Document:

<PAGE>
                                                                     EXHIBIT 4.2

--------------------------------------------------------------------------------

                    TRAVELERS INSURANCE GROUP HOLDINGS INC.
           (Formerly named Travelers/Aetna Property Casualty Corp.),

                       TRAVELERS PROPERTY CASUALTY CORP.
              (Formerly named The Travelers Insurance Group Inc.),

                                  AS GUARANTOR

                                      AND

                              JPMORGAN CHASE BANK
                (Formerly named The Chase Manhattan Bank, N.A.)

                                   AS TRUSTEE

                          ---------------------------

                          First Supplemental Indenture

                            Dated as of May 10, 2002

                          ---------------------------

                                  to Indenture

                           Dated as of April 30, 1996

--------------------------------------------------------------------------------
<PAGE>
      THIS FIRST SUPPLEMENTAL INDENTURE dated as of May 10, 2002 (the
"Supplemental Indenture"), by and among Travelers Insurance Group Holdings Inc.
(formerly named Travelers/Aetna Property Casualty Corp.), a Delaware corporation
(the "Company"), Travelers Property Casualty Corp. (formerly named The Travelers
Insurance Group Inc.), a Connecticut corporation, as guarantor ("Travelers"),
and JPMorgan Chase Bank (formerly named to The Chase Manhattan Bank, N.A.), a
New York banking association, as trustee (the "Trustee");

      WHEREAS, the Company has heretofore executed and delivered to the Trustee
an indenture dated as of April 30, 1996 (the "Indenture"), providing for the
issuance by the Company from time to time of its unsecured subordinated
debentures, notes or other evidences of indebtedness (herein called the
"Securities");

      WHEREAS, the Company currently has issued and outstanding $824,743,000
aggregate principal amount of its 8.08% Junior Subordinated Deferrable Interest
Debentures due 2036 (the "8.08% Debentures") and $103,093,- 000 aggregate
principal amount of its 8% Junior Subordinated Deferrable Interest Debentures
due 2036 (the "8% Debentures") under the Indenture;

      WHEREAS, the Company is a wholly owned subsidiary of Travelers;

      WHEREAS, Travelers desires to fully and unconditionally guarantee the
payment obligations of the Company with respect to the Company's issued and
outstanding securities under the Indenture, including the 8.08% Debentures and
the 8% Debentures (collectively, the "Securities") so long as the Company
remains a wholly owned subsidiary of Travelers and the Securities remain
outstanding; and

      WHEREAS, the execution of the Supplemental Indenture is authorized and
permitted by Section 9.1 of the Indenture and all conditions precedent provided
for in the Indenture relating to the execution of the Supplemental Indenture
have been complied with;

      NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: That in order to
effectuate the guarantee described above, Travelers agrees with the Trustee, for
the equal and proportionate benefit of the respective Holders from time to time
of the Securities (the "Holders"), as follows:

                                    ARTICLE I
                                    Guarantee

            Travelers does hereby fully and unconditionally guarantee (the
"Guarantee") to the Holders the due and punctual payment of the principal of and
interest on all the Securities, according to their tenor, and the performance of
every covenant of the Indenture on the part of the Company to be performed or
observed (the "Obligations") in accordance with the provisions of the Indenture,
as supplemented, as provided below:

      (a)   Notice of acceptance of the Guarantee and of default of performance
            by the Company is expressly waived, and payment under the Guarantee
            shall be subject to no condition other than the giving of a written
            request for payment in accordance with the provisions of the
            Indenture, stating the fact of default of performance, mailed to
            Travelers at the following address: Travelers Property Casualty
            Corp., One Tower Square, 8 MS, Hartford, Connecticut 06183,
            Attention: Paul Eddy.
<PAGE>
      (b)   The right of the Holders under any debt instrument of the Company
            that is outstanding as of the date hereof to claim payment from
            Travelers under the Travelers Guarantee shall rank in priority of
            payment with Travelers's other obligations to exactly the same
            extent that the Obligations of the Company under such debt
            instrument rank with the Company's other obligations, if any.

      (c)   The obligations of Travelers under the Guarantee shall in no way be
            impaired by: (1) any extension, amendment, modification or renewal
            of the Obligations; (2) any waiver of any event of default,
            extension of time or failure to enforce any of the Obligations; or
            (3) any extension, moratorium or other relief granted to the Company
            pursuant to any applicable law or statute.

      (d)   The Guarantee shall be irrevocably valid until, and no claim may be
            asserted under the Guarantee after, the earliest to occur of: (1)
            the tenth business day following the maturity date of all the
            Securities, either upon their respective stated maturities,
            redemption or otherwise; (2) the date on which the Company ceases to
            be a wholly owned subsidiary of Travelers, as set forth in an
            Officer's Certificate of Travelers delivered to the Trustee; and (3)
            the date on which Travelers ceases to be a reporting company under
            the Securities Exchange Act of 1934, as amended, as set forth in an
            Officer's Certificate of Travelers delivered to the Trustee.

      (e)   Travelers shall be obligated to make payment under the Guarantee
            only by payment to the Trustee, for the benefit of the Holders, at
            the same address as the Company is obligated to make payment
            pursuant to the Indenture, provided that such address must be in the
            United States.

      (f)   Travelers shall have no obligation to make payment or take action
            under the Guarantee during any period when payment by the Company,
            in accordance with the provisions of the Indenture, would constitute
            a violation of any applicable laws (other than bankruptcy,
            liquidation, reorganization or similar laws affecting the
            enforcement of the rights of creditors generally).

      (g)   Travelers may assign its obligations under the Guarantee to any of
            its affiliates, upon providing written notice of such assignment to
            the Trustee, whereupon such assignee shall be substituted in lieu of
            Travelers with respect to the performance of the Obligations
            theretofore to be performed by Travelers as described in this
            Article One.

