Document:

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                                                                    EXHIBIT 4.13

               [FORM OF AMENDED AND RESTATED DECLARATION OF TRUST]

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                        AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                            [ALLSTATE FINANCING III]

                          Dated as of ________ __, ____

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

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                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                Page
<S>                                                                                               <C>
ARTICLE I           INTERPRETATION AND DEFINITIONS.................................................1
     SECTION 1.1.   Definitions....................................................................1
ARTICLE II          TRUST INDENTURE ACT............................................................8
     SECTION 2.1.   Trust Indenture Act; Application...............................................8
     SECTION 2.2.   Lists of Holders of Securities.................................................8
     SECTION 2.3.   Reports by the Property Trustee................................................8
     SECTION 2.4.   Periodic Reports to Property Trustee...........................................9
     SECTION 2.5.   Evidence of Compliance with Conditions Precedent...............................9
     SECTION 2.6.   Events of Default; Waiver......................................................9
     SECTION 2.7.   Event of Default; Notice......................................................10
ARTICLE III         ORGANIZATION..................................................................11
     SECTION 3.1.   Name..........................................................................11
     SECTION 3.2.   Office........................................................................11
     SECTION 3.3.   Purpose.......................................................................11
     SECTION 3.4.   Authority.....................................................................11
     SECTION 3.5.   Title to Property of the Trust................................................12
     SECTION 3.6.   Powers and Duties of the Regular Trustees.....................................12
     SECTION 3.7.   Prohibition of Actions by the Trust and the Trustees..........................14
     SECTION 3.8.   Powers and Duties of the Property Trustee.....................................15
     SECTION 3.9.   Certain Duties and Responsibilities of the Property Trustee...................17
     SECTION 3.10.  Certain Rights of Property Trustee............................................19
     SECTION 3.11.  Delaware Trustee..............................................................21
     SECTION 3.12.  Execution of Documents........................................................21
     SECTION 3.13.  Not Responsible for Recitals or Issuance of Securities........................21
     SECTION 3.14.  Duration of Trust.............................................................22
     SECTION 3.15.  Mergers.......................................................................22
ARTICLE IV          DEPOSITOR.....................................................................23
     SECTION 4.1.   Depositor's Purchase of Common Securities.....................................23
     SECTION 4.2.   Responsibilities of the Depositor.............................................23
ARTICLE V           TRUSTEES......................................................................24
     SECTION 5.1.   Number of Trustees............................................................24
     SECTION 5.2.   Delaware Trustee..............................................................24
     SECTION 5.3.   Property Trustee; Eligibility.................................................25
     SECTION 5.4.   Certain Qualifications of Regular Trustees and Delaware Trustee Generally.....25
     SECTION 5.5.   Regular Trustees..............................................................26
     SECTION 5.6.   Delaware Trustee..............................................................26
     SECTION 5.7.   Appointment, Removal and Resignation of Trustees..............................26
     SECTION 5.8.   Vacancies among Trustees......................................................27
     SECTION 5.9.   Effect of Vacancies...........................................................28
     SECTION 5.10.  Meetings......................................................................28
     SECTION 5.11.  Delegation of Power...........................................................28
</Table>

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<Table>
<S>                                                                                               <C>
     SECTION 5.12.  Merger, Conversion, Consolidation or Succession to Business...................29
ARTICLE VI          DISTRIBUTIONS.................................................................29
     SECTION 6.1.   Distributions.................................................................29
ARTICLE VII         ISSUANCE OF SECURITIES........................................................29
     SECTION 7.1.   General Provisions Regarding Securities.......................................29
     SECTION 7.2.   Paying Agent..................................................................30
ARTICLE VIII        TERMINATION OF TRUST..........................................................30
     SECTION 8.1.   Termination of Trust..........................................................30
ARTICLE IX          TRANSFER OF INTERESTS.........................................................31
     SECTION 9.1.   Transfer of Securities........................................................31
     SECTION 9.2.   Transfer of Certificates......................................................31
     SECTION 9.3.   Deemed Security Holders.......................................................32
     SECTION 9.4.   Book Entry Interests..........................................................32
     SECTION 9.5.   Notices to Clearing Agency....................................................33
     SECTION 9.6.   Appointment of Successor Clearing Agency......................................33
     SECTION 9.7.   Definitive Preferred Security Certificates....................................33
     SECTION 9.8.   Mutilated, Destroyed, Lost or Stolen Certificates.............................34
ARTICLE X           LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS..........34
     SECTION 10.1.  Liability.....................................................................34
     SECTION 10.2.  Exculpation...................................................................34
     SECTION 10.3.  Fiduciary Duty................................................................35
     SECTION 10.4.  Indemnification...............................................................36
     SECTION 10.5.  Outside Businesses............................................................39
ARTICLE XI          ACCOUNTING....................................................................39
     SECTION 11.1.  Fiscal Year...................................................................39
     SECTION 11.2.  Certain Accounting Matters....................................................39
     SECTION 11.3.  Banking.......................................................................40
     SECTION 11.4.  Withholding...................................................................40
ARTICLE XII         AMENDMENTS AND MEETINGS.......................................................40
     SECTION 12.1.  Amendments....................................................................40
     SECTION 12.2.  Meetings of the Holders of Securities; Action by Written Consent..............42
ARTICLE XIII        REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE......................43
     SECTION 13.1.  Representations and Warranties of Property Trustee............................43
     SECTION 13.2.  Representations and Warranties of Delaware Trustee............................44
ARTICLE XIV         MISCELLANEOUS.................................................................45
     SECTION 14.1.  Notices.......................................................................45
     SECTION 14.2.  Governing Law.................................................................46
     SECTION 14.3.  Intention of the Parties......................................................46
     SECTION 14.4.  Headings......................................................................46
     SECTION 14.5.  Successors and Assigns........................................................46
     SECTION 14.6.  Partial Enforceability........................................................46
     SECTION 14.7.  Counterparts..................................................................47
</Table>

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<Table>
<S>               <C>                                                      <C>
ANNEX I           TERMS OF SECURITIES.......................................I-1
EXHIBIT A-1       FORM OF PREFERRED SECURITY CERTIFICATE...................A1-1
EXHIBIT A-2       FORM OF COMMON SECURITY CERTIFICATE......................A2-1
EXHIBIT B         SPECIMEN OF DEBENTURE.....................................B-1
EXHIBIT C         UNDERWRITING AGREEMENT....................................C-1
</Table>

                                       iii
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                             CROSS-REFERENCE TABLE*

<Table>
<Caption>
Section of Trust Indenture Act of 1939, as amended          Section of Declaration
<S>                                                         <C>
310(a)...................................................   5.3(a)
[310(b)].................................................
310(c)...................................................   Inapplicable
[311(a)].................................................
[311(b)].................................................
311(c)...................................................   Inapplicable
312(a)...................................................   2.2(a)
312(b)...................................................   2.2(b)
[312(c)].................................................
313......................................................   2.3
314(a)...................................................   2.4
314(b)...................................................   Inapplicable
314(c)...................................................   2.5
314(d)...................................................   Inapplicable
[314(e) Inapplicable]....................................
314(f)...................................................   Inapplicable [No Reference]
315(a)...................................................   3.9(b)
[315(b)].................................................
315(c)...................................................   3.9(a)
315(d)...................................................   3.9(a)
[315(e)].................................................
316(a)...................................................   Annex I [Not Applicable]
[316(b)].................................................
316(c)...................................................   3.6(e)
[317(a)] - [Not Applicable]..............................
[317(b)].................................................
[318(a)].................................................
</Table>

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

                                       iv
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                              AMENDED AND RESTATED
                              DECLARATION OF TRUST
                                       OF
                            [ALLSTATE FINANCING III]

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

          WHEREAS, the Trustees and the Depositor established [Allstate
Financing III] (the "Trust"), a trust under the Delaware Statutory Trust Act
pursuant to a Declaration of Trust dated as of August 16, 1996 (the "Original
Declaration") and a Certificate of Trust filed with the Secretary of State of
the State of Delaware on August 21, 1996, for the sole purpose of issuing and
selling certain securities representing undivided beneficial interests in the
assets of the Trust and investing the proceeds thereof in certain Debentures of
the Debenture Issuer;

          WHEREAS, State Street Bank and Trust Company was a Trustee under
the Original Declaration; State Street Bank and Trust Company was acquired by
U.S. Bank National Association, a national banking association, organized
under the laws of the United States of America, and U.S. Bank National
Association will serve as Property Trustee under this Declaration;

          WHEREAS, Delaware Trust Capital Management, Inc. was a Trustee
under the Original Declaration; Delaware Trust Capital Management, Inc. was
acquired by Wachovia Bank of Delaware National Association, a national
banking association, organized under the laws of the United States of America,
and Wachovia Bank of Delaware National Association will serve as Delaware
Trustee under this Declaration;

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

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

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

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

SECTION 1.1.   DEFINITIONS.

          Unless the context otherwise requires:

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

          (b)  a term defined anywhere in this Declaration has the same meaning
throughout;

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

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

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

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

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

          "Agent" means any Paying Agent.

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

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

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

          "Certificate" means a Common Security Certificate or a Preferred
Security Certificate.

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

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

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

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

          "Commission" means the Securities and Exchange Commission.

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

          ["Common Securities Guarantee" means the guarantee agreement to be
dated as of ______ __, ____ of the Depositor in respect of the Common
Securities.]

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

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

          "Corporate Trust Office" means the office of the Property Trustee at
which the corporate trust business of the Property Trustee shall, at any
particular time, be principally administered, which office at the date of
execution of this Agreement is located at One Federal Street, Third Floor,
Boston, Massachusetts 02110.

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

          "Debenture Issuer" means The Allstate Corporation, a Delaware
corporation, in its capacity as issuer of the Debentures under the Indenture.

          "Debenture Trustee" means U.S. Bank National Association, a national
banking association, organized under the laws of the United States of America,
as trustee under the Indenture until a successor is appointed thereunder, and
thereafter means such successor trustee.

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

          "Delaware Trustee" means Wachovia Bank of Delaware National
Association, a national banking association, solely in its capacity as
Delaware Trustee of the Trust heretofore formed and continued hereunder and
not in its individual capacity, or its successor in interest in such
capacity, or any successor Delaware Trustee appointed as herein provided in
Section 5.7.

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

          "Depositor" means The Allstate Corporation, a Delaware corporation, in
its capacity as depositor of the Trust.

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

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

          ["Event of Default" in respect of the Securities means an Event of
Default (as defined in the Indenture) has occurred and is continuing in respect
of the Debentures.]

                                        3
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          ["Event of Default" means any one of the following events (whatever
the reasons for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

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

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

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

          (d)  default in the performance, or breach, in any material respect,
of any covenant or warranty of the Trustees in this Declaration (other than a
covenant or warranty, a default in the performance of which or the breach of
which is dealt with in clause (b) or (c) above) and continuation of such default
or breach for a period of 60 days after there has been given, by registered or
certified mail, to the defaulting Trustee or Trustees by the Holders of at least
25% in aggregate liquidation preference of the outstanding Preferred Securities
a written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder.]

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

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

          "Global Certificate" has the meaning set forth in Section 9.4.

          "Holder" means a Person in whose name a Certificate representing a
Security is registered, such Person being a beneficial owner within the meaning
of the Statutory Trust Act.

