iii) instructions for the delivery of proxies or consents. No
vote or consent of the Holders of the Capital Securities will be required for the Trust to redeem and cancel Capital Securities or to distribute the Debentures in accordance with the Declaration and the terms of the Securities. 
 
Notwithstanding that Holders of the Capital Securities are
entitled to vote or consent under any of the circumstances described above, any of the Capital Securities that are owned by the Sponsor or any Affiliate of the Sponsor shall not entitle the Holder thereof to vote or consent and shall, for purposes
of such vote or consent, be treated as if such Capital Securities were not outstanding. 
 
In no event will Holders of the Capital Securities have the right to vote to appoint, remove or replace the Administrators, which voting rights are vested exclusively in the Sponsor as the Holder of
all of the Common Securities of the Trust. Under certain circumstances as more fully described in the Declaration, Holders of Capital Securities have the right to vote to appoint, remove or replace the Institutional Trustee and the Delaware Trustee.

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

A-I-12 

 
(b) The Holders of the Common Securities are entitled, in accordance with Article IV of the Declaration, to vote to appoint, remove or replace any Administrators. 
 
(c) Subject to Section 6.7 of the Declaration and only after each Event of Default (if any)
with respect to the Capital Securities has been cured, waived or otherwise eliminated and subject to the requirements of the second to last sentence of this paragraph, the Holders of a Majority in liquidation amount of the Common Securities, voting
separately as a class, may direct the time, method, and place of conducting any proceeding for any remedy available to the Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee under the Declaration,
including (i) directing the time, method, place of conducting any proceeding for any remedy available to the Debenture Trustee, or exercising any trust or power conferred on the Debenture Trustee with respect to the Debentures, (ii) waiving any past
default and its consequences that are waivable under the Indenture, or (iii) exercising any right to rescind or annul an acceleration of the principal of all the Debentures, provided, however, that, where a consent or action under the
Indenture would require a Super Majority, the Institutional Trustee may only give such consent or take such action at the written direction of the Holders of not less than the proportion in liquidation amount of the Common Securities which the
relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. Notwithstanding this Section 6(c), the Institutional Trustee shall not revoke any action previously authorized or approved by a vote or consent of
the Holders of the Capital Securities. Other than with respect to directing the time, method and place of conducting any proceeding for any remedy available to the Institutional Trustee or the Debenture Trustee as set forth above, the Institutional
Trustee shall not take any action described in clause (i), (ii) or (iii) above, unless the Institutional Trustee has obtained an opinion of tax counsel to the effect that for the purposes of United States federal income tax the Trust will not be
classified as other than a grantor trust on account of such action. If the Institutional Trustee fails to enforce its rights under the Declaration, to the fullest extent permitted by law, any Holder of the Common Securities may institute a legal
proceeding directly against any Person to enforce the Institutional Trustee’s rights under the Declaration, without first instituting a legal proceeding against the Institutional Trustee or any other Person. 
 
Any approval or direction of Holders of the Common Securities
may be given at a separate meeting of Holders of the Common Securities convened for such purpose, at a meeting of all of the Holders of the Securities in the Trust or pursuant to written consent. The Administrators will cause a notice of any meeting
at which Holders of the Common Securities are entitled to vote, or of any matter upon which action by written consent of such Holders is to be taken, to be mailed to each Holder of the Common Securities. Each such notice will include a statement
setting forth (i) the date of such meeting or the date by which such action is to be taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or of such matter upon which written
consent is sought and (iii) instructions for the delivery of proxies or consents. 
 
No vote or consent of the Holders of the Common Securities will be required for the Trust to redeem and cancel Common Securities or to distribute the Debentures in accordance with the Declaration and
the terms of the Securities. 
 

A-I-13 

 
7.
Amendments to Declaration and Indenture. In addition to any requirements under Section 11.1 of the Declaration, if any proposed amendment to the Declaration provides for, or the 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 Liquidation of the Trust, other than as described in Section 7.1 of the Declaration, then the
Holders of outstanding Securities, voting together as a single class, will be entitled to vote on such amendment or proposal and such amendment or proposal shall not be effective except with the approval of the Holders of a Majority in liquidation
amount of the Securities affected thereby; provided, however, if any amendment or proposal referred to in clause (i) above would adversely affect only the Capital Securities or only the Common Securities, then only Holders of the
affected Securities will be entitled to vote on such amendment or proposal and such amendment or proposal shall not be effective except with the approval of the Holders of a Majority in liquidation amount of such Securities. 
 