                                   ARTICLE II

      Section 7.4. of the Indenture is deleted in its entirety. The following
will be inserted as a new Section 7.4. of the Indenture:

Section 7.4. Reports by Travelers and the Company.

      Travelers and the Company and shall:

                                       2
<PAGE>
            (1) file with the Trustee, within 15 days after Travelers or the
Company, as the case may be, is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other reports
(or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which Travelers and the Company
may be required to file with the Commission pursuant to Section 13 or Section
15(d) of the Securities Exchange Act of 1934; or, if Travelers or the Company is
not required to file information, documents or reports pursuant to either of
said Sections, then Travelers or the Company, as the case may be, shall file
with the Trustee and the Commission, in accordance with the rules and
regulations prescribed from time to time by the Commission, such supplementary
and periodic information, documents and reports which may be required pursuant
to Section 13 of the Securities Exchange Act of 1934 in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations;

            (2) file with the Trustee and the Commission in accordance with
rules and regulations prescribed from time to time by the Commission, such
additional information, documents and reports with respect to compliance by
Travelers or the Company, as the case may be, with the conditions and covenants
of this Indenture as may be required from time to time by such rules and
regulations; and

            (3) transmit to all Holders, as their names and addresses appear in
the Security Register, within 30 days after the filing thereof with the Trustee,
such summaries of any information, documents and reports required to be filed by
Travelers or the Company, as the case may be, pursuant to paragraphs (1) and (2)
of this Section as may be required by rules and regulations prescribed from time
to time by the Commission.

                                   ARTICLE III
                            Miscellaneous Provisions

      SECTION 3.1 Execution as Supplemental Indenture. This Supplemental
Indenture is executed and shall be construed as an indenture supplemental to the
Indenture and, as provided in the Indenture, this Supplemental Indenture forms
a part thereof. Except as herein expressly otherwise defined, the use of the
terms and expressions herein is in accordance with the definitions, uses and
constructions contained in the Indenture. Except as expressly amended hereby,
the Indenture shall continue in full force and effect in accordance with the
provisions thereof and the Indenture is in all respects hereby ratified and
confirmed.

      SECTION 3.2 Responsibility for Recitals, etc. The recitals herein and in
the Securities (except in the Trustee's certificate of authentication) shall be
taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness thereof. The Trustee makes no representations
as to the validity or sufficiency of this Supplemental Indenture or of the
Securities. The Trustee makes no undertakings or representations in respect of,
and shall not be responsible in any manner whatsoever for and in respect of, the
validity or sufficiency of this Supplemental Indenture or the proper
authorization or the due execution hereof by the Company or for or in respect of
the recitals and statements contained herein, all of which recitals and
statements are made solely by the Company.

      SECTION 3.3 Provisions Binding on Successors. All of the covenants,
stipulations, premises and agreements made in this Supplemental Indenture by the
Company and Travelers shall bind their respective successors and assigns whether
so expressed or not.

                                       3
<PAGE>
      SECTION 3.4 New York Contract. This Supplemental Indenture shall be deemed
to be a contract made under the laws of the State of New York and for all
purposes shall be construed in accordance with the laws of said State.

      SECTION 3.5 Execution and Counterparts. This Supplemental Indenture may be
executed in any number of counterparts, each of which when so executed shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

                                       4
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.

                                          TRAVELERS INSURANCE GROUP
                                          HOLDINGS INC.

                                          By:  /s/ William H. White
                                             -----------------------------------
                                             Name:  William H. White
                                             Title: Vice President and Treasurer

ATTEST:

By:  /s/ Daniel W. Jackson
   --------------------------------
   Name:  Daniel W. Jackson
   Title: Assistant Secretary

                                          TRAVELERS PROPERTY CASUALTY CORP.,
                                          as Guarantor

                                          By:  /s/ William H. White
                                             -----------------------------------
                                             Name:  William H. White
                                             Title: Vice President and Treasurer

ATTEST:

By:  /s/ Daniel W. Jackson
   --------------------------------
   Name:  Daniel W. Jackson
   Title:     Assistant Secretary

                                          JPMORGAN CHASE BANK, as Trustee

                                          By:  /s/ Robert S. Peschler
                                             -----------------------------------
                                             Name:  Robert S. Peschler
                                             Title: Assistant Vice President

ATTEST:

By:   /s/ Diane Darconte
   --------------------------------
   Name:  Diane Darconte
   Title:    Trust Officer
<PAGE>
STATE OF CONNECTICUT)
                    )  ss.:
COUNTY OF HARTFORD  )

      On this 9th day of May, 2002, before me personally came William H. White,
to me personally known, who, being by me duly sworn, did depose and say that he
resides in Watch Hill, RI, that he is a Treasurer of Travelers Insurance Group
Holdings Inc., one of the corporations described in and which executed the above
instrument, that he knows the corporate seal of said corporation, that the seal
affixed to said instrument is such corporate seal, that it was so affixed by
authority of the Board of Directors of said corporation, and that he signed his
name thereto by like authority.

[NOTARIAL SEAL]

                                               /s/ Linda M. Kolios
                                          --------------------------------------
                                          Notary Public

STATE OF CONNECTICUT)
                    )  ss.:
COUNTY OF HARTFORD  )

      On this 9th day of May, 2002 before me personally came William H. White,
to me personally known, who, being by me duly sworn, did depose and say that he
resides in Watch Hill, RI, that he is a Treasurer of Travelers Property Casualty
Corp., one of the corporations described in and which executed the above
instrument, that he knows the corporate seal of said corporation, that the seal
affixed to said instrument is such corporate seal, that it was so affixed by
authority of the Board of Directors of said corporation, and that he signed his
name thereto by like authority.