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

          "Indenture" means the Subordinated Indenture, dated as of _______ __,
____, between the Debenture Issuer and the Debenture Trustee, and any indenture
supplemental thereto pursuant to which the Debentures are to be issued.

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

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

          ["Investment Company Event" means the receipt by the Trust of an
Opinion of Counsel, rendered by a law firm having a recognized national tax and
securities practice, to the effect that, as a result of the occurrence of a
change in law or regulation or a change in

                                        4
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interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority (a "Change in Investment
Company Act Law"), the Trust is or will be considered an "investment company"
that is required to be registered under the Investment Company Act, which Change
in Investment Company Act Law becomes effective on or after the date of original
issuance of the Preferred Securities under this Declaration.]

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

          "Majority in liquidation amount of the Securities" means, except as
provided in the terms of the Preferred Securities or by the Trust Indenture Act,
Holder(s) of outstanding Securities voting together as a single class or, as the
context may require, Holders of outstanding Preferred Securities or Holders of
outstanding Common Securities voting separately as a class, who are the record
owners of more than 50% of the aggregate liquidation amount (including the
stated amount that would be paid on redemption, liquidation or otherwise, plus
accrued and unpaid Distributions to the date upon which the voting percentages
are determined) of all outstanding Securities of the relevant class.

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

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

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

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

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

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

          "Paying Agent" has the meaning specified in Section 7.2.

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

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

                                        5
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          "Preferred Securities Guarantee" means the guarantee agreement to be
dated as of ______ __, ____, of the Depositor in respect of the Preferred
Securities.

          "Preferred Security Beneficial Owner" means, with respect to a Book
Entry Interest, a Person who is the beneficial owner of such Book Entry
Interest, as reflected on the books of the Clearing Agency, or on the books of a
Person maintaining an account with such Clearing Agency (directly as a Clearing
Agency Participant or as an indirect participant, in each case in accordance
with the rules of such Clearing Agency).

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

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

          "Property Trustee" means U.S. Bank National Association, a national
banking association, organized under the laws of the United States of America,
solely in its capacity as Property Trustee of the Trust heretofore formed and
continued hereunder and not in its individual capacity, or its successor in
interest in such capacity, or any successor Property Trustee appointed as herein
provided.

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

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

          "Regular Trustee" has the meaning set forth in Section 5.1.

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

          "Responsible Officer" means, with respect to the Property Trustee, any
officer within the Corporate Trust Office of the Property 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 Property 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.

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

          "Securities" means the Common Securities and the Preferred Securities.

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

                                        6
<Page>

          ["Special Event" has the meaning set forth in Annex I hereto.]

          "Securities Guarantees" means the Common Securities Guarantee and the
Preferred Securities Guarantee.

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

          ["Super Majority" has the meaning set forth in Section 2.6(a)(ii).]

          "Tax Event" has the meaning set forth in Annex I hereto.

          ["10% in liquidation amount of the Securities" means, except as
provided in the terms of the Preferred Securities or by the Trust Indenture Act,
Holder(s) of outstanding Securities voting together as a single class or, as the
context may require, Holders of outstanding Preferred Securities or Holders of
outstanding Common Securities voting separately as a class, who are the record
owners of 10% or more of the aggregate liquidation amount (including the stated
amount that would be paid on redemption, liquidation or otherwise, plus accrued
and unpaid Distributions to the date upon which the voting percentages are
determined) of all outstanding Securities of the relevant class.]

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

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

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

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

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

                                        7
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                                   ARTICLE II
                               TRUST INDENTURE ACT

SECTION 2.1.   TRUST INDENTURE ACT; APPLICATION.

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

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

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

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

SECTION 2.2.   LISTS OF HOLDERS OF SECURITIES.

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

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

SECTION 2.3.   REPORTS BY THE PROPERTY TRUSTEE.

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

                                        8
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SECTION 2.4.   PERIODIC REPORTS TO PROPERTY TRUSTEE.

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

SECTION 2.5.   EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.

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

SECTION 2.6.   EVENTS OF DEFAULT; WAIVER.

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

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

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

          The foregoing provisions of this Section 2.6(a) shall be in lieu of
Section 316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of
the Trust Indenture Act is hereby expressly excluded from this Declaration and
the Securities, as permitted by the Trust Indenture Act. Upon such waiver, any
such default shall cease to exist, and any Event of Default with respect to the
Preferred Securities arising therefrom shall be deemed to have been cured, for
every purpose of this Declaration, but no such waiver shall extend to any
subsequent or other default or an Event of Default with respect to the Preferred
Securities or impair any right consequent thereon. Any waiver by the Holders of
the Preferred Securities of an Event of Default with respect to the Preferred
Securities shall also be deemed to constitute a waiver by the Holders of the
Common Securities of any such Event of Default with respect to the Common
Securities for all purposes of this Declaration without any further act, vote or
consent of the Holders of the Common Securities.

          (b)  The Holders of a Majority in liquidation amount of the Common
Securities may, by vote, on behalf of the Holders of all of the Common
Securities, waive any

                                        9
<Page>

past Event of Default with respect to the Common Securities and its
consequences; provided that, if the underlying Event of Default under the
Indenture:

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

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

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

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

SECTION 2.7.   EVENT OF DEFAULT; NOTICE.

          (a)  The Property Trustee shall, within 90 days after the occurrence
of an Event of Default, transmit by mail, first class postage prepaid, to the
Holders of the Securities, notices of all defaults with respect to the
Securities actually known to a Responsible Officer of the Property Trustee,
unless such defaults have been cured before the giving of such notice (the term
"defaults" for the purposes of this Section 2.7(a) being hereby defined to be an
Event of

                                       10
<Page>

Default as defined in the Indenture, not including any periods of grace provided
for therein and irrespective of the giving of any notice provided therein);
provided that, except for a default in the payment of principal of (or premium,
if any) or interest on any of the Debentures or in the payment of any sinking
fund installment established for the Debentures, the Property Trustee shall be
protected in withholding such notice if and so long as a Responsible Officer of
the Property Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders of the Securities.

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

               (i)     a default under Sections [5.01(a) and 5.01(b)] of the
          Indenture; or

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

                                   ARTICLE III
                                  ORGANIZATION

SECTION 3.1.   NAME.

          The Trust is named ["Allstate Financing III"], as such name may be
modified from time to time by the Regular Trustees following written notice to
the Holders of Securities and compliance with the Statutory Trust Act. The
Trust's activities may be conducted under the name of the Trust or any other
name deemed advisable by the Regular Trustees.

SECTION 3.2.   OFFICE.

          The address of the principal office of the Trust is c/o The Allstate
Corporation, 2775 Sanders Road, Northbrook, Illinois 60062. On ten Business Days
written notice to the Holders of Securities, the Regular Trustees may designate
another principal office.

SECTION 3.3.   PURPOSE.

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

SECTION 3.4.   AUTHORITY.

          Subject to the limitations provided in this Declaration and to the
specific duties of the Property Trustee, the Regular Trustees shall have
exclusive and complete authority to carry

                                       11
<Page>

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

SECTION 3.5.   TITLE TO PROPERTY OF THE TRUST.

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

SECTION 3.6.   POWERS AND DUTIES OF THE REGULAR TRUSTEES.

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

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

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

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

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

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

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

                                       12
<Page>

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

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

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

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

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

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

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

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

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

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

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

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

                                       13
<Page>

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

          (o)  to take all action that may be necessary or appropriate for the
preservation and the continuation of the Trust's valid existence, rights,
franchises and privileges as a statutory trust under the laws of the State of
Delaware and of each other jurisdiction in which such existence is necessary to
protect the limited liability of the Holders of the Preferred Securities or to
enable the Trust to effect the purposes for which the Trust was created;

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

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

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

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

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

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

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

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

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

SECTION 3.7.   PROHIBITION OF ACTIONS BY THE TRUST AND THE TRUSTEES.

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

                                       14
<Page>

               (i)     invest any proceeds received by the Trust from holding
          the Debentures, but shall distribute all such proceeds to Holders of
          Securities pursuant to the terms of this Declaration and of the
          Securities;

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

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

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

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

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

               (vii)   other than as provided in this Declaration or Annex I,
          (A) direct the time, method and place of exercising any trust or power
          conferred upon the Debenture Trustee with respect to the Debentures,
          (B) waive any past default that is waivable under the Indenture, (C)
          exercise any right to rescind or annul any declaration that the
          principal of all the Debentures shall be due and payable, or (D)
          consent to any amendment, modification or termination of the Indenture
          or the Debentures where such consent shall be required unless the
          Trust shall have received an opinion of counsel to the effect that
          such modification will not cause more than an insubstantial risk that
          for United States federal income tax purposes the Trust will not be
          classified as a grantor trust.

SECTION 3.8.   POWERS AND DUTIES OF THE PROPERTY TRUSTEE.

          (a)  The legal title to the Debentures shall be owned on behalf of the
Trust by and held of record in the name of the Property Trustee in trust for the
benefit of the Holders of the Securities. The right, title and interest of the
Property Trustee to the Debentures shall vest automatically in each Person who
may hereafter be appointed as Property Trustee in accordance with Section 5.7.
Such vesting and cessation of title shall be effective whether or not
conveyancing documents with regard to the Debentures have been executed and
delivered.

          (b)  The Property Trustee shall not transfer its right, title and
interest in the Debentures to the Regular Trustees or to the Delaware Trustee
(if the Property Trustee does not also act as Delaware Trustee).

          (c)  The Property Trustee shall:

               (i)     establish and maintain a segregated non-interest bearing
          trust account (the "Property Trustee Account") in the name of and
          under the exclusive control of the Property Trustee on behalf of the
          Holders of the Securities and, upon the receipt of payments of funds
          made in respect of the Debentures held by the Property Trustee,
          deposit such funds into the Property Trustee Account and

                                       15
<Page>

          make payments to the Holders of the Preferred Securities and Holders
          of the Common Securities from the Property Trustee Account in
          accordance with Section 6.1. Funds in the Property Trustee Account
          shall be held uninvested until disbursed in accordance with this
          Declaration. The Property Trustee Account shall be an account that is
          maintained with a banking institution[, which institution may be the
          Property Trustee in its individual capacity,] the rating on whose
          long-term unsecured indebtedness is at least equal to the rating
          assigned to the Preferred Securities by a "nationally recognized
          statistical rating organization", as that term is defined for purposes
          of Rule 436(g)(2) under the Securities Act;

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

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

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

          (e)  The Property Trustee shall take any Legal Action which arises out
of or in connection with an Event of Default of which a Responsible Officer of
the Property Trustee has actual knowledge or the Property Trustee's duties and
obligations under this Declaration or the Trust Indenture Act; provided,
however, that if an Event of Default under this Declaration has occurred and is
continuing and such event is attributable to the failure of the Debenture Issuer
to pay interest or principal on the Debentures on the date such interest or
principal is otherwise payable (or in the case of redemption, on the redemption
date), then a Holder of Preferred Securities may directly institute a proceeding
for enforcement of payment to such Holder of the principal of or interest on the
Debentures having a principal amount equal to the aggregate liquidation amount
of the Preferred Securities of such Holder (a "Direct Action") on or after the
respective due date specified in the Debentures. In connection with such Direct
Action, the rights of the Holders of the Common Securities will be subrogated to
the rights of such Holder of Preferred Securities to the extent of any payment
made by the Debenture Issuer to such Holder of Preferred Securities in such
Direct Action. Except as provided in the preceding sentences, the Holders of
Preferred Securities will not be able to exercise directly any other remedy
available to the holders of the Debentures.