(a) In the event the consent of the
Institutional Trustee, as the holder of the Debentures, is required under the Indenture with respect to any amendment, modification or termination of the Indenture or the Debentures, the Institutional Trustee shall request the written direction of
the Holders of the Securities with respect to such amendment, modification or termination and shall vote with respect to such amendment, modification, or termination as directed by a Majority in liquidation amount of the Securities voting together
as a single class; provided, however, that where a consent under the Indenture would require a Super Majority, the Institutional Trustee may only give such consent at the written direction of the Holders of not less than the proportion
in liquidation amount of the Securities which the relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. 
 
(b) Notwithstanding the foregoing, no amendment or modification may be made to the Declaration if such amendment or
modification would (i) cause the Trust to be classified for purposes of United States federal income taxation as other than a grantor trust, (ii) reduce or otherwise adversely affect the powers of the Institutional Trustee or (iii) cause the Trust
to be deemed an Investment Company which is required to be registered under the Investment Company Act. 
 
(c) Notwithstanding any provision of the Declaration, the right of any Holder of the Capital Securities to receive payment
of Distributions and payments upon redemption, liquidation or otherwise, on or after their respective due dates, or to institute a suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder. For the protection and enforcement of the foregoing provision, each and every Holder of the Capital Securities shall be entitled to such relief as can be given either at law or equity. 
 
8. Pro Rata. A reference in these terms of the
Securities to any payment, distribution or treatment as being “Pro Rata” shall mean pro rata to each Holder of the Securities according to the aggregate liquidation amount of the Securities held by the relevant Holder in relation to the
aggregate liquidation amount of all Securities outstanding unless, in relation to a payment, an Event of Default has occurred and is continuing, in which case any funds available to make such payment shall be paid first to each Holder of the Capital
Securities Pro Rata 

 

A-I-14 

according to the aggregate liquidation amount of the Capital Securities held by the relevant Holder relative to the aggregate liquidation
amount of all Capital Securities outstanding, and only after satisfaction of all amounts owed to the Holders of the Capital Securities, to each Holder of the Common Securities Pro Rata according to the aggregate liquidation amount of the Common
Securities held by the relevant Holder relative to the aggregate liquidation amount of all Common Securities outstanding. 
 
9. Ranking. The Capital Securities rank pari passu with, and payment thereon shall be made Pro Rata with, the Common
Securities except that, where an Event of Default has occurred and is continuing, the rights of Holders of the Common Securities to receive payment of Distributions and payments upon liquidation, redemption and otherwise are subordinated to the
rights of the Holders of the Capital Securities with the result that no payment of any Distribution on, or any amount payable upon the redemption of, any Common Security, and no payment to the Holder of any Common Security on account of the
Liquidation of the Trust, shall be made unless payment in full in cash of (i) all accrued and unpaid Distributions on all outstanding Capital Securities for all Distribution Periods terminating on or prior thereto, (ii) all amounts payable upon
Capital Securities then subject to redemption and (iii) all amounts payable upon Capital Securities in the event of the Liquidation of the Trust, in each case, shall have been made or provided for, and all funds immediately available to the
Institutional Trustee shall first be applied to the payment in full in cash of the amounts specified in clause (i), (ii) and (iii) above that are then due and payable. 
 
10. Acceptance of Guarantee and Indenture. Each Holder of the Capital Securities and the Common
Securities, by the acceptance of such Securities, agrees to the provisions of the Guarantee and the Indenture, including the subordination provisions contained therein. 
 
11. No Preemptive Rights. The Holders of the Securities shall have no, and the issuance of the
Securities is not subject to, preemptive or similar rights to subscribe for any additional securities. 
 
12. Miscellaneous. These terms constitute a part of the Declaration. The Sponsor will provide a copy of the Declaration, the
Guarantee and the Indenture to a Holder without charge on written request to the Sponsor at its principal place of business. 
 
 

A-I-15 

 
EXHIBIT A-1

 
FORM OF CAPITAL SECURITY CERTIFICATE

 
[FORM OF FACE OF SECURITY] 
 
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION
HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, HEREIN AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS (OR SUCH SHORTER PERIOD
OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST DATE ON WHICH THE TRUST OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE SECURITIES ACT) OF THE TRUST WAS THE
HOLDER OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE DEBENTURE ISSUER OR THE TRUST, (B) PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER,” AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF
SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT
OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHT OF THE DEBENTURE ISSUER AND THE TRUSTEE PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C), (D) OR (E) ABOVE
TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED 

 

A-1-1 

DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS. 
 
THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN
ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR
HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE, THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN
THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT
PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

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

 
THIS SECURITY WILL BE ISSUED AND MAY BE
TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE
VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY 

 

A-1-2 

SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION FOR ANY PURPOSE, INCLUDING,
BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN. 
 

A-1-3 

 

	 Certificate Number
	 	 P-1
	  	 Number of Capital Securities 8,000

 
Certificate Evidencing Capital Securities 
 
of 
 
AMERICAN SAFETY CAPITAL TRUST

 
Capital Securities 
 
(liquidation amount $1,000 per Capital Security) 
 
American Safety Capital Trust, a statutory trust created under
the laws of the State of Delaware (the “Trust”), hereby certifies that JPMorgan Chase Bank, as Trustee for the benefit of Noteholders of InCapS Funding I, Ltd., is the registered owner (the “Holder”) of 8,000 capital securities
of the Trust representing undivided beneficial interests in the assets of the Trust, designated as InCapSSM
(liquidation amount $1,000 per Capital Security) (the “Capital Securities”). Subject to the Declaration (as defined below), the Capital Securities are transferable on the books and records of the Trust, in person or by a duly authorized
attorney, upon surrender of this Certificate duly endorsed and in proper form for transfer. The Capital Securities represented hereby are issued pursuant to, and the designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Capital Securities shall in all respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the Trust, dated as of May 22, 2003, among Steven B. Mathis, Stephen R. Crim and Fred J. Pinckney, as
Administrators, Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, American Safety Holdings Corp, as Sponsor, American Safety Insurance Group, Ltd., as Guarantor, and the holders from time to time of
undivided beneficial interests in the assets of the Trust, including the designation of the terms of the Capital Securities as set forth in Annex I to the Declaration, as the same may be amended from time to time (the “Declaration”).
Capitalized terms used herein but not defined shall have the meaning given them in the Declaration. The Holder is entitled to the benefits of the Guarantee and the Indenture to the extent provided therein. The Sponsor will provide a copy of the
Declaration, the Guarantee and the Indenture to the Holder without charge upon written request to the Sponsor at its principal place of business. 
 
By acceptance of this Security, the Holder is bound by the Declaration and is entitled to the benefits thereunder. 
 
By acceptance of this Security, the Holder agrees to treat,
for United States federal income tax purposes, the Debentures as indebtedness and the Capital Securities as evidence of beneficial ownership in the Debentures. 
 
This Capital Security is governed by, and shall be construed in accordance with, the laws of the State of Delaware, without regard to
principles of conflict of laws. 
 

A-1-4 

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

	 AMERICAN SAFETY CAPITAL TRUST

	
	 By:
	 	  

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 Administrator

	 Dated:
	 	  

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

	 WILMINGTON TRUST COMPANY,

	 not in its individual capacity but solely as the Institutional Trustee

	
	 By:
	 	  

	 	 	 Authorized Officer

	 Dated:
	 	  

 

A-1-5 

 
[FORM OF
REVERSE OF SECURITY] 
 
Distributions payable on
each Capital Security will be payable at a floating rate of interest per annum, which, with respect to any Distribution Period, will be equal to LIBOR, as determined on the LIBOR Determination Date for such Distribution Period, plus 4.20% (the
“Coupon Rate”); provided, that the Coupon Rate for any Distribution Period prior to the Distribution Period commencing on the Distribution Payment Date (as defined below) in May 2008 may not exceed 12.5% per annum; provided,
further, that the Coupon Rate for any Distribution Period may not exceed the Interest Rate (as defined in the Indenture) for the related Interest Period (as defined in the Indenture). Distributions in arrears for more than one Distribution
Period will bear interest thereon, compounded quarterly, at the applicable Coupon Rate for each Distribution Period thereafter (to the extent permitted by applicable law). The term “Distributions”, as used herein, includes cash
Distributions, any such compounded Distributions and any Additional Interest payable on the Debentures, unless otherwise stated. A Distribution is payable only to the extent that payments are made in respect of the Debentures held by the
Institutional Trustee and to the extent the Institutional Trustee has funds legally available in the Property Account therefor. The amount of Distributions payable for any Distribution Period will be computed on the basis of a 360- day year and the
actual number of days elapsed in the applicable Distribution Period; provided, however, if the Special Redemption Date is before May 23, 2008, the amounts payable upon redemption of this Capital Security shall be calculated as set forth in the
definition of Special Redemption Price in the Declaration. 
 