[NOTARIAL SEAL]

                                               /s/ Linda M. Kolios
                                          --------------------------------------
                                          Notary Public

STATE OF NEW YORK   )
                    )  ss.:
COUNTY OF NEW YORK  )

      On this 9th day of May, 2002, before me personally came Robert Peschler,
to me personally known, who, being by me duly sworn, did depose and say that he
resides in Little Silver, NJ, that he is an Assistant Vice President of JPMorgan
Chase Bank (formerly named The Chase Manhattan Bank, N.A.), one of the
corporations described in and which executed the above instrument, that he knows
the corporate seal of said corporation, that the seal affixed to said instrument
is such corporate seal, that it was so affixed by authority of the Board of
Directors of said corporation, and that she signed his name thereto by like
authority.

[NOTARIAL SEAL]
                                               /s/ Annabelle DeLuca
                                          --------------------------------------
                                          Notary Public<PAGE>
                                                                     EXHIBIT 4.3

                                   ----------

                              AMENDED AND RESTATED
                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                             Travelers P&C Capital I

                            Dated as of May 10, 2002

                                   ----------
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                             Page
                                                                             ----
<S>                                                                          <C>
                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1  Definitions and Interpretation ..............................     2

                                   ARTICLE II
                               TRUST INDENTURE ACT

SECTION 2.1  Trust Indenture Act; Application ............................     5
SECTION 2.2  Lists of Holders of Securities ..............................     5
SECTION 2.3  Reports by the Preferred Guarantee Trustee ..................     5
SECTION 2.4  Periodic Reports to Preferred Guarantee Trustee .............     5
SECTION 2.5  Evidence of Compliance with Conditions Precedent ............     6
SECTION 2.6  Events of Default; Waiver ...................................     6
SECTION 2.7  Event of Default; Notice ....................................     6
SECTION 2.8  Conflicting Interests .......................................     6

                                   ARTICLE III
                          POWERS, DUTIES AND RIGHTS OF
                           PREFERRED GUARANTEE TRUSTEE

SECTION 3.1  Powers and Duties of the Preferred Guarantee Trustee ........     7
SECTION 3.2  Certain Rights of Preferred Guarantee Trustee ...............     8
SECTION 3.3  Not Responsible for Recitals or Issuance of Guarantee .......    10

                                   ARTICLE IV
                           PREFERRED GUARANTEE TRUSTEE

SECTION 4.1  Preferred Guarantee Trustee; Eligibility ....................    10
SECTION 4.2  Appointment, Removal and Resignation of
                         Preferred Guarantee Trustees ....................    11

                                    ARTICLE V
                                    GUARANTEE

SECTION 5.1  Guarantee ...................................................    12
SECTION 5.2  Waiver of Notice and Demand .................................    12
SECTION 5.3  Obligations Not Affected ....................................    13
SECTION 5.4  Rights of Holders ...........................................    13
SECTION 5.5  Guarantee of Payment ........................................    14
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                             Page
                                                                             ----
<S>                                                                          <C>
SECTION 5.6  Subrogation .................................................    14
SECTION 5.7  Independent Obligations .....................................    15

                                   ARTICLE VI
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1  Limitation of Transactions ..................................    15
SECTION 6.2  Ranking .....................................................    16

                                   ARTICLE VII
                                   TERMINATION

SECTION 7.1  Termination .................................................    16

                                  ARTICLE VIII
                                 INDEMNIFICATION

SECTION 8.1  Exculpation .................................................    17
SECTION 8.2  Indemnification .............................................    17

                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.1  Successors and Assigns ......................................    18
SECTION 9.2  Amendments ..................................................    18
SECTION 9.3  Notices .....................................................    18
SECTION 9.4  Benefit .....................................................    19
SECTION 9.5  Governing Law ...............................................    19
</TABLE>

                                       ii
<PAGE>
                              AMENDED AND RESTATED
                    PREFERRED SECURITIES GUARANTEE AGREEMENT

            This AMENDED AND RESTATED GUARANTEE AGREEMENT (the "Preferred
Securities Guarantee"), dated as of May 10, 2002, is executed and delivered by
and among Travelers Insurance Group Holdings Inc. (formerly named
Travelers/Aetna Property Casualty Corp.), a Delaware corporation (the
"Guarantor"), Travelers Property Casualty Corp. (formerly named The Travelers
Insurance Group Inc.), a Connecticut corporation, as an additional guarantor
("Travelers"), and JPMorgan Chase Bank (formerly named The Chase Manhattan Bank,
N.A.), as trustee (the "Preferred Guarantee Trustee"), for the benefit of the
Holders (as defined herein) from time to time of the Preferred Securities (as
defined herein) of Travelers P&C Capital I, a Delaware statutory business trust
(the "Issuer");

            WHEREAS, pursuant to an Amended and Restated Declaration of Trust
(the "Declaration"), dated as of April 30, 1996, among the trustees of the
Issuer named therein, the Guarantor, as sponsor, and the holders from time to
time of undivided beneficial interests in the assets of the Issuer, the Issuer
issued, on April 30, 1996, 32,000,000 preferred securities, having an aggregate
liquidation amount of $800,000,000, designated the 8.08% Trust Preferred
Securities (the "Preferred Securities");

            WHEREAS, as incentive for the Holders to purchase the Preferred
Securities, the Guarantor irrevocably and unconditionally agreed, to the extent
set forth in the Original Preferred Securities Guarantee Agreement, dated as of
April 30, 1996, between the Guarantor and the Trustee (the "Original Preferred
Guarantee") to pay to the Holders the Guarantee Payments (as defined herein) and
to make certain other payments on the terms and conditions set forth herein.