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

                                       16
<Page>

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

               (ii)    a Successor Property Trustee has been appointed and has
          accepted that appointment in accordance with Section 5.7.

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

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

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

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

SECTION 3.9.   CERTAIN DUTIES AND RESPONSIBILITIES OF THE PROPERTY TRUSTEE.

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

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

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

                                       17
<Page>

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

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

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

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

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

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

               (vi)    the Property Trustee shall have no duty or liability for
          or with respect to the value, genuineness, existence or sufficiency of
          the Debentures or

                                       18
<Page>

          the payment of any taxes or assessments levied thereon or in
          connection therewith;

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

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

SECTION 3.10.  CERTAIN RIGHTS OF PROPERTY TRUSTEE.

          (a)  Subject to the provisions of Section 3.9:

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

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

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

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

               (v)     the Property Trustee may consult with counsel or other
          experts of its selection and the advice or opinion of such counsel and
          experts with respect to legal matters or advice within the scope of
          such experts' area of expertise shall be full and complete
          authorization and protection in respect of any action taken, suffered
          or omitted by it hereunder in good faith and in accordance with such

                                       19
<Page>

          advice or opinion, such counsel may be counsel to the Depositor or any
          of its Affiliates, and may include any of its employees. The Property
          Trustee shall have the right at any time to seek instructions
          concerning the administration of this Declaration from any court of
          competent jurisdiction;

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

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

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

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

               (x)     whenever in the administration of this Declaration the
          Property Trustee shall deem it desirable to receive instructions with
          respect to enforcing any remedy or right or taking any other action
          hereunder, the Property Trustee (i) may request instructions from the
          Holders of the Securities which instructions may only be given by the
          Holders of the same proportion in liquidation amount of the Securities
          as would be entitled to direct the Property Trustee under the terms of
          the Securities in respect of such remedy, right or action, (ii) may
          refrain from enforcing such remedy or right or taking such other
          action until such instructions

                                       20
<Page>

          are received, and (iii) shall be protected in conclusively relying on
          or acting in accordance with such instructions;

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

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

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

SECTION 3.11.  DELAWARE TRUSTEE.

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

SECTION 3.12.  EXECUTION OF DOCUMENTS.

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

SECTION 3.13.  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

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

                                       21
<Page>

SECTION 3.14.  DURATION OF TRUST.

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

SECTION 3.15.  MERGERS.

          (a)  The Trust may not consolidate, amalgamate, merge with or into, or
be replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety to any corporation or other body, except as
described in Section 3.15(b) and (c).

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

               (i)     such successor entity (the "Successor Entity") either:

                       (A)  expressly assumes all of the obligations of the
          Trust under the Securities; or

                       (B)  substitutes for the Securities other securities
          having substantially the same terms as the Preferred Securities (the
          "Successor Securities") so long as the Successor Securities rank the
          same as the Preferred Securities rank with respect to Distributions
          and payments upon liquidation, redemption and otherwise;

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

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

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

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

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

                                       22
<Page>

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

                       (A)  such merger, consolidation, amalgamation or
          replacement does not adversely affect the rights, preferences and
          privileges of the Holders of the Securities (including any Successor
          Securities) in any material respect (other than with respect to any
          dilution of the Holders' interest in the new entity); and

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

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

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

          (c)  Notwithstanding Section 3.15(b), the Trust shall not, except with
the consent of Holders of 100% in liquidation amount of the Securities,
consolidate, amalgamate, merge with or into, or be replaced by any other entity
or permit any other entity to consolidate, amalgamate, merge with or into, or
replace it if such consolidation, amalgamation, merger or replacement would
cause the Trust or Successor Entity to be classified as other than a grantor
trust for United States federal income tax purposes.

                                   ARTICLE IV
                                    DEPOSITOR

SECTION 4.1.   DEPOSITOR'S PURCHASE OF COMMON SECURITIES.

          On the Closing Date the Depositor will purchase all of the Common
Securities issued by the Trust, in an amount at least equal to [1%] of the
capital of the Trust, at the same time as the Preferred Securities are sold.

SECTION 4.2.   RESPONSIBILITIES OF THE DEPOSITOR.

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

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

          (b)  to determine the States in which to take appropriate action to
qualify or register for sale all or part of the Preferred Securities and to do
any and all such acts, other than actions which must be taken by the Trust, and
advise the Trust of actions it must take, and

                                       23
<Page>

prepare for execution and filing any documents to be executed and filed by the
Trust, as the Depositor deems necessary or advisable in order to comply with the
applicable laws of any such States;

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

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

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

                                    ARTICLE V
                                    TRUSTEES

SECTION 5.1.   NUMBER OF TRUSTEES.

          The number of Trustees initially shall be four (4), and:

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

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

SECTION 5.2.   DELAWARE TRUSTEE.

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

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

          (b)  if not a natural person, an entity which has its principal place
of business in the State of Delaware, and otherwise meets the requirements of
applicable law; provided that, if the Property Trustee has its principal place
of business in the State of Delaware and otherwise

                                       24
<Page>

meets the requirements of applicable law, then the Property Trustee shall also
be the Delaware Trustee and Section 3.11 shall have no application.

SECTION 5.3.   PROPERTY TRUSTEE; ELIGIBILITY.

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

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

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

          (b)  If at any time the Property Trustee shall cease to be eligible to
so act under Section 5.3(a), the Property Trustee shall immediately resign in
the manner and with the effect set forth in Section 5.7(c).

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

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

          (e)  The initial Property Trustee shall be:

               U.S. Bank National Association

SECTION 5.4.   CERTAIN QUALIFICATIONS OF REGULAR TRUSTEES AND DELAWARE TRUSTEE
               GENERALLY.

          Each Regular Trustee and the Delaware Trustee (unless the Property
Trustee also acts as Delaware Trustee) shall be either a natural person who is
at least 21 years of age or a legal entity that shall act through one or more
Authorized Officers.

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<Page>

SECTION 5.5.   REGULAR TRUSTEES.

          The initial Regular Trustees shall be:

          ______________________________________
          ______________________________________
          ______________________________________

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

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

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

SECTION 5.6.   DELAWARE TRUSTEE.

          The initial Delaware Trustee shall be:

          Delaware Trust Capital Management, Inc.

SECTION 5.7.   APPOINTMENT, REMOVAL AND RESIGNATION OF TRUSTEES.

          (a)  Subject to Section 5.7(b), Trustees may be appointed or removed
without cause at any time except during an event of default:

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

               (ii)    after the issuance of any Securities, by vote of the
          Holders of a Majority in liquidation amount of the Common Securities
          voting as a class at a meeting of the Holders of the Common
          Securities.

          (b)  (i) The Trustee that acts as Property Trustee shall not be
removed in accordance with Section 5.7(a) until a Successor Property Trustee has
been appointed and has accepted such appointment by written instrument executed
by such Successor Property Trustee and delivered to the Regular Trustees and the
Depositor; and

               (ii)    the Trustee that acts as Delaware Trustee shall not be
          removed in accordance with this Section 5.7(a) until a successor
          Trustee possessing the

                                       26
<Page>

          qualifications to act as Delaware Trustee under Sections 5.2 and 5.4
          (a "Successor Delaware Trustee") has been appointed and has accepted
          such appointment by written instrument executed by such Successor
          Delaware Trustee and delivered to the Regular Trustees and the
          Depositor.

          (c)  A Trustee appointed to office shall hold office until his
successor shall have been appointed or until his death, removal or resignation.
Any Trustee may resign from office (without need for prior or subsequent
accounting) by an instrument in writing signed by the Trustee and delivered to
the Depositor and the Trust, which resignation shall take effect upon such
delivery or upon such later date as is specified therein; provided, however,
that:

               (i)     No such resignation of the Trustee that acts as the
          Property Trustee shall be effective:

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

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

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

          (d)  The Holders of the Common Securities shall use their best efforts
to promptly appoint a Successor Delaware Trustee or Successor Property Trustee
as the case may be if the Property Trustee or the Delaware Trustee delivers an
instrument of resignation in accordance with this Section 5.7. If no Successor
Property Trustee or Successor Delaware Trustee shall have been appointed and
accepted appointment as provided in this Section 5.7 within 60 days after
delivery of an instrument of resignation or removal, the Property Trustee or
Delaware Trustee resigning or being removed, as applicable, may petition any
court of competent jurisdiction for appointment of a Successor Property Trustee
or Successor Delaware Trustee. Such court may thereupon, after prescribing such
notice, if any, as it may deem proper and prescribe, appoint a Successor
Property Trustee or Successor Delaware Trustee, as the case may be.

          (e)  No Property Trustee or Delaware Trustee shall be liable for the
acts or omissions to act of any Successor Property Trustee or Successor Delaware
Trustee, as the case may be.

SECTION 5.8.   VACANCIES AMONG TRUSTEES.

          If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to Section 5.1, or if the number of Trustees is
increased pursuant to Section 5.1,

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<Page>

a vacancy shall occur. A resolution certifying the existence of such vacancy by
the Regular Trustees or, if there are more than two, a majority of the Regular
Trustees shall be conclusive evidence of the existence of such vacancy. The
vacancy shall be filled with a Trustee appointed in accordance with Section 5.7.

SECTION 5.9.   EFFECT OF VACANCIES.

          The death, resignation, retirement, removal, bankruptcy, dissolution,
liquidation, incompetence or incapacity to perform the duties of a Trustee shall
not operate to annul the Trust. Whenever a vacancy in the number of Regular
Trustees shall occur, until such vacancy is filled by the appointment of a
Regular Trustee in accordance with Section 5.7, the Regular Trustees in office,
regardless of their number, shall have all the powers granted to the Regular
Trustees and shall discharge all the duties imposed upon the Regular Trustees by
this Declaration.

SECTION 5.10.  MEETINGS.

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

SECTION 5.11.  DELEGATION OF POWER.

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

          (b)  the Regular Trustees shall have power to delegate from time to
time to such of their number or to officers of the Trust the doing of such
things and the execution of such instruments either in the name of the Trust or
the names of the Regular Trustees or otherwise as

                                       28
<Page>

the Regular Trustees may deem expedient, to the extent such delegation is not
prohibited by applicable law or contrary to the provisions of the Trust, as set
forth herein.

SECTION 5.12.  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

          Any corporation into which the Property Trustee or the Delaware
Trustee, as the case may be, may be merged or converted or with which either may
be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Property Trustee or the Delaware Trustee, as the case
may be, shall be a party, or any corporation succeeding to all or substantially
all the corporate trust business of the Property Trustee or the Delaware
Trustee, as the case may be, shall be the successor of the Property Trustee or
the Delaware Trustee, as the case may be, hereunder, provided such corporation
shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto.

                                   ARTICLE VI
                                  DISTRIBUTIONS

SECTION 6.1.   DISTRIBUTIONS.

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

                                   ARTICLE VII
                             ISSUANCE OF SECURITIES

SECTION 7.1.   GENERAL PROVISIONS REGARDING SECURITIES.