Except as otherwise described below, Distributions on the Capital Securities will be cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears on February 23, May 23, August 23 and November
23 of each year, commencing on August 23, 2003 (each, a “Distribution Payment Date”), subject to the Business Day convention specified in the Declaration. The Debenture Issuer has the right under the Indenture to defer payments of interest
on the Debentures by extending the interest payment period for up to 20 consecutive quarterly periods (each such extended interest payment period, together with all previous and future consecutive extensions thereof, is referred to herein as an
“Extension Period”) at any time and from time to time on the Debentures, subject to the conditions described below and in the Declaration and the Indenture. No Extension Period may end on a date other than a Distribution Payment Date or
extend beyond the Maturity Date, and Optional Redemption Date or the Special Redemption Date, as the case may be. During any Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as “Deferred Interest”) will accrue, at an annual rate equal to the Coupon Rate applicable during such Extension Period, compounded quarterly from the date such Deferred Interest would have
been payable were it not for the Extension Period, to the extent permitted by applicable law. At the end of any Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures; provided,
however, that prior to the termination of any Extension Period, the Debenture Issuer may further extend such Extension Period, provided, that no Extension Period (including all previous and further consecutive extensions that are part
of such Extension Period) shall exceed 20 consecutive quarterly periods. Upon the termination of any Extension Period and upon the payment of all Deferred Interest, the Debenture Issuer may commence a new Extension Period, subject to the
requirements set forth herein and in the Declaration and the Indenture. No interest or Deferred Interest (except any Additional Interest that may be due and payable) shall be due 

 

A-1-6 

and payable during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of interest that
would otherwise have been due and payable during such Extension Period until such installment is paid. 
 
As a consequence of any Extension Period, Distributions will be deferred. If Distributions are deferred, the Distributions due shall be
paid on the date that the related Extension Period terminates to Holders of the Securities as they appear on the books and records of the Trust on the regular record date immediately preceding the Distribution Payment Date on which such Extension
Period terminates to the extent that the Trust has funds legally available for the payment of such Distributions in the Property Account of the Trust. 
 
The Capital Securities shall be redeemable, and shall be entitled to the Liquidation Distribution, as provided in the Declaration.

 

A-1-7 

 
ASSIGNMENT

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

	
	

	
	

	
	

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

	

	
	

	
	

 
(Insert address and zip
code of assignee), 
 
and irrevocably appoints
                                        
                                         as
agent to transfer this Capital Security Certificate on the books of the Trust. The agent may substitute another to act for it, him or her. 
 
Date:
                                       
      
 
Signature:
                             
 
(Sign exactly as your name appears on the other side of this Capital Security Certificate) 
 
Signature Guarantee:1
                                 

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

 

A-1-8 

 
EXHIBIT A-2

 
FORM OF COMMON SECURITY CERTIFICATE

 
THIS COMMON SECURITY HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION. 
 
EXCEPT AS SET FORTH IN SECTION 8.1(b) OF THE DECLARATION (AS
DEFINED BELOW), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED. 
 

A-2-1 

 

	 Certificate Number
	 	 C-1
	  	 Number of Common Securities 248

 
Certificate Evidencing Common Securities 
of 
AMERICAN SAFETY CAPITAL TRUST 
 
American Safety Capital Trust, a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies
that American Safety Holdings Corp. is the registered owner (the “Holder”) of 248 common securities of the Trust representing undivided beneficial interests in the assets of the Trust (liquidation amount $1,000 per Common Security)(the
“Common Securities”). The Common Securities represented hereby are issued pursuant to, and the designation, rights, privileges, restrictions, preferences and other terms and provisions of the Common Securities shall in all respects be
subject to, the provisions of the Amended and Restated Declaration of Trust of the Trust, dated as of May 22, 2003, among Steven B. Mathis, Stephen R. Crim and Fred J. Pinckney, as Administrators, Wilmington Trust Company, as Delaware Trustee,
Wilmington Trust Company, as Institutional Trustee, the Holder, as Sponsor, American Safety Insurance Group, Ltd., as Guarantor, and the holders from time to time of undivided beneficial interests in the assets of the Trust, including the
designation of the terms of the Common Securities as set forth in Annex I to the Declaration, as the same may be amended from time to time (the “Declaration”). Capitalized terms used herein but not defined shall have the meaning given them
in the Declaration. The Sponsor will provide a copy of the Declaration and the Indenture to the Holder without charge upon written request to the Sponsor at its principal place of business. 
 