            WHEREAS, on the date hereof, the Guarantor is a wholly owned
subsidiary of Travelers;

            WHEREAS, Travelers desires to irrevocably and unconditionally agree,
to the extent set forth in this Preferred Securities Guarantee, to pay to the
Holders the Guarantee Payments and to make certain other payments on the terms
and conditions set forth herein, as long as the Guarantor remains a wholly owned
subsidiary of Travelers and the Preferred Securities remain outstanding; and

            WHEREAS, the execution of this Preferred Securities Guarantee is
authorized and permitted by Section 9.2 of the Original Preferred Securities
Guarantee Agreement.

            NOW, THEREFORE, in order to effectuate the guarantees described
above, the parties hereto agree, for the equal and proportionate benefit of the
respective Holders, as follows:
<PAGE>
                                   ARTICLE I.
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation

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

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

            (b) a term defined anywhere in this Preferred Securities Guarantee
has the same meaning throughout;

            (c) all references to "the Preferred Securities Guarantee" or "this
Preferred Securities Guarantee" are to this Preferred Securities Guarantee as
modified, supplemented or amended from time to time;

            (d) all references in this Preferred Securities Guarantee to
Articles and Sections are to Articles and Sections of this Preferred Securities
Guarantee, unless otherwise specified;

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

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

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

            "Affiliate" has the same meaning as given to that term in Rule 405
of the Securities Act of 1933, as amended, or any successor rule thereunder.

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

            "Common Securities" means the securities representing common
undivided beneficial interests in the assets of the Issuer.

            "Corporate Trust Office" means the office of the Preferred Guarantee
Trustee at which the corporate trust business of the Preferred Guarantee Trustee
shall, at any particular time, be principally administered, which office at the
date of execution of this Agreement is located at 450 West 33rd Street, New
York, New York 10001.

                                        2
<PAGE>
            "Covered Person" means any Holder or beneficial owner of Preferred
Securities.

            "Debentures" means the series of junior subordinated debt securities
of the Guarantor designated the 8.08% Junior Subordinated Deferrable Interest
Debentures due April 30, 2036 held by the Institutional Trustee (as defined in
the Declaration) of the Issuer.

            "Event of Default" means (i) a default by the Guarantor on any of
its payment or other obligations under this Preferred Securities Guarantee, or
(ii) a default by Travelers on any of its payment or other obligations under
this Preferred Securities Guarantee.

            "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Preferred Securities, to the extent not
paid or made by the Issuer: (i) any accrued and unpaid Distributions (as defined
in Annex I to the Declaration) that are required to be paid on the Preferred
Securities, to the extent the Issuer has funds available therefor, (ii) the
redemption price of $25 per Preferred Security, plus all accrued and unpaid
Distributions to the date of redemption (the "Redemption Price"), to the extent
the Issuer has funds available therefor, with respect to any Preferred
Securities called for redemption by the Issuer and (iii) upon a voluntary or
involuntary dissolution, winding-up or termination of the Issuer (other than in
connection with the distribution of Debentures to the Holders in exchange for
Preferred Securities as provided in the Declaration or the redemption of all of
the Preferred Securities upon the maturity or redemption of all of the
Debentures as provided in the Declaration) the lesser of (a) the aggregate of
the liquidation amount of $25 per Preferred Security and all accrued and unpaid
Distributions on the Preferred Securities to the date of payment, or (b) the
amount of assets of the Issuer remaining for distribution to Holders in
liquidation of the Issuer (in either case, the "Liquidation Distribution").

            "Holder" shall mean any holder, as registered on the books and
records of the Issuer, of any Preferred Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Preferred
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor, any Affiliate of the Guarantor, Travelers or
any Affiliate of Travelers.

            "Indemnified Person" means the Preferred Guarantee Trustee, any
Affiliate of the Preferred Guarantee Trustee, or any officers, directors,
shareholders, members, partners, employees, representatives, nominees,
custodians or agents of the Preferred Guarantee Trustee.

            "Indenture" means the Indenture dated as of April 30, 1996, among
the Guarantor and JPMorgan Chase Bank (formerly named The Chase Manhattan Bank,
N.A.), as trustee, and any indenture supplemental thereto, pursuant to which the
Debentures are to be issued to the Institutional Trustee of the Issuer.

            "Majority in liquidation amount of the Securities" means, except as
provided by the Trust Indenture Act, a vote by Holder(s), voting separately as a
class, holding Preferred Securities

                                        3
<PAGE>
representing more than 50% of the aggregate liquidation amount (including the
stated amount that would be paid on redemption, liquidation or otherwise, plus
accrued and unpaid Distributions to the date upon which the voting percentages
are determined) of all Preferred Securities.

            "Officers' Certificate" means, with respect to any Person, a
certificate signed by two Authorized Officers of such Person. Any Officers'
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Preferred Securities Guarantee shall include:

            (a) a statement that each officer 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 officer in rendering the Officers'
      Certificate;

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

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

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

            "Preferred Guarantee Trustee" means JPMorgan Chase Bank (formerly
named The Chase Manhattan Bank, N.A.), until a Successor Preferred Guarantee
Trustee has been appointed and has accepted such appointment pursuant to the
terms of this Preferred Securities Guarantee, and thereafter means each such
Successor Preferred Guarantee Trustee.

            "Responsible Officer" means, with respect to the Preferred Guarantee
Trustee, any officer within the Corporate Trust Office of the Preferred
Guarantee Trustee, including any vice-president, any assistant vice president,
any assistant secretary, the treasurer, any assistant treasurer or other officer
of the Corporate Trust Office of the Preferred Guarantee Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of that officer's
knowledge of and familiarity with the particular subject.