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

          (b)  The Certificates shall be signed on behalf of the Trust by a
Regular Trustee. Such signature shall be the manual signature of any present or
any future Regular Trustee. In case any Regular Trustee of the Trust who shall
have signed any of the Securities shall cease to be such Regular Trustee before
the Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be delivered as though the person who signed such

                                       29
<Page>

Certificates had not ceased to be such Regular Trustee; and any Certificate may
be signed on behalf of the Trust by such persons who, at the actual date of
execution of such Security, shall be the Regular Trustees of the Trust, although
at the date of the execution and delivery of the Declaration any such person was
not such a Regular Trustee. Certificates shall be printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to
the Regular Trustees, as evidenced by their execution thereof, and may have such
letters, numbers or other marks of identification or designation and such
legends or endorsements as the Regular Trustees may deem appropriate, or as may
be required to comply with any law or with any rule or regulation of any stock
exchange on which Securities may be listed, or to conform to usage.

          (c)  The consideration received by the Trust for the issuance of the
Securities shall constitute a contribution to the capital of the Trust and shall
not constitute a loan to the Trust.

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

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

SECTION 7.2.   PAYING AGENT.

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

                                  ARTICLE VIII
                              TERMINATION OF TRUST

SECTION 8.1.   TERMINATION OF TRUST.

          (a)  The Trust shall terminate:

               (i)     upon the bankruptcy of the Depositor;

               (ii)    upon the filing of a certificate of dissolution or its
          equivalent with respect to the Depositor; the filing of a certificate
          of cancellation with respect to the Trust after having obtained the
          consent of a majority in liquidation amount of

                                       30
<Page>

          the Securities voting together as a single class to file such
          certificate of cancellation or the revocation of the Depositor's
          charter and the expiration of 90 days after the date of revocation
          without a reinstatement thereof;

               (iii)   upon the entry of a decree of judicial dissolution of the
          Holder of the Common Securities, the Depositor or the Trust;

               (iv)    when all of the Securities shall have been called for
          redemption and the amounts necessary for redemption thereof shall have
          been paid to the Holders in accordance with the terms of the
          Securities;

               (v)     upon the occurrence and continuation of a Special Event
          pursuant to which the Trust shall have been dissolved in accordance
          with the terms of the Securities and all of the Debentures endorsed
          thereon shall have been distributed to the Holders of Securities in
          exchange for all of the Securities; [or at the Depositor's direction
          (wholly discretionary and optional) to the Property Trustee to
          terminate and distribute the Debentures. However, in such case, if the
          distribution of Debentures is deemed not practical by the Property
          Trustee, the Property Trustee may dissolve the Trust and liquidate the
          assets instead;] or

               (vi)    before the issuance of any Securities, with the consent
          of all of the Regular Trustees and the Depositor.

          (b)  As soon as is practicable after the occurrence of an event
referred to in Section 8.1(a), the Trustees shall file a certificate of
cancellation with the Secretary of State of the State of Delaware.

          (c)  The provisions of Section 3.9 and Article X shall survive the
termination of the Trust.

                                   ARTICLE IX
                              TRANSFER OF INTERESTS

SECTION 9.1.   TRANSFER OF SECURITIES.

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

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

          (c)  The Depositor may not transfer the Common Securities.

SECTION 9.2.   TRANSFER OF CERTIFICATES.

          The Regular Trustees shall provide for the registration of
Certificates and of transfers of Certificates, which will be effected without
charge but only upon payment (with such

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<Page>

indemnity as the Regular Trustees may require) in respect of any tax or other
government charges that may be imposed in relation to it. Upon surrender for
registration of transfer of any Certificate, the Regular Trustees shall cause
one or more new Certificates to be issued in the name of the designated
transferee or transferees. Every Certificate surrendered for registration of
transfer shall be accompanied by a written instrument of transfer in form
satisfactory to the Regular Trustees duly executed by the Holder or such
Holder's attorney duly authorized in writing. Each Certificate surrendered for
registration of transfer shall be canceled by the Regular Trustees. A transferee
of a Certificate shall be entitled to the rights and subject to the obligations
of a Holder hereunder upon the receipt by such transferee of a Certificate. By
acceptance of a Certificate, each transferee shall be deemed to have agreed to
be bound by this Declaration.

SECTION 9.3.   DEEMED SECURITY HOLDERS.

          The Trustees may treat the Person in whose name any Certificate shall
be registered on the books and records of the Trust as the sole holder of such
Certificate and of the Securities represented by such Certificate for purposes
of receiving Distributions and for all other purposes whatsoever and,
accordingly, shall not be bound to recognize any equitable or other claim to or
interest in such Certificate or in the Securities represented by such
Certificate on the part of any Person, whether or not the Trust shall have
actual or other notice thereof.

SECTION 9.4.   BOOK ENTRY INTERESTS.

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

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

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

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

          (d)  the rights of the Preferred Security Beneficial Owners shall be
exercised only through the Clearing Agency and shall be limited to those
established by law and agreements between such Preferred Security Beneficial
Owners and the Clearing Agency and/or the Clearing Agency Participants and
receive and transmit payments of Distributions on the

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Global Certificates to such Clearing Agency Participants. DTC will make book
entry transfers among the Clearing Agency Participants.

SECTION 9.5.   NOTICES TO CLEARING AGENCY.

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

SECTION 9.6.   APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

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

SECTION 9.7.   DEFINITIVE PREFERRED SECURITY CERTIFICATES.

          If:

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

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

then:

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

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

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SECTION 9.8.   MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

          If:

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

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

                                    ARTICLE X
                           LIMITATION OF LIABILITY OF
                    HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 10.1.  LIABILITY.

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

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

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

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

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

SECTION 10.2.  EXCULPATION.

          (a)  No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Trust or any Covered Person for any loss, damage
or claim incurred

                                       34
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by reason of any act or omission performed or omitted by such Indemnified Person
in good faith on behalf of the Trust and in a manner such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Declaration or by law, except that an Indemnified
Person shall be liable for any such loss, damage or claim incurred by reason of
such Indemnified Person's gross negligence or willful misconduct with respect to
such acts or omissions.

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

SECTION 10.3.  FIDUCIARY DUTY.

          (a)  To the extent that, at law or in equity, an Indemnified Person
has duties (including fiduciary duties) and liabilities relating thereto to the
Trust or to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration. The provisions of
this Declaration, to the extent that they restrict the duties and liabilities of
an Indemnified Person otherwise existing at law or in equity (other than the
duties imposed on the Property Trustee under the Trust Indenture Act), are
agreed by the parties hereto to replace such other duties and liabilities of
such Indemnified Person.

          (b)  Unless otherwise expressly provided herein:

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

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

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

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

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<Page>

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

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

SECTION 10.4.  INDEMNIFICATION.

          (a)  (i) The Debenture Issuer shall indemnify, to the full extent
permitted by law, any Company Indemnified Person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the Trust) by reason of the fact
that he is or was a Company Indemnified Person against expenses (including
attorneys' fees and expenses), judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with such action, suit or
proceeding if he acted in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the Trust, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that the Company
Indemnified Person did not act in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the Trust, and, with
respect to any criminal action or proceeding, had reasonable cause to believe
that his conduct was unlawful.

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

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<Page>

               (iii)   To the extent that a Company Indemnified Person shall be
          successful on the merits or otherwise (including dismissal of an
          action without prejudice or the settlement of an action without
          admission of liability) in defense of any action, suit or proceeding
          referred to in paragraphs (i) and (ii) of this Section 10.4(a), or in
          defense of any claim, issue or matter therein, he shall be
          indemnified, to the full extent permitted by law, against expenses
          (including attorneys' fees) actually and reasonably incurred by him in
          connection therewith.

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

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

               (vi)    The indemnification and advancement of expenses provided
          by, or granted pursuant to, the other paragraphs of this
          Section 10.4(a) shall not be deemed exclusive of any other rights to
          which those seeking indemnification and advancement of expenses may be
          entitled under any agreement, vote of

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<Page>

          stockholders or disinterested directors of the Debenture Issuer or
          Preferred Security Holders of the Trust or otherwise, both as to
          action in his official capacity and as to action in another capacity
          while holding such office. All rights to indemnification under this
          Section 10.4(a) shall be deemed to be provided by a contract between
          the Debenture Issuer and each Company Indemnified Person who serves in
          such capacity at any time while this Section 10.4(a) is in effect. Any
          repeal or modification of this Section 10.4(a) shall not affect any
          rights or obligations then existing.

               (vii)   The Debenture Issuer or the Trust may purchase and
          maintain insurance on behalf of any person who is or was a Company
          Indemnified Person against any liability asserted against him and
          incurred by him in any such capacity, or arising out of his status as
          such, whether or not the Debenture Issuer would have the power to
          indemnify him against such liability under the provisions of this
          Section 10.4(a).

               (viii)  For purposes of this Section 10.4(a), references to "the
          Trust" shall include, in addition to the resulting or surviving
          entity, any constituent entity (including any constituent of a
          constituent) absorbed in a consolidation or merger, so that any person
          who is or was a director, trustee, officer or employee of such
          constituent entity, or is or was serving at the request of such
          constituent entity as a director, trustee, officer, employee or agent
          of another entity, shall stand in the same position under the
          provisions of this Section 10.4(a) with respect to the resulting or
          surviving entity as he would have with respect to such constituent
          entity if its separate existence had continued.

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

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

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<Page>

SECTION 10.5.  OUTSIDE BUSINESSES.

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

                                   ARTICLE XI
                                   ACCOUNTING

SECTION 11.1.  FISCAL YEAR.

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

SECTION 11.2.  CERTAIN ACCOUNTING MATTERS.

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

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

          (c)  The Regular Trustees shall cause to be duly prepared and
delivered to each of the Holders of Securities, any annual United States federal
income tax information statement, required by the Code, containing such
information with regard to the Securities held by each Holder as is required by
the Code and the Treasury Regulations. Notwithstanding any right

                                       39
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under the Code to deliver any such statement at a later date, the Regular
Trustees shall endeavor to deliver all such statements within 30 days after the
end of each Fiscal Year of the Trust.

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

SECTION 11.3.  BANKING.

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

SECTION 11.4.  WITHHOLDING.