As set forth in the Declaration, when an Event of Default has
occurred and is continuing, the rights of the Holder of Common Securities to payment in respect of Distributions and payments upon liquidation, redemption or otherwise are subordinated to the rights of payment of holders of the Capital Securities.

 
By acceptance of this Certificate, the Holder is
bound by the Declaration and is entitled to the benefits thereunder. 
 
By acceptance of this Certificate, the Holder agrees to treat, for United States federal income tax purposes, the Debentures as indebtedness and the Common Securities as evidence of undivided beneficial ownership in the
Debentures. 
 
This Common Security is governed by,
and shall be construed in accordance with, the laws of the State of Delaware, without regard to principles of conflict of laws. 
 

A-2-2 

 
IN WITNESS
WHEREOF, the Trust has executed this certificate this 22nd day of May, 2003. 
 

	 AMERICAN SAFETY CAPITAL TRUST

	
	 By:
	 	

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 Administrator

 

A-2-3 

 
[FORM OF
REVERSE OF SECURITY] 
 
Distributions payable on
each Common Security will be identical in amount to the Distributions payable on each Capital Security, which is at a floating rate of interest per annum, which, with respect to any Distribution Period, will be equal to LIBOR, as determined on the
LIBOR Determination Date for such Distribution Period, plus 4.20% (the “Coupon Rate”); provided, that the Coupon Rate for any Distribution Period prior to the Distribution Period commencing on the Distribution Payment Date (as
defined below) in May 2008 may not exceed 12.5% per annum; provided, further, that the Coupon Rate for any Distribution Period may not exceed the Interest Rate (as defined in the Indenture) for the related Interest Period (as defined
in the Indenture). Distributions in arrears for more than one Distribution Period will bear interest thereon, compounded quarterly, at the applicable Coupon Rate for each Distribution Period thereafter (to the extent permitted by applicable law).
The term “Distributions”, as used herein, includes cash Distributions, any such compounded Distributions and any Additional Interest payable on the Debentures, unless otherwise stated. A Distribution is payable only to the extent that
payments are made in respect of the Debentures held by the Institutional Trustee and to the extent the Institutional Trustee has funds legally available in the Property Account therefor. The amount of Distributions payable for any Distribution
Period will be computed on the basis of a 360- day year and the actual number of days elapsed in the applicable Distribution Period; provided, however, that if the Special Redemption Date is before May 23, 2008, the amounts payable upon redemption
of this Common Security shall be calculated as set forth in the definition of Special Redemption Price in the Declaration. 
 
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 February 23, May 23, August 23 and November 23 of each year, commencing on August 23, 2003 (each, a “Distribution Payment Date”), subject to the Business Day convention specified in the
Declaration. The Debenture Issuer has the right under the Indenture to defer payments of interest on the Debentures by extending the interest payment period for up to 20 consecutive quarterly periods (each such extended interest payment period,
together with all previous and future consecutive extensions thereof, is referred to herein as an “Extension Period”) at any time and from time to time on the Debentures, subject to the conditions described below and in the Declaration and
the Indenture. No Extension Period may end on a date other than a Distribution Payment Date or extend beyond the Maturity Date, any Optional Redemption Date or the Special Redemption Date, as the case may be. During any Extension Period, interest
will continue to accrue on the Debentures, and interest on such accrued interest (such accrued interest and interest thereon referred to herein as “Deferred Interest”) will accrue, at an annual rate equal to the Coupon Rate applicable
during such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable were it not for the Extension Period, to the extent permitted by applicable law. At the end of any Extension Period, the Debenture Issuer
shall pay all Deferred Interest then accrued and unpaid on the Debentures; provided, however, that prior to the termination of any Extension Period, the Debenture Issuer may further extend such Extension Period, provided, that
no Extension Period (including all previous and further consecutive extensions that are part of such Extension Period) shall exceed 20 consecutive quarterly periods. Upon the termination of any Extension Period and upon the payment of all Deferred
Interest, the Debenture Issuer may commence a new Extension Period, subject to the requirements set forth herein and in the Declaration and the Indenture. No interest 

 

A-2-4 

or Deferred Interest (except any Additional Interest that may be due and payable) shall be due and payable during an Extension Period, except
at the end thereof, but Deferred Interest shall accrue upon each installment of interest that would otherwise have been due and payable during such Extension Period until such installment is paid. 
 