            "Successor Preferred Guarantee Trustee" means a successor Preferred
Guarantee Trustee possessing the qualifications to act as Preferred Guarantee
Trustee under Section 4.1.

            "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended.

                                        4
<PAGE>
                                   ARTICLE II.
                               TRUST INDENTURE ACT

SECTION 2.1 Trust Indenture Act; Application

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

            (b) if and to the extent that any provision of this Preferred
Securities Guarantee limits, qualifies or conflicts with the duties imposed by
Section 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties
shall control.

SECTION 2.2 Lists of Holders of Securities

            (a) The Guarantor shall provide the Preferred Guarantee Trustee with
a list, in such form as the Preferred Guarantee Trustee may reasonably require,
of the names and addresses of the Holders ("List of Holders") as of such date,
(i) within one Business Day after January 1 and June 30 of each year, and (ii)
at any other time within 30 days of receipt by the Guarantor of a written
request for a List of Holders as of a date no more than 14 days before such List
of Holders is given to the Preferred Guarantee Trustee; provided, that the
Guarantor shall not be obligated to provide such List of Holders at any time the
List of Holders does not differ from the most recent List of Holders given to
the Preferred Guarantee Trustee by the Guarantor. The Preferred Guarantee
Trustee may destroy any List of Holders previously given to it on receipt of a
new List of Holders.

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

SECTION 2.3 Reports by the Preferred Guarantee Trustee

            Within 60 days after April 15 of each year, the Preferred Guarantee
Trustee shall provide to the Holders such reports as are required by Section 313
of the Trust Indenture Act, if any, in the form and in the manner provided by
Section 313 of the Trust Indenture Act. The Preferred Guarantee Trustee shall
also comply with the requirements of Section 313(d) of the Trust Indenture Act.

SECTION 2.4 Periodic Reports to Preferred Guarantee Trustee

            Travelers and the Guarantor shall provide to the Preferred Guarantee
Trustee such documents, reports and information as required by Section 314 (if
any) and the compliance certificate required by Section 314 of the Trust
Indenture Act in the form, in the manner and at the times required by Section
314 of the Trust Indenture Act.

                                        5
<PAGE>
SECTION 2.5 Evidence of Compliance with Conditions Precedent

            Travelers and the Guarantor shall provide to the Preferred Guarantee
Trustee such evidence of compliance with any conditions precedent, if any,
provided for in this Preferred Securities Guarantee that relate to any of the
matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate
or opinion required to be given by an officer pursuant to Section 314(c)(1) may
be given in the form of an Officers' Certificate.

SECTION 2.6 Events of Default; Waiver

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

SECTION 2.7 Event of Default; Notice

            (a) The Preferred Guarantee Trustee shall, within 90 days after the
occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders, notices of all Events of Default actually known to a
Responsible Officer of the Preferred Guarantee Trustee, unless such defaults
have been cured before the giving of such notice; provided, that the Preferred
Guarantee Trustee shall be protected in withholding such notice if and so long
as a Responsible Officer of the Preferred Guarantee Trustee in good faith
determines that the withholding of such notice is in the interests of the
Holders.

            (b) The Preferred Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless either the Preferred Guarantee Trustee
shall have received written notice, or a Responsible Officer of the Preferred
Guarantee Trustee charged with the administration of the Declaration shall have
obtained actual knowledge.

SECTION 2.8 Conflicting Interests

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

                                        6
<PAGE>
                                  ARTICLE III.
                          POWERS, DUTIES AND RIGHTS OF
                           PREFERRED GUARANTEE TRUSTEE

SECTION 3.1 Powers and Duties of the Preferred Guarantee Trustee

            (a) This Preferred Securities Guarantee shall be held by the
Preferred Guarantee Trustee for the benefit of the Holders, and the Preferred
Guarantee Trustee shall not transfer its right, title and interest in this
Preferred Securities Guarantee to any Person except a Holder exercising his or
her rights pursuant to Section 5.4(b) or to a Successor Preferred Guarantee
Trustee on acceptance by such Successor Preferred Guarantee Trustee of its
appointment to act as Successor Preferred Guarantee Trustee. The right, title
and interest of the Preferred Guarantee Trustee shall automatically vest in any
Successor Preferred Guarantee Trustee, and such vesting and cessation of title
shall be effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Preferred Guarantee
Trustee.

            (b) If an Event of Default actually known to a Responsible Officer
of the Preferred Guarantee Trustee has occurred and is continuing, the Preferred
Guarantee Trustee shall enforce this Preferred Securities Guarantee for the
benefit of the Holders of the Preferred Securities.

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

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

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

                  (A) the duties and obligations of the Preferred Guarantee
            Trustee shall be determined solely by the express provisions of this
            Preferred Securities Guarantee, and the Preferred Guarantee Trustee
            shall not be liable except for the performance of such duties and
            obligations as are specifically set forth in this Preferred
            Securities

                                        7
<PAGE>
            Guarantee, and no implied covenants or obligations shall be read
            into this Preferred Securities Guarantee against the Preferred
            Guarantee Trustee; and

                  (B) in the absence of bad faith on the part of the Preferred
            Guarantee Trustee, the Preferred Guarantee Trustee may conclusively
            rely, as to the truth of the statements and the correctness of the
            opinions expressed therein, upon any certificates or opinions
            furnished to the Preferred Guarantee Trustee and conforming to the
            requirements of this Preferred Securities Guarantee; but in the case
            of any such certificates or opinions that by any provision hereof
            are specifically required to be furnished to the Preferred Guarantee
            Trustee, the Preferred Guarantee Trustee shall be under a duty to
            examine the same to determine whether or not they conform to the
            requirements of this Preferred Securities Guarantee;