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

                                   ARTICLE XII
                             AMENDMENTS AND MEETINGS

SECTION 12.1.  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 Regular Trustees (or, if there are more than two
          Regular Trustees a majority of the Regular Trustees);

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<Page>

               (ii)    if the amendment affects the rights, powers, duties,
          obligations or immunities of the Property Trustee, the Property
          Trustee; and

               (iii)   if the amendment affects the rights, powers, duties,
          obligations or immunities of the Delaware Trustee, the Delaware
          Trustee;

          (b)  no amendment shall be made, and any such purported amendment
shall be void and ineffective:

               (i)     unless, in the case of any proposed amendment, the
          Property Trustee shall have first received an Officers' Certificate
          from each of the Trust and the Depositor that such amendment is
          permitted by, and conforms to, the terms of this Declaration
          (including the terms of the Securities);

               (ii)    unless, in the case of any proposed amendment which
          affects the rights, powers, duties, obligations or immunities of the
          Property Trustee, the Property Trustee shall have first received:

                       (A)  an Officers' Certificate from each of the Trust and
          the Depositor 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
          Depositor or the Trust) that such amendment is permitted by, and
          conforms to, the terms of this Declaration (including the terms of the
          Securities); and

               (iii)   to the extent the result of such amendment would be to:

                       (A)  cause the trust to fail to continue to be classified
          for purposes of United States federal income taxation as a grantor
          trust; reduce or otherwise adversely affect the powers of the Property
          Trustee in contravention of the Trust Indenture Act; or

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

          (c)  at such time after the Trust has issued any Securities that
remain outstanding, any amendment that would adversely affect the rights,
privileges or preferences of any Holder of Securities may be effected only with
such additional requirements as may be set forth in the terms of such
Securities;

          (d)  Section 9.1(c) and this Section 12.1 shall not be amended without
the consent of all of the Holders of the Securities; Article IV shall not be
amended without the consent of the Holders of a Majority in liquidation amount
of the Common Securities; the rights of the holders of the Common Securities
under Article V 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 Common Securities; and notwithstanding
Section 12.1(c),

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<Page>

this Declaration may be amended by the Depositor and the Trustees without the
consent of the Holders of the 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
          Depositor;

               (iv)    conform to any change in Rule 3a-5 or written change in
          interpretation or application of Rule 3a-5 by any legislative body,
          court, government agency or regulatory authority which amendment does
          not have a material adverse effect on the right, preferences or
          privileges of the Holders; and

               (v)     modify, eliminate and add to any provision of this
          Declaration to such extent as may be necessary.

SECTION 12.2.  MEETINGS OF THE HOLDERS OF SECURITIES; ACTION BY WRITTEN CONSENT.

          (a)  Meetings of the Holders of any class of Securities may be called
at any time by the Regular Trustees (or as provided in the terms of the
Securities) to consider and act on any matter on which Holders of such class of
Securities are entitled to act under the terms of this Declaration, the terms of
the Securities or the rules of any stock exchange on which the Preferred
Securities are listed or admitted for trading. The Regular Trustees shall call a
meeting of the Holders of such class if directed to do so by the Holders of at
least 10% in liquidation amount of such class of Securities. Such direction
shall be given by delivering to the Regular Trustees one or more calls in a
writing stating that the signing Holders of Securities wish to call a meeting
and indicating the general or specific purpose for which the meeting is to be
called. Any Holders of Securities calling a meeting shall specify in writing the
Security Certificates held by the Holders of Securities exercising the right to
call a meeting and only those Securities specified shall be counted for purposes
of determining whether the required percentage set forth in the second sentence
of this paragraph has been met.

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

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

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<Page>

          having a right to vote thereon were present and voting. Prompt notice
          of the taking of action without a meeting shall be given to the
          Holders of Securities entitled to vote who have not consented in
          writing. The Regular Trustees may specify that any written ballot
          submitted to the Security Holder for the purpose of taking any action
          without a meeting shall be returned to the Trust within the time
          specified by the Regular Trustees;

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

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

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

                                  ARTICLE XIII
                       REPRESENTATIONS OF PROPERTY TRUSTEE
                              AND DELAWARE TRUSTEE

SECTION 13.1.  REPRESENTATIONS AND WARRANTIES OF PROPERTY TRUSTEE.

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

          (a)  the Property Trustee is a Massachusetts trust company with trust
powers and authority to execute and deliver, and to carry out and perform its
obligations under the terms of, this Declaration;

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

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

          (d)  no consent, approval or authorization of, or registration with or
notice to, any Massachusetts or federal banking authority is required for the
execution, delivery or performance by the Property Trustee, of this Declaration.

SECTION 13.2.  REPRESENTATIONS AND WARRANTIES OF DELAWARE TRUSTEE.

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

          (a)  The Delaware Trustee is a natural person who is a resident of the
State of Delaware or, if not a natural person, an entity which has its principal
place of business in the State of Delaware, and is duly organized, validly
existing under the laws of the jurisdiction of formation, with trust power and
authority to execute and deliver, and to carry out and perform its obligations
under the terms of, this Declaration.

          (b)  The Delaware Trustee has been authorized to perform its
obligations under the Certificate of Trust and this Declaration. This
Declaration under Delaware law constitutes a legal, valid and binding obligation
of the Delaware Trustee, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, moratorium, insolvency, and
other similar laws affecting creditors' rights generally and to general
principles of equity and the discretion of the court (regardless of whether the
enforcement of such remedies is considered in a proceeding in equity or at law).

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

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                                   ARTICLE XIV
                                  MISCELLANEOUS

SECTION 14.1.  NOTICES.

          All notices provided for in this Declaration shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by first class mail, as follows:

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

               [Allstate Financing III]
               c/o The Allstate Corporation
               2775 Sanders Road
               Northbrook, Illinois 60062
               Attention:
               Telecopy:

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

               Wachovia Bank of Delaware National Association
               One Rodney Square
               920 King Street, Suite 100
               Wilmington, Delaware 19801
               Attention: Corporate Trust Administration
               Telecopy:

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

               U.S. Bank National Association
               One Federal Street, Third Floor
               Boston, Massachusetts 02110
               Attention: Corporate Trust Services
               Telecopy:

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

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               The Allstate Corporation
               2775 Sanders Road
               Northbrook, Illinois 60062
               Attention:
               Telecopy:

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

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

SECTION 14.2.  GOVERNING LAW.

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

SECTION 14.3.  INTENTION OF THE PARTIES.

          It is the intention of the parties hereto that the Trust be classified
for United States federal income tax purposes as a grantor trust. The provisions
of this Declaration shall be interpreted to further this intention of the
parties.

SECTION 14.4.  HEADINGS.

          Headings contained in this Declaration are inserted for convenience of
reference only and do not affect the interpretation of this Declaration or any
provision hereof.

SECTION 14.5.  SUCCESSORS AND ASSIGNS.

          Whenever in this Declaration any of the parties hereto is named or
referred to, the successors and assigns of such party shall be deemed to be
included, and all covenants and agreements in this Declaration by the Depositor
and the Trustees shall bind and inure to the benefit of their respective
successors and assigns, whether so expressed.

SECTION 14.6.  PARTIAL ENFORCEABILITY.

          If any provision of this Declaration, or the application of such
provision to any Person or circumstance, shall be held invalid, the remainder of
this Declaration, or the application of such provision to persons or
circumstances other than those to which it is held invalid, shall not be
affected thereby.

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SECTION 14.7.  COUNTERPARTS.

          This Declaration may contain more than one counterpart of the
signature page and this Declaration may be executed by the affixing of the
signature of each of the Trustees to one of such counterpart signature pages.
All of such counterpart signature pages shall be read as though one, and they
shall have the same force and effect as though all of the signers had signed a
single signature page.

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

                                        __________________________________
                                        ___________, as Regular Trustee

                                        __________________________________
                                        ___________, as Regular Trustee

                                        __________________________________
                                        ___________, as Regular Trustee

                                        WACHOVIA BANK OF DELAWARE NATIONAL
                                        ASSOCIATION, as Delaware Trustee

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

                                        U.S. BANK NATIONAL ASSOCIATION,
                                         as Property Trustee

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

                                        THE ALLSTATE CORPORATION,
                                         as Depositor

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

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                                     ANNEX I
                                    TERMS OF
                      _____% _________ PREFERRED SECURITIES
                       _____% _________ COMMON SECURITIES

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

          (1)  Designation and Number.

               (a)     Preferred Securities. __________ Preferred Securities of
the Trust with an aggregate liquidation amount with respect to the assets of the
Trust of _____________________ dollars ($__________) and a liquidation amount
with respect to the assets of the Trust of $___ per preferred security, are
hereby designated for the purposes of identification only as "_____% __________
Preferred Securities(SM) ("______"(SM))" (the "Preferred Securities"). The
Preferred Security Certificates evidencing the Preferred Securities shall be
substantially in the form of Exhibit A-1 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice or to conform to the rules of any stock exchange on
which the Preferred Securities are listed.

               (b)     Common Securities. __________ Common Securities of the
Trust with an aggregate liquidation amount with respect to the assets of the
Trust of ______________________ dollars ($__________) and a liquidation amount
with respect to the assets of the Trust of $___ per common security, are hereby
designated for the purposes of identification only as "_____% ____________
Common Securities" (the "Common Securities"). The Common Security Certificates
evidencing the Common Securities shall be substantially in the form of Exhibit
A-2 to the Declaration, with such changes and additions thereto or deletions
therefrom as may be required by ordinary usage, custom or practice.

          (2)  Distributions.

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

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computed, Distributions will be computed on the basis of the actual number of
days elapsed per 90-day quarter.

               (b)     Distributions on the Securities will be cumulative, will
accrue from ______ __, ____, and will be payable quarterly in arrears, on
March 31, June 30, September 30, and December 31 of each year, commencing on
______ __, ____, except as otherwise described below. The Debenture Issuer has
the right under the Indenture to defer payments of interest by extending the
interest payment period from time to time on the Debentures for a period not
exceeding 20 consecutive quarters or extending beyond the maturity date of the
Debentures (each an "Extension Period"), during which Extension Period no
interest shall be due and payable on the Debentures; provided that no Extension
Period shall last beyond the date of maturity of the Debentures. As a
consequence of such deferral, Distributions will also be deferred. Despite such
deferral, quarterly Distributions will continue to accrue with interest thereon
(to the extent permitted by applicable law) at the Coupon Rate compounded
quarterly during any such Extension Period. Prior to the termination of any such
Extension Period, the Debenture Issuer may further extend such Extension Period;
provided that such Extension Period together with all such previous and further
extensions thereof may not exceed 20 consecutive quarters or extend beyond the
maturity of the Debentures. Payments of accrued Distributions will be payable to
Holders as they appear on the books and records of the Trust on the first record
date after the end of the Extension Period. Upon the termination of any
Extension Period and the payment of all amounts then due, the Debenture Issuer
may commence a new Extension Period, subject to the above requirements.

               (c)     Distributions on the Securities will be payable to the
Holders thereof as they appear on the books and records of the Trust on the
relevant record dates. While the Preferred Securities remain in book-entry only
form, the relevant record dates shall be one Business Day prior to the relevant
payment dates which payment dates correspond to the interest payment dates on
the Debentures. Subject to any applicable laws and regulations and the
provisions of the Declaration, each such payment in respect of the Preferred
Securities will be made as described under the heading "Description of the
Preferred Securities -- Book-Entry Only Issuance -- The Depository Trust
Company" in the Prospectus Supplement dated ______ __, ____, to the Prospectus
dated ______ __, ____ (together, the "Prospectus"), of the Trust included in the
Registration Statement on Form S-3 of the Depositor, the Trust and certain other
statutory trusts. The relevant record dates for the Common Securities shall be
the same record date as for the Preferred Securities. If the Preferred
Securities shall not continue to remain in book-entry only form, the relevant
record dates for the Preferred Securities, shall conform to the rules of any
securities exchange on which the securities are listed and, if none, shall be
selected by the Regular Trustees, which dates shall be at least one Business Day
but less than 60 Business Days before the relevant payment dates, which payment
dates correspond to the interest payment dates on the Debentures. Distributions
payable on any Securities that are not punctually paid on any Distribution
payment date, as a result of the Debenture Issuer having failed to make a
payment under the Debentures, will cease to be payable to the Person in whose
name such Securities are registered on the relevant record date, and such
defaulted Distribution will instead be payable to the Person in whose name such
Securities are registered on the special record date or other specified date
determined in accordance with the Indenture. If any date on which Distributions
are payable on the Securities is not a Business Day, then payment of the
Distribution payable on such date will be made on the next succeeding day that
is a Business Day (and without any

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interest or other payment in respect of any such delay) except that, if such
Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day, in each case with the same force and
effect as if made on such date.