As a consequence of any Extension Period, Distributions will
be deferred. If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates to Holders of the Securities as they appear on the books and records of the Trust on the regular record date
immediately preceding the Distribution Payment Date on which such Extension Period terminates to the extent that the Trust has funds legally available for the payment of such Distributions in the Property Account of the Trust. 
 
The Common Securities shall be redeemable, and shall be
entitled to the Liquidation Distribution, as provided in the Declaration. 
 

A-2-5 

 
ASSIGNMENT

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

	

	
	

	
	

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

	

	
	

	
	

 
(Insert address and zip
code of assignee), 
 
and irrevocably appoints
                     as agent to transfer this Common Security Certificate on the books of the Trust. The agent may substitute another
to act for him or her. 
 
Date:
                                 
 
Signature:
                         
 
(Sign exactly as your name appears on the other side of this Common Security Certificate) 
 
Signature Guarantee:1
                                     

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

 
 

A-2-6 

 
EXHIBIT B

 
FORM OF TRANSFEREE CERTIFICATE 
TO BE EXECUTED BY TRANSFEREES OTHER THAN QIBS 
 
            , [    ] 
 
American Safety Holdings Corp. 
American Safety Capital Trust 
1845 The Exchange, Suite 200 
Atlanta, Georgia 30339 
 
Re: Purchase of $1,000 liquidation amount of InCapSSM 
      (the “Capital Securities”) of American Safety Capital Trust 
 
Ladies and Gentlemen: 
 
In connection with our purchase of the Capital Securities, we confirm that: 
 
1. We understand that the InCapSSM
(the “Capital Securities”) of American Safety Capital Trust (the “Trust”) have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and may not be offered or sold except as permitted in the following sentence. We agree on our own behalf and on behalf of any investor account for which we are purchasing the Capital Securities that, if we decide to
offer, sell or otherwise transfer any such Capital Securities prior to the date which is the later of (i) two years (or such shorter period of time as permitted by Rule 144(k) of the Securities Act) after the later of (Y) the date of original
issuance of the Capital Securities and (Z) the last date on which the Trust or any Affiliate (as defined in Rule 405 under the Securities Act) of the Trust was the holder of any such Capital Securities (or any predecessor thereto) and (ii) such
later date, if any, as may be required by any subsequent change in applicable law (the “Resale Restriction Termination Date”), then such offer, sale or other transfer will be made only (a) to the Company or the Trust, (b) pursuant to Rule
144A under the Securities Act, to a person we reasonably believe is a qualified institutional buyer under Rule 144A (a “QIB”), that purchases for its own account or for the account of a QIB and to whom notice is given that the transfer is
being made in reliance on Rule 144A, (c) pursuant to an exemption from registration, to an “accredited investor” within the meaning of subparagraph (a) (1), (2), (3), (7) or (8) of Rule 501 under the Securities Act that is acquiring any
such Capital Securities for its own account or for the account of such an accredited investor for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act, or
(d) pursuant to another available exemption from the registration requirements of the Securities Act, and in each of the foregoing cases in accordance with any applicable state securities laws and any requirements of law that govern the disposition
of our property. If any resale or other transfer of the Capital Securities is proposed to be made pursuant to clause (c) or (d) above, the transferor shall deliver a letter from the transferee substantially in the form of this letter to the
Institutional Trustee as Transfer Agent, which shall provide as applicable, among other things, that the transferee is an accredited investor within the meaning of subparagraph (a)(1), (2), (3), (7) or (8) of Rule 501 under the Securities Act that
is acquiring such Capital Securities for investment 

 

B-1 

purposes and not for any distribution in violation of the Securities Act. We acknowledge on our behalf and on behalf of any investor account
for which we are purchasing Capital Securities that the Company and the Trust reserve the right prior to any offer, sale or other transfer pursuant to clause (c) or (d) to require the delivery of any opinion of counsel, certifications and/or other
information satisfactory to American Safety Holdings Corp. (the “Company”) and the Trust. We understand that the certificates for any Capital Securities that we receive prior to the Resale Restriction Termination Date will bear a legend
substantially to the effect of the foregoing. 
 
2.
We are an accredited investor within the meaning of subparagraph (a) (1), (2), (3), (7) or (8) of Rule 501 under the Securities Act purchasing for our own account or for the account of such an accredited investor, and we are acquiring the Capital
Securities for investment purposes and not with view to, or for offer or sale in connection with, any distribution in violation of the Securities Act, and we have such knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of our investment in the Capital Securities, and we and any account for which we are acting are each able to bear the economic risks of our or its investment. 
 