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

            (iii) the Preferred Guarantee Trustee shall not be liable with
      respect to any action taken or omitted to be taken by it in good faith in
      accordance with the direction of the Holders of not less than a Majority
      in liquidation amount of the Preferred Securities relating to the time,
      method and place of conducting any proceeding for any remedy available to
      the Preferred Guarantee Trustee, or exercising any trust or power
      conferred upon the Preferred Guarantee Trustee under this Preferred
      Securities Guarantee; and

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

SECTION 3.2 Certain Rights of Preferred Guarantee Trustee

            (a) Subject to the provisions of Section 3.1:

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

                                        8
<PAGE>
            (ii) Any direction or act of the Guarantor contemplated by this
      Preferred Securities Guarantee shall be sufficiently evidenced by an
      Officers' Certificate.

            (iii) Whenever, in the administration of this Preferred Securities
      Guarantee, the Preferred Guarantee Trustee shall deem it desirable that a
      matter be proved or established before taking, suffering or omitting any
      action hereunder, the Preferred Guarantee Trustee (unless other evidence
      is herein specifically prescribed) may, in the absence of bad faith on its
      part, request and conclusively rely upon an Officers' Certificate which,
      upon receipt of such request, shall be promptly delivered by the
      Guarantor.

            (iv) The Preferred Guarantee Trustee shall have no duty to see to
      any recording, filing or registration of any instrument (or any
      rerecording, refiling or registration thereof).

            (v) The Preferred Guarantee Trustee may consult with counsel, and
      the written advice or opinion of such counsel with respect to legal
      matters shall be full and complete authorization and protection in respect
      of any action taken, suffered or omitted by it hereunder in good faith and
      in accordance with such advice or opinion. Such counsel may be counsel to
      the Guarantor or any of its Affiliates, or Travelers or any of its
      Affiliates and may include any of its employees. The Preferred Guarantee
      Trustee shall have the right at any time to seek instructions concerning
      the administration of this Preferred Securities Guarantee from any court
      of competent jurisdiction.

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

            (vii) The Preferred Guarantee Trustee shall not be bound to make any
      investigation into the facts or matters stated in any resolution,
      certificate, statement, instrument, opinion, report, notice, request,
      direction, consent, order, bond, debenture, note, other evidence of
      indebtedness or other paper or document, but the Preferred Guarantee
      Trustee, in its discretion, may make such further inquiry or investigation
      into such facts or matters as it may see fit.

            (viii) The Preferred Guarantee Trustee may execute any of the trusts
      or powers hereunder or perform any duties hereunder either directly or by
      or through agents, nominees,

                                        9
<PAGE>
      custodians or attorneys, and the Preferred Guarantee Trustee shall not be
      responsible for any misconduct or negligence on the part of any agent or
      attorney appointed with due care by it hereunder.

            (ix) Any action taken by the Preferred Guarantee Trustee or its
      agents hereunder shall bind the Holders of the Preferred Securities, and
      the signature of the Preferred Guarantee Trustee or its agents alone shall
      be sufficient and effective to perform any such action. No third party
      shall be required to inquire as to the authority of the Preferred
      Guarantee Trustee to so act or as to its compliance with any of the terms
      and provisions of this Preferred Securities Guarantee, both of which shall
      be conclusively evidenced by the Preferred Guarantee Trustee's or its
      agent's taking such action.

            (x) Whenever in the administration of this Preferred Securities
      Guarantee the Preferred Guarantee Trustee shall deem it desirable to
      receive instructions with respect to enforcing any remedy or right or
      taking any other action hereunder, the Preferred Guarantee Trustee (i) may
      request instructions from the Holders of a Majority in liquidation amount
      of the Preferred Securities, (ii) may refrain from enforcing such remedy
      or right or taking such other action until such instructions are received,
      and (iii) shall be protected in conclusively relying on or acting in
      accordance with such instructions.

            (b) No provision of this Preferred Securities Guarantee shall be
deemed to impose any duty or obligation on the Preferred Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Preferred Guarantee Trustee shall be unqualified or incompetent in
accordance with applicable law, to perform any such act or acts or to exercise
any such right, power, duty or obligation. No permissive power or authority
available to the Preferred Guarantee Trustee shall be construed to be a duty.

SECTION 3.3. Not Responsible for Recitals or Issuance of Guarantee

            The recitals contained in this Guarantee shall be taken as the
statements of the Guarantor, and the Preferred Guarantee Trustee does not assume
any responsibility for their correctness. The Preferred Guarantee Trustee makes
no representation as to the validity or sufficiency of this Preferred Securities
Guarantee.

                                   ARTICLE IV.
                           PREFERRED GUARANTEE TRUSTEE

SECTION 4.1 Preferred Guarantee Trustee; Eligibility

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

                                       10
<PAGE>
            (i) not be an Affiliate of the Guarantor or Travelers; and

            (ii) be a corporation organized and doing business under the laws of
      the United States of America or any State or Territory thereof or of the
      District of Columbia, or a corporation or Person permitted by the
      Securities and Exchange Commission to act as an institutional trustee
      under the Trust Indenture Act, authorized under such laws to exercise
      corporate trust powers, having a combined capital and surplus of at least
      50 million U.S. dollars ($50,000,000), and subject to supervision or
      examination by Federal, State, Territorial or District of Columbia
      authority. If such corporation publishes reports of condition at least
      annually, pursuant to law or to the requirements of the supervising or
      examining authority referred to above, then, for the purposes of this
      Section 4.1(a)(ii), the combined capital and surplus of such corporation
      shall be deemed to be its combined capital and surplus as set forth in its
      most recent report of condition so published.