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

          (3)  Liquidation Distribution Upon Dissolution.

          In the event of any voluntary or involuntary dissolution, winding-up
or termination of the Trust, the Holders of the Securities on the date of the
dissolution, winding-up or termination, as the case may be, will be entitled to
receive out of the assets of the Trust available for distribution to Holders of
Securities after satisfaction of liabilities of creditors an amount equal to the
aggregate of the stated liquidation amount of $___ per Security plus accrued and
unpaid Distributions thereon to the date of payment (such amount being the
"Liquidation Distribution"), unless, in connection with such dissolution,
winding-up or termination, Debentures in an aggregate stated principal amount
equal to the aggregate stated liquidation amount of such Securities, with an
interest rate equal to the Coupon Rate of, and bearing accrued and unpaid
interest in an amount equal to the accrued and unpaid Distributions on, such
Securities, shall be distributed on a Pro Rata basis to the Holders of the
Securities in exchange for such Securities.

          If, upon any such dissolution, 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 on a Pro Rata basis.

          (4)  Redemption and Distribution.

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

               (b)     If fewer than all the outstanding Securities are to be so
redeemed, the Common Securities and the Preferred Securities will be redeemed
Pro Rata and the Preferred Securities to be redeemed will be as described in
Section 4(f)(ii) below.

               (c)     If, at any time, a Tax Event (as defined below) shall
occur and be continuing the Regular Trustees shall, except in certain limited
circumstances described in this Section 4(c), dissolve the Trust and, after
satisfaction of creditors, cause Debentures held by the Property Trustee, having
an aggregate principal amount equal to the aggregate stated liquidation amount
of, with an interest rate identical to the Coupon Rate of, and accrued and
unpaid interest

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

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

          "Tax Event" means that the Regular Trustees shall have received an
opinion of a nationally recognized independent tax counsel experienced in such
matters (a "Dissolution Tax Opinion") to the effect that on or after the date of
the Prospectus Supplement, as a result of (a) any amendment to, clarification of
or change (including any announced prospective change) in, the laws (or any
regulations thereunder) of the United States or any political subdivision or
taxing authority thereof or therein affecting taxation, (b) any judicial
decision, official administrative pronouncement, ruling, regulatory procedure,
notice or announcement, including any notice or announcement of intent to adopt
such procedures or regulations (an "Administrative Action") or (c) any amendment
to, clarification of, or change in the official position or the interpretation
of such Administrative Action or judicial decision that differs from the
theretofore generally accepted position, in each case, by any legislative body,
court, governmental authority or regulatory body, irrespective of the manner in
which such amendment, clarification or change is made known, which amendment,
clarification, or change is effective or such pronouncement or decision is
announced, in each case, on or after, the first date of issuance

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of the Securities, there is more than an insubstantial risk that (i) the Trust
is or will be within 90 days of the date thereof, subject to United States
federal income tax with respect to interest accrued or received on the
Debentures, (ii) the Trust is, or will be within 90 days of the date thereof,
subject to more than a de minimis amount of taxes, duties or other governmental
charges, or (iii) interest payable by the Debenture Issuer to the Trust on the
Debentures is not, or within 90 days of the date thereof will not be,
deductible, in whole or in part, by the Debenture Issuer for United States
federal income tax purposes.

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

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

               (e)     If the Debentures are distributed to holders of the
Securities, pursuant to the terms of the Indenture, the Debenture Issuer will
use its best efforts to have the Debentures listed on the New York Stock
Exchange or on such other exchange as the Preferred Securities were listed
immediately prior to the distribution of the Debentures.

               (f)     "Redemption or Distribution Procedures."

                       (i)    Notice of any redemption of, or notice of
               distribution of Debentures in exchange for the Securities (a
               "Redemption/Distribution Notice") will be given by the Trust by
               mail to each Holder of Securities to be redeemed or exchanged not
               fewer than 30 nor more than 60 days before the date fixed for
               redemption or exchange thereof which, in the case of a
               redemption, will be the date fixed for redemption of the
               Debentures. For purposes of the calculation of the date of
               redemption or exchange and the dates on which notices are given
               pursuant to this Section 4(f)(i), a Redemption/ Distribution
               Notice shall be deemed to be given on the day such notice is
               first mailed by first-class mail, postage prepaid, to Holders of
               Securities. Each Redemption/Distribution Notice shall be
               addressed to the Holders of Securities at the address of each
               such Holder appearing in the books and records of the Trust. No
               defect in the Redemption/Distribution Notice or in the mailing of
               either thereof with respect to any Holder shall affect the
               validity of the redemption or exchange proceedings with respect
               to any other Holder.

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

                       (iii)  If Securities are to be redeemed and the Trust
               gives a Redemption/Distribution Notice, which notice may only be
               issued if the Debentures are redeemed as set out in this
               Section 4 (which notice will be irrevocable), then (A) while the
               Preferred Securities are in book-entry only form, with respect to
               the Preferred Securities, by 12:00 noon, New York City time, on
               the redemption date, provided that the Debenture Issuer has paid
               the Property Trustee a sufficient amount of cash in connection
               with the related redemption or maturity of the Debentures, the
               Property Trustee will deposit irrevocably with DTC or its nominee
               (or successor Clearing Agency or its nominee) funds sufficient to
               pay the applicable Redemption Price with respect to the Preferred
               Securities and will give DTC irrevocable instructions and
               authority to pay the Redemption Price to the Holders of the
               Preferred Securities, and (B) with respect to Preferred
               Securities issued in definitive form and Common Securities,
               provided that the Debenture Issuer has paid the Property Trustee
               a sufficient amount of cash in connection with the related
               redemption or maturity of the Debentures, the Property Trustee
               will pay the relevant Redemption Price to the Holders of such
               Securities by check mailed to the address of the relevant Holder
               appearing on the books and records of the Trust on the redemption
               date. If a Redemption/Distribution Notice shall have been given
               and funds deposited as required, if applicable, then immediately
               prior to the close of business on the date of such deposit, or on
               the redemption date, as applicable, distributions will cease to
               accrue on the Securities so called for redemption and all rights
               of Holders of such Securities so called for redemption will
               cease, except the right of the Holders of such Securities to
               receive the Redemption Price, but without interest on such
               Redemption Price. Neither the Regular Trustees nor the Trust
               shall be required to register or cause to be registered the
               transfer of any Securities that have been so called for
               redemption. If any date fixed for redemption of Securities is not
               a Business Day, then payment of the Redemption Price payable on
               such date will be made on the next succeeding day that is a
               Business Day (and without any interest or other payment in
               respect of any such delay) except that, if such Business Day
               falls in the next calendar year, such payment will be made on the
               immediately preceding Business Day, in each case with the same
               force and effect as if made on such date fixed for redemption. If
               payment of the Redemption Price in respect of any Securities is
               improperly withheld or

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               refused and not paid either by the Property Trustee or by the
               Depositor as guarantor pursuant to the relevant Securities
               Guarantee, Distributions on such Securities will continue to
               accrue from the original redemption date to the actual date of
               payment, in which case the actual payment date will be considered
               the date fixed for redemption for purposes of calculating the
               Redemption Price.

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

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

          (5)  Voting Rights - Preferred Securities.

               (a)     Except as provided under Sections 5(b) and 7 and as
otherwise required by law and the Declaration, the Holders of the Preferred
Securities will have no voting rights.

               (b)     Subject to the requirements set forth in this paragraph,
the Holders of a Majority in aggregate liquidation amount of the Preferred
Securities, voting separately as a class may direct the time, method, and place
of conducting any proceeding for any remedy available to the Property Trustee,
or exercising any trust or power conferred upon the Property Trustee under the
Declaration, including the right to direct the Property Trustee, as holder of
the Debentures, to (i) exercise the remedies available under the Indenture,
conducting any proceeding for any remedy available to the Debenture Trustee, or
exercising any trust or power conferred on the Debenture Trustee with respect to
the Debentures, (ii) waive any past default and its consequences that is
waivable under Section ___ of the Indenture, or (iii) exercise any right to
rescind or annul a declaration that the principal of all the Debentures shall be
due and payable[; provided, however, that, where a consent under the Indenture
would require the consent or act of the Holders of greater than a majority of
the Holders in principal amount of Debentures affected thereby, (a "Super
Majority"), the Property Trustee may only give such consent or take such action
at the written direction of the Holders of at least the proportion in
liquidation amount of the Preferred Securities which the relevant Super Majority
represents of the aggregate principal amount of the Debentures outstanding]. The
Property Trustee shall not revoke any action previously authorized or approved
by a vote of the Holders of the Preferred Securities. Other than with respect to
directing the time, method and place of conducting any remedy available to the
Property Trustee or the Debenture Trustee as set forth above, the Property
Trustee shall not take any action in accordance with the directions of the
Holders of the

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Preferred Securities under this paragraph unless the Property Trustee has
obtained an opinion of tax counsel to the effect that for the purposes of United
States federal income tax the Trust will not be classified as other than a
grantor trust on account of such action. If a Declaration Event of Default has
occurred and is continuing and such event is attributable to the failure of the
Debenture Issuer to pay interest or principal on the Debentures on the date such
interest or principal is otherwise payable (or in the case of redemption, on the
redemption date), then a holder of Preferred Securities may directly institute a
proceeding for enforcement of payment to such Holder of the principal of or
interest on the Debentures having a principal amount equal to the aggregate
liquidation amount of the Preferred Securities of such holder (a "Direct
Action") on or after the respective due date specified in the Debentures. In
connection with such Direct Action, the rights of the holders of the Common
Securities Holder will be subrogated to the rights of such holder of Preferred
Securities to the extent of any payment made by the Issuer to such holder of
Preferred Securities in such Direct Action. Except as provided in the preceding
sentences, the Holders of Preferred Securities will not be able to exercise
directly any other remedy available to the holders of the Debentures.

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

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

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

          (6)  Voting Rights - Common Securities.

               (a)     Except as provided under Sections 6(b), (c), 7(a) and 8
as otherwise required by law and the Declaration, the Holders of the Common
Securities will have no voting rights.