3. We are acquiring the Capital Securities purchased by us for
our own account (or for one or more accounts as to each of which we exercise sole investment discretion and have authority to make, and do make, the statements contained in this letter) and not with a view to any distribution of the Capital
Securities in violation of the Securities Act, subject, nevertheless, to the understanding that the disposition of our property will at all times be and remain within our control. 
 
4. In the event that we purchase any Capital Securities, we will acquire such Capital Securities having an
aggregate liquidation amount of not less than $100,000 for our own account and for each separate account for which we are acting. 
 
5. We acknowledge that we either (A) are not a fiduciary of a pension, profit- sharing or other employee benefit plan or arrangement
subject to the Employee Retirement Income Security Act of 1974, as amended or to Section 4975 of the Internal Revenue Code of 1986, as amended (a “Plan”), or an entity whose assets include “plan assets” by reason of any
Plan’s investment in the entity and are not purchasing the Capital Securities on behalf of or with “plan assets” by reason of any Plan’s investment in the entity and are not purchasing the Capital Securities on behalf of or with
“plan assets” of any Plan or (B) are eligible for the exemptive relief available under one or more of the following prohibited transaction class exemptions (“PTCEs”) issued by the U.S. Department of Labor: PTCE 96-23, 95-60,
91-38, 90-1 or 84-14. 
 
6. We acknowledge that
each Plan, by its purchase of the Capital Securities, will be deemed to have directed the Trust to invest in the Debentures, and to have consented to the appointment of the Institutional Trustee. 
 
7. We acknowledge that the Company, the Trust and others will
rely upon the truth and accuracy of the foregoing acknowledgments, representations, warranties and agreements and agree that if any of our acknowledgments, representations, warranties and agreements are no longer accurate, we shall promptly notify
the Placement Agent. If we are acquiring any Capital Securities as a fiduciary or agent for one or more investor accounts, we 

 

B-2 

represent that we have sole discretion with respect to each such investor account and that we have full power to make the foregoing
acknowledgments, representations and agreements on behalf of each such investor account. 
 
You are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy thereof to any interested party in any administrative or legal proceeding or other inquiry with
respect to matters covered hereby. 
 

	

	 (Name of Purchaser)

	
	 By:
	 	  

	
	 Date:
	 	  

 
Upon transfer, the Offered Securities would be registered in the name of the new beneficial owner as follows. 
 
Name:                                    
                 
 
Address:                                    
             
 
Taxpayer ID Number:                                
                 
 

B-3 

 
EXHIBIT C

 
FORM OF TRANSFEROR CERTIFICATE 
TO BE EXECUTED FOR QIBs 
 
            ,
[            ] 
 
American Safety Holdings Corp. 
American Safety Capital Trust 
1845 The Exchange, Suite 200 
Atlanta, Georgia 30339 
 
Re: Purchase of $1,000 liquidation amount of InCapSSM  
        (the “Capital Securities”) of American Safety Capital Trust  
 
Reference is hereby made to the Amended and Restated Declaration of Trust of American Safety Capital Trust, dated as of May 22, 2003 (the
“Declaration”), among Steven B. Mathis, Stephen R. Crim and Fred J. Pinckney, as Administrators, Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, American Safety Holdings Corp., as Sponsor,
and the holders from time to time of undivided beneficial interests in the assets of American Safety Capital Trust. Capitalized terms used but not defined herein shall have the meanings given them in the Declaration. 
 
This letter relates to
$[            ] aggregate liquidation amount of Capital Securities which are held in the name of [name of transferor] (the “Transferor”). 
 
In accordance with Section 8.2(b) of the Declaration, the
Transferor does hereby certify that such Capital Securities are being transferred in accordance with (i) the transfer restrictions set forth in the Capital Securities and (ii) Rule 144A under the Securities Act (“Rule 144A”), to a
transferee that the Transferor reasonably believes is purchasing the Capital Securities for its own account or an account with respect to which the transferee exercises sole investment discretion and the transferee and any such account is a
“qualified institutional buyer” within the meaning of Rule 144A, in a transaction meeting the requirements of Rule 144A and in accordance with applicable securities laws of any state of the United States or any other jurisdiction.

 
You are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy thereof to any interested party in any administrative or legal proceeding or other inquiry with respect to matters covered hereby. 
 