            (b) If at any time the Preferred Guarantee Trustee shall cease to be
eligible to so act under Section 4.1(a), the Preferred Guarantee Trustee shall
immediately resign in the manner and with the effect set out in Section 4.2(c).

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

SECTION 4.2 Appointment, Removal and Resignation of Preferred Guarantee Trustees

            (a) Subject to Section 4.2(b), the Preferred Guarantee Trustee may
be appointed or removed without cause at any time by the Guarantor except if an
Event of Default shall have occurred and be continuing.

            (b) The Preferred Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Preferred Guarantee Trustee has
been appointed and has accepted such appointment by written instrument executed
by such Successor Preferred Guarantee Trustee and delivered to the Guarantor.

            (c) The Preferred Guarantee Trustee appointed to office shall hold
office until a Successor Preferred Guarantee Trustee shall have been appointed
or until its removal or resignation. The Preferred Guarantee Trustee may resign
from office (without need for prior or subsequent accounting) by an instrument
in writing executed by the Preferred Guarantee Trustee and delivered to the
Guarantor, which resignation shall not take effect until a Successor Preferred
Guarantee Trustee has been appointed and has accepted such appointment by
instrument in writing executed by such Successor Preferred Guarantee Trustee and
delivered to the Guarantor and the resigning Preferred Guarantee Trustee.

                                       11
<PAGE>
            (d) If no Successor Preferred Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60
days after delivery to the Guarantor of an instrument of resignation, the
resigning Preferred Guarantee Trustee may petition any court of competent
jurisdiction for appointment of a Successor Preferred Guarantee Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem
proper, appoint a Successor Preferred Guarantee Trustee.

            (e) No Preferred Guarantee Trustee shall be liable for the acts or
omissions to act of any Successor Preferred Guarantee Trustee.

            (f) Upon termination of this Preferred Securities Guarantee or
removal or resignation of the Preferred Guarantee Trustee pursuant to this
Section 4.2, the Guarantor shall pay to the Preferred Guarantee Trustee all
amounts accrued and owing to such Preferred Guarantee Trustee to the date of
such termination, removal or resignation.

                                   ARTICLE V.
                                    GUARANTEE

SECTION 5.1 Guarantee

            The Guarantor and Travelers, jointly and severally, irrevocably and
unconditionally agrees to pay in full to the Holders the Guarantee Payments, as
and when due, regardless of any defense, right of set-off or counterclaim that
the Issuer may have or assert. The Guarantor's obligation to make a Guarantee
Payment may be satisfied by direct payment of the required amounts by the
Guarantor to the Holders or by causing the Issuer to pay such amounts to the
Holders.

SECTION 5.2 Waiver of Notice and Demand

            (a) The Guarantor hereby waives notice of acceptance of this
Preferred Securities Guarantee and of any liability to which it applies or may
apply, presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.

            (b) Travelers hereby waives notice of acceptance of this Preferred
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against
the Issuer or any other Person before proceeding against Travelers, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.

                                       12
<PAGE>
SECTION 5.3 Obligations Not Affected

            The obligations, covenants, agreements and duties of the Guarantor
and Travelers under this Preferred Securities Guarantee shall in no way be
affected or impaired by reason of the happening from time to time of any of the
following:

            (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be performed
or observed by the Issuer;

            (b) the extension of time for the payment by the Issuer of all or
any portion of the Distributions, Redemption Price, Liquidation Distribution or
any other sums payable under the terms of the Preferred Securities or the
extension of time for the performance of any other obligation under, arising out
of, or in connection with, the Preferred Securities;

            (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Preferred Securities, or
any action on the part of the Issuer granting indulgence or extension of any
kind;

            (d) the voluntary or involuntary liquidation, dissolution, sale of
any collateral, receivership, insolvency, bankruptcy, assignment for the benefit
of creditors, reorganization, arrangement, composition or readjustment of debt
of, or other similar proceedings affecting, the Issuer or any of the assets of
the Issuer;

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

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

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

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

SECTION 5.4 Rights of Holders

            (a) The Holders of a Majority in liquidation amount of the Preferred
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Preferred Guarantee Trustee in
respect of this Preferred Securities Guarantee or

                                       13
<PAGE>
exercising any trust or power conferred upon the Preferred Guarantee Trustee
under this Preferred Securities Guarantee.

            (b) If the Preferred Guarantee Trustee fails to enforce its rights
under this Preferred Securities Guarantee, any Holder may directly institute a
legal proceeding against the Guarantor or Travelers to enforce the Preferred
Guarantee Trustee's rights under this Preferred Securities Guarantee, without
first instituting a legal proceeding against the Issuer, the Preferred Guarantee
Trustee or any other Person or entity.

            (c) A Holder of Preferred Securities may also directly institute a
legal proceeding against the Guarantor and Travelers to enforce such Holder's
right to receive payment under this Preferred Securities Guarantee without first
(i) directing the Preferred Guarantee Trustee to enforce the terms of this
Preferred Securities Guarantee or (ii) instituting a legal proceeding directly
against the Issuer or any other Person or entity.