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

                                       I-8
<Page>

               (c)     Subject to Section 2.6 of the Declaration and only after
the Event of Default with respect to the Preferred Securities has been cured,
waived, or otherwise eliminated and subject to the requirements of the second to
last sentence of this paragraph, the Holders of a Majority in liquidation amount
of the Common Securities, voting separately as a class, may direct the time,
method, and place of conducting any proceeding for any remedy available to the
Property Trustee, or exercising any trust or power conferred upon the Property
Trustee under the Declaration, including (i) directing the time, method, place
of conducting any proceeding for any remedy available to the Debenture Trustee,
or exercising any trust or power conferred on the Debenture Trustee with respect
to the Debentures, (ii) waive any past default and its consequences that is
waivable under Section ____ of the Indenture, or (iii) exercise any right to
rescind or annul a declaration that the principal of all the Debentures shall be
due and payable[; provided that, where a consent or action under the Indenture
would require the consent or act of a Super Majority, the Property Trustee may
only give such consent or take such action at the written direction of the
Holders of at least the proportion in liquidation amount of the Common
Securities which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding]. Pursuant to this Section 6(c),
the Property Trustee shall not revoke any action previously authorized or
approved by a vote of the Holders of the Preferred Securities. Other than with
respect to directing the time, method and place of conducting any remedy
available to the Property Trustee or the Debenture Trustee as set forth above,
the Property Trustee shall not take any action in accordance with the directions
of the Holders of the Common Securities under this paragraph unless the Property
Trustee has obtained an opinion of tax counsel to the effect that for the
purposes of United States federal income tax the Trust will not be classified as
other than a grantor trust on account of such action. If the Property Trustee
fails to enforce its rights under the Declaration, any Holder of Common
Securities may institute a legal proceeding directly against any Person to
enforce the Property Trustee's rights under the Declaration, without first
instituting a legal proceeding against the Property Trustee or any other Person.

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

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

          (7)  Amendments to Declaration and Indenture.

               (a)     In addition to any requirements under Section 12.1 of the
Declaration, if any proposed amendment to the Declaration provides for, or the
Regular Trustees

                                       I-9
<Page>

otherwise propose to effect, (i) any action that would adversely affect the
powers, preferences or special rights of the Securities, whether by way of
amendment to the Declaration or otherwise, or (ii) the dissolution, winding- up
or termination of the Trust, other than as described in Section 8.1 of the
Declaration, then the Holders of outstanding Securities voting together as a
single class, will be entitled to vote on such amendment or proposal (but not on
any other amendment or proposal) and such amendment or proposal shall not be
effective except with the approval of the Holders of at least a Majority in
liquidation amount of the Securities, affected thereby, provided, however, if
any amendment or proposal referred to in clause (i) above would adversely affect
only the Preferred Securities or only the Common Securities, then only the
affected class will be entitled to vote on such amendment or proposal and such
amendment or proposal shall not be effective except with the approval of a
Majority in liquidation amount of such class of Securities.

               (b)     In the event the consent of the Property Trustee as the
holder of the Debentures is required under the Indenture with respect to any
amendment, modification or termination on the Indenture or the Debentures, the
Property Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination and shall
vote with respect to such amendment, modification or termination as directed by
a Majority in liquidation amount of the Securities voting together as a single
class[; provided, however, that where a consent under the Indenture would
require the consent of a Super Majority, the Property Trustee may only give such
consent at the direction of the Holders of at least the proportion in
liquidation amount of the Securities which the relevant Super Majority
represents of the aggregate principal amount of the Debentures outstanding];
provided, further, that the Property Trustee shall not take any action in
accordance with the directions of the Holders of the Securities under this
Section 7(b) unless the Property Trustee has obtained an opinion of tax counsel
to the effect that for the purposes of United States federal income tax the
Trust will not be classified as other than a grantor trust on account of such
action.

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

          (9)  Ranking.

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

                                      I-10
<Page>

is continuing the rights of Holders of the Common Securities to payment in
respect of Distributions and payments upon liquidation, redemption and otherwise
are subordinated to the rights to payment of the Holders of the Preferred
Securities.

          (10) Listing.

          The Regular Trustees shall use their best efforts to cause the
Preferred Securities to be listed for quotation on the New York Stock Exchange,
Inc.

          (11) Acceptance of Securities Guarantee and Indenture.

          Each Holder of Preferred Securities and Common Securities, by the
acceptance thereof, agrees to the provisions of the Preferred Securities
Guarantee and the Common Securities Guarantee, respectively, including the
subordination provisions therein and to the provisions of the Indenture.

          (12) No Preemptive Rights.

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

          (13) Miscellaneous.

          These terms constitute a part of the Declaration.

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

                                      I-11
<Page>

                                   EXHIBIT A-1

                     FORM OF PREFERRED SECURITY CERTIFICATE

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

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

Certificate Number                      Number of Preferred Securities
                                           CUSIP NO. _______________

                   Certificate Evidencing Preferred Securities

                                       of

                            [Allstate Financing III]

          _____% ____________ Preferred Securities(SM) ("______(SM))

          (liquidation amount $___ per Preferred Security)

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

                                      A1-1
<Page>

Indenture to a Holder without charge upon written request to the Trust at its
principal place of business.

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

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

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

                                        [ALLSTATE FINANCING III]

                                        By:
                                           -------------------------------
                                           Name:
                                           Title: Regular Trustee

                                      A1-2
<Page>

                          [FORM OF REVERSE OF SECURITY]

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

          Except as otherwise described below, distributions on the Preferred
Securities will be cumulative, will accrue from the date of original issuance
and will be payable quarterly in arrears, on March 31, June 30, September 30 and
December 31 of each year, commencing on _____ __, ____, to ______ __, ____. The
Debenture Issuer has the right under the Indenture to defer payments of interest
by extending the interest payment period from time to time on the Debentures for
a period not exceeding 20 consecutive quarters (each an "Extension Period");
provided that no Extension Period shall last beyond the date of the maturity of
the Debentures and as a consequence of such deferral, Distributions will also be
deferred. Despite such deferral, quarterly Distributions will continue to accrue
with interest thereon (to the extent permitted by applicable law) at the Coupon
Rate compounded quarterly during any such Extension Period. Prior to the
termination of any such Extension Period, the Debenture Issuer may further
extend such Extension Period; provided that such Extension Period together with
all such previous and further extensions thereof may not exceed 20 consecutive
quarters or extend beyond the maturity of the Debentures. Payments of accrued
Distributions will be payable to Holders as they appear on the books and records
of the Trust on the first record date after the end of the Extension Period.
Upon the termination of any Extension Period and the payment of all amounts then
due, the Debenture Issuer may commence a new Extension Period, subject to the
above requirements.

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

                                   ----------

                                   ASSIGNMENT

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

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

                                      A1-3
<Page>

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
          (Insert address and zip code of assignee)

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

Date:
      -------------------------------

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

Signature Guarantee*:
                       -------------------------------

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

                                      A1-4
<Page>

                                   EXHIBIT A-2

                       FORM OF COMMON SECURITY CERTIFICATE

Certificate Number                       Number of Common Securities

                    Certificate Evidencing Common Securities
                                       of

                            [Allstate Financing III]

                       _____% __________ Common Securities
                  (liquidation amount $___ per Common Security)

          [Allstate Financing III], a statutory trust formed under the laws of
the State of Delaware (the "Trust"), hereby certifies that [The Allstate
Corporation] (the "Holder") is the registered owner of common securities of the
Trust representing undivided beneficial interests in the assets of the Trust
designated the _____% __________ Common Securities (liquidation amount $___ per
Common Security) (the "Common Securities"). The Common Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer. The designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Common Securities represented
hereby are issued and shall in all respects be subject to the provisions of the
Amended and Restated Declaration of Trust of the Trust dated as of ______ __,
____, as the same may be amended from time to time (the "Declaration"),
including the designation of the terms of the Common Securities as set forth in
Annex I to the Declaration. Capitalized terms used herein but not defined shall
have the meaning given them in the Declaration. The Holder is entitled to the
benefits of the Common Securities Guarantee to the extent provided therein. The
Depositor will provide a copy of the Declaration, the Common Securities
Guarantee and the Indenture to a Holder without charge upon written request to
the Trust at its principal place of business.

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

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

                                      A2-1
<Page>

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

                                        [ALLSTATE FINANCING III]

                                        By:
                                           -------------------------------
                                           Name:
                                           Title: Regular Trustee

                                      A2-2
<Page>

                          [FORM OF REVERSE OF SECURITY]

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

          Except as otherwise described below, distributions on the Common
Securities will be cumulative, will accrue from the date of original issuance
and will be payable quarterly in arrears, on March 31, June 30, September 30 and
December 31 of each year, commencing on ________ __, ____, to Holders of record
fifteen (15) days prior to such payment dates, which payment dates shall
correspond to the interest payment dates on the Debentures. The Debenture Issuer
has the right under the Indenture to defer payments of interest by extending the
interest payment period from time to time on the Debentures for a period not
exceeding 20 consecutive quarters (each an "Extension Period"); provided that no
Extension Period shall last beyond the date of the maturity of the Debentures
and as a consequence of such deferral, Distributions will also be deferred.
Despite such deferral, quarterly Distributions will continue to accrue with
interest thereon (to the extent permitted by applicable law) at the Coupon Rate
compounded quarterly during any such Extension Period. Prior to the termination
of any such Extension Period, the Debenture Issuer may further extend such
Extension Period; provided that such Extension Period together with all such
previous and further extensions thereof may not exceed 20 consecutive quarters
or extend beyond the maturity date of the Debentures. Payments of accrued
Distributions will be payable to Holders as they appear on the books and records
of the Trust on the first record date after the end of the Extension Period.
Upon the termination of any Extension Period and the payment of all amounts then
due, the Debenture Issuer may commence a new Extension Period, subject to the
above requirements.

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

                                      A2-3
<Page>

                                   ----------

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Common Security
Certificate to:
____________________________________________________________
____________________________________________________________
_____________________________________________________________(Insert)
assignee's name and social security or tax identification number)

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________(Insert address
and address and zip code of assignee)

and irrevocably appoints _____________________________________
______________________________________________________________
_______________________________ agent to transfer this Common Security
Certificate on the books of the Trust. The agent may substitute another to act
for him or her.

Date:
      -----------------------------

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

Signature Guarantee*:
                       --------------------------------

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

                                      A2-4
<Page>

                                    EXHIBIT B

                              SPECIMEN OF DEBENTURE

                                       B-1
<Page>

                                    EXHIBIT C

                             UNDERWRITING AGREEMENT

                                       C-1<Page>

                                                                    EXHIBIT 4.14

                    [FORM OF PREFERRED SECURITIES GUARANTEE]

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

                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                            [Allstate Financing III]

                          Dated as of _______ __, ____

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

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                 Page
                                                                                 ----
<S>                                                                                <C>
                                      ARTICLE I
                            DEFINITIONS AND INTERPRETATION

SECTION 1.1   Definitions and Interpretation........................................1

                                      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..................6
SECTION 3.2   Certain Rights of Preferred Guarantee Trustee.........................8
SECTION 3.3   Not Responsible for Recitals or Issuance of Preferred Securities
              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
              Trustee..............................................................11

                                      ARTICLE V
                                      GUARANTEE

SECTION 5.1   Guarantee............................................................12
SECTION 5.2   Waiver of Notice and Demand..........................................12
SECTION 5.3   Obligations Not Affected.............................................12
SECTION 5.4   Rights of Holders....................................................13
SECTION 5.5   Guarantee of Payment.................................................13
SECTION 5.6   Subrogation..........................................................13
SECTION 5.7   Independent Obligations..............................................14
</Table>

                                        i
<Page>

<Table>
<S>                                                                                <C>
                                      ARTICLE VI
                      LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1   Limitation of Transactions...........................................14
SECTION 6.2   Ranking..............................................................14

                                     ARTICLE VII
                                     TERMINATION

SECTION 7.1   Termination..........................................................14

                                     ARTICLE VIII
                                   INDEMNIFICATION

SECTION 8.1   Exculpation..........................................................15
SECTION 8.2   Indemnification......................................................15

                                      ARTICLE IX
                                    MISCELLANEOUS

SECTION 9.1   Successors and Assigns...............................................15
SECTION 9.2   Amendments...........................................................16
SECTION 9.3   Notices..............................................................16
SECTION 9.4   Benefit..............................................................17
SECTION 9.5   Governing Law........................................................17
</Table>

                                       ii
<Page>

                    PREFERRED SECURITIES GUARANTEE AGREEMENT

          This GUARANTEE AGREEMENT (the "Preferred Securities Guarantee"), dated
as of ______ __, ____, is executed and delivered by The Allstate Corporation, a
Delaware corporation (the "Guarantor"), and U.S. Bank National Association, a
national banking association, organized under the laws of the United States, 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 [Allstate Financing III], a Delaware statutory business trust (the
"Issuer").

          WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of _____ __, ____, among the trustees of the Issuer
named therein, the Guarantor, as Depositor, and the holders from time to time of
undivided beneficial interests in the assets of the Issuer, the Issuer is
issuing on the date hereof ___________ preferred securities, having an aggregate
liquidation amount of $__________, designated the ___% ______________ Preferred
Securities (the "Preferred Securities");

          WHEREAS, the Preferred Securities will be issued by the Issuer and the
proceeds thereof, together with the proceeds from the issuance of the Issuer's
Common Securities (as defined below), will be used to purchase the Debentures
(as defined in the Declaration) of the Guarantor which will be deposited with
U.S. Bank National Association, as Property Trustee under the Declaration, as
trust assets; and

          WHEREAS, as incentive for the Holders to purchase the Preferred
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Preferred Securities Guarantee, to pay to the
Holders of the Preferred Securities the Guarantee Payments (as defined herein)
and to make certain other payments on the terms and conditions set forth herein.

          [WHEREAS, the Guarantor is also executing and delivering a guarantee
agreement (the "Common Securities Guarantee") in substantially identical terms
to this Preferred Securities Guarantee for the benefit of the holders of the
Common Securities (as defined herein), except that if an Event of Default (as
defined in the Indenture), has occurred and is continuing, the rights of holders
of the Common Securities to receive Guarantee Payments under the Common
Securities Guarantee are subordinated to the rights of Holders of Preferred
Securities to receive Guarantee Payments under this Preferred Securities
Guarantee.]

          NOW, THEREFORE, in consideration of the purchase by each Holder of
Preferred Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Preferred Securities
Guarantee for the benefit of the Holders.

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1    Definitions and Interpretation

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

<Page>

          (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.

          "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. [An
Affiliate of the Guarantor shall not be deemed to include the Issuer.]

          "Business Day" means any day other than a Saturday or Sunday or any
day on which banking institutions in the City of New York, New York or Boston,
Massachusetts are authorized 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 One Federal Street, Third
Floor, Boston, Massachusetts 02110.

          "Covered Person" means any Holder or beneficial owner of Preferred
Securities.

          "Debentures" means the series of subordinated debt securities of the
Guarantor designated the ___% Subordinated Deferrable Interest Debentures due
__________ ___, ____ held by the Property Trustee (as defined in the
Declaration) of the Issuer.

          "Event of Default" means a default by the Guarantor on any of its
payment or other obligations under this Preferred Securities Guarantee[,
provided, however, that, except with respect to a default in payment of any
Guarantee Payments, the Guarantor shall have received

                                        2
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notice of default and shall not have cured such default within 60 days after
receipt of such notice].

          "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 the Declaration) that are required to be paid on such Preferred Securities to
the extent the Issuer shall have funds available therefor, (ii) the redemption
price, including 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), the lesser of (a) the aggregate of the liquidation amount of
$_________ per Preferred Security and all accrued and unpaid Distributions on
the Preferred Securities to the date of payment, to the extent the Issuer shall
have funds available therefor, and (b) the amount of assets of the Issuer
remaining available for distribution to Holders in liquidation of the Issuer (in
either case, the "Liquidation Distribution"). If an event of default under the
Indenture has occurred and is continuing, the rights of holders of the Common
Securities to receive payments under the Common Securities Guarantee Agreement
are subordinated to the rights of Holders of Preferred Securities to receive
Guarantee Payments.

          "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[, the Preferred Guarantee Trustee] or any
Affiliate of the Guarantor [or the Preferred Guarantee Trustee].

          "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 _________ ___, ____,
between the Guarantor (the "Debenture Issuer") and U.S. Bank National
Association, as trustee, and any indenture supplemental thereto pursuant to
which certain subordinated debt securities of the Debenture Issuer are to be
issued to the Property 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) of Preferred
Securities, voting separately as a class, of more than 50% of the 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.

                                        3
<Page>

          "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 definition 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 U.S. Bank National Association, a
Massachusetts trust company, 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.

          "Trust Securities" means the Common Securities and the Preferred
Securities.

                                        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 of the Preferred Securities ("List of
Holders") as of such date, (i) within 1 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 Section 312(b) of the Trust Indenture Act.

SECTION 2.3    Reports by the Preferred Guarantee Trustee

          Within 60 days after May 15 of each year, the Preferred Guarantee
Trustee shall provide to the Holders of the Preferred Securities such reports as
are required by Section 313 of the Trust Indenture Act, if any, in the form and
in the manner provided by Section 313 of the Trust Indenture Act. The 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

          The Guarantor shall provide to the Preferred Guarantee Trustee[, the
Securities and Exchange Commission and the Holders] 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

          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 of the Preferred Securities, 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, [except in the case of a default in the payment of a Guarantee
Payment,] the Preferred Guarantee Trustee shall be protected in withholding such
notice if and so long as [the Board of Directors, the executive committee or a
trust committee of directors and/or] 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 of the Preferred Securities.

          (b)  The Preferred Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless the Preferred Guarantee Trustee shall
have received written notice, or of which 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.

                                   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 of the Preferred
Securities, and the Preferred Guarantee Trustee shall not transfer this
Preferred Securities Guarantee to any Person except a

                                        6
<Page>

Holder of Preferred Securities 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
          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

                                        7
<Page>

          Preferred Guarantee Trustee shall be under a duty to examine the same
          to determine whether or not they conform to the requirements hereof or
          thereof;

          (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.

          (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).

                                        8
<Page>

          (v)     The Preferred Guarantee Trustee may consult with counsel of
     its selection, and the 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 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, 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

                                        9
<Page>

     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.

          (xi)    The Preferred Guarantee Trustee shall not be liable for any
     action taken, suffered or omitted to be taken by it in good faith and
     reasonably believed by it to be authorized or within the discretion or
     rights or powers conferred upon it by this Preferred Securities Guarantee.

          (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 Preferred Securities
Guarantee

          The recitals contained in this Preferred Securities 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:

          (i)  not be an Affiliate of the Guarantor; 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.

                                       10
<Page>

          (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
Trustee

          (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 during an
Event of Default.

          (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.

          (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 of an instrument of removal or resignation, the Preferred
Guarantee Trustee resigning or being removed 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 to the date of such termination, removal or resignation.

                                       11
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                                    ARTICLE V
                                    GUARANTEE

SECTION 5.1    Guarantee

          The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), 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

          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 Preferred Guarantee Trustee, 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.

SECTION 5.3    Obligations Not Affected

          The obligations, covenants, agreements and duties of the Guarantor
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 (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Debentures or any extension of the maturity date of the Debentures permitted
by the Indenture);

          (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;

                                       12
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          (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 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 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 of
any proceeding for any remedy available to the Preferred Guarantee Trustee in
respect of this Preferred Securities Guarantee or 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 such
Preferred Securities Guarantee, any Holder of Preferred Securities may institute
a legal proceeding directly against the Guarantor 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. The Guarantor waives any right or remedy
to require that any action be brought first against the Issuer or any other
person or entity before proceeding directly against the Guarantor.

SECTION 5.5    Guarantee of Payment

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

SECTION 5.6    Subrogation

          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.

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SECTION 5.7    Independent Obligations

          The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer 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.

                                   ARTICLE VI
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1    Limitation of Transactions

          So long as any Preferred Securities remain outstanding, if there shall
have occurred 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 (other than (i)
dividends or distributions in common stock of the Guarantor, (ii) redemptions or
repurchases of any rights, or the declaration of a dividend of any rights, or
the issuance of any security under any existing and future rights plan of the
Guarantor, (iii) purchases or acquisitions of shares of Common Stock in
connection with the satisfaction by the Guarantor of its obligations under any
employee benefit plans, (iv) as a result of a reclassification of the
Guarantor's capital stock or the exchange or conversion of one class or series
of the Guarantor's capital stock for another class or series of the Guarantor's
capital stock or (v) the purchase of fractional interests in shares of the
Guarantor's capital stock pursuant to the conversion or exchange provisions of
such capital stock of the Guarantor or the security being converted or
exchanged) or make any guarantee payments with respect to the foregoing and (b)
the Guarantor shall not make any payment of interest, principal or premium, if
any, on or repay, repurchase or redeem any debt securities (including
guarantees) issued by the Guarantor which rank pari passu with or junior to the
Debentures.

SECTION 6.2    Ranking

          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 in respect
of any preferred or preference stock of any Affiliate of the Guarantor, and
(iii) senior to the Guarantor's 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) upon the
distribution of the Debentures to the Holders of all of the Preferred Securities
or (iii) upon full payment of the amounts payable in

                                       14
<Page>

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 of
Preferred Securities must restore payment of any sums paid under the Preferred
Securities or under this Preferred Securities Guarantee.

                                  ARTICLE VIII
                                 INDEMNIFICATION

SECTION 8.1    Exculpation

          (a)  No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Guarantor 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 of Preferred Securities might properly be paid.

SECTION 8.2    Indemnification

          The Guarantor agrees to indemnify each Indemnified Person for, and to
hold each Indemnified Person harmless against, any and all loss, liability,
damage, claim 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.

                                   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. [Except in connection with a
consolidation, merger or sale involving the Guarantor that is permitted under

                                       15
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Article Eight of the Indenture and pursuant to which the assignee agrees in
writing to perform the Guarantor's obligations hereunder, the Guarantor shall
not assign its obligations hereunder.]

SECTION 9.2    Amendments

          Except with respect to any changes that do not adversely affect the
rights of Holders in any material respect (in which case no consent of Holders
will be required), this Preferred Securities Guarantee may only be amended with
the prior approval of the Holders of at least a Majority in 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 of the Securities 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 first class 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 of the
Preferred Securities):

                    U.S. Bank National Association
                    One Federal Street
                    Third Floor
                    Boston, Massachusetts 02110
                    Attention: Corporate Trust Administration
                    Telecopy: _______________

          (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 of the Preferred Securities):

                    The Allstate Corporation
                    2775 Sanders Road
                    Northbrook, Illinois 60062
                    Attention: _______________
                    Telecopy:  _______________

          (c)  If given to any Holder of Preferred Securities, 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

                                       16
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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,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

                                       17
<Page>

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

                                         THE ALLSTATE CORPORATION, as
                                         Guarantor

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

                                         U.S. Bank National Association, as
                                         Preferred Guarantee Trustee

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

                                       18

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