	
	

	 (Name of Transferor)

 

	
	 By:
	 	

	 	 	 Name:                                
 Title:                                   
 

	 	 	 Date:                                   
 

 

C-1 

 
EXHIBIT D

 
FORM OF OFFICERS’ CERTIFICATE

 
QUARTERLY FINANCIAL REPORT 
 
TO: Wilmington Trust Company 
Rodney Square North 
1100 North Market Street

Wilmington, Delaware 19890-0001 
Attention: Corporate Trust Administration 
 
PLEASE COMPLETE FOR EACH INSURANCE SUBSIDIARY 
 
Name of Insurance Company:
                                        
                                 
 

	 Date of Report:
	  	

	
	 Current A.M. Best Insurer’s Financial Strength Rating:
	  	

 
Please provide the
following information for the most recent quarterly period ended 
Quarter:  ̈ March 31  ̈ June 30  ̈ September 30  ̈
December 31 Year: 20             
 

	
	 Most Recently Reported NAIC Risk Based Capital Ratio
	    	 %

	
	 Total Policyholders’ Surplus
	    	 $

	
	 Ratio of Consolidated Debt and Preferred Stock
 to Total Policyholders’ Surplus             
	    	 %

	
	 Total Admitted Assets
            
	    	 $

	
	 Ratio of NAIC Class 1 & 2 Rated Investments
 to Total Fixed Income Investments
	    	 %

	
	 Ratio of NAIC Class 1 & 2 Rated Investments to
 Total Investments
	    	 %

	
	 Return on Policyholders’ Surplus for the Trailing Twelve Month Period
            
	    	 %

 
 
 
 
 

D-1 

 
 

	
	 For Property & Casualty Companies:
  
 Expense Ratio
            
	    	 %

	
	 Loss and LAE Ratio
            
	    	 %

	
	 Combined Ratio
	    	 %

	
	 Net Premiums Written (trailing twelve month period)
 to Policyholders’ Surplus             
	    	 %

 

D-2 

 
CERTIFICATION

 
The undersigned hereby certifies that he/she has
duly executed the attached Quarterly Financial Report, dated             ,     , for and on behalf of
            , that he/she is the              of such Company, and that he/she has authority to execute and file
such instrument. The undersigned further certifies that he/she is familiar with such instrument and that the facts therein set forth are true to the best of his/her knowledge, information and belief. 
 

	 
	
	 Name:
	 	  

	 	 	 

 

D-3 

 
LEGEND

 

	 NAIC Risk Based Capital Ratio-P&C
	 	 (Total Adjusted Capital (as defined in the NAIC RBC Instructions for P&C Insurers) /Authorized Control Level
Risk-Based Capital)

	
	 NAIC Risk Based Capital Ratio-Life
	 	 (Total Adjusted Capital (as defined in the NAIC RBC Instructions for Life Insurers) /Authorized Control Level
Risk-Based Capital)

	
	 Total Capital and Surplus-Life
	 	 Common Capital Stock + Preferred Capital Stock + Aggregate Write-Ins for other than special surplus funds + Surplus
Notes + Gross Paid-In and Contributed Surplus + Aggregate Write-Ins for Special Surplus Funds + Unassigned Funds (Surplus) + Asset Valuation Reserve – Treasury Stock

	
	 Total Capital and Surplus-P&C
	 	 Aggregate Write-Ins for Special Surplus Funds + Common Capital Stock + Preferred Capital Stock + Aggregate
Write-Ins for other than special surplus funds + Surplus Notes +Gross Paid-In and Contributed Surplus + Unassigned Funds (Surplus) – Treasury Stock

	
	 Total Admitted Assets
	 	 Total admitted assets as determined in accordance with statutory accounting principles

	
	 Return on Policyholders’ Surplus for the Trailing Twelve Month
Period
	 	 Net Income/Policyholders’ Surplus for the Trailing Twelve Month Period

	
	 Expense Ratio
	 	 Other Underwriting Expenses Incurred/Net premiums Earned

	
	 Loss and LAE Ratio
	 	 (Losses Incurred + Loss Expenses Incurred)/Net Premiums Earned

	
	 Combined Ratio
	 	 Expense Ratio + Loss and LAE Ratio

	
	 Net Premiums Written (trailing twelve month period) to Policyholders’
Surplus
	 	 Net Premiums Written of the trailing twelve month period/Policyholders’ Surplus

 

D-4

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