SECTION 5.5 Guarantee of Payment

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

SECTION 5.6 Subrogation

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

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

                                       14
<PAGE>
SECTION 5.7 Independent Obligations

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

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

                                   ARTICLE VI.
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 Limitation of Transactions

            (a) So long as any Preferred Securities remain outstanding, if there
shall have occurred any event that would constitute an Event of Default or an
event of default under the Declaration, then (a) the Guarantor shall not declare
or pay any dividend on, make any distributions with respect to, or redeem,
purchase, acquire or make a liquidation payment with respect to, any of its
capital stock or make any guarantee payment with respect thereto (other than (i)
repurchases, redemptions or other acquisitions of shares of capital stock of the
Guarantor in connection with any employment contract, benefit plan or other
similar arrangement with or for the benefit of employees, officers, directors or
consultants, (ii) as a result of an exchange or conversion of any class or
series of the Guarantor's capital stock for any other class or series of the
Guarantor's capital stock, or (iii) the purchase of fractional interests in
shares of the Guarantor's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged)
and (b) the Guarantor shall not make any payment of interest on, or principal of
(or premium, if any, on), or repay, repurchase or redeem, any debt securities
issued by the Guarantor which rank pari passu with or junior to the Debentures;
provided, however, the Guarantor may declare and pay a stock dividend where the
dividend stock is the same stock as that on which the dividend is being paid.

            (b) So long as any Preferred Securities remain outstanding, if there
shall have occurred any event that would constitute an Event of Default or an
event of default under the Declaration, then (a) Travelers shall not declare or
pay any dividend on, make any distributions with respect to, or redeem,
purchase, acquire or make a liquidation payment with respect to, any of its
capital stock or make any guarantee payment with respect thereto (other than (i)
repurchases, redemptions or other acquisitions of shares of capital stock of
Travelers in connection with any

                                       15
<PAGE>
employment contract, benefit plan or other similar arrangement with or for the
benefit of employees, officers, directors or consultants, (ii) as a result of an
exchange or conversion of any class or series of Travelers' capital stock for
any other class or series of Travelers' capital stock, or (iii) the purchase of
fractional interests in shares of Travelers' capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged) and (b) Travelers shall not make any payment of interest
on, or principal of (or premium, if any, on), or repay, repurchase or redeem,
any debt securities issued by Travelers which rank pari passu with or junior to
the Debentures; provided, however, Travelers may declare and pay a stock
dividend where the dividend stock is the same stock as that on which the
dividend is being paid.

SECTION 6.2 Ranking

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

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

                                  ARTICLE VII.
                                   TERMINATION

SECTION 7.1 Termination

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

                                       16
<PAGE>
                                  ARTICLE VIII.
                                 INDEMNIFICATION

SECTION 8.1 Exculpation

            (a) No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Guarantor, Travelers or any Covered
Person for any loss, damage or claim incurred by reason of any act or omission
performed or omitted by such Indemnified Person in good faith in accordance with
this Preferred Securities Guarantee and in a manner that such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Preferred Securities Guarantee or by law, except that
an Indemnified Person shall be liable for any such loss, damage or claim
incurred by reason of such Indemnified Person's negligence or willful misconduct
with respect to such acts or omissions.

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

            (c) An Indemnified Person shall be fully protected in relying in
good faith upon the records of Travelers and upon such information, opinions,
reports or statements presented to Travelers by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of Travelers, 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 might properly be paid.

SECTION 8.2 Indemnification

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

                                       17
<PAGE>
                                   ARTICLE IX.
                                  MISCELLANEOUS

SECTION 9.1 Successors and Assigns

            All guarantees and agreements contained in this Preferred Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Preferred Securities then outstanding.

SECTION 9.2 Amendments

            Except with respect to any changes that do not adversely affect the
rights of Holders (in which case no consent of Holders will be required), this
Preferred Securities Guarantee may be amended only with the prior approval of
the Holders of not less than a Majority in aggregate liquidation amount
(including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to the date upon which the
voting percentages are determined) of all the outstanding Preferred Securities.
The provisions of Section 12.2 of the Declaration with respect to meetings of
Holders apply to the giving of such approval.

SECTION 9.3 Notices

            All notices provided for in this Preferred Securities Guarantee
shall be in writing, duly signed by the party giving such notice, and shall be
delivered, telecopied or mailed by registered or certified mail, as follows:

            (a) If given to the Preferred Guarantee Trustee, at the Preferred
Guarantee Trustee's mailing address set forth below (or such other address as
the Preferred Guarantee Trustee may give notice of to the Holders):

                JPMorgan Chase Bank
                450 West 33rd Street
                New York, New York  10001
                Attention:  Institutional Trust Services

            (b) If given to the Guarantor, at the Guarantor's mailing address
set forth below (or such other address as the Guarantor may give notice of to
the Holders):

                Travelers Insurance Group Holdings Inc.
                One Tower Square, 8 MS
                Hartford, Connecticut 06183
                Attention:  Paul Eddy

            (c) If given to Travelers, at Travelers' mailing address set forth
below (or such other address as Travelers may give notice of to the Holders):

                                       18
<PAGE>
                Travelers Property Casualty Corp.
                One Tower Square, 8 MS
                Hartford, Connecticut 06183
                Attention:  Paul Eddy

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

            All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

SECTION 9.4 Benefit

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

SECTION 9.5 Governing Law

            THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK,
AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD FOR
THE PRINCIPLES OF ITS CONFLICTS OF LAWS.

                                       19
<PAGE>
            THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and
year first above written.

                                        TRAVELERS INSURANCE GROUP
                                        HOLDINGS INC.,
                                        as Guarantor

                                        By:  /s/ William H. White
                                           -------------------------------------
                                           Name:  William H. White
                                           Title: Vice President and Treasurer

                                        TRAVELERS PROPERTY CASUALTY CORP.,
                                        as secondary guarantor

                                        By:  /s/ William H. White
                                           -------------------------------------
                                           Name:  William H. White
                                           Title: Vice President and Treasurer

                                        JPMORGAN CHASE BANK,
                                        as Preferred Guarantee Trustee

                                        By:  /s/ Robert S. Peschler
                                           -------------------------------------
                                           Name:  Robert S. Peschler
                                           Title: Